Document:

Unassociated Document

    Exhibit
      4.4

     

    WARRANT

     

    THE
      WARRANT EVIDENCED OR CONSTITUTED HEREBY, AND ALL SHARES OF COMMON STOCK
      DELIVERABLE UPON EXERCISE HEREUNDER, HAVE BEEN AND WILL BE ISSUED WITHOUT
      REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“THE ACT”) AND MAY
      NOT BE SOLD, OFFERED FOR SALE, TRANSFERRED, PLEDGED OR HYPOTHECATED WITHOUT
      REGISTRATION UNDER THE ACT UNLESS EITHER (A) THE COMPANY HAS RECEIVED AN OPINION
      OF COUNSEL, IN FORM AND SUBSTANCE REASONABLY SATISFACTORY TO THE COMPANY, TO
      THE
      EFFECT THAT REGISTRATION IS NOT REQUIRED IN CONNECTION WITH SUCH DISPOSITION
      OR
      (B) THE SALE OF SUCH SECURITIES IS MADE PURSUANT TO SECURITIES AND EXCHANGE
      COMMISSION RULE 144.

     

    Date: November
      30, 2006

     

    WARRANT
      TO PURCHASE COMMON STOCK

     

    OF

     

    JAVA
      DETOUR, INC.

     

    (Subject
      to Adjustment)

     

     

    THIS
      CERTIFIES THAT, for value received, Hunter World Markets, Inc. (“Holder”),
      is
      entitled, subject to the terms and conditions of this Warrant, at any time
      or
      from time to time on or after September 1, 2007 (the “Effective
      Date”),
      to
      purchase up to Two Million (2,000,000) shares of common stock, par value $0.001
      per share (the “Warrant Shares”), from Java Detour, Inc., a Delaware corporation
      (the “Company”),
      at an
      exercise price per share equal to Twenty-Five Cents ($0.25) (the “Purchase
      Price). This Warrant shall expire at 5:00 p.m. Pacific time on that date which
      is sixty (60) months from the date of this Warrant (the “Expiration
      Date”).
      Both
      the number of shares of Common Stock purchasable upon exercise of this Warrant
      (the “Warrant Shares”) and the Purchase Price are subject to adjustment and
      change as provided herein. This Warrant is issued in connection with that
      certain Securities Purchase Agreement executed by and among the Company, Holder
      and other parties.

     

    1.  CERTAIN
      DEFINITIONS.
      As used
      in this Warrant the following terms shall have the following respective
      meanings:

     

    “1933
      Act”
shall
      mean the Securities Act of 1933, as amended.

     

    “Common
      Stock”
shall
      mean the Common Stock of the Company and any other securities at any time
      receivable or issuable upon exercise of this Warrant.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    “Common
      Stock Equivalents”
      means any securities of the Company 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 exchangeable for, or otherwise entitles the holder
      thereof to receive, Common Stock.

     

    “Exempt
      Issuance”
      means the issuance of (a) shares of Common Stock or options to employees,
      officers or directors of the Company pursuant to any stock or option plan or
      other arrangement duly adopted by a majority of the non-employee members of
      the
      Board of Directors of the Company or a majority of the members of a committee
      of
      non-employee directors established for such purpose, (b) securities upon the
      exercise of or conversion of any securities issued hereunder, or convertible
      securities, options or warrants issued and outstanding on the date hereof,
      provided that such securities have not been amended since the date hereof to
      increase the number of such securities, (c) securities issued pursuant to
      strategic transactions with 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 or pursuant to acquisitions, 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 and (d) securities issued to consultants for services
      rendered to the Company in non-capital raising transactions in an amount per
      individual issuance not to exceed 30,000 shares for particular services
      rendered.

     

    “Fair
      Market Value”
or
      “FMV”
of
      a
      share of Common Stock as of a particular date shall mean:

     

    (a)  If
      traded
      on a securities exchange, the Nasdaq National Market or the Nasdaq Small Cap
      Market, the Fair Market Value shall be deemed to be the average of the closing
      prices of the Common Stock of the Company on such exchange or market over the
      five (5) business days ending immediately prior to the applicable date of
      valuation;

     

    (b)  If
      actively traded over-the-counter, the Fair Market Value shall be deemed to
      be
      the average of the closing bid prices over the 30-day period ending immediately
      prior to the applicable date of valuation; and

     

    (c)  If
      there
      is no active public market, the Fair Market Value shall be the value as
      determined in good faith by the Company’s Board of Directors upon a review of
      relevant factors, including due consideration of the Registered Holders’
determination of the value of the Company.

     

    “Purchase
      Agreement”
shall
      mean that Securities Purchase Agreement dated November 30, 2006, by and among
      the Company, JDCO, Inc., and certain purchasers of the Company’s Common Stock
      and Warrants.

     

    “SEC”
shall
      mean the Securities and Exchange Commission.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    2.  EXERCISE
      OF WARRANT

     

    2.1  Payment.
      Subject
      to compliance with the terms and conditions of this Warrant and applicable
      securities laws, this Warrant may be exercised, in whole or in part at any
      time
      or from time to time, on or before the Expiration Date by the delivery
      (including, without limitation, delivery by facsimile) of the form of Notice
      of
      Exercise attached hereto as Exhibit 1
      (the
“Notice
      of Exercise”),
      duly
      executed by the Holder, at the address of the Company as set forth herein,
      and
      as soon as practicable after such date,

     

    (a)  surrendering
      this Warrant at the address of the Company, and either

     

    (b)  providing
      payment, by check or by wire transfer, of an amount equal to the product
      obtained by multiplying the number of shares of Common Stock being purchased
      upon such exercise by the then effective Purchase Price (the “Exercise
      Amount”),
      or

     

    (c)  by
      electing, by written notice to the Company on the Notice of Exercise duly
      executed by the Holder, to receive a number of Warrant Shares, determined in
      accordance with the formula set forth below (the “Election”), in which event the
      Company shall issue to the Holder a number of Warrant Shares computed using
      the
      following formula:

     

    X=
      Y(A-B)

    A

     

    Where
      X =
      The number of Warrant Shares to be issued to the Holder upon an
      Election.

     

    
      	 	
              Y
                =
                

            	
              The
                number of Warrant Shares in respect of which this Warrant is being
                exercised as adjusted to the date of the
                Election.

            

    

     

    
      	 	
              A
                =

            	
              The
                FMV of one Warrant Share on the date that the relevant Notice of
                Exercise
                is received by the Company.

            

    

     

    
      	 	
              B
                =

            	
              The
                Purchase Price (as adjusted to the date of the Election) in accordance
                with Section 4 hereof

            

    

     

    2.2  Common
      Stock Certificates; Fractional Shares.
      As soon
      as practicable on or after the date of an exercise of this Warrant, the Company
      shall deliver to the person or persons entitled to receive the same a
      certificate or certificates for the number of whole shares of Common Stock
      issuable upon such exercise. No fractional shares or scrip representing
      fractional shares of Common Stock shall be issued upon an exercise of this
      Warrant.

     

    2.3  Partial
      Exercise: Effective Date of Exercise.
      In case
      of any partial exercise of this Warrant, the Holder and the Company shall cancel
      this Warrant upon surrender hereof and shall execute and deliver a new Warrant
      of like tenor and date for the balance of the shares of Common Stock purchasable
      hereunder. This Warrant shall be deemed to have been exercised immediately
      prior
      to the close of business on the date of its surrender for exercise as provided
      above. The Company acknowledges that the person entitled to receive the shares
      of Common Stock issuable upon exercise of this Warrant shall be treated for
      all
      purposes as the holder of record of such shares as of the close of business
      on
      the date the Holder is deemed to have exercised this Warrant.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    3.  TAXES.
      The
      Company shall pay all taxes and other governmental charges that may be imposed
      in respect of the delivery of shares upon exercise of this Warrant; provided,
      however,
      that
      the Company shall not be required to pay any tax or other charge imposed in
      connection with any transfer involved in the delivery of any certificate for
      shares of Common Stock in any name other than that of the Holder of this
      Warrant, and in such case the Company shall not be required to deliver any
      stock
      certificate until such tax or other charge has been paid, or it has been
      established to the Company’s reasonable satisfaction that no tax or other charge
      is due.

     

    4.  ADJUSTMENT
      OF PURCHASE PRICE AND NUMBER OF COMMON STOCK.
      The
      number of shares of Common Stock deliverable upon exercise of this Warrant
      (or
      any shares of stock or other securities or property receivable upon exercise
      of
      this Warrant) and the Purchase Price are subject to adjustment upon occurrence
      of the following events:

     

    4.1  Adjustment
      for Stock Splits, Stock Subdivisions or Combinations of Shares of Common
      Stock.
      The
      Purchase Price of this Warrant shall be proportionally decreased and the number
      of shares of Common Stock deliverable upon exercise of this Warrant (or any
      shares of stock or other securities at the time deliverable upon exercise of
      this Warrant) shall be proportionally increased to reflect any stock split
      or
      subdivision of the Company’s Common Stock. The Purchase Price of this Warrant
      shall be proportionally increased and the number of shares of Common Stock
      deliverable upon exercise of this Warrant (or any shares of stock or other
      securities at the time deliverable upon exercise of this Warrant) shall be
      proportionally decreased to reflect any combination of the Company’s Common
      Stock.

     

    4.2  Adjustment
      for Dividends or Distributions of Stock or Other Securities or
      Property.
      In case
      the Company shall make or issue, or shall fix a record date for the
      determination of eligible holders entitled to receive, a dividend or other
      distribution with respect to the Common Stock (or any shares of stock or other
      securities at the time issuable upon exercise of the Warrant) payable in (a)
      securities of the Company or (b) assets (excluding cash dividends paid or
      payable solely out of retained earnings), then, in each such case, the
      Registered Holder of this Warrant on exercise hereof at any time after the
      consummation, effective date or record date of such dividend or other
      distribution, shall receive, in addition to the shares of Common Stock (or
      such
      other stock or securities) issuable on such exercise prior to such date, and
      without the payment of additional consideration therefor, the securities or
      such
      other assets of the Company to which such Holder would have been entitled upon
      such date if such Holder had exercised this Warrant on the date hereof and
      had
      thereafter, during the period from the date hereof to and including the date
      of
      such exercise, retained such shares and/or all other additional stock available
      by it as aforesaid during such period giving effect to all adjustments called
      for by this Section 4.

     

    4.3  Reclassification.
      If the
      Company, by reclassification of securities or otherwise, shall change any of
      the
      securities as to which purchase rights under this Warrant exist into the same
      or
      a different number of securities of any other class or classes, this Warrant
      shall thereafter represent the right to acquire such number and kind of
      securities as would have been issuable as the result of such change ‘with
      respect to the securities that were subject to the purchase rights under this
      Warrant immediately prior to such reclassification or other change and the
      Purchase Price therefore shall be appropriately adjusted, all subject to further
      adjustment as provided in this Section 4. No adjustment shall be made pursuant
      to this Section 4.3 upon any conversion or redemption of the Common Stock which
      is the subject of Section 4.5.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    4.4  Adjustment
      for Capital Reorganization. Merger or Consolidation.
      In case
      of any capital reorganization of the capital stock of the Company (other than
      a
      combination, reclassification, exchange or subdivision of shares otherwise
      provided for herein), or any merger or consolidation of the Company with or
      into
      another corporation, or the sale of all or substantially all the assets of
      the
      Company then, and in each such case, as a part of such reorganization, merger,
      consolidation, sale or transfer, lawful provision shall be made so that the
      Holder of this Warrant shall thereafter be entitled to receive upon exercise
      of
      this Warrant, during the period specified herein and upon payment of the
      Purchase Price then in effect, the number of shares of stock or other securities
      or property of the successor corporation resulting from such reorganization,
      merger, consolidation, sale or transfer that a holder of the shares deliverable
      upon exercise of this Warrant would have been entitled to receive in such
      reorganization, consolidation, merger, sale or transfer if this Warrant had
      been
      exercised immediately before such reorganization, merger, consolidation, sale
      or
      transfer, all subject to further adjustment as provided in this Section 4.
      The
      foregoing provisions of this Section 4.4 shall similarly apply to successive
      reorganizations, consolidations, mergers, sales and transfers and to the stock
      or securities of any other corporation that are at the time receivable upon
      the
      exercise of this Warrant. If the per-share consideration payable to the Holder
      hereof for shares in connection with any such transaction is in a form other
      than cash or marketable securities, then the value of such consideration shall
      be determined in good faith by the Company’s Board of Directors. In all events,
      appropriate adjustment (as determined in good faith by the Company’s Board of
      Directors) shall be made in the application of the provisions of this Warrant
      with respect to the rights and interests of the Holder after the transaction,
      to
      the end that the provisions of this Warrant shall be applicable after that
      event, as near as reasonably may be, in relation to any shares or other property
      deliverable after that event upon exercise of this Warrant.

     

    4.5  Conversion
      of Common Stock.
      In case
      all or any portion of the authorized and outstanding shares of Common Stock
      of
      the Company are redeemed or converted or reclassified into other securities
      or
      property pursuant to the Company’s Certificate of Incorporation or otherwise, or
      the Common Stock otherwise ceases to exist, then, in such case, the Registered
      Holder of this Warrant, upon exercise hereof at any time after the date on
      which
      the Common Stock is so redeemed or converted, reclassified or ceases to exist
      (the “Termination
      Date”),
      shall
      receive, in lieu of the number of shares of Common Stock that would have been
      deliverable upon such exercise immediately prior to the Termination Date, the
      securities or property that would have been received if this Warrant had been
      exercised in full and the Common Stock received thereupon had been
      simultaneously converted immediately prior to the Termination Date, all subject
      to further adjustment as provided in this Warrant. Additionally, the Purchase
      Price shall be immediately adjusted to equal the quotient obtained by dividing
      (x) the aggregate Purchase Price of the maximum number of shares of Common
      Stock
      for which this Warrant was exercisable immediately prior to the Termination
      Date
      by (y) the number of shares of Common Stock of the Company for which this
      Warrant is exercisable immediately after the Termination Date, all subject
      to
      further adjustment as provided herein.

     

    4.6  Most
      Favored Nations.
      If, at
      any time and from time to time during the period commencing on the date hereof
      and ending on the first (1st)
      anniversary of the date hereof, the Company issues additional shares of Common
      Stock or Common Stock Equivalents (the “Additional
      Shares”)
      at a
      price or exercise price per share of Common Stock (the “Effective
      Price”)
      less
      than $1.00, then the Company shall provide notice thereof to Holder, and, within
      twenty (20) business days from receipt of such notice, Holder shall have the
      right to purchase additional shares of Common Stock (the “Purchase
      Shares”)
      at a
      purchase price equal to the par value (the “Purchase
      Share Price”)
      in
      accordance with the following:

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (a)          
      there
      shall be calculated a per share price (the “Adjusted
      Price”)
      determined by a fraction, the numerator of which shall be $16,000,000 PLUS
      the
      product of the number of Additional Shares multiplied by the Effective Price
      PLUS any prior products of previously issued Additional Shares multiplied by
      the
      applicable Effective Price(s) with respect to such issuances, and the
      denominator of which shall be 16,000,000 PLUS the number of Additional Shares
      PLUS any previously issued Additional Shares. 

     

    (b)          
      The
      Purchaser shall be entitled to purchase that number of Purchase Shares at the
      Purchase Price equal to twenty-five percent (25%) of the difference between
      the
      product of the total dollars paid by Purchaser for shares of Common Stock
      hereunder further to the Purchase Agreement (the “Purchaser
      Amount”)
      divided by the Adjusted Price LESS the product of the Purchaser Amount divided
      by the Per Share Purchase Price.

     

    By
      way of
      example only, if the Company issued 4,000,000 Additional Shares at an Effective
      Price of $0.50 per share, and there had been no previous adjustments further
      to
      this Section 4.9, the Adjusted Price would be $0.90 ($16,000,000 PLUS $2,000,000
      divided by 16,000,000 PLUS 4,000,000). If the Purchaser purchased $1,000,000
      of
      Common Stock further to this Agreement, he/she/it would be entitled to purchase
      111,111 Purchase Shares (1,000,000 divided by 0.90 or 1,111,111 shares LESS
      1,000,000 divided by 1.00 or 1,000,000 shares multiplied by 0.25 or 27,778
      shares).

     

    Notwithstanding
      the foregoing, no adjustment will be made in respect of Exempt
      Issuances.

     

    5.  LOSS
      OR MUTILATION.
      Upon
      receipt of evidence reasonably satisfactory the Company of the ownership of
      and
      the loss, theft, destruction or mutilation of this Warrant, and of indemnity
      reasonably satisfactory to him, and (in the case of mutilation) upon surrender
      and cancellation of this Warrant, the Company will cause to be executed and
      delivered in lieu thereof a new Warrant of like tenor as the lost, stolen,
      destroyed or mutilated Warrant.

     

    6.  REPRESENTATION.
      The
      Company hereby covenants that all shares issuable upon exercise of this Warrant,
      when delivered upon such exercise, shall be free and clear of all liens,
      security interests, charges and other encumbrances or restrictions on sale
      and
      free and clear of all preemptive rights, except encumbrances or restrictions
      arising under federal or state securities laws. Further, the Company hereby
      covenants to reserve such number of authorized but unissued shares of Common
      Stock for issuance upon exercise of this Warrant.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    7.  TRANSFER.
      This
      Warrant may not be transferred by the Holder without the prior written consent
      of the Company, which consent may not be unreasonably withheld. In the event
      of
      a transfer to which the Company has previously consented in writing, this
      Warrant and all rights hereunder may be transferred by the Holder upon delivery
      of the form of Assignment attached hereto as Exhibit
      2
      (the
“Assignment”),
      duly
      executed by the Holder, surrender of this Warrant properly endorsed at the
      address of the Company and payment of any necessary transfer tax or other
      governmental charge imposed upon such transfer. Upon any partial transfer,
      the
      Holder and Company will cause to be issued and delivered to the Holder a new
      Warrant or Warrants with respect to the portion of this Warrant not so
      transferred. Each taker and holder of this Warrant, by taking or holding the
      same, consents and agrees that when this Warrant shall have been so endorsed,
      the person in possession of this Warrant may be treated by the Company, and
      all
      other persons dealing with this Warrant, as the absolute owner hereof for any
      purpose and as the person entitled to exercise the rights represented hereby,
      any notice to the contrary notwithstanding; provided, however that until a
      transfer of this Warrant is duly registered on the books of the Company, the
      Company may treat the Holder hereof as the owner for all purposes.

     

    8.  REGISTRATION.
      The
      Company has agreed to register the Warrant Shares pursuant to the Warrant Share
      Registration Rights Agreement.

     

    9.  RESTRICTIONS
      ON TRANSFER.
      The
      Holder, by acceptance hereof, agrees that, absent an effective registration
      statement filed with the SEC under the 1933 Act, covering the disposition or
      sale of this Warrant or the Common Stock issued or issuable upon exercise hereof
      or the Common Stock issuable upon conversion thereof, as the case may be, and
      registration or qualification under applicable state securities laws, such
      Holder will not sell, transfer, pledge, or hypothecate any or all such Warrants
      or Common Stock, as the case may be, unless either (i) the Company has received
      an opinion of counsel, in form and substance reasonably satisfactory to the
      Company, to the effect that such registration is not required in connection
      with
      such disposition or (ii) the sale of such securities is made pursuant to SEC
      Rule 144.

     

    10.  COMPLIANCE
      WITH SECURITIES LAWS.
      By
      acceptance of this Warrant, the Holder hereby represents, warrants and covenants
      that he/she/it is an “accredited investor” as that term is defined under Rule
      501 of Regulation D, that any shares of stock purchased upon exercise of this
      Warrant or acquired upon conversion thereof shall be acquired for investment
      only and not with a view to, or for sale in connection with, any distribution
      thereof, that the Holder has had such opportunity as such Holder has deemed
      adequate to obtain from representatives of the Company such information as
      is
      necessary to permit the Holder to evaluate the merits and risks of its
      investment in the Company; that the Holder is able to bear the economic risk
      of
      holding such shares as may be acquired pursuant to the exercise of this Warrant
      for an indefinite period; that the Holder understands that the shares of stock
      acquired pursuant to the exercise of this Warrant or acquired upon conversion
      thereof will not be registered under the 1933 Act (unless otherwise required
      pursuant to exercise by the Holder of the registration rights, if any,
      previously granted to the Holder) and will be “restricted securities” within the
      meaning of Rule 144 under the 1933 Act and that the exemption from registration
      under Rule 144 will not be available for at least one year from the date of
      exercise of this Warrant, and even then will not be available unless a public
      market then exists for the stock, adequate information concerning the Company
      is
      then available to the public, and other terms and conditions of Rule 144 are
      complied with; and that all stock certificates representing shares of stock
      issued to the Holder upon exercise of this Warrant or upon conversion of such
      shares may have affixed thereto a legend substantially in the following
      form:

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    THE
      SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT
      OF 1933, AS AMENDED (THE “ACT”), OR UNDER THE SECURITIES LAWS OF ANY STATE.
      THESE SECURITIES ARE SUBJECT TO RESTRICTIONS ON TRANSFERABILITY AND RESALE
      AND
      MAY NOT BE TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER THE ACT AND ANY
      APPLICABLE STATE SECURITIES LAWS, PURSUANT TO REGISTRATION OR EXEMPTION
      THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY MAY BE REQUIRED TO BEAR THE
      FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE PERIOD OF TIME. THE ISSUER
      OF THESE SECURITIES MAY REQUIRE AN OPINION OF COUNSEL IN FORM AND SUBSTANCE
      SATISFACTORY TO THE ISSUER TO THE EFFECT THAT ANY PROPOSED TRANSFER OR RESALE IS
      IN COMPLIANCE WITH THE ACT AND ANY APPLICABLE STATE SECURITIES
      LAWS.

     

    11.  NO
      RIGHTS OR LIABILITIES AS STOCKHOLDERS.
      This
      Warrant shall not entitle the Holder to any voting rights or other rights as
      a
      stockholder of the Company. In the absence of affirmative action by such Holder
      to purchase Common Stock by exercise of this Warrant, no provisions of this
      Warrant, and no enumeration herein of the rights or privileges of the Holder
      hereof shall cause such Holder hereof to be a holder of the Company for any
      purpose.

     

    12.  NOTICES.
      All
      notices and other communications required or permitted hereunder shall be in
      writing and shall be mailed by registered or certified mail, postage prepaid,
      return receipt requested, or by telecopier, or by email or otherwise delivered
      by hand or by messenger, addressed or telecopied to the person to whom such
      notice or communication is being given at its address set forth after its
      signature hereto. In order to be effective, a copy of any notice or
      communication sent by telecopier or email must be sent by registered or
      certified mail, postage prepaid, return receipt requested, or delivered
      personally to the person to whom such notice or communication is being at its
      address set forth after its signature hereto. If notice is provided by mail,
      notice shall be deemed to be given five (5) business days after proper deposit
      with the United States mail or nationally recognized overnight courier, or
      immediately upon personally delivery thereof, to person to whom such notice
      or
      communication is being at such address. If notice is provided by telecopier,
      notice shall be deemed to be given upon confirmation by the telecopier machine
      of the receipt of such notice at the telecopier number provided above. If notice
      is provided by email, notice shall be deemed to be given upon confirmation
      by
      the sender’s email program of the receipt of such notice at the email address
      provided after the signature of the person to whom such notice or communication
      is being. The addresses set forth after the signatures hereto may be changed
      by
      written notice complying with the terms of this Section 12.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    13.  HEADINGS.
      The
      headings in this Warrant are for purposes of convenience in reference only,
      and
      shall not be deemed to constitute a part hereof.

     

    14.  LAW
      GOVERNING.
      This
      Warrant shall be construed and enforced in accordance with, and governed by,
      the
      laws of the State of Delaware.

     

    15.  NOTICES
      OF RECORD DATE.
      In
      case:

     

    15.1  the
      Company shall take a record of the holders of its Common Stock (or other stock
      or securities at the time receivable upon the exercise of this Warrant), for
      the
      purpose of entitling them to receive any dividend or other distribution, or
      any
      right to subscribe for or purchase any shares of stock of any class or any
      other
      securities or to receive any other right; or

     

    15.2  of
      any
      consolidation or merger of the Company with or into another corporation, any
      capital reorganization of the Company, any reclassification of the capital
      stock
      of the Company, or any conveyance of all or substantially all of the assets
      of
      the Company to another corporation in which holders of the Company’s stock are
      to receive stock, securities or property of another corporation; or

     

    15.3  of
      any
      voluntary dissolution, liquidation or winding-up of the Company; or

     

    15.4  of
      any
      redemption of any outstanding capital stock of the Company; then, and in each
      such case, the Company will mail or cause to be mailed to the Holder of this
      Warrant a notice specifying, as the case may be, (i) the date on which a record
      is to be taken for the purpose of such dividend, distribution or right, or
      (ii)
      the date on which such reorganization, reclassification, consolidation, merger,
      conveyance, dissolution, liquidation, winding-up, redemption or conversion
      is to
      take place, and the time, if any is to be fixed, as of which the holders of
      record of Common Stock (or such stock or securities as at the time are
      receivable upon the exercise of this Warrant) shall be entitled to exchange
      their shares of Common Stock (or such other stock or securities) for securities
      or other property deliverable upon such reorganization, reclassification,
      consolidation, merger, conveyance, dissolution, liquidation or winding-up.
      Such
      notice shall be delivered at least thirty (30) days prior to the date therein
      specified.

     

    16.  SEVERABILITY.
      If any
      term, provision, covenant or restriction of this Warrant is held by a court
      of
      competent jurisdiction to be invalid, void or unenforceable, the remainder
      of
      the terms, provisions, covenants and restrictions of this Warrant shall remain
      in full force and effect and shall in no way be affected, impaired or
      invalidated.

     

    17.  COUNTERPARTS.
      For the
      convenience of the parties, any number of counterparts of this Warrant may
      be
      executed by the parties hereto and each such executed counterpart shall be,
      and
      shall be deemed to be, an original instrument.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    18.  SATURDAYS,
      SUNDAYS AND) HOLIDAYS.
      If the
      Expiration Date falls on a Saturday, Sunday or legal holiday, the Expiration
      Date shall automatically be extended until 5:00 p.m. on the next business
      day.

     

    [SIGNATURE
      PAGE TO FOLLOW]

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

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

     

    

     

    
      	
              JAVA
                DETOUR, INC.

               

               

              By:
                _________________________________

              Name: Michael
                Binninger

              Title: President
                and Chief Executive Officer

            	
              HUNTER
                WORLD MARKETS, INC.

               

               

              By:
                _________________________________

              Name: Todd
                Ficeto

              Title: President

            
	 	 
	
              Address
                for Notices:

            	
              Address
                for Notices:

            
	 	 
	
              2121
                Second Street

              Building
                C, Suite 105

              Davis,
                CA 95616

            	
              9300
                Wilshire Blvd.

              Penthouse
                Suite

              Beverly
                Hills, CA 90212

              Attn:
                Todd Ficeto

            

    

     

     

    SIGNATURE
      PAGE TO WARRANT

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      1

     

    NOTICE
      OF EXERCISE

     

    (To
      be
      executed upon exercise of Warrant)

     

    
      	_________________	
              WARRANT
                NO.
                ___

            

    

     

    The
      undersigned hereby irrevocably elects to exercise the right of purchase
      represented by the within Warrant Certificate for, and to purchase thereunder,
      securities of Java Detour, Inc., as provided for therein, and (check the
      applicable box):

     

    
      	 	
               ̈

            	
              Tenders
                herewith payment of the exercise price in full in the form of cash
                or a
                certified or official bank check in same-day funds in the amount
                of
                $____________ for _________ such
                securities.

            

    

     

    
      	 	
               ̈

            	
              If
                applicable pursuant to the cashless exercise feature set forth in
                Section 2.1(c).

            

    

     

    Please
      issue a certificate or certificates for such securities in the name of, and
      pay
      any cash for any fractional share to (please print name, address and social
      security number):

     

    
      	
              Name: 

            	_____________________
	 	 
	
              Address: 

            	_____________________ 
	 	 
	
              Signature: 

            	_____________________

    

    

    Note:
      The
      above signature should correspond exactly with the name on the first page of
      this Warrant Certificate or with the name of the assignee appearing in the
      assignment form below.

     

    If
      said
      number of shares shall not be all the shares purchasable under the within
      Warrant Certificate, a new Warrant Certificate is to be issued in the name
      of
      said undersigned for the balance remaining of the shares purchasable thereunder
      rounded up to the next higher whole number of shares.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    EXHIBIT
      2

     

    ASSIGNMENT

     

    
      	(To be executed only upon assignment
              of Warrant Certificate)	
              WARRANT
                NO.-__

            

    

     

    For
      value
      received, _________ hereby sells, assigns and transfers unto
      _______________________ the within Warrant Certificate, together with all right,
      title and interest therein, and does hereby irrevocably constitute and appoint
      _______________________ attorney, to transfer said Warrant Certificate on the
      books of the within-named Company with respect to the number of Warrants set
      forth below, with full power of substitution in the premises:

     

    
      	
              Name(s)
                of Assignee(s)

            	 	
              Address

            	 	
              #
                of Warrants

            
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

    

    

    And
      if
      said number of Warrants shall not be all the Warrants represented by the Warrant
      Certificate, a new Warrant Certificate is to be issued in the name of said
      undersigned for the balance remaining of the Warrants registered by said Warrant
      Certificate.

     

    Dated:
      __________,
      200_

     

    Signature:
      _____________________

     

    Notice:
      The signature to the foregoing Assignment must correspond to the name as written
      upon the face of this security in every particular, without alteration or any
      change whatsoever; signature(s) must be guaranteed by an eligible guarantor
      institution (banks, stock brokers, savings and loan associations and credit
      unions with membership in an approved signature guarantee medallion program)
      pursuant to Securities and Exchange Commission Rule l7Ad-15.

     

    
      
        
        

      

      
        13Unassociated Document

    Exhibit
      10.1

    
Execution
      Version

     

    SECURITIES
      PURCHASE AGREEMENT

     

    This
      Securities Purchase Agreement (this “Agreement”)
      is
      dated as of November 30, 2006, by and among Java Detour, Inc., a Delaware
      corporation (the “Company”),
      JDCO,
      Inc., a California corporation (“JDCO”),
      which
      upon the Merger Effective Time (as defined below), became a wholly-owned
      subsidiary of the Company, and each purchaser identified on the signature pages
      hereto (each, including its successors and assigns, a “Purchaser”
and
      collectively the “Purchasers”);
      

     

    WHEREAS,
      the Company (formerly named Media USA.com, Inc.), JDCO, Java Acquisition Co.,
      Inc. and certain shareholders of the Company are parties to that certain Merger
      Agreement dated as of November 30, 2006 (the “Merger
      Agreement”),
      pursuant to which, upon the closing of the merger (the “Merger”),
      JDCO
      shall become a wholly-owned subsidiary of the Company in accordance with the
      terms and conditions described in such Merger Agreement (the “Merger
      Effective Time”);

     

    WHEREAS,
      it is a condition to the closing of the Merger that the Company consummate
      a
      private placement offering of its securities (the “Offering”)
      pursuant to Regulation D promulgated under the Securities Act;

     

    WHEREAS,
      the Offering is described in that Confidential Private Placement Memorandum
      of
      the Company dated November 30, 2006 (the “Offering
      Memorandum”);
      and

     

    WHEREAS,
      as described in the Offering Memorandum, the Offering consists of the sale
      of
      shares of Common Stock of the Company (the “Shares”),
      along
      with five (5)-year Investor Warrants (as defined herein) to purchase up to
      twenty-five percent (25%) of the Shares offered thereby, and the Purchasers
      desire to acquire that number of Shares set forth on the signature page
      hereof.

     

    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 agrees as
      follows:

     

    ARTICLE
      I.

    DEFINITIONS

     

    1.1  Definitions.
      In
      addition to the terms defined elsewhere in this Agreement, for all purposes
      of
      this Agreement, the following terms have the meanings indicated in this Section
      1.1: 

     

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

     

    “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 144. 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.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

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

     

    “Closing
      Date”
      means the date 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
      securities into which such common stock may hereafter be
      reclassified.

     

    “Common
      Stock Equivalents”
      means any securities of the Company 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 exchangeable for, or otherwise entitles the holder
      thereof to receive, Common Stock.

     

    “Consulting
      Shares”
      means 793,403 shares of the Company’s Common Stock issuable to Hunter at the
      Closing further to the terms of the Placement Agent Agreement.

     

    “Disclosure
      Schedules”
      means the Disclosure Schedules of the Company delivered concurrently
      herewith.

     

    “Effective
      Date”
      means the date that the Registration Statement is first declared effective
      by
      the Commission.

     

    “Exchange
      Act”
      means the Securities Exchange Act of 1934, as amended.

     

    “Exempt
      Issuance”
      means the issuance of (a) shares of Common Stock or options to employees,
      officers or directors of the Company pursuant to any stock or option plan or
      other arrangement duly adopted by a majority of the non-employee members of
      the
      Board of Directors of the Company or a majority of the members of a committee
      of
      non-employee directors established for such purpose, (b) securities upon the
      exercise of or conversion of any securities issued hereunder, or convertible
      securities, options or warrants 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, (c) securities issued
      pursuant to strategic transactions with 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 or pursuant to acquisitions,
      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 and (d) securities issued to consultants
      for
      services rendered to the Company in non-capital raising transactions in an
      amount per individual issuance not to exceed 30,000 shares for particular
      services rendered.

     

    “GAAP”
      means generally accepted accounting principles applied on a consistent
      basis.

     

    
      
        
        

      

      
        -
          2
          -

        
          

        

      

      
        
        

      

    

     

    “Hunter”
      means Hunter World Markets, Inc.

     

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

     

    “Investor
      Warrants”
      means the Common Stock Purchase Warrants to purchase shares of the Company’s
      Common Stock, in the form of Exhibit
      A,
      delivered to the Purchasers at the Closing in accordance with Section 2.2(a)(vi)
      hereof.

     

    “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 ascribed to such term in Section 3.1(b).

     

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

     

    “Merger”
      shall have the meaning ascribed to such term in the recitals.

     

    “Merger
      Agreement”
      shall have the meaning ascribed to such term in the recitals.

     

    “Per
      Share Purchase Price”
      equals $1.00, subject to adjustment for reverse and forward stock splits, stock
      dividends, stock combinations and other similar transactions of the Common
      Stock
      that occur after the date of this Agreement.

     

    “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.

     

    “Placement
      Agent Agreement”
      means that certain Placement Agent Agreement between JDCO and
      Hunter.

     

    “Placement
      Agent Warrants”
      means the Common Stock Purchase Warrants to purchase shares of the Company’s
      Common Stock, in the form of Exhibit
      B,
      delivered to Hunter at the Closing in accordance with Section 2.2(a)(iv) hereof,
      which warrants shall be exercisable on or after September 1, 2007 until sixty
      (60) months from the date of issuance and have an exercise price equal to $2.00,
      subject to adjustment as provided therein. Such warrants shall entitle Hunter
      to
      acquire up to the number of shares of Common Stock equal to twenty percent
      (20%)
      of the Shares to be sold in the Offering.

     

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

     

    “Share
      Registration Rights Agreement”
      means the Share Registration Rights Agreement, dated as of the date of this
      Agreement, among the Company and each Purchaser, providing for the registration
      of the Shares in the form of Exhibit
      C
      attached hereto.

     

    
      
        
        

      

      
        -
          3
          -

        
          

        

      

      
        
        

      

    

     

    “Registration
      Statement”
      means a registration statement meeting the requirements set forth in the Share
      Registration Rights Agreement or the Warrant Share Rights Registration Agreement
      and covering the resale by the Purchasers of the Shares and Warrant
      Shares.

     

    “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.

     

    “Securities”
      means the Shares, the Investor Warrants and the Warrant Shares.

     

    “Securities
      Act”
      means the Securities Act of 1933, as amended.

     

    “Shares”
      shall have the meaning ascribed to such term in the recitals.

     

    “Subscription
      Amount”
      means, as to each Purchaser, the amounts set forth below such Purchaser’s
      signature block on the signature page hereto, in United States dollars and
      in
      immediately available funds.

     

    “Subsidiary”
      shall mean JDCO.

     

    “Trading
      Day”
      means a day on which the Common Stock is traded on a Trading
      Market.

     

    “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
      New
      York Stock Exchange, the Nasdaq Global Market, the Nasdaq Capital Market, the
      OTC Bulletin Board or the Pink Sheets.

     

    “Transaction
      Documents”
      means this Agreement, the Investor Warrants, the Share Registration Rights
      Agreement, the Warrant Share Registration Rights Agreement and any other
      documents or agreements executed in connection with the transactions
      contemplated hereunder.

     

    “Warrant
      Shares”
      means the shares of the Company’s Common Stock issuable upon exercise of the
      Investor Warrants.

     

    “Warrant
      Share Registration Rights Agreement”
      means the Warrant Share Registration Rights Agreement, dated as of the date
      of
      this Agreement, by and among the Company and each Purchaser, providing for
      the
      registration of the Warrant Shares in the form of Exhibit
      D
      attached hereto, such agreement covering all the shares underlying the Placement
      Agent Warrants and all other shares of Common Stock underlying other warrants
      as
      well as all other shares of Common Stock beneficially owned by Hunter and its
      affiliates.

     

    
      
        
        

      

      
        -
          4
          -

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      II.

    PURCHASE
      AND SALE

     

    2.1  Closing.
      On the
      Closing Date, each Purchaser shall purchase from the Company, severally and
      not
      jointly with the other Purchasers, and the Company shall issue and sell to
      each
      Purchaser, (x) a number of Shares equal to such Purchaser’s Subscription Amount
      divided by the Per Share Purchase Price, and (y) the Investor Warrants as
      determined pursuant to Section 2.2(a)(vi). Upon satisfaction of the conditions
      set forth in Section 2.3, the Closing shall occur at the offices of Troy &
Gould, located at 1801 Century Park East, 16th Floor, Los Angeles, California
      90067, or such other location as the parties shall mutually agree. The aggregate
      Subscription Amounts for the Shares sold hereunder shall be up to $10,000,000.
      Notwithstanding the foregoing, the payment of the aggregate Subscription Amounts
      and disbursement of funds shall be through an escrow with City National Bank,
      Los Angeles, California or such other escrow agent as Hunter approves (the
      “Escrow
      Agent”).

     

    2.2  Deliveries.

     

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

     

    (i)  this
      Agreement duly executed by the Company;

     

    (ii)  a
      copy of
      the irrevocable instructions to the Company’s transfer agent instructing the
      transfer agent to deliver, on an expedited basis, a certificate evidencing
      a
      number of Shares equal to such Purchaser’s Subscription Amount divided by the
      Per Share Purchase Price, registered in the name of such Purchaser;

     

    (iii)  the
      Share
      Registration Rights Agreement duly executed by the Company; 

     

    (iv)  the
      Warrant Share Registration Rights Agreement duly executed by the
      Company;

     

    (v)  the
      Placement Agent Warrants and certificate(s) evidencing the Consulting
      Shares;

     

    (vi)  evidence
      satisfactory to such Purchaser and its counsel that the Merger has occurred;
      and

     

    (vii)  an
      Investor Warrant, registered in the name of such Purchaser, pursuant to which
      such Purchaser shall have the right to acquire up to the number of shares of
      Common Stock equal to twenty-five percent (25%) of the Shares to be issued
      to
      such Purchaser.

     

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

     

    (i)  this
      Agreement duly executed by such Purchaser;

     

    
      
        
        

      

      
        -
          5
          -

        
          

        

      

      
        
        

      

    

     

    (ii)  such
      Purchaser’s Subscription Amount by wire transfer of same day funds to the
      account as specified in writing by the Company; 

     

    (iii)  the
      Share
      Registration Rights Agreement duly executed by such Purchaser; and

     

    (iv)  the
      Warrant Share 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)  minimum
      aggregate Subscription Amounts for the Shares sold hereunder of
      $6,000,000;

     

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

     

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

     

    (iv)  the
      delivery by the Purchasers 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)  minimum
      aggregate Subscription Amounts for the Shares sold hereunder of
      $6,000,000;

     

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

     

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

     

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

     

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

     

    (vi)  the
      Merger shall have been consummated immediately after the Closing on the terms
      set forth in the Merger Agreement, including that all the conditions to Closing
      in favor of the Company have been satisfied.

     

    
      
        
        

      

      
        -
          6
          -

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      III.

    REPRESENTATIONS
      AND WARRANTIES

     

    3.1  Representations
      and Warranties of the Company.
      Except
      as set forth under the corresponding section of the Disclosure Schedules which
      Disclosure Schedules shall be deemed a part hereof, the Company hereby makes
      the
      representations and warranties set forth below to each Purchaser:

     

    (a)  Subsidiaries.
      JDCO is
      the only direct or indirect subsidiary of the Company. The Company owns,
      directly or indirectly, all of the capital stock of JDCO free and clear of
      any
      Liens, and all the issued and outstanding shares of capital stock of JDCO are
      validly issued and are fully paid, non-assessable and free of preemptive and
      similar rights to subscribe for or purchase securities.

     

    (b)  Organization
      and Qualification.
      Each of
      the Company and JDCO 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 JDCO 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 JDCO 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 Documents, (ii) a material adverse effect on the results of
      operations, assets, business, prospects or financial condition of the Company
      and JDCO 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 Documents (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.

     

    (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 thereunder. The execution and
      delivery of each of the Transaction Documents by the Company and the
      consummation by it of the transactions contemplated thereby have been duly
      authorized by all necessary action on the part of the Company and no further
      action is required by the Company in connection therewith other than in
      connection with the Required Approvals. Each of the Transaction Documents has
      been (or upon delivery will have been) duly executed by the Company and, when
      delivered in accordance with the terms hereof, will constitute the valid and
      binding obligation of the Company enforceable against the Company in accordance
      with its terms except (i) as limited by 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.

     

    
      
        
        

      

      
        -
          7
          -

        
          

        

      

      
        
        

      

    

     

    (d)  No
      Conflicts.
      The
      execution, delivery and performance of the Transaction Documents by the Company,
      the issuance and sale of the Shares and the consummation by the Company of
      the
      other transactions contemplated thereby do not and will not (i) conflict with
      or
      violate any provision of the Company’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 JDCO, 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 JDCO is a party or by which any property
      or asset of the Company or JDCO 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 JDCO is subject
      (including federal and state securities laws and regulations), or by which
      any
      property or asset of the Company or JDCO 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.
      Neither
      the Company nor JDCO is 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 or
      JDCO of the Transaction Documents, other than (i) filings required pursuant
      to
      Section 4.4 of this Agreement, (ii) the filing with the Commission of the
      Registration Statement, (iii) application(s) to each applicable Trading Market
      for the listing of the Shares and Warrant 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 (collectively, the “Required
      Approvals”).

     

    (f)  Issuance
      of the Securities.
      The
      Shares are duly authorized and, when issued and paid for in accordance with
      the
      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 Warrant
      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. The Company has reserved from its duly authorized
      capital stock the maximum number of shares of Common Stock issuable pursuant
      to
      this Agreement and the Investor Warrants.

     

    (g)  Capitalization.
      Immediately prior to the Closing and without giving effect to the issuance
      of
      the Shares or Investor Warrants, the authorized capital stock of the Company
      consists of 500,000,000 shares of common stock, $0.001 par value per share,
      and
      no shares of preferred stock. As of the date hereof, there are 12,275,000 shares
      of Common Stock outstanding and no shares of preferred stock outstanding.
      Immediately prior to the Closing and without giving effect to the issuance
      of
      the Shares or Investor Warrants, there will be 12,275,000 shares of Common
      Stock
      outstanding and no shares of preferred stock outstanding. In addition,
      immediately prior to the Closing and without giving effect to the Shares or
      Investor Warrants, there will be outstanding options and warrants to purchase
      160,000 shares of Common Stock. 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 of the Company or
      others is required for the issuance and sale of the Shares or Investor Warrants.
      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.

     

    
      
        
        

      

      
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    (h)  Material
      Changes.
      Since
      September 30, 2006, (i) JDCO 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 JDCO’s financial statements pursuant to GAAP,
      (ii) the Company has not altered its method of accounting, and (iii) JDCO 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.

     

    (i)  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, JDCO 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 as it relates to JDCO. Neither the JDCO, nor any current director
      or officer of the Company or JDCO 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 JDCO or any current director or
      officer of the Company or JDCO. 

     

    (j)  Permits.
      JDCO
      possess all certificates, authorizations and permits issued by the appropriate
      federal, state, local or foreign regulatory authorities necessary to conduct
      its
      business, except where the failure to possess such permits could not have or
      reasonably be expected to result in a Material Adverse Effect (“Material
      Permits”),
      and
      JDCO has not received any notice of proceedings relating to the revocation
      or
      modification of any Material Permit.

     

    (k)  Patents
      and Trademarks.
      JDCO
      has, or has JDCO rights to use, all patents, patent applications, trademarks,
      trademark applications, service marks, trade names, copyrights, licenses and
      other similar rights necessary or material for use in connection with its
      business and which the failure to so have could have a Material Adverse Effect
      (collectively, the “Intellectual
      Property Rights”).
      JDCO
      has not received a written notice that the Intellectual Property Rights used
      by
      it 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 of others.

     

    
      
        
        

      

      
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    (l)  Certain
      Fees.
      Other
      than fees payable to Hunter, no brokerage or finder’s fees or commissions are or
      will be payable by the Company or JDCO to any broker, financial advisor or
      consultant, finder, placement agent, investment banker, bank or other Person
      with respect to the transactions contemplated by this Agreement. 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
      this
      Agreement.

     

    (m)  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 the Company to the Purchasers as
      contemplated hereby. 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.

     

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

     

    (o)  Registration
      Rights.
      No
      Person has any right to cause the Company to effect the registration under
      the
      Securities Act of any securities of the Company.

     

    (p)  Financial
      Statements.
      The
      Company has made available to the Purchasers JDCO’s (a) audited balance sheets
      as at December 31, 2004 and 2005 and related statements of operations, changes
      in stockholders equity and cash flows for the years ended December 31, 2004
      and
      2005, and (b) unaudited balance sheets as at September 30, 2006 and the related
      statement of operations, changes in stockholders equity and cash flows for
      the
      nine months ended September 30, 2006 (collectively, the “Financial
      Statements”).
      The
      Financial Statements (i) were in accordance with the books and records of JDCO,
      (ii) are correct and complete, (iii) fairly present the financial position
      and
      results of operations of JDCO as of the dates indicated, and (iv) are prepared
      in accordance with U.S. GAAP (except that unaudited financial statements may
      not
      be in accordance with GAAP because of the absence of footnotes normally
      contained therein

     

    3.2  Representations
      and Warranties of the Purchasers.
      Each
      Purchaser hereby, for itself and for no other Purchaser, 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 thereunder. The execution, delivery and performance by
      such
      Purchaser of the transactions contemplated by this Agreement have been duly
      authorized by all necessary corporate or similar action on the part of such
      Purchaser. Each of the Transaction Documents 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)  Investment
      Intent.
      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, has no present intention of distributing any of such Securities and
      has
      no arrangement or understanding with any other persons 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). Such Purchaser is acquiring the Shares hereunder in the
      ordinary course of its business. Such Purchaser does not have any agreement
      or
      understanding, directly or indirectly, with any Person to distribute any of
      the
      Securities.

     

    (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 exercises any Investor 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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    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, the Share Registration Rights Agreement and the Warrant
      Share Registration Rights Agreement.

     

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

     

    THESE
      SECURITIES HAVE 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. THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
      ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL
      INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE
      SECURITIES ACT.

     

    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,
      the Share Registration Rights Agreement and the Warrant Share 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 Share Registration Rights Agreement or Warrant
      Share Registration Rights Agreement, as applicable, 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.

     

    
      
        
        

      

      
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    (c)  Certificates
      evidencing the Shares and the Warrant Shares shall not contain any legend
      (including the legend set forth in Section 4.1(b)), (i) while a registration
      statement (including the Registration Statement) covering the resale of such
      security is effective under the Securities Act provided that at the time a
      Purchaser requests a removal of the legend on any certificate evidencing all
      or
      any portion of any of the Securities, such Purchaser (or a broker acting on
      such
      Purchaser’s behalf) provides to the Company (or to the transfer agent on the
      Company’s behalf), a representation that any of the Securities, sold or to be
      sold by such Purchaser have been, or will be, sold in accordance with the plan
      of distribution set forth in the Prospectus and in compliance with the
      prospectus delivery requirements under the Securities Act, or (ii) following
      any
      sale of such Shares or Warrant Shares pursuant to Rule 144, or (iii) if such
      Shares or Warrant Shares are eligible for sale under Rule 144(k), 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). If all or any portion of an Investor Warrant is exercised
      at a
      time when there is an effective registration statement to cover the resale
      of
      the Warrant Shares, such Warrant 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
      (3) Trading Days following the delivery by a Purchaser to the Company or the
      Company’s transfer agent of a certificate representing Shares or Warrant Shares,
      as the case may be, issued with a restrictive legend (such date, the
“Legend
      Removal Date”),
      deliver or cause to be delivered to such Purchaser a certificate representing
      such Shares or Warrant Shares, as the case may be, that is free from all
      restrictive and other legends. The Company may not make any notation on its
      records or give instructions to any transfer agent of the Company that enlarge
      the restrictions on transfer set forth in this Section.

     

    (d)  Each
      Purchaser, severally and not jointly with the other Purchasers, agrees that
      the
      removal of the restrictive legend from certificates representing Shares or
      Warrant Shares, as the case may be, as set forth in this Section 4.1 is
      predicated upon the Company’s reliance that the 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.

     

    
      
        
        

      

      
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    Nothing
      in this Section 4.1 shall require the Company to take any action in violation
      of
      the Securities Act.

     

    4.2  Furnishing
      of Information.
      As long
      as any Purchaser owns Securities, the Company will use best efforts to timely
      file (or obtain extensions in respect thereof and file within the applicable
      grace period) all reports required to be filed by the Company after the date
      hereof pursuant to the Exchange Act. As long as any Purchaser owns Securities,
      if the Company is not required to file reports pursuant to the Exchange Act,
      it
      will prepare and furnish to the Purchasers and make publicly available in
      accordance with Rule 144(c) such information as is required for the Purchasers
      to sell the Securities under Rule 144. The Company further covenants that it
      will take such further action as any holder of Securities may reasonably
      request, all to the extent required from time to time to enable such Person
      to
      sell such Securities without registration under the Securities Act within the
      limitation of the exemptions provided by Rule 144.

     

    4.3  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 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 such that it would require shareholder approval prior to the
      closing of such other transaction unless shareholder approval is obtained before
      the closing of such subsequent transaction.

     

    4.4  Publicity.
      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, 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 and (ii) to the
      extent such disclosure is required by law or Trading Market
      regulations.

     

    4.5  Reservation
      of Common Stock.
      As of
      the date hereof, the Company has reserved and the Company shall continue to
      reserve and keep available at all times, free of preemptive rights, a sufficient
      number of shares of Common Stock for the purpose of enabling the Company to
      issue the Shares and Warrant Shares pursuant to any exercise of Investor
      Warrants, as the case may be, pursuant to this Agreement.

     

    4.6  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 to treat for the Company 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.

     

    
      
        
        

      

      
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    4.7  Subsequent
      Equity Sales.
      Except
      for Exempt Issuances, from the date hereof until the Effective Date, neither
      the
      Company nor any Subsidiary shall issue shares of Common Stock or Common Stock
      Equivalents.

     

    4.8  Delivery
      of Shares After Closing.
      The
      Company shall deliver, or cause to be delivered, the respective Shares purchased
      by each Purchaser to such Purchaser within ten (10) Trading Days of the Closing
      Date.

     

    4.9  Most
      Favored Nations.
      If, at
      any time and from time to time during the period commencing on the Closing
      Date
      and ending on the first (1st)
      anniversary of the Effective Date, the Company issues additional shares of
      Common Stock or Common Stock Equivalents (the “Additional
      Shares”)
      at a
      price or exercise price per share of Common Stock (the “Effective
      Price”)
      less
      than the Per Share Purchase Price, then the Company shall provide notice thereof
      to the Purchasers, and, within twenty (20) business days from receipt of such
      notice, the Purchasers or any of them shall have the right to purchase
      additional shares of Common Stock (the “Purchase
      Shares”)
      at a
      purchase price equal to the par value (the “Purchase
      Share Price”)
      in
      accordance with the following:

     

    
      	 	
              (a)

            	
              there
                shall be calculated a per share price (the “Adjusted
                Price”)
                determined by a fraction, the numerator of which shall be $16,000,000
                PLUS
                the product of the number of Additional Shares multiplied by the
                Effective
                Price PLUS any prior products of previously issued Additional Shares
                multiplied by the applicable Effective Price(s) with respect to such
                issuances, and the denominator of which shall be 16,000,000 PLUS
                the
                number of Additional Shares PLUS any previously issued Additional
                Shares.
                

            

    

     

    
      	 	
              (b)

            	
              The
                Purchaser shall be entitled to purchase that number of Purchase Shares
                at
                the Purchase Price equal to the difference between the product of
                the
                total dollars paid by Purchaser for shares of common stock hereunder
                (the
                “Purchaser
                Amount”)
                divided by the Adjusted Price LESS the product of the Purchaser Amount
                divided by the Per Share Purchase
                Price.

            

    

     

    By
      way of
      example only, if the Company issued 4,000,000 Additional Shares at an Effective
      Price of $0.50 per share, and there had been no previous adjustments further
      to
      this Section 4.9, the Adjusted Price would be $0.90 ($16,000,000 PLUS $2,000,000
      divided by 16,000,000 PLUS 4,000,000). If the Purchaser purchased $1,000,000
      of
      Common Stock further to this Agreement, he/she/it would be entitled to purchase
      111,111 Purchase Shares (1,000,000 divided by 0.90 or 1,111,111 shares LESS
      1,000,000 divided by 1.00 or 1,000,000 shares).

     

    Notwithstanding
      the foregoing, no adjustment will be made in respect of Exempt
      Issuances.

     

    
      
        
        

      

      
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    4.10  Board
      Nominee.
      At
      each of the next two annual meetings of stockholders where directors are
      elected, the Company agrees to place Hunter’s designee on the slate of directors
      for nomination to the Board at each such meeting. In addition, the Company
      agrees to cause a proposal to be put in front of the Board of Directors for
      its
      consideration at its next regular meeting following Hunter’s selection of a
      designee to elect such designee to a vacancy presently existing as of the date
      hereof on the Board of Directors.

     

    ARTICLE
      V.

    MISCELLANEOUS

     

    5.1  Termination.
      This
      Agreement may be terminated by any Purchaser, by written notice to the other
      parties, if the Closing has not been consummated on or before December 31,
      2006;
provided
      that no
      such termination will affect the right of any party to sue for any breach by
      the
      other party (or parties).

     

    5.2  Fees
      and Expenses.
      The
      Company shall deliver, prior to the Closing, a completed and executed copy
      of
      the Closing Statement, attached hereto as Annex
      A.
      Except
      as otherwise set forth in this Agreement or in the Placement Agent Agreement,
      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 stamp and other taxes and duties
      levied in connection with the sale of the Securities.

     

    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 6:30 p.m. (Eastern Standard 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 6:30 p.m. (Eastern Standard 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 or amended except in a written
      instrument signed, in the case of an amendment, by the Company and Purchasers
      holding at least a majority of
      the
      Shares and Warrant Shares (exercised and unexercised) at such time or, in the
      case of a waiver, by the party against whom enforcement of any such waiver
      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 either
      party
      to exercise any right hereunder in any manner impair the exercise of any such
      right.

     

    
      
        
        

      

      
        -
          16
          -

        
          

        

      

      
        
        

      

    

     

    5.6  Construction.
      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. The language used in this Agreement will be deemed to be the language
      chosen by the parties to express their mutual intent, and no rules of strict
      construction will be applied against any party.

     

    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. 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 such transferee agrees in writing to be bound, with
      respect to the transferred Securities, by the provisions hereof that apply
      to
      the “Purchasers.”

     

    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.

     

    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 California, 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 Los Angeles. Each party
      hereby irrevocably submits to the exclusive jurisdiction of the state and
      federal courts sitting in the City of Los Angeles, 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 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 manner permitted by law.
      The parties hereby waive all rights to a trial by jury. 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 attorneys’ fees and other costs and
      expenses incurred with the investigation, preparation and prosecution of such
      action or proceeding.

     

    
      
        
        

      

      
        -
          17
          -

        
          

        

      

      
        
        

      

    

     

    5.10  Survival.
      The
      representations and warranties herein shall survive the Closing and delivery
      of
      the Shares and Warrant Shares for two (2) years from the date
      hereof.

     

    5.11  Execution.
      This
      Agreement may be executed in two (2) 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, 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 signature page were an original
      thereof.

     

    5.12  Severability.
      If any
      provision of this Agreement is held to be invalid or unenforceable in any
      respect, the validity and enforceability of the remaining terms and provisions
      of this Agreement shall not in any way be affected or impaired thereby and
      the
      parties will attempt to agree upon a valid and enforceable provision that is
      a
      reasonable substitute therefor, and upon so agreeing, shall incorporate such
      substitute provision in this Agreement.

     

    5.13  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, 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 and
      customary and reasonable indemnity, if requested. The applicants for a new
      certificate or instrument under such circumstances shall also pay any reasonable
      third-party costs associated with the issuance of such replacement
      Securities.

     

    5.14  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 described in the foregoing
      sentence and hereby agrees to waive in any action for specific performance
      of
      any such obligation the defense that a remedy at law would be
      adequate.

     

    5.15  Acknowledgement.
      The
      undersigned acknowledge that City National Bank is acting solely as Escrow
      Agent
      in connection with the Offering and makes no recommendation with respect
      thereto. The Escrow Agent has made no investigation regarding the Offering
      or
      any entity or person involved in the Offering.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
        
        

      

      
        -
          18
          -

        
          

        

      

      
        
        

      

    

     

    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.

     

    

    
      	
              Java
                Detour, Inc.

            	
              Address
                for Notice:

            
	 	 	
              Java
                Detour, Inc.

              2121
                Second Street

              Building
                C, Suite 105

              Davis,
                CA 95618

            
	 	 	 
	
              By:

            	
                  
                /s/ Michael
                Binninger                   
                

            	 
	 	
               

              Name:
                Michael Binninger

            	 
	 	
              Title:
                Chief Executive Officer

            	 

    

    

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

     

    Thomas
      J. Poletti, Esq.

    Kirkpatrick
      & Lockhart Nicholson Graham LLP

    10100
      Santa Monica Boulevard

    Seventh
      Floor

    Los
      Angeles, CA 90067

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGES FOR PURCHASERS FOLLOW]

     

    
      
        
        

      

      
        -
          19
          -

        
          

        

      

      
        
        

      

    

     

    [PURCHASER
      SIGNATURE PAGES TO JAVA DETOUR, INC. 

    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 Investing Entity: Absolute Return Europe Fund

               

              /s/
                Florian
                Homm                                                                                       
                

            
	
              Signature
                of Authorized Signatory of Investing Entity:

               

              Florian
                Homm                                                                                             

            
	
              Name
                of Authorized Signatory:

               

              Chief
                Investment
                Officer                                                                           
                

            
	
              Title
                of Authorized Signatory:

               

              ______________________________________________________________________

            
	
               

              Email
                Address of Authorized
                Entity:_________________________________________________________________

            

    

    

    Address
      for Notice of Investing Entity:

     

    c/o
      Todd Ficeto

    Hunter
      World Markets, Inc.

    9300
      Wilshire Blvd.

    Penthouse
      Suite

    Beverly
      Hills, CA 90212

     

    Address
      for Delivery of Shares for Investing Entity (if not same as above):

     

     

     

    Subscription
      Amount: $3,500,000

     

    __________
      shares of Common Stock

    

    EIN
      Number:

     

    
      
        
        

      

      
        -
          20
          -

        
          

        

      

      
        
        

      

    

    

    [PURCHASER
      SIGNATURE PAGES TO JAVA DETOUR, INC.

    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 Investing Entity: European Catalyst Fund

               

              /s/
                Florian
                Homm                                                                                              
                

            
	
              Signature
                of Authorized Signatory of Investing Entity:

               

              Florian
                Homm                                                                                                    

            
	
              Name
                of Authorized Signatory:

               

              Chief
                Investment
                Officer                                                                                 
                

            
	
              Title
                of Authorized Signatory:

               

              ______________________________________________________________________

            
	
               

              Email
                Address of Authorized
                Entity:_________________________________________________________________

            

    

    

    Address
      for Notice of Investing Entity:

     

    c/o
      Todd Ficeto

    Hunter
      World Markets, Inc.

    9300
      Wilshire Blvd.

    Penthouse
      Suite

    Beverly
      Hills, CA 90212

     

    Address
      for Delivery of Shares for Investing Entity (if not same as above):

     

     

     

    Subscription
      Amount: $2,500,000

     

    __________
      shares of Common Stock

    

    EIN
      Number:

     

    
      
        
        

      

      
        -
          21
          -

        
          

        

      

      
        
        

      

    

    

    [PURCHASER
      SIGNATURE PAGES TO JAVA DETOUR, INC.

    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 Investing Entity: Absolute German Fund

               

              /s/
                Florian
                Homm                                                                                        
                

            
	
              Signature
                of Authorized Signatory of Investing Entity:

               

              Florian
                Homm                                                                                             
                

            
	
              Name
                of Authorized Signatory:

               

              Chief
                Investment
                Officer                                                                           
                

            
	
              Title
                of Authorized Signatory:

               

              ______________________________________________________________________

            
	
               

              Email
                Address of Authorized
                Entity:_________________________________________________________________

            

    

    

    Address
      for Notice of Investing Entity:

     

    c/o
      Todd Ficeto

    Hunter
      World Markets, Inc.

    9300
      Wilshire Blvd.

    Penthouse
      Suite

    Beverly
      Hills, CA 90212

     

    Address
      for Delivery of Shares for Investing Entity (if not same as above):

     

     

     

    Subscription
      Amount: $1,500,000

     

    __________
      shares of Common Stock

    

    EIN
      Number:

     

    
      
        
        

      

      
        -
          22
          -

        
          

        

      

      
        
        

      

    

    

    [PURCHASER
      SIGNATURE PAGES TO JAVA DETOUR, INC. 

    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 Investing Entity: Absolute Large Cap Fund

               

              /s/
                Florian
                Homm                                                                                        
                

            
	
              Signature
                of Authorized Signatory of Investing Entity:

               

              Florian
                Homm                                                                                              

            
	
              Name
                of Authorized Signatory:

               

              Chief
                Investment
                Officer                                                                           
                

            
	
              Title
                of Authorized Signatory:

               

              ____________________________________________________________________

            
	
               

              Email
                Address of Authorized
                Entity:_______________________________________________________________

            

    

    

    Address
      for Notice of Investing Entity:

     

    c/o
      Todd Ficeto

    Hunter
      World Markets, Inc.

    9300
      Wilshire Blvd.

    Penthouse
      Suite

    Beverly
      Hills, CA 90212

     

    Address
      for Delivery of Shares for Investing Entity (if not same as above):

     

     

     

    Subscription
      Amount: $300,000

     

    __________
      shares of Common Stock

    

    EIN
      Number:

     

    
      
        
        

      

      
        -
          23
          -

        
          

        

      

      
        
        

      

    

    

    [PURCHASER
      SIGNATURE PAGES TO JAVA DETOUR, INC. 

    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 Investing Entity: Absolute India Fund

               

              /s/
                Florian
                Homm                                                                                         
                

            
	
              Signature
                of Authorized Signatory of Investing Entity:

               

              Florian
                Homm                                                                                                
                

            
	
              Name
                of Authorized Signatory:

               

              Chief
                Investment
                Officer                                                                              
                

            
	
              Title
                of Authorized Signatory:

               

              ____________________________________________________________________

            
	
               

              Email
                Address of Authorized
                Entity:_______________________________________________________________

            

    

    

    Address
      for Notice of Investing Entity:

     

    c/o
      Todd Ficeto

    Hunter
      World Markets, Inc.

    9300
      Wilshire Blvd.

    Penthouse
      Suite

    Beverly
      Hills, CA 90212

     

    Address
      for Delivery of Shares for Investing Entity (if not same as above):

     

     

     

    Subscription
      Amount: $200,000

     

    __________
      shares of Common Stock

    

    EIN
      Number:

     

    
      
        
        

      

      
        -
          24
          -

        
          

        

      

      
        
        

      

    

    

    [PURCHASER
      SIGNATURE PAGES TO JAVA DETOUR, INC. 

    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 Investing Entity: Absolute Octane Fund

               

              /s/
                Florian
                Homm                                                                                    
                

            
	
              Signature
                of Authorized Signatory of Investing Entity:

               

              Florian
                Homm                                                                                          
                

            
	
              Name
                of Authorized Signatory:

               

              Chief
                Investment
                Officer                                                                        

            
	
              Title
                of Authorized Signatory:

               

              _____________________________________________________________________

            
	
               

              Email
                Address of Authorized
                Entity:________________________________________________________________

            

    

    

    Address
      for Notice of Investing Entity:

     

    c/o
      Todd Ficeto

    Hunter
      World Markets, Inc.

    9300
      Wilshire Blvd.

    Penthouse
      Suite

    Beverly
      Hills, CA 90212

     

    Address
      for Delivery of Shares for Investing Entity (if not same as above):

     

     

     

    Subscription
      Amount: $2,000,000

     

    __________
      shares of Common Stock

    

    EIN
      Number:

     

    
      
        
        

      

      
        -
          25
          -

        
          

        

      

      
        
        

      

    

    Annex
      A

     

    CLOSING
      STATEMENT

     

    Pursuant
      to the attached Securities Purchase Agreement, dated as of the date hereto,
      the
      purchasers shall purchase up to $10,000,000 of Securities from Java Detour,
      Inc., a Delaware corporation (the “Company”).
      All funds will be wired into a trust account maintained by City National Bank.
      All funds will be disbursed in accordance with this Closing
      Statement.

     

    Disbursement
      Date:
      November 30, 2006

     

    
      	
              I.    
                PURCHASE PRICE

            	 	 	 	 
	 	 	 	 	 
	
              Gross
                Proceeds to be Received in Trust

            	 	
              $

            	
              10,000,000.00

            	 
	 	 	 	 	 
	
              II.   
                DISBURSEMENTS

            	 	 	 	 
	 	 	 	 	 
	
              Payee:    
                Java
                Detour, Inc.

            	 	 	 	 
	
              Summit
                Bank

              2969
                Broadway

              Oakland,
                CA 94611

              ABA
                No.: 121138958
                

              Account
                No.: 0120030390

            	 	
              $

            	
              6,528,355.58

            	 
	 	 	 	 	 
	
              Summit
                Bank

              2969
                Broadway

              Oakland,
                CA 94611

              (510)
                839-8800

              ABA
                No. 121138958

              Account
                No. 1120 04092

            	 	
              $

            	
              1,512,385.42

            	 
	 	 	 	 	 
	
              VectraBank

              8000
                E. Belleview Avenue

              Greenwood
                Village, CO 80111

              (720)
                947-7100

              ABA
                No. 102003154

              Account
                No. 4168916601

              Beneficiary:
                AJ. Robbins, PC

            	 	
              $

            	
              29,590.00

            	 
	 	 	 	 	 
	
              Mellon
                1st
                Business Bank

              1800
                Avenue of the Stars

              Los
                Angeles, CA 90067

              ABA
                No. 122038442

              Account
                No. 050622428

              Beneficiary:
                Kirkpatrick & Lockhart Nicholson Graham LLP General Office
                Account

              Reference
                No.: 1005630.0201

            	 	
              $

            	
              120,000.00

            	 

    

     

    
      
        
        

      

      
        -
          26
          -

        
          

        

      

      
        
        

      

    

     

    
      	
              Bank
                of America

              100
                West 33rd
                Street

              New
                York, NY

              ABA
                No. 026009593

              Account
                No. 3750958331

              FBO:
                RBC Dain Rauscher

              Further
                Credit: The Hunter Fund LTD

            	 	
              $

            	
              560,000.00

            	 
	 	 	 	 	 
	
              Payee:   
                Hunter World Markets, Inc.

            	 	 	 	 
	
              Union
                Bank of California

              Century
                City, CA 90067

              ABA
                No.: 122000496

              Acct
                No: 20601 66768

            	 	
              $

            	
              1,235,000.00

            	 
	 	 	 	 	 
	
              Trust
                Account

              Mercantile
                National Bank

              1880
                Century Park East

              Los
                Angeles, CA 90067-2103

              Beneficiary:
                Troy & Gould Client Trust Account

              ABA
                No. 122239050

              Account
                No. 001527290

            	 	
              $

            	
              15,000.00

            	 
	 	 	 	 	 
	
              Total
                Amount Disbursed:

            	 	
              $

            	
              10,000,000.00

            	 

    

    

    
      
        
        

      

      
        -
          27
          -

        
          

        

      

      
        
        

      

    

     

    Schedule
      of Purchasers

     

    
      	
              Purchaser’s
                Name

            	 	
              Share
                Amount

            	 	
              Investor
                Warrant Amount

            	 	
              Purchase
                Amount

            	 
	
              Absolute
                Return Europe Fund

            	 	 	
              3,500,000

            	 	 	
              875,000

            	 	
              $

            	
              3,500,000

            	 
	
              European
                Catalyst Fund

            	 	 	
              2,500,000

            	 	 	
              625,000

            	 	
              $

            	
              2,500,000

            	 
	
              Absolute
                German Fund

            	 	 	
              1,500,000

            	 	 	
              375,000

            	 	
              $

            	
              1,500,000

            	 
	
              Absolute
                Large Cap Fund

            	 	 	
              300,000

            	 	 	
              75,000

            	 	
              $

            	
              300,000

            	 
	
              Absolute
                India Fund

            	 	 	
              200,000

            	 	 	
              50,000

            	 	
              $

            	
              200,000

            	 
	
              Absolute
                Octane Fund

            	 	 	
              2,000,000

            	 	 	
              500,000

            	 	
              $

            	
              2,000,000

            	 

    

    

    
      	
              TOTAL:

            	 	 	
              10,000,000

            	 	 	
              2,500,000

            	 	 	
              10,000,000

            	 

    

    

    
      
        
        

      

      
        -
          28
          -

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