Document:

Unassociated Document

    

    SECURITIES
      PURCHASE AGREEMENT

     

    SECURITIES
      PURCHASE AGREEMENT
      (the
“Agreement”),
      dated
      as of March 30, 2007, by and among Comanche Clean Energy Corporation, a Cayman
      Islands corporation, with headquarters located c/o Maples & Calder CS, South
      Church Street, George Town, Grand Cayman, Cayman Islands (the “Company”),
      and
      the investors listed on the Schedule of Buyers attached hereto
      (individually, a “Buyer”
and
      collectively, the “Buyers”).

     

    WHEREAS:

    

    A. The
      Company and each Buyer is executing and delivering this Agreement in reliance
      upon the exemptions from securities registration afforded by Section 4(2)
      of the Securities Act of 1933, as amended (the “1933
      Act”),
      Rule
      506 of Regulation D (“Regulation
      D”)
      as
      promulgated by the United States Securities and Exchange Commission (the
“SEC”)
      under
      the 1933 Act and/or Regulation S promulgated by the SEC under the 1933
      Act.

     

    B. The
      Buyers, severally, and not jointly, wish to purchase, and the Company wishes
      to
      sell, upon the terms and conditions stated in this Agreement, (i) that aggregate
      number of Ordinary Shares, par value $.001 per share, of the Company
      (“Shares”)
      set
      forth
      opposite such Buyer's name in column (3) on the Schedule of Buyers (which
      aggregate amount for all Buyers together shall be 3,000,000 Shares for an
      aggregate Purchase Price of $15,000,000.00 and (ii) warrants, in substantially
      the form attached hereto as Exhibit
      A
      (the
      "Warrants"),
      to
      acquire that number of Shares set forth opposite such Buyer's name in column
      (4)
      on the Schedule of Buyers (as exercised, collectively, the "Warrant
      Shares").
      

     

    C. The
      Shares and the Warrant Shares collectively are referred to herein as the
“Securities”.

     

    D. In
      connection with the Immediate Acquisitions (as defined below), (i) the Company
      shall issue Shares (together with existing Shares held by the management of
      the
      Company as listed on Schedule 1 hereof, collectively the “Management
      Restricted Stock”)
      to
      certain members of management of the Company, and its Subsidiaries (together
      with management of the Company listed on such Schedule, the “Management
      Members”),
      and
      (ii) the Company shall issue Shares (the “Acquisition
      Sellers Stock”)
      to
      certain selling parties in the Immediate Acquisitions (as defined below) (the
      “Acquisition
      Sellers”).
      Each
      Management Member and Acquisition Seller will execute and deliver a lockup
      agreement, the form of which is attached hereto as Exhibit B (as the same may
      be
      amended, restated, supplemented and/or modified from time to time in accordance
      with the provisions thereof, the “Lockup
      Agreements”),
      pursuant to which the resale of the Management Restricted Stock and the
      Acquisition Seller Stock shall be limited. 

     

    E. Contemporaneously
      herewith, the Company is entering into a securities purchase agreement, by
      and
      among the Company and the buyers listed on the Schedule of Buyers attached
      thereto (the “Note
      Unit Buyers”),
      (the
“Notes
      and Warrants Purchase Agreement”),
      wherein the Company agrees, upon the terms and subject to the conditions of
      the
      Notes and Warrants Purchase Agreement, to issue and sell to the Note Unit Buyers
      (i) secured convertible notes of the Company in an aggregate principal amount
      of
      $40,000,000.00 (the "Convertible Notes"),
      which
      will be convertible into Shares (as converted, the "Conversion
      Shares")
      in
      accordance with the terms of the Convertible Notes, and (ii) certain warrants
      (the "Convertible
      Note Warrants"),
      which
      will be exercisable to purchase additional shares of Common Stock (as exercised,
      the "Convertible
      Note Warrant Shares")
      in
      accordance with the terms of the Convertible Note Warrants.
      

     

    
      
        
        

      

      
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    F. Contemporaneously
      with the Closing, the Buyers, the Note Unit Buyers and the Company will execute
      and deliver a Registration Rights Agreement (as amended, restated, supplemented
      and/or modified from time to time in accordance with the provisions thereof,
      the
“Registration
      Rights Agreement”),
      pursuant to which the Company will agree to provide certain registration rights
      in respect of the Shares, the Conversion Shares, the Warrant Shares and the
      Note
      Warrant Shares under the 1933 Act and the rules and regulations promulgated
      thereunder, and applicable state securities laws.

     

    G. The
      Conversion Shares, Convertible Note Warrants and Convertible Note Warrant Shares
      collectively are referred to herein as the “Note
      Unit Securities”,
      and
      the offering thereof, the “Note
      Unit Offering”.

     

    H. Prior
      to
      the date hereof, Comanche Participações do Brasil Ltda (“Comanche
      Participacoes”) has
      entered into agreements for the acquisition of certain Clean Fuel Assets (as
      defined in the Notes) which agreements are annexed hereto as Schedule 2
      (collectively, the “Immediate
      Acquisition Documents”),
      pursuant to which Comanche Participacoes will, with certain of the proceeds
      of
      the transactions contemplated hereby, acquire the Clean Fuel Assets covered
      by
      the Immediate Acquisition Documents (the “Immediate
      Acquisitions”,
      and
      together with the development of or investment in a new Clean Fuel Asset,
      collectively, the “Acquisitions”),
      and
      the consummation of the transactions contemplated under the Immediate
      Acquisition Documents shall occur no later than the time period provided in
      Section 4(x). Any subsidiary created or acquired by the Company or any of its
      Subsidiaries in connection with the Immediate Acquisitions is hereafter referred
      to as a “Target”,
      and
      collectively, the “Targets”.)
      For
      purposes of the Agreement and other Transaction Documents (as defined below),
      “Acquisition
      Documents”
means,
      collectively, the transaction documents in connection with the
      Acquisitions.

     

    I. Capitalized
      terms used but not otherwise defined herein shall have the meanings ascribed
      to
      such terms in the Notes.

     

    NOW,
      THEREFORE,
      the
      Company and each Buyer hereby agree as follows:

     

    1. PURCHASE
      AND SALE OF SHARES AND WARRANTS.

     

    (a)
      Purchase
      of Shares and Warrants.
      Subject
      to the satisfaction (or waiver) of the conditions set forth in Sections 6
      and 7 below, the Company shall issue and sell to each Buyer, and each Buyer
      severally, but not jointly, agrees to purchase from the Company on the Closing
      Date (as defined below), (x) the number of Shares set forth opposite such
      Buyer’s name in column (3) on the Schedule of Buyers and (y) the
      related Warrants to acquire up to that number of Warrant Shares set forth
      opposite such Buyer’s name in column (4) on the Schedule of Buyers (the
“Closing”).

     

    (b)
      Closing.
      The
      date and time of the Closing (the “Closing
      Date”)
      shall
      be 10:00 a.m., New York City time, on the first day other than Saturday, Sunday
      or other day on which commercial banks in the City of New York are authorized
      or
      required by law to remain closed (a “Business
      Day”)
      following the satisfaction (or waiver) and notification of the Company of
      satisfaction (or waiver) of the conditions to the Closing set forth in
      Sections 6 and 7 below (or such later or earlier date as is mutually agreed
      to by the Company and Buyers holding the right to purchase at least 50% of
      the
      Shares to be sold hereunder). The Closing shall occur on the Closing Date at
      the
      offices of Guzov Ofsink, LLC, 600 Madison Avenue, 14th
      Floor,
      New York, New York 10022, or such other place as the Company and the Buyers
      holding the right to purchase at least 50% of the Shares to be sold hereunder
      shall mutually agree.

     

    
      
        
        

      

      
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    (c)
      Purchase
      Price.
      The
      aggregate purchase price for the Shares and the Warrants to be purchased by
      each
      such Buyer at the Closing (the “Purchase
      Price”)
      shall
      be the amount set forth opposite such Buyer’s name in column (5) of the
      Schedule of Buyers. Each Buyer shall pay $5.00 for each Share and related
      Warrants to be purchased by such Buyer at the Closing.

     

    (d)
      Form
      of Payment.
      On or
      before the Closing Date, (i) each Buyer shall deposit its respective
      Purchase Price for the Shares and Warrants to be issued and sold to such Buyer
      at the Closing to the escrow account by wire transfer of immediately available
      funds in accordance with the provisions of the Escrow Agreement dated the date
      hereof, by and among the Buyers, the Company, and Tri-State Title & Escrow,
      LLC, as the Escrow Agent (the “Escrow Agreement”), and (ii) the Company
      shall deliver to its counsel certificates the Shares (in the denomination
      requested by each Buyer) which such Buyer is then purchasing hereunder along
      with warrants representing the Warrants (allocated in the amounts as such Buyer
      shall request) which such Buyer is purchasing, in each case duly executed on
      behalf of the Company and registered in the name of such Buyer or, subject to
      compliance with applicable securities laws, its designee (as to such Buyer,
      the
“Buyer’s
      Shares and Warrants”).
      

     

    (e)Release
      of Purchase Price and Shares and Warrants.
      Subject
      to the satisfaction of the conditions set forth in Sections 6 and 7 of this
      Agreement, on the Closing Date the Company shall cause the Escrow Agent to
      (i)
      release the Purchase Price to the Company or its designees in accordance with
      the provisions of the Escrow Agreement, and (ii) shall cause its counsel to
      deliver to each Buyer the Buyer’s Shares and Warrants registered in the name of
      such Buyer..

     

    2. BUYER’S
      REPRESENTATIONS AND WARRANTIES. Each Buyer represents and warrants,
      severally and not jointly, as of the date of this Agreement and on the Closing
      Date, with respect to only itself that:

     

    (a) No
      Public Sale or Distribution.
      Such
      Buyer is acquiring the Shares, and the Warrants, and upon exercise of the
      Warrants will acquire the Warrant Shares issuable upon exercise thereof, for
      its
      own account and not with a view towards, or for resale in connection with,
      the
      public sale or distribution thereof, except pursuant to sales registered or
      exempted under the 1933 Act and such Buyer does not have a present arrangement
      to effect any distribution of the Securities to or through any person or entity;
      provided,
      however,
      that by
      making the representations herein, such Buyer does not agree to hold any of
      the
      Securities for any minimum or other specific term and reserves the right to
      dispose of the Securities at any time in accordance with or pursuant to a
      registration statement or an exemption under the 1933 Act and pursuant to the
      applicable terms of the Transaction Documents (as defined in Section 3(b)).
      Such Buyer does not presently have any agreement or understanding, directly
      or
      indirectly, with any Person (as defined in Section 3(p)) to distribute any
      of the Securities.

     

    
      
        
        

      

      
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    (b) Accredited
      Investor Status.
      Such
      Buyer is an “accredited investor” as that term is defined in Rule 501(a) of
      Regulation D.

     

    (c) Reliance
      on Exemptions.
      Such
      Buyer understands that the Securities are being offered and sold to it in
      reliance on specific exemptions from the registration requirements of United
      States federal and state securities laws and that the Company is relying upon,
      among other things, the truth and accuracy of, and such Buyer’s compliance with,
      the representations, warranties, agreements, acknowledgments and understandings
      of such Buyer set forth herein in order to determine the availability of such
      exemptions and the eligibility of such Buyer to acquire the
      Securities.

     

    (d)
       Information.
      Such
      Buyer and its advisors, if any, have been furnished with all materials relating
      to the business, finances and operations of the Company and the Acquisition
      and
      materials relating to the offer and sale of the Securities which have been
      requested by such Buyer. Such Buyer and its advisors, if any, have been afforded
      the opportunity to ask questions of the Company. Neither such inquiries nor
      any
      other due diligence investigations conducted by such Buyer or its advisors,
      if
      any, or its representatives shall modify, amend or affect such Buyer’s right to
      rely on the Company’s representations and warranties contained herein. Such
      Buyer understands that its investment in the Securities involves a high degree
      of risk and is able to afford a complete loss of such investment. Such Buyer
      has
      sought such accounting, legal and tax advice as it has considered necessary
      to
      make an informed investment decision in respect of its acquisition of the
      Securities.

     

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

     

    (f)
      Transfer
      or Resale.
      Such
      Buyer understands that except as provided in the Registration Rights Agreement:
      (i) the Securities have not been and are not being registered under the
      1933 Act or any state securities laws, and may not be offered for sale, sold,
      assigned or transferred unless (A) subsequently registered thereunder,
      (B) such Buyer shall have delivered to the Company an opinion of counsel,
      in a form reasonably acceptable to the Company, to the effect that such
      Securities to be sold, assigned or transferred may be sold, assigned or
      transferred pursuant to an exemption from such registration, or (C) such
      Buyer provides the Company with assurance reasonably acceptable to the Company
      that such Securities can be sold, assigned or transferred pursuant to Rule
      144
      or Rule 144A promulgated under the 1933 Act, as amended, (or a successor
      rule thereto) (collectively, “Rule
      144”);
      (ii) any sale of the Securities made in reliance on Rule 144 may be made
      only in accordance with the terms of Rule 144 and further, if Rule 144 is not
      applicable, any resale of the Securities under circumstances in which the seller
      (or the Person through whom the sale is made) may be deemed to be an underwriter
      (as that term is defined in the 1933 Act) may require compliance with some
      other
      exemption under the 1933 Act or the rules and regulations of the SEC thereunder;
      and (iii) none of the Company or any other Person is under any obligation
      to register the Securities under the 1933 Act or any state securities laws
      or to
      comply with the terms and conditions of any exemption thereunder.
      Notwithstanding the foregoing, and subject to compliance with applicable
      securities laws, the Securities may be pledged in connection with a bona fide
      margin account or other loan or financing arrangement secured by the Securities
      and such pledge of Securities shall not be deemed to be a transfer, sale or
      assignment of the Securities hereunder, unless required by law, and no Buyer
      effecting a pledge of Securities shall be required to provide the Company with
      any notice thereof or otherwise make any delivery to the Company pursuant to
      this Agreement or any other Transaction Document, including without limitation,
      this Section 2(f).

     

    
      
        
        

      

      
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    (g)
       Legends.
      Such
      Buyer understands that the certificates or other instruments representing the
      Shares and the Warrants and the stock certificates representing the Warrant
      Shares, except as set forth below, shall bear any legend as required by the
      “blue sky” laws of any state and a restrictive legend in substantially the
      following form (and a stop-transfer order may be placed against transfer of
      such
      certificates):

     

    NEITHER
      THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR
      THE
      SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES
      LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
      (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE
      SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION
      OF
      COUNSEL REASONABLY SATISFACTORY TO THE ISSUER, IN A GENERALLY ACCEPTABLE FORM,
      THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT
      TO, AND IN ACCORDANCE WITH, RULE 144 OR RULE 144A UNDER SAID ACT.
      NOTWITHSTANDING THE FOREGOING, SUBJECT TO COMPLIANCE WITH APPLICABLE SECURITIES
      LAWS, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
      ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. THIS
      INSTRUMENT IS SUBJECT TO THE TERMS OF A SECURITIES PURCHASE AGREEMENT (SHARES
      AND WARRANTS), DATED AS OF MARCH 30, 2007, BY AND AMONG COMANCHE CLEAN ENERGY
      CORPORATION AND THE BUYERS LISTED THEREIN.

     

    The
      legend set forth above shall be removed and the Company shall issue a
      certificate without such legend to the holder of the Securities upon which
      it is
      stamped or, in the case of Warrant Shares, issue to such holder by electronic
      delivery at the applicable balance account at The Depository Trust Company
      ("DTC"),
      if,
      unless otherwise required by state securities laws, (i) such Securities are
      registered for resale under the 1933 Act, provided that upon receipt of notice
      from the Company that the applicable registration statement is not, or no longer
      is effective in respect of the resale of such Securities, the Holder will not
      transfer such Securities (other than pursuant to clauses 2(g)(ii) or
      2(g)(iii) below) until the Company notifies the Holder that the applicable
      registration statement becomes effective (again), (ii) in connection with a
      sale, assignment or other transfer, such holder provides the Company with an
      opinion of counsel reasonably satisfactory to the Company, in a generally
      acceptable form, to the effect that such sale, assignment or transfer of the
      Securities may be made without registration under the applicable requirements
      of
      the 1933 Act and that such legend is no longer required, or (iii) such
      holder provides the Company with assurances reasonably acceptable to the Company
      that the Securities can be sold, assigned or transferred pursuant to Rule 144
      or
      Rule 144A, and such Holder delivers the legended Securities to the Company
      or
      the Company’s transfer agent.

     

    
      
        
        

      

      
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    (h) Validity;
      Enforcement.
      This
      Agreement has been, and, when the other Transaction Documents (as defined below)
      to which such Buyer is a party are executed and delivered in accordance with
      the
      terms and conditions contemplated hereby and thereby, such documents shall
      have
      been duly and validly authorized, executed and delivered on behalf of such
      Buyer
      and shall constitute the legal, valid and binding obligations of such Buyer
      enforceable against such Buyer in accordance with their respective terms, except
      as such enforceability may be limited by general principles of equity or to
      applicable bankruptcy, insolvency, reorganization, fraudulent conveyance or
      transfer, moratorium, liquidation and other similar laws relating to, or
      affecting generally, the enforcement of applicable creditors’ rights and
      remedies.

     

    (i) No
      Conflicts.
      The
      execution, delivery and performance by such Buyer of this Agreement and the
      other Transaction Documents to which such Buyer is a party and the consummation
      by such Buyer of the transactions contemplated hereby and thereby will not
      (i) result in a violation of any organizational documents of such Buyer or
      (ii) conflict with, or constitute a default (or an event which with notice
      or lapse of time or both would become a default) under, or give to others any
      rights of termination, amendment, acceleration or cancellation of, any
      agreement, indenture or instrument to which such Buyer is a party, or
      (iii) result in a violation of any law, rule, regulation, order, judgment
      or decree (including federal and state securities laws) applicable to such
      Buyer
      or by which any property or asset of the Buyer is bound or affected, except
      in
      the case of clauses (ii) and (iii) above, for such conflicts,
      defaults, rights or violations which would not, individually or in the
      aggregate, reasonably be expected to have a material adverse effect on the
      ability of such Buyer to perform its obligations hereunder or under any of
      the
      other Transaction Documents. Each Buyer agrees that it has independently, based
      on such documents and information it deemed appropriate, made its decision
      to
      enter into this Agreement and purchase the Shares and Warrants.

     

    (j) Residency.
      Such
      Buyer is a resident of that jurisdiction specified below its address on the
      Schedule of Buyers.

     

    (k) Placement
      Agent.
      Such
      Buyer understands that Rodman & Renshaw, LLC (the “Placement
      Agent”)
      has
      acted solely as the agent of the Company in this placement of the Securities,
      and that the Agent makes no representation or warranty with regard to the merits
      of this transaction or as to the accuracy of any information such Buyer may
      have
      received in connection therewith. Such Buyer acknowledges that it has not relied
      on any information prepared by the Agent or advice furnished by or on behalf
      of
      the Agent. Such Buyer agrees that it has, independently and without reliance
      on
      Agent, and based on such documents and information as it has deemed appropriate,
      made its own credit analysis of the Company, the Targets and the Acquisition
      and
      has made its own decision to enter into this Agreement and purchase the
      applicable Securities.

     

    
      
        
        

      

      
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    3. REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY. The Company represents and warrants to each
      of the Buyers on the date hereof and on the Closing Date that:

     

    (a)
      Organization
      and Qualification.
      Set
      forth on Schedule 3(a)
      is a
      true and correct list of the entities in which the Company or any Subsidiary,
      directly or indirectly, owns capital stock or holds an equity or similar
      interest, together with their respective jurisdictions of organization and
      the
      percentage of the outstanding capital stock or other equity interests of such
      entity that is held by the Company or such Subsidiary or any of their respective
      Subsidiaries. Schedule 3(a)
      also
      sets forth a true and correct corporate structure of the Company and its
      subsidiaries immediately following the Closing giving pro forma effect to the
      Immediate Acquisitions (including for this purpose only, the Targets). Other
      than with respect to the entities listed on Schedule 3(a),
      the
      Company does not, directly or indirectly, own any securities or beneficial
      ownership interests in any other Person (including through joint ventures or
      partnership arrangements) or has any investment in any other Person. The Company
      and its “Subsidiaries”
(which
      for purposes of this Agreement means any entity in which the Company or any
      of
      its Subsidiaries, directly or indirectly, owns any of the capital stock, equity
      or similar interests or voting power of such entity at the date of this
      Agreement) are entities duly organized and
      validly existing and in good standing under the laws of the jurisdiction in
      which they are formed, and have the requisite power and authority to own their
      properties and to carry on their business as now being conducted. If applicable,
      each of the Company and the Subsidiaries is duly qualified as a foreign entity
      to do business and, to the extent legally applicable, is in good standing in
      every jurisdiction in which its ownership of property or the nature of the
      business conducted by it makes such qualification necessary, except to the
      extent that the failure to be so qualified or be in good standing would not
      have
      a Material Adverse Effect. As used in this Agreement, “Material
      Adverse Effect”
means
      any material adverse effect on the business, properties, assets, prospects,
      operations, results of operations or condition (financial or otherwise) of
      the
      Company and its Subsidiaries, taken as a whole, or on the transactions
      contemplated hereby and the other Transaction Documents or by the agreements
      and
      instruments to be entered into in connection herewith or therewith, or on the
      authority or ability of the Company or any Subsidiary to perform its obligations
      under the Transaction Documents (as defined below). Except as set forth in
      Schedule 3(a),
      the
      Company and each Subsidiary holds all right, title and interest in and to 100%
      of the capital stock, equity or similar interests of each of its respective
      Subsidiaries, in each case, free and clear of any Liens (as defined below)
      other
      than Permitted Liens (as defined in the Convertible Notes) including any
      restriction on the use, voting, transfer, receipt of income or other exercise
      of
      any attributes of free and clear ownership by a current holder, and no such
      Subsidiary owns capital stock or holds an equity or similar interest in any
      other Person. As used in this Agreement, “Lien”
means,
      with respect of any asset, any mortgage, lien, pledge, hypothecation, charge,
      security interest, encumbrance or adverse claim of any kind and any restrictive
      covenant, condition, restriction or exception of any kind that has the practical
      effect of creating a mortgage, lien, pledge, hypothecation, charge, security
      interest, encumbrance or adverse claim of any kind (including any of the
      foregoing created by, arising under or evidenced by any conditional sale or
      other title retention agreement, the interest of a lessor with respect to a
      "Capital Lease" (in accordance with generally accepted accounting principles),
      or any financing lease having substantially the same economic effect as any
      of
      the foregoing).

     

    
      
        
        

      

      
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    (b)
      Authorization;
      Enforcement; Validity.
      The
      Company has the requisite corporate power and authority to enter into and
      perform its obligations under this Agreement, the Registration Rights Agreement,
      the Escrow Agreement (as defined below), the Warrants and each of the other
      agreements entered into by the parties hereto in connection with the
      transactions contemplated by this Agreement to which it is a party (such
      documents, and together with the Notes, the Warrants, the Registration Rights
      Agreement, the Transfer Agent Instructions, and each of the other agreements
      to
      be entered into in connection with the transactions contemplated by this
      Agreement, as amended, restated, supplemented and/or modified from time to
      time
      in accordance with the provisions thereof, collectively, the “Transaction
      Documents”)
      and to
      consummate the transactions contemplated herein and therein in accordance with
      the terms hereof and thereof. The execution and delivery of the Transaction
      Documents by the Company and the consummation by the Company of the transactions
      contemplated hereby and thereby, have been duly authorized by the board of
      directors of the Company (the “Board
      of Directors”)
      and
      other than as set forth in Section 3(e) hereof, no further filing, consent
      or authorization is required by the Company, its stockholders or the Board
      of
      Directors. To the extent that a Person that is a Subsidiary is a party to or
      bound by a Transaction Document or an Immediate Acquisition Document, such
      Subsidiary has the requisite power and authority to enter into and perform
      its
      obligations under such Transaction Document or Immediate Acquisition Document
      and the execution and delivery of such Transaction Document by such Subsidiary
      and the consummation by such Subsidiary of the transactions contemplated thereby
      have been duly authorized by the board of directors or equivalent body of such
      Subsidiary and no further consent or authorization is required by such
      Subsidiary, its equity holders or its board of directors or equivalent body.
      This Agreement, the other Transaction Documents and the Immediate Acquisition
      Documents have been duly executed and delivered by the Company or its
      Subsidiary, as applicable, and constitute the legal, valid and binding
      obligations of such parties enforceable against such parties in accordance
      with
      their respective terms, except as such enforceability may be limited by general
      principles of equity or applicable bankruptcy, insolvency, reorganization,
      fraudulent conveyance or transfer, moratorium, liquidation or similar laws
      relating to, or affecting generally, the enforcement of applicable creditors’
rights and remedies. As of the Closing, the Transaction Documents dated after
      the date of this Agreement and on or prior to the date of the Closing shall
      have
      been duly executed and delivered by the Company or its Subsidiary, if
      applicable, and shall constitute the valid and binding obligations of such
      parties, enforceable against such parties in accordance with their terms except
      as enforceability may be limited by general principles of equity or applicable
      bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer,
      moratorium or similar laws relating to, or affecting generally, the enforcement
      of creditors’ rights and remedies.

     

    (c)
      Offer
      of Securities; Issuance of Securities.
      Subject
      to the accuracy of Buyer’s representations and warranties hereunder, the offer
      by the Company of the Securities is exempt from registration under the 1933
      Act.
      The issuance of the Shares and the Warrants are duly authorized and are free
      from all taxes, liens and charges in respect of the issue thereof other than
      Permitted Liens (as defined in the Convertible Notes). As of the Closing, a
      number of Shares shall have been duly authorized and reserved for issuance
      which
      equals 125% of the
      maximum number of Shares issuable upon exercise of the Warrants Upon exercise
      in
      accordance with the Warrants, the Warrant Shares will be validly issued, fully
      paid and nonassessable and free from all preemptive or similar rights, taxes,
      liens and charges in respect of the issue thereof other than Permitted Liens,
      with the holders being entitled to all rights accorded to a holder of Shares.
      

    

    
      
        
        

      

      
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    (d)
      No
      Conflicts.
      The
      execution, delivery and performance of the Transaction Documents by the Company,
      and if applicable its Subsidiaries, and the consummation by such parties of
      the
      transactions contemplated hereby and thereby will not (i) result in a
      violation of any articles of association, certificate of incorporation,
      certificate of formation, any certificate of designations or other constituent
      documents of the Company or any of the Subsidiaries, any capital stock of the
      Company or any of the Subsidiaries or bylaws of the Company or any of the
      Subsidiaries or (ii) conflict with, or constitute a default (or an event
      which with notice or lapse of time or both would become a default) in any
      respect under, or give to others any rights of termination, amendment,
      acceleration or cancellation of, or other remedy in respect of, any agreement,
      indenture or instrument to which the Company or any of the Subsidiaries is
      a
      party, or (iii) result in a violation of any Requirements of Law, except
      (other than pursuant to clauses (i) and (iii) above) for such violations,
      conflicts, defaults or rights which would not, individually or in the aggregate,
      have a Material Adverse Effect. As used in this Agreement, (A) “Requirements
      of Law”
means,
      as to any Person, any United States or foreign law, statute, treaty, rule,
      regulation, right, privilege, qualification, license or franchise or
      determination of an arbitrator or a court or other Governmental Entity, in
      each
      case applicable or binding upon such Person or any of its property or to which
      such Person or any of its property is subject or pertaining to any or all of
      the
      transactions contemplated or referred to herein and (B) “Governmental
      Entity”
means
      the government of any nation, state, city, locality or other political
      subdivision thereof, any entity exercising executive, legislative, judicial,
      regulatory or administrative functions of or pertaining to government and any
      corporation or other entity owned or controlled, through stock or capital
      ownership or otherwise, by any of the foregoing.

     

    (e)
      Consents.
      Neither
      the Company nor any of the Subsidiaries is required to obtain any consent,
      authorization or order of, or make any filing or registration with, any court,
      governmental agency or any regulatory or self-regulatory agency or any other
      Person in order for it to execute, deliver or perform any of its obligations
      under or contemplated by the Transaction Documents to which it is a party,
      in
      each case in accordance with the terms hereof or thereof, except for the
      following consents, authorizations, orders, filings and registrations:
      (i) the filing of appropriate UCC financing statements (or the equivalent)
      with the appropriate states and other authorities pursuant to the Pledge
      Agreement (as defined in the Notes and Warrants Purchase Agreement;
      (ii) filings required by applicable federal, state or foreign securities
      laws; (iii) filings required by Brazilian law to register foreign investment;
      and (iv) the registration statement and related state securities law
      filings required by the Registration Rights Agreement. All consents,
      authorizations, orders, filings and registrations which the Company is required
      to have obtained prior to the date hereof pursuant to the preceding sentence
      have been obtained or effected. Notwithstanding the first two sentences of
      this
      Section 3(e), to the extent that any Foreign Subsidiary is required to obtain
      any consent, authorization or order, or make any filing or registration, but
      has
      not done so, such failure shall not constitute a default hereunder or under
      the
      other Transaction Documents if such failure(s), individually or in the
      aggregate, would not have a Material Adverse Effect.

     

    (f)
      Acknowledgment
      Regarding Buyer’s Purchase of Securities.
      The
      Company acknowledges and agrees that each Buyer is acting solely in the capacity
      of an arm’s length purchaser in respect of the Transaction Documents and the
      transactions contemplated hereby and thereby and that, except as set forth
      on
Schedule 3(f),
      no
      Buyer is (i) an officer or director of the Company, (ii) an
“affiliate” of the Company (as defined in Rule 144) or (iii) to the
      knowledge of the Company, a “beneficial owner” of more than 10% of the shares of
      Common Stock (as defined for purposes of Rule 13d-3 of the Securities Exchange
      Act of 1934, as amended (the “1934
      Act”)).
      The
      Company further acknowledges that, except as set forth on Schedule 3(f),
      to the
      knowledge of the Company, no Buyer is acting as a financial advisor or fiduciary
      of the Company or any of its Subsidiary (or in any similar capacity) in respect
      of the Transaction Documents and the transactions contemplated hereby and
      thereby, and any advice given by a Buyer or any of its representatives or agents
      in connection with the Transaction Documents and the transactions contemplated
      hereby and thereby is merely incidental to such Buyer’s purchase of the
      Securities. The Company further represents to each Buyer that the decision
      of
      the Company and each of the Subsidiaries to enter into the Transaction Documents
      to which such Person is a party has been based solely on the independent
      evaluation by the Company, such Subsidiaries and their respective
      representatives.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (g)
      No
      General Solicitation; Placement Agent’s Fees.
      None of
      the Company, any of its Subsidiaries, any of their respective Affiliates, nor
      any Person acting on its or their behalf, has engaged in any form of general
      solicitation or general advertising (within the meaning of Regulation D) in
      connection with the offer or sale of the Securities. The Company shall be
      responsible for the payment of any placement agent’s fees, financial advisory
      fees, or brokers’ commissions (other than for persons engaged by any Buyer or
      its investment advisor) relating to or arising out of the transactions
      contemplated hereby. The Company shall pay, and hold each Buyer harmless
      against, any liability, loss or expense (including, without limitation,
      attorneys’ fees and out-of-pocket expenses) arising in connection with any such
      claim. The Company acknowledges that it has engaged the Agent as placement
      agent
      in connection with the sale of the Securities. Other than the Agent, the fees
      and expenses of whom shall be borne by the Company, the Company has not engaged
      any placement agent or other agent in connection with the sale of the
      Securities.

     

    (h)
      No
      Integrated Offering.
      None of
      the Company, any of its Subsidiaries and any of their respective Affiliates,
      nor
      any Person acting on its or their behalf has made, directly or indirectly,
      any
      offers or sales of any security or solicited any offers to buy any security,
      under circumstances that would require registration of any of the Securities
      under the 1933 Act or cause this offering of the Securities to be integrated
      with prior or concurrent offerings by the Company for purposes of the 1933
      Act
      other than the Note Unit Offering and the Acquisitions, which Note Unit Offering
      and the Acquisitions have been undertaken only in such a manner as to not
      adversely affect the exemption from registration enjoyed by the sale of the
      Securities pursuant to this Agreement. None of the Company, any of its
      Subsidiaries and their respective Affiliates or any Person acting on their
      behalf will take any action or steps referred to in the preceding sentence
      that
      would require registration of any of the Securities under the 1933 Act or cause
      the offering of the Securities to be integrated with other offerings. Except
      as
      otherwise stated, as used in this Agreement, “Affiliate”
means
      any Person who is an “affiliate”
as
      defined in Rule 12b-2 of the General Rules and Regulations under the 1934
      Act.

     

    (i)
      Application
      of Takeover Protections; Rights Agreement.
      The
      Company and its board of directors have taken all necessary action, if any,
      in
      order to render inapplicable any control share acquisition, business
      combination, poison pill (including any distribution under a rights agreement)
      or other similar anti-takeover provision under the Company’s articles of
      association and memorandum of association (as amended and in effect on the
      date
      hereof, or the laws of the jurisdiction of its formation or otherwise which
      is
      or could become applicable to any Buyer as a result of the transactions
      contemplated by the Securities Purchase Agreement, including, without
      limitation, the Company’s issuance of the Securities and any Buyer's ownership
      of the Securities. The Company has not adopted a stockholder rights plan or
      similar arrangement relating to accumulations of beneficial ownership of Shares
      or a change in control of the Company. 

     

    
      
        
        

      

      
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    (j)
      Financial
      Statements.
      The
      consolidated financial statements of the Company and its Subsidiaries have
      been
      prepared in accordance with the generally accepted accounting principles of
      the
      jurisdiction of its organization (“GAAP”),
      during the periods involved (except (i) as may be otherwise indicated in
      such financial statements or the notes thereto, or (ii) in the case of
      unaudited interim statements, to the extent they may exclude footnotes or may
      be
      condensed or summary statements) and fairly present in all material respects
      the
      financial position of the Company as of the dates thereof and the results of
      its
      operations and cash flows for the periods then ended (subject, in the case
      of
      unaudited statements, to normal year-end audit adjustments that, to the
      Company's knowledge, are not material, individually or in the aggregate. Except
      for liabilities and obligations incurred in the ordinary course of business
      and
      consistent with past practice, liabilities and obligations reflected on or
      reserved against in the December 31, 2006 interim consolidated balance sheets
      of
      the Company or in the December 31, 2006 interim consolidated balance sheets
      of
      any Subsidiary, as applicable, prepared in accordance with GAAP (the
“Balance
      Sheets”)
      and as
      otherwise contemplated hereby or disclosed herein or in the disclosure schedules
      to this Agreement (the "Disclosure
      Schedules"),
      since
      December 31, 2006, inclusive of such date, none of the Company nor any
      Subsidiary has incurred any liabilities or obligations that would be required
      to
      be reflected or reserved against in a balance sheet of the Company or such
      Subsidiary, as applicable, prepared in accordance with the principles used
      in
      the preparation of the Balance Sheets. None of the Company or, to the Company's
      knowledge, any stockholder, officer or director of the Company has issued any
      press release or made any other public statement or communication on behalf
      of
      the Company or otherwise relating to the Company or any of its Subsidiaries
      that
      contains any untrue statement of a material fact or omits any statement of
      material fact necessary in order to make the statements therein, in the light
      of
      the circumstances under which they were made, not misleading.

     

    (k)
      Absence
      of Certain Changes.
      Since
      December 31, 2006, there has been no change or development in the business,
      properties, operations, condition (financial or otherwise), results of
      operations of the Company or any Subsidiary that has had or would reasonably
      be
      expected to have a Material Adverse Effect. Except as set forth on Schedule
      3(k),
      since
      December 31, 2006, (and before giving effect to the transactions contemplated
      under the Transaction Documents) none of the Company or any of its Subsidiaries
      has (i) declared or paid any dividends other than as would have been
      permitted under the Convertible Notes, (ii) sold any assets, individually
      or in the aggregate, in excess of $1,000,000 outside of the ordinary course
      of
      business, (iii) had capital expenditures, individually or in the aggregate,
      in excess of $1,000,000 or (iv) waived any material rights in respect of
      any Indebtedness or other rights in excess of $500,000 owed to it. None of
      the
      Company or any of its Subsidiaries has taken any steps to seek protection
      pursuant to any bankruptcy law nor does the Company have any knowledge or reason
      to believe that its creditors or the creditors of any Subsidiary intend to
      initiate involuntary bankruptcy proceedings or any actual knowledge of any
      fact
      which would reasonably lead a creditor to do so. Neither the Company nor any
      Subsidiary of the Company is as of the date hereof, and after giving effect
      to
      the transactions contemplated hereby to occur at the Closing will be, Insolvent
      (as defined below). For purposes of this Section 3(k), “Insolvent”
means,
      in respect of any Person, (i) the present fair saleable value of such
      Person’s assets (and including as assets for this purpose at a fair valuation
      all rights of subrogation, contribution or indemnification arising pursuant
      to
      any guarantees given by such Person) is less than the amount required to pay
      such Person’s (after giving effect to the Acquisitions) total Indebtedness (as
      defined in Section 3(p)), (ii) such Person is unable to pay its debts
      and liabilities, subordinated, contingent or otherwise, as such debts and
      liabilities become absolute and matured, (iii) such Person intends at any
      time to incur or believes that it will at any time incur debts that would be
      beyond its ability to pay as such debts mature or (iv) such Person has
      unreasonably small capital with which to conduct the business in which it is
      engaged as such business is now conducted and is proposed to be
      conducted.

     

    
      
        
        

      

      
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    (l)
      Conduct
      of Business; Regulatory Permits.
      None
      of
      the Company or any Subsidiary is in violation of any term of or in default
      under
      its articles of association, certificate of incorporation, certificate of
      formation, any certificate of designations of any outstanding series of
      preferred stock of such company or Bylaws or their organizational charter or
      other constituent documents or bylaws, respectively except for such violations
      or defaults which would not, individually or in the aggregate, reasonably be
      expected to have a Material Adverse Effect. None of the Company or any
      Subsidiary is in violation of any judgment, decree or order or any statute,
      ordinance, rule or regulation applicable to such entity, and none of the Company
      or any Subsidiary will conduct its respective business in violation of any
      of
      the foregoing, except for such violations and/or possible violations which
      would
      not, individually or in the aggregate, reasonably be expected to have a Material
      Adverse Effect. The Company and each Subsidiary possess all certificates,
      authorizations and permits issued by the appropriate regulatory authorities
      necessary to conduct their respective businesses, except where the failure
      to
      possess such certificates, authorizations or permits would not have,
      individually or in the aggregate, a Material Adverse Effect, and none of the
      Company or any Subsidiary has received any notice of proceedings relating to
      the
      revocation or modification of any such certificate, authorization or permit
      except where such proceedings, revocation or modification would not have a
      Material Adverse Effect.

     

    (m)
      Foreign
      Corrupt Practices.
      None of
      the Company or any Subsidiary, nor, any director, officer, agent, employee
      or
      other Person acting on behalf of any of them has, in the course of its actions
      for, or on behalf of, such entity (i) used any corporate funds for any
      unlawful contribution, gift, entertainment or other unlawful expenses relating
      to political activity; (ii) made any direct or indirect unlawful payment to
      any foreign or domestic government official or employee from corporate funds;
      (iii) violated or is in violation of any provision of the U.S. Foreign
      Corrupt Practices Act of 1977, as amended; or (iv) made any unlawful bribe,
      rebate, payoff, influence payment, kickback or other unlawful payment to any
      foreign or domestic government official or employee. 

     

    (n)
      Transactions
      With Affiliates.
      Except
      as set forth in Schedule
      3(n) hereto,
      other than the issuance of restricted stock and the other arrangements disclosed
      on Schedule
      3(n),
      none of
      the officers, directors or employees of any of the Company or any Subsidiary
      is
      presently a party to any transaction with any of the Company or any Subsidiary
      (other than for ordinary course services as employees, officers or directors),
      including any contract, agreement or other arrangement providing for the
      furnishing of services to or by, providing for rental of real or personal
      property to or from, or otherwise requiring payments to or from any such
      officer, director or employee or, to the knowledge of the Company, any
      corporation, partnership, trust or other entity in which any such officer,
      director, or employee has a substantial interest or is an officer, director,
      trustee or partner.

     

    
      
        
        

      

      
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    (o)
      Equity
      Capitalization.
      As of
      the date hereof and before giving effect to the Acquisitions, and the financings
      contemplated in the Transaction Documents, the authorized capital stock of
      the
      Company consists of 100,000,000 Ordinary Shares, par value $.001 per Share
      (“Ordinary
      Shares”),
      2,290,818 of which as of the date hereof, are issued and outstanding, and
      10,000,000 Preference Shares, par value $.001 per Share (“Preference
      Shares”,
      and
      collectively with Ordinary Shares, the “Shares”),
      none
      of which are issued or outstanding as of the date hereof. All of the outstanding
      Ordinary Shares have been validly issued and are fully paid and nonassessable.
      Except as disclosed in Schedule 3(o):
      (i) none of the Company’s capital stock is subject to preemptive rights or
      any other similar rights or any Liens suffered or permitted by the Company;
      (ii) there are no outstanding options, warrants, scrip, rights to subscribe
      to, calls or commitments of any character whatsoever relating to, or securities
      or rights convertible into, or exercisable or exchangeable for, any capital
      stock of the Company or any of its Subsidiaries, or contracts, commitments,
      understandings or arrangements by which the Company or any of its Subsidiaries
      is or may become bound to issue additional capital stock of the Company or
      any
      of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls
      or commitments of any character whatsoever relating to, or securities or rights
      convertible into, or exercisable or exchangeable for, any capital stock of
      the
      Company or any of its Subsidiaries; (iii) there are no outstanding debt
      securities, notes, credit agreements, credit facilities or other agreements,
      documents or instruments evidencing Indebtedness of the Company or any of its
      Subsidiaries or by which the Company or any of its Subsidiaries is or may become
      bound, except for such Indebtedness which (x) will be paid or satisfied in
      full
      substantially concurrently with the Closing with the proceeds of the purchase
      of
      securities hereunder, of the Note Unit Offering, or (y) constitutes Permitted
      Indebtedness (as defined in the Convertible Notes); (iv) there are no
      financing statements securing obligations in any material amounts, either singly
      or in the aggregate, filed in connection with the Company or any of its
      Subsidiaries other than financing statements evidencing Permitted Liens or
      filed
      pursuant to the Pledge Agreement; (v) there are no agreements or
      arrangements under which the Company or any of its Subsidiaries is obligated
      to
      register the sale of any of their securities under the 1933 Act (except pursuant
      to (A) the Registration Rights Agreement and (B) registration rights the Company
      has agreed to or may agree to provide to the Agent, the existing shareholders
      listed on Schedule 3(o) attached hereto, certain members of management and
      the
      current holders of the Shares; provided, that, the registration rights described
      in the foregoing clause (B) shall not require the Company to include the shares
      covered by such registration rights in the registration statement to be filed
      by
      the Company pursuant to Section 2(a) of the Registration Rights Agreement and
      such registration rights shall be subject to any registration rights granted
      to
      the Persons under Registration Rights Agreement ; (vi) there are no
      outstanding securities or instruments of the Company or any of its Subsidiaries
      which contain any redemption or similar provisions, and there are no contracts,
      commitments, understandings or arrangements by which the Company or any of
      its
      Subsidiaries is or may become bound to redeem a security of the Company or
      any
      of such Subsidiaries; (vii) there are no securities or instruments
      containing anti-dilution or similar provisions that will be triggered by the
      issuance of the Securities; (viii) the Company does not have any stock
      appreciation rights or “phantom stock” plans or agreements or any similar plan
      or agreement; (ix) all the Company’s outstanding options and warrants shall be
      cancelled at Closing; and (x) no securities of the Company or any
      Subsidiary are listed or quoted on any stock exchange or automated quotation
      system. The Company has made available to the Buyers true, correct and complete
      copies of the Company’s memorandum and articles of association, as amended and
      as in effect on the date hereof, and all agreements relating to securities
      convertible into, or exercisable or exchangeable for, Shares and the material
      rights of the holders thereof in respect thereof.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    (p)
      Indebtedness
      and Other Contracts.
      Except
      as disclosed in Schedule
      3(p),
      none of
      the Company or any Subsidiary (i) has any outstanding Indebtedness (as defined
      below) except for Permitted Indebtedness and such Indebtedness which will be
      paid or satisfied in full substantially concurrently with Closing with the
      proceeds of the purchase of securities hereunder, of the Note Unit Offering,
      (ii) is a party to any contract, agreement or instrument, the violation of
      which, or default under which, by the other party(ies) to such contract,
      agreement or instrument would reasonably be expected to result in a Material
      Adverse Effect, (iii) is in violation of any term of or in default under any
      contract, agreement or instrument relating to any Indebtedness, except where
      such violations and defaults would not result, individually or in the aggregate,
      in a Material Adverse Effect, or (iv) is a party to any contract, agreement
      or
      instrument relating to any Indebtedness, the performance of which, in the
      judgment of the Company’s officers, would be reasonably expected to have a
      Material Adverse Effect. After giving effect to the issuance of the Convertible
      Notes and Warrants as contemplated by the Notes and Warrants Purchase Agreement
      and Shares and Warrants pursuant to this Securities Purchase Agreement, none
      of
      the Company or any Subsidiary will have any outstanding Indebtedness, except
      for
      Permitted Indebtedness. For purposes of this Agreement: (x) Indebtedness”
of
      any
      Person means, without duplication (A) all indebtedness for borrowed money,
      (B)
      all obligations issued, undertaken or assumed as the deferred purchase price
      of
      property or services, including (without limitation) “capital leases” in
      accordance with generally accepted accounting principles (other than trade
      payables entered into in the ordinary course of business), (C) all reimbursement
      or payment obligations in respect of letters of credit, surety bonds and other
      similar instruments, (D) all obligations evidenced by notes, bonds, debentures
      or similar instruments, including obligations so evidenced incurred in
      connection with the acquisition of property, assets or businesses, (E) all
      indebtedness created or arising under any conditional sale or other title
      retention agreement, or incurred as financing, in either case in respect of
      any
      property or assets acquired with the proceeds of such indebtedness (even though
      the rights and remedies of the seller or bank under such agreement in the event
      of default are limited to repossession or sale of such property), (F) all
      monetary obligations under any leasing or similar arrangement which, in
      connection with generally accepted accounting principles, consistently applied
      for the periods covered thereby, is classified as a capital lease, (G) all
      indebtedness referred to in clauses (A) through (F) above secured by (or for
      which the holder of such Indebtedness has an existing right, contingent or
      otherwise, to be secured by) any mortgage, lien, pledge, charge, security
      interest or other encumbrance upon or in any property or assets (including
      accounts and contract rights) owned by any Person, even though the Person which
      owns such assets or property has not assumed or become liable for the payment
      of
      such indebtedness, and (H) all Contingent Obligations in respect of indebtedness
      or obligations of others of the kinds referred to in clauses (A) through (G)
      above; (y) “Contingent
      Obligation”
means,
      as to any Person, any direct or indirect liability, contingent or otherwise,
      of
      that Person in respect of any indebtedness, lease, dividend or other obligation
      of another Person if the primary purpose or intent of the Person incurring
      such
      liability, or the primary effect thereof, is to provide assurance to the obligee
      of such liability that such liability will be paid or discharged, or that any
      agreements relating thereto will be complied with, or that the holders of such
      liability will be protected (in whole or in part) against loss in respect
      thereof; and (z) “Person”
means
      an individual, a limited liability company, a partnership, a joint venture,
      a
      corporation, a trust, an unincorporated organization or a government or any
      department or agency thereof.

     

    
      
        
        

      

      
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    (q)
      Absence
      of Litigation.
      There
      is no action, suit, proceeding, inquiry or investigation that if adversely
      determined, individually or in the aggregate, would have a Material Adverse
      Effect before or by, any court, public board, government agency, self-regulatory
      organization or body pending or, to the knowledge of the Company, threatened
      against or affecting the Company, any Subsidiary, any of their respective
      officers or directors, or the Shares.

     

    (r)
      Insurance.
      The
      Company and each Subsidiary is insured by insurers of recognized financial
      responsibility against such losses and risks and in such amounts as management
      of the Company believes to be prudent and customary in the businesses in which
      such entities are engaged. None of the Company or any Subsidiary has any reason
      to believe that it will not be able to renew its existing insurance coverage
      as
      and when such coverage expires or to obtain similar coverage from similar
      insurers as may be necessary to continue its business at a cost that would
      not
      have a Material Adverse Effect.

     

    (s)
      Employee
      Relations.

     

    (i) None
      of
      the Company or any Subsidiary is a party to any collective bargaining agreement
      or employs any member of a union. The Company and its Subsidiaries believe
      that
      the Company’s relations with its employees and the relations of its Subsidiaries
      with their respective Subsidiaries are good. No executive officer (as defined
      in
      Rule 3b-7 promulgated under the 1934 Act) of the Company or any Subsidiary
      has
      notified the Company or such Subsidiary that such officer intends to leave
      the
      Company or Subsidiary, as applicable, or otherwise intends to terminate such
      officer’s employment with the Company or Subsidiary. To the knowledge of the
      Company, no executive officer of the Company or any Subsidiary is, or is now
      expected to be, in violation of any material term of any employment contract,
      confidentiality, disclosure or proprietary information agreement,
      non-competition agreement, or any other contract or agreement or any restrictive
      covenant and the continued employment of each such executive officer does not
      subject the Company or any Subsidiary to any liability in respect of any of
      the
      foregoing matters except such violations and/or liabilities that would not
      individually or in the aggregate be reasonably expected to have a Material
      Adverse Effect.

     

    (ii) The
      Company and the Subsidiaries are in compliance with all federal, state, local
      and foreign laws and regulations respecting labor, employment and employment
      practices and benefits, terms and conditions of employment and wages and hours,
      except where failure to be in compliance therewith would not result, either
      individually or in the aggregate, in a Material Adverse Effect.

     

    (t)
      Title.
      The
      Company and the Subsidiaries have good and marketable title in fee simple to
      all
      real property and good and valid title to all personal property owned by them
      which is material to the business of the Company or Subsidiary, as applicable,
      in each case free and clear of all Liens except for Permitted Liens (as defined
      in the Convertible Notes), except where failure to have good and valid title,
      individually or in the aggregate, would not be reasonably expected to have
      a
      Material Adverse Effect. Except as set forth on Schedule
      3(t),
      any
      real property and facilities held under lease by the Company or any of the
      Subsidiaries are held by the applicable entity under valid, subsisting and
      enforceable leases with such exceptions as are not material and do not interfere
      with the use made and proposed to be made of such property and buildings by
      the
      Company and such Subsidiaries. Where failures to have such valid, subsisting
      and
      enforceable lease(s) exist, such failures, in the aggregate, would not have
      a
      Material Adverse Effect.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    (u)
      Intellectual
      Property Rights.
      The
      Company and the Subsidiaries own or possess, adequate rights or licenses to
      use
      all trademarks, trade names, service marks and all applications and
      registrations therefor, patents, patent rights, copyrights, original works
      of
      authorship, inventions, licenses, approvals, governmental authorizations, trade
      secrets and other intellectual property rights (“Intellectual
      Property Rights”)
      necessary to conduct their respective businesses as now conducted. Except as
      set
      forth on Schedule
      3(u),
      none of
      the Company’s or any Subsidiary’s registered, or applied for, Intellectual
      Property Rights have expired or terminated or have been abandoned, or are
      expected to expire or terminate or expected to be abandoned, within three years
      from the date of this Agreement. The terminations, expirations or abandonments
      of such registered, or applied for, Intellectual Property Rights would not,
      in
      the aggregate, have a Material Adverse Effect. The Company does not have any
      knowledge of any infringement by the Company or any of the Subsidiaries of
      Intellectual Property Rights of others except of such infringement that would
      not have a Material Adverse Effect. Except as set forth on Schedule
      3(u),
      there
      is no claim, action or proceeding being made or brought, or to the knowledge
      of
      the Company, being threatened, against the Company or any Subsidiary regarding
      their respective Intellectual Property Rights and any such claims, actions
      and
      proceedings being made, brought or threatened would not in the aggregate, have
      a
      Material Adverse Effect. The Company is unaware of any facts or circumstances
      which might give rise to any of the foregoing infringements or claims, actions
      or proceedings which would, individually or in the aggregate, have a Material
      Adverse Effect. The Company and the Subsidiaries have taken reasonable security
      measures to protect the secrecy, confidentiality and value of all of their
      Intellectual Property Rights.

     

    (v)
      Environmental
      Laws.
      The
      Company and the Subsidiaries (i) are in compliance with any and all
      Environmental Laws (as hereinafter defined), (ii) have received all
      permits, licenses or other approvals required of them under applicable
      Environmental Laws to conduct their respective businesses, (iii) are in
      compliance with all terms and conditions of any such permit, license or approval
      and (iv) to the Company’s knowledge, there are no events, conditions or
      circumstances reasonably likely to result in liability of the Company or any
      Subsidiary pursuant to Environmental Laws, except where, in the foregoing
      clauses (i) through (iv) the failure to so comply with such Environmental Laws,
      permits, licenses or other approvals or to obtain such permits, licenses or
      approvals would not be reasonably expected to have, individually or in the
      aggregate, a Material Adverse Effect. The term “Environmental
      Laws”
means
      all federal, state, local or foreign laws relating to pollution or protection
      of
      human health or the environment (including, without limitation, ambient air,
      surface water, groundwater, land surface or subsurface strata), including,
      without limitation, laws relating to emissions, discharges, releases or
      threatened releases of chemicals, pollutants, contaminants, or toxic or
      hazardous substances or wastes (collectively, “Hazardous
      Materials”)
      into
      the environment, or otherwise relating to the manufacture, processing,
      distribution, use, treatment, storage, disposal, transport or handling of
      Hazardous Materials, as well as all authorizations, codes, decrees, demands
      or
      demand letters, injunctions, judgments, licenses, notices or notice letters,
      orders, permits, plans or regulations issued, entered, promulgated or approved
      thereunder.

     

    
      
        
        

      

      
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    (w)
      Subsidiary
      Rights.
      The
      Company or one of its Subsidiaries has the unrestricted right to vote, and
      (subject to limitations imposed by applicable law) to receive dividends and
      distributions on, all capital securities of the Subsidiaries owned by the
      Company or such Subsidiary, respectively, subject to the Transaction Documents.
      

     

    (x)
      Tax
      Status.
      Except
      as set forth on Schedule 3(x),
      each of
      the Company and Subsidiaries (i) has made or filed all foreign, federal,
      state and local income and all other tax returns, reports and declarations
      required by any jurisdiction to which it is subject, (ii) has paid all
      taxes and other governmental assessments and charges that are material in
      amount, shown or determined to be due on such returns, reports and declarations,
      except those being contested in good faith and for which the Company has made
      appropriate reserves on its books and (iii) has set aside on its books
      provision reasonably adequate for the payment of all taxes for periods
      subsequent to the periods to which such returns, reports or declarations apply.
      Except as set forth on Schedule 3(x),
      there
      are no material unpaid taxes claimed to be due by the taxing authority of any
      jurisdiction, and the officers of the Company know of no basis for any such
      claim. Each of the claims set forth on Schedule
      3(x)
      is being
      contested in good faith or would not be expected, individually or in the
      aggregate, to have a Material Adverse Effect. Except as set forth on
Schedule 3(x),
      no
      liens have been filed securing taxes and other governmental assessments and
      charges and no claims are being asserted by or against the Company or any of
      the
      Subsidiaries in respect of any taxes (other than liens for taxes not yet due
      and
      payable) or other governmental assessments or charges. Except as set forth
      on
Schedule 3(x),
      none of
      the Company or any of the Subsidiaries has received notice of assessment or
      proposed assessment of any taxes claimed to be owed by it or any other Person
      on
      its behalf. Except as disclosed on Schedule 3(x),
      none of
      the Company or any of the Subsidiaries is a party to any tax sharing or tax
      indemnity agreement or any other agreement of a similar nature that remains
      in
      effect. None of the items set forth on Schedule 3(x)
      would,
      individually or in the aggregate, have a Material Adverse Effect. Each of the
      Company and the Subsidiaries has complied in all material respects with all
      applicable legal requirements relating to the payment and withholding of taxes
      and, within the time and in the manner prescribed by law, has withheld from
      wages, fees and other payments and paid over to the proper governmental or
      regulatory authorities all amounts required.

     

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

     

    (z)
      Disclosure.
      Each of
      this Agreement (including the Schedules hereto), the other Transaction
      Documents, and that certain Private Placement Memorandum dated March 28, 2007
      (the “Private
      Placement Memorandum”),
      furnished by or on behalf of the Company regarding the Company or the
      Subsidiaries, and their respective businesses and the transactions contemplated
      hereby (other than any forward-looking statement or management opinion) is
      true
      and correct in all material respects and does not contain any untrue statement
      of a material fact or omit to state any material fact necessary in order to
      make
      the statements made therein, in the light of the circumstances under which
      they
      were made, not misleading, such representation, with respect to the Targets
      and
      the Immediate Acquisitions being made on the basis of the best knowledge of
      the
      Company or any Subsidiary. Each press release issued by the Company or its
      Subsidiaries during the twelve (12) months preceding the date of this Agreement
      did not at the time of release contain any untrue statement of a material fact
      or omit to state a material fact required to be stated therein or necessary
      in
      order to make the statements therein, in the light of the circumstances under
      which they were made, not misleading. No event or circumstance has occurred
      or
      information exists in respect of the Company or any of its Subsidiaries or
      its
      or their business, properties, operations or financial condition, which, under
      applicable law, rule or regulation, requires public disclosure or announcement
      by the Company but which has not been so publicly announced or disclosed, except
      where such failure would not reasonably be expected to have a Material Adverse
      Effect.

     

    
      
        
        

      

      
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    (aa)
      Manipulation
      of Price.
      The
      Company has not, and to its knowledge no one acting on its behalf has, (i)
      taken, directly or indirectly, any action designed to cause or to result in
      the
      stabilization or manipulation of the price of any security of the Company to
      facilitate the sale or resale of any of the Securities, (ii) sold, bid for,
      purchased, or paid any compensation for soliciting purchases of, any of the
      Securities, or (iii) paid or agreed to pay to any person any compensation for
      soliciting another to purchase any other securities of the Company other than
      the engagement of Rodman & Renshaw, LLC by the Company as agent in
      connection with the Note Unit Offering and the offering pursuant which the
      Securities are being sold and the execution of the lock-up agreement relating
      to
      the Management Restricted Stock.

    

    (bb)
      U.S.
      Real Property Holding Corporation.
      The
      Company is not, nor has it ever been, a U.S. real property holding corporation
      within the meaning of Section 897 of the Internal Revenue Code of 1986, as
      amended, and the Company shall so certify upon any Buyer’s request.

     

    (cc)
      No
      Other Agreements.
      As of
      the Closing Date, the Company has not, directly or indirectly, made any
      agreements with any Buyers relating to the terms or conditions of the
      transactions contemplated by the Transaction Documents, except as set forth
      in
      the Transaction Documents.

     

    (dd)
      Immediate
      Acquisition Documents.
      To the
      best knowledge of the Company, the representations and warranties made by each
      Target in the Immediate Acquisition Documents are true and correct in all
      material respects (except for those representations and warranties that are
      qualified by materiality, which are true and correct in all respects) as of
      the
      date when made (except for representations and warranties that speak as of
      a
      specific date, which are true and correct as of such date).. The Company does
      not have any reason to believe that such representations and warranties shall
      not be true and correct in all material respects (except for those
      representations and warranties that are qualified by materiality, which are
      expected to continue to be true and correct in all respects) as of the Immediate
      Acquisition Closing (as defined in Section 4(x)).

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    (ee)
      Regulations
      T, U and X.
      Neither
      the Company nor any other Subsidiary is and will be engaged in the business
      of
      extending credit for the purpose of purchasing or carrying margin stock (within
      the meaning of Regulation T, U or X of the Board of Governors of the Federal
      Reserve System as now and from time to time hereafter in effect), and no
      proceeds of any Note will be used to purchase or carry any margin stock or
      to
      extend credit to others for the purpose of purchasing or carrying any margin
      stock. 

     

    (ff)
      ERISA.
      

     

    (i) Except
      as
      listed on Schedule
      (ff)
      hereto,
      none of the Company or any of its Subsidiaries or any of their ERISA Affiliates
      maintains or contributes to, or within the preceding six (6) years has
      maintained or contributed to, any Employee Benefit Plan. Neither the Company
      nor
      any of its Subsidiaries have any current labor problems or disputes that have
      resulted in, or which such Person reasonably believes would be expected to
      have,
      a Material Adverse Effect. No Employee Benefit Plan has an accumulated or waived
      funding deficiency or permitted decrease which would create a deficiency in
      its
      funding standard account or has applied for an extension of any amortization
      period within the meaning of Section 412 of the Internal Revenue Code of 1986,
      as amended (or any successor statute thereto) and the regulations thereunder
      (the “Code”)
      as of
      the date hereof, and no Lien imposed under the Code or ERISA exists or is likely
      to arise on account of any Employee Benefit Plan within the meaning of Section
      412 of the Code. 

     

    (ii) Liabilities
      under any Employee Benefit Plan of the Company or any of its Subsidiaries have
      been appropriately reflected on the financial statements of the Company and
      its
      Subsidiaries in accordance with GAAP.

     

    (iii) All
      of
      the Employee Benefit Plans are and have been established and administered in
      all
      respects in accordance with all applicable laws, regulations or orders with
      respect thereto, no such failure to comply therewith has, or would be reasonably
      expected to have, a Material Adverse Effect. To the extent that any Employee
      Benefit Plan maintained by the Company or any of its Subsidiaries is intended
      to
      qualify for favorable tax treatment under any applicable law, regulation or
      order, to the knowledge of the Company and the Subsidiaries, no fact or
      circumstance exists that would reasonably be expected to adversely affect the
      tax-exempt status of such Employee Benefit Plan. 

     

    (iv) All
      obligations regarding the Employee Benefit Plans have been satisfied to the
      extent due and owing on the date hereof, there are no outstanding defaults
      or
      violations by any party to any Employee Benefit Plan and no taxes, penalties
      or
      fees are owing under any of the Employee Benefit Plans where such obligations,
      defaults, violations, unpaid taxes, unpaid penalties or unpaid fees have or
      would reasonably be expected to have a Material Adverse Effect. Except as set
      forth on Schedule
      (ff),
      neither
      the Company or any ERISA Affiliate has incurred any withdrawal liability under
      ERISA with respect to any Multiemployer Plan, or is aware of any facts
      indicating that it or any of its ERISA Affiliates may in the future incur any
      such withdrawal liability, that has, or would reasonably be expected to have,
      a
      Material Adverse Effect.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    (v) the
      Company and each of its Subsidiaries have made available to the Buyers true,
      correct and complete copies of all material Employee Benefit Plans as amended
      as
      of the date hereof, as requested by any Buyer. 

     

    (vi) Each
      Employee Benefit Plan is fully funded to the extent required by any applicable
      law, regulation or order.

     

    (vii) Except
      as
      disclosed in Schedule
      (ff)
      or as
      required by any applicable law, including, without limitation, the Consolidated
      Omnibus Budget Reconciliation Act of 1986 or any similar state law, regulation
      or order, none of the Employee Benefit Plans provides health and welfare
      benefits to retired employees or to the beneficiaries or dependents of retired
      employees.

     

    (viii) As
      used
      in this Agreement, “Employee
      Benefit Plan”
means
      an employee benefit plan (other than a Multiemployer Plan) covered by Title
      IV
      of ERISA and maintained (or that was maintained at any time during the six
      (6)
      calendar years preceding the date of this Agreement) for employees of the
      Company, any of its Subsidiaries or any of its ERISA Affiliates; “ERISA”
means
      the Employee Retirement Income Security Act of 1974, as amended, and any
      successor statute of similar import, and regulations thereunder, in each case,
      as in effect from time to time. References to sections of ERISA shall be
      construed also to refer to any successor sections; and “ERISA
      Affiliate”
means
      (a) any Person subject to ERISA whose employees are treated as employed by
      the
      same employer as the employees of Parent or any of its Subsidiaries under Code
      Section 414(b), (b) any trade or business subject to ERISA whose employees
      are
      treated as employed by the same employer as the employees of Parent or any
      of
      its Subsidiaries under Code Section 414(c), (c) solely for purposes of Section
      302 of ERISA and Section 412 of the Code, any organization subject to ERISA
      that
      is a member of an affiliated service group of which Parent or any of its
      Subsidiaries is a member under Code Section 414(m), or (d) solely for purposes
      of Section 302 of ERISA and Section 412 of the Code, any Person subject to
      ERISA
      that is a party to an arrangement with Parent or any of its Subsidiaries and
      whose employees are aggregated with the employees of Parent or any of its
      Subsidiaries under Code Section 414(o).

     

    (gg)
      Anti-Terrorism
      Laws and Anti-Money Laundering Laws.

     

    (i) None
      of
      the Company or its Subsidiaries is, and to the knowledge of the Company, no
      Person who owns a controlling interest in or otherwise controls the Company
      or
      any of its Subsidiaries is or is anticipated to be, (i) listed on the Specially
      Designated Nationals and Blocked Persons List maintained by the Office of
      Foreign Assets Control ("OFAC"),
      Department of the Treasury, and/or on any other similar list (collectively,
      the
      "Lists")
      maintained by the OFAC pursuant to any authorizing statute, Executive Order
      or
      regulation (collectively, "OFAC
      Laws and Regulations");
      or
      (ii) a Person (a "Designated
      Person")
      either
      (A) included within the term "designated national" as defined in the Cuban
      Assets Control Regulations, 31 C.F.R. Part 515, or (B) designated under Sections
      1(a), 1(b), 1(c) or 1(d) of Executive Order No. 13224, 66 Fed. Reg. 49079
      (published September 25, 2001) or similarly designated under any related
      enabling legislation or any other similar Executive Orders (collectively, the
      "Executive
      Orders").

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    (ii) None
      of
      the Company or its Subsidiaries (x) is a Person or entity with which any Buyer
      is prohibited from dealing or otherwise engaging in any transaction by any
      OFAC
      Laws and Regulations and the Executive Orders (collectively, the "Anti-Terrorism
      Law")
      or
      (ii) is a Person or entity that commits, threatens or conspires to commit or
      supports "terrorism" as defined in the Executive Orders or (y) is affiliated
      or
      associated with a Person or entity listed in the preceding clause (x) or clause
      (y). To the knowledge of the Company, none of the Company or its Subsidiaries
      or
      Affiliates, nor any brokers or other agents acting in any capacity in connection
      with the securities being offered in connection herewith (A) deals in, or
      otherwise engages in any transaction relating to, any property or interests
      in
      property blocked pursuant to the Executive Orders or (B) engages in or conspires
      to engage in any transaction that evades or avoids, or has the purpose of
      evading or avoiding, or attempts to violate, any of the prohibitions set forth
      in any Anti-Terrorism Law.

     

    (iii) To
      the
      knowledge of the Company, none of the Company or its Subsidiaries nor any holder
      of a direct or indirect interest in the Company or any of its Subsidiaries
      (x)
      is under investigation by any governmental authority for, or has been charged
      with, or convicted of, money laundering under 18 U.S.C. §§ 1956 and 1957, drug
      trafficking, terrorist-related activities or other money laundering predicate
      crimes, or any violation of the Bank Secrecy Act (31 U.S.C. Section 5311 et.
      seq.), and its implementing regulations, Title 31 Part 103 of the U.S. Code
      of
      Federal Regulations (the "BSA"),
      (y)
      has been assessed civil penalties under any all applicable laws, regulations
      and
      government guidance on the prevention and detection of money laundering,
      including 18 U.S.C. Section 1956 and 1957, (the "Anti-Money
      Laundering Laws"),
      or
      (z) has had any of its funds seized or forfeited in an action under any
      Anti-Money Laundering Laws.

     

    4. COVENANTS.

     

    (a)
      Best
      Efforts.
      Each
      party shall use its best efforts timely to satisfy each of the covenants and
      the
      conditions to be satisfied by it as provided in Sections 5, 6 and 7 of this
      Agreement.

     

    (b)
      Securities
      Law Filings.
      The
      Company agrees to timely make any securities law filings in respect of the
      Securities as required under any federal, state and foreign securities laws
      and
      to provide a copy thereof to each Buyer promptly upon request after such filing.
      The Company shall, on or before the Closing Date, take such action as the
      Company shall reasonably determine is necessary in order to obtain an exemption
      for or to qualify the Securities for sale to the Buyers at the Closing pursuant
      to this Agreement under applicable federal, state and foreign securities laws
      (or to obtain an exemption from such qualification), and shall upon request
      provide evidence of any such action so taken to the Buyers on or prior to the
      Closing Date.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    (c)
      Reporting
      Status.
      Commencing on the Effective Date (as defined in the Registration Rights
      Agreement) and until the later of the date on which (i) the Investors (as
      defined in the Registration Rights Agreement) shall have sold all the Warrant
      Shares and (ii) none of the Warrants is outstanding (the “Reporting
      Period”),
      the
      Company shall timely file all reports required to be filed with the SEC pursuant
      to the 1934 Act, provided that prior to the filing of the registration statement
      with the SEC as required by the Registration Rights Agreement, compliance with
      the current public information requirements of Rule 144(c) thereunder shall
      be
      sufficient. The Company shall not terminate its status as an issuer required
      to
      file reports under the 1934 Act, even if the 1934 Act or the rules and
      regulations thereunder would permit such termination.

     

    (d)
      Use
      of
      Proceeds.
      The
      Company will use the proceeds from the sale of the Securities for general
      corporate purposes, including general and administrative expenses and for the
      purposes set forth on Schedule 4(d)
      (and not
      for the redemption or repurchase of any of its or its Subsidiaries’ equity
      securities or to settle any outstanding litigation). For clarification purposes
      only, the acquisition of securities in a Permitted Acquisition (as defined
      in
      the Convertible Notes) pursuant to which the applicable acquisition target
      becomes a Subsidiary (or a joint venture partner) shall not be prohibited by
      this Section 4(d).

     

    (e)
      Financial
      Information.
      The
      Company agrees to send the following to each Investor during the Reporting
      Period (i) unless the following are filed with the SEC through EDGAR and are
      promptly (and in any event, within two business hours) available to the public
      through the EDGAR system, within three (3) Business Days after the filing
      thereof with the SEC, a copy of any of the periodic report or any other interim
      reports or any consolidated balance sheets, income statements, stockholders’
equity statements and/or cash flow statements filed with the SEC for any period
      other than annual, any reports on Form 6-K and any registration statements
      (other than on Form S-8) or amendments filed pursuant to the 1933 Act, (ii)
      promptly and in any event, within one (1) Business Day after the release thereof
      (unless such press release is available on PR Newswire or Business Wire),
      facsimile or e-mailed copies of all press releases issued by the Company or
      any
      of its Subsidiaries, and (iii) copies of any notices and other information
      made
      available or given to the stockholders of the Company generally,
      contemporaneously with the making available or giving thereof to the
      stockholders.

     

    (f)
      Fees.
      Subject
      to Section 8 below, at Closing, the Company shall pay an expense allowance
      to the Agent or its designee(s) for all reasonable costs and expenses incurred
      in connection with the transactions contemplated by the Transaction Documents
      (including all reasonable legal fees and disbursements in connection therewith,
      documentation and implementation of the transactions contemplated by the
      Transaction Documents and due diligence in connection therewith), in an amount
      not to exceed $50,000. The Company shall pay any placement agent’s fees,
      financial advisory fees, or broker’s commissions (other than for Persons engaged
      by any Buyer) relating to or arising out of the transactions contemplated
      hereby, including, without limitation, any fees or commissions payable to the
      Agent. Except as otherwise set forth in the Transaction Documents, each party
      to
      this Agreement shall bear its own expenses in connection with the sale of the
      Securities to the Buyers except that the Company shall pay all actual reasonable
      attorneys' fees and expenses (including disbursements and out-of-pocket
      expenses) for one counsel to the Purchasers incurred by the Purchasers in
      connection with the transactions contemplated by this Agreement.

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    (g)
      Pledge
      of Securities.
      The
      Company acknowledges and agrees, subject to compliance with applicable
      securities laws, that the Securities may be pledged by an Investor in connection
      with a bona fide margin agreement or other loan or financing arrangement that
      is
      secured by the Securities. Except as otherwise required by applicable securities
      laws, the pledge of Securities shall not be deemed to be a transfer, sale or
      assignment of the Securities hereunder, and no Investor effecting a pledge
      of
      Securities shall be required to provide the Company with any notice thereof
      or
      otherwise make any delivery to the Company pursuant to this Agreement or any
      other Transaction Document, including, without limitation, Section 2(f);
      provided that an Investor and its pledgee shall be required to comply with
      the
      provisions of Section 2(f) in order to effect a sale, transfer or
      assignment of Securities to such pledgee. The Company hereby agrees to execute
      and deliver such documentation as a pledgee of the Securities may reasonably
      request in connection with a pledge of the Securities to such pledgee by an
      Investor at the expense of the Investor or pledgee.

     

    (h)
      Participation
      Rights for Future Financings.
      The
      Buyers shall have the right to participate in future financings by the Company
      to the extent set forth in Sections 15(b) through 15(f) of the Convertible
      Notes.

     

    (i) Reservation
      of Shares.
      For as
      long as any Buyer owns any Warrants, the Company shall take all actions
      necessary to at all times after the Closing Date have authorized, and reserved
      for the purpose of issuance, no less than 125% of the sum of (i) the number
      of Shares issuable upon conversion of all of the Convertible Notes issued
      pursuant to the Note and Warrants Offering, (ii) the number of Shares
      issuable upon exercise of the Warrants issued at the Closing, and (iii) the
      number of Shares issuable upon exercise of the Note Warrants (without taking
      into account any limitations on the conversion of the Notes or exercise of
      the
      Warrants or Note Warrants set forth in the Convertible Notes, Warrants and
      Note
      Warrants, respectively).

     

    (j)
      Conduct
      of Business.
      The
      business of the Company and its Subsidiaries shall not be conducted in violation
      of Requirements of Law, except where such violations would not result, either
      individually or in the aggregate, in a Material Adverse Effect.

     

    (k)
      No
      Additional Registered Securities.
      From
      the Closing Date until the earlier of the date that is ninety (90) Trading
      Days
      following the Effective Date (as defined in the Registration Rights Agreement)
      and the date the Investors shall have sold all the Shares and Warrant Shares,
      the Company will not file a registration statement under the 1933 Act, or allow
      any such registration statement to become effective, in respect of any
      securities other than (A) the Registration Statement contemplated by the
      Registration Rights Agreement, (B) subject to Section 3(o), any registration
      statement to be filed by the Company pursuant to any registration rights the
      Company has agreed to or may agree to provide to the Agent, the existing
      shareholders listed on Schedule 3(o) attached hereto, certain members of
      management and the current holders of the Shares, and/or (C) a registration
      statement on Form S-8.

     

    (l)
      Integration.
      None of
      the Company, any of its Subsidiaries, any of its or their affiliates (as defined
      in Rule 501(b) under the 1933 Act) nor any person acting on behalf the Company,
      its Subsidiaries or such affiliate will sell, offer for sale or solicit offers
      to buy or otherwise negotiate in respect of any security (as defined in the
      1933
      Act) including the Note Unit Securities which will be integrated with the sale
      of the Securities in a manner which would require the registration under the
      1933 Act of the Securities or require stockholder approval under the rules
      and
      regulations of the applicable Principal Market (as defined in the Convertible
      Notes) and the Company will take all action that is appropriate or necessary
      to
      assure that its offerings of other securities (other than the Note Unit
      Securities) will not be integrated for purposes of the 1933 Act or the rules
      and
      regulations of the applicable Principal Market (as defined in the Convertible
      Notes) with the issuance of Securities contemplated hereby.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    (m)
      OTC
      Bulletin Board.
      Upon
      the effectiveness of the Registration Statement (as defined in the Registration
      Rights Agreement), the Company shall use best efforts to comply with the rules
      of the Principal Market (as defined in the Convertible Notes) and to cause
      all
      of the Registrable Securities (as defined in the Registration Rights Agreement)
      covered by a Registration Statement (as defined in the Registration Rights
      Agreement) to be quoted thereon, unless listed or quoted on another market.
      The
      Company shall promptly secure the listing of all of the Registrable Securities
      upon each national securities exchange and automated quotation system, if any,
      upon which Shares are then listed (subject to official notice of issuance)
      and
      shall maintain, so long as any other Shares shall be so listed, such listing
      of
      all Registrable Securities from time to time issuable under the terms of the
      Transaction Documents. The Company shall cause its Subsidiaries not to take
      any
      action which would be reasonably expected to result in the suspension or
      termination of trading of the Shares on the Principal Market (as defined in
      the
      Note). The Company shall pay all fees and expenses in connection with satisfying
      its obligations under this Section 4(m).

     

    (n)
      Regulation
      M.
      The
      Company will not take any action prohibited by Regulation M under the 1934
      Act,
      in connection with the distribution of the Securities contemplated
      hereby.

     

    (o)
      General
      Solicitation.
      None of
      the Company, any of its Affiliates or any person acting within the scope of
      their delegated authority on behalf of the Company or such affiliate will
      solicit any offer to buy or offer or sell the Securities by means of any form
      of
      general solicitation or general advertising within the meaning of Regulation
      D,
      including: (i) any advertisement, article, notice or other communication
      published in any newspaper, magazine or similar medium or broadcast over
      television or radio; and (ii) any seminar or meeting whose attendees have
      been invited by any general solicitation or general advertising.

     

    (p)
      Closing
      of Immediate Acquisitions.
      The
      Company shall, and shall cause each of its Subsidiaries to, use its best efforts
      to cause the transactions contemplated under the Immediate Acquisition Documents
      to be consummated, except for those matters which in the aggregate do not have
      a
      Material Adverse Effect (the “Immediate
      Acquisition Closing”)
      on the
      Closing Date. Upon the consummation of the Immediate Acquisitions, an officer
      of
      the Company shall deliver a certificate to the Escrow Agent stating that the
      Company has legal ownership of the stock of the Immediate Acquisitions under
      applicable law and that the Purchase Price may be released to the Company
      pursuant to the terms of the Escrow Agreement. 

     

    (q)
      Non-Disclosure
      of Buyers’ Names.
      The
      Company shall not publicly disclose the name of any Buyer, or include the name
      of any Buyer in any filing with the SEC or any regulatory agency or Principal
      Market, without the prior written consent of such Buyer, except (i) for
      disclosure thereof in filings made under the United States securities laws
      or
      (ii) as required by law, the regulations of the stock exchange or automatic
      quotation system upon which the Company’s Shares are then traded or any order of
      any court or other governmental agency, in which case the Company shall provide
      such Buyer with prior notice of such disclosure and the opportunity to review
      and comment on such disclosure.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    (r)
      Reverse
      Merger.
      (i) The
      Company shall use its best efforts to effectuate not later than April 30, 2007
      a
      share exchange transaction pursuant to which all of the outstanding Shares
      of
      the Company together with all of the Warrants issued pursuant to this Agreement
      and all of the Notes and Warrants issued pursuant to the Notes and Warrants
      Purchase Agreement shall be exchanged for equivalent securities of a British
      Virgin Islands corporation which shall have the class of its common equity
      securities registered under the Securities Exchange Act of 1934, but which
      shall
      have substantially no other assets, liabilities or business (the “Shell”) and as
      a result of which immediately after the consummation of the share exchange,
      holders of shares of capital stock of the Shell, other than (A) the Common
      PIPE
      Buyers, (B) holders of Management Restricted Stock and (C) holders of
      Acquisition Sellers Stock, shall own not more than 2.17% of the outstanding
      shares of capital stock of the Shell (the “Share
      Exchange”);
      provided, however, that the Company shall have no obligation to facilitate
      the
      Share Exchange unless the Company is advised by a Buyer or the Placement Agent,
      on or before April 15, 2007, that a corporation meeting the foregoing criteria
      is available to be the subject of the Share Exchange and the Company does not
      reasonably determine after conducting reasonable due diligence procedures that
      such identified corporation does not meet some or all of the foregoing criteria.
      

     

    (ii)
      Each
      of the Buyers agrees to consummate the Share Exchange promptly upon terms and
      conditions and documents reasonably acceptable to the Buyers provided that
      the
      Shell meets all of the criteria specified in Section 4(r)(i).

     

    (s)
      Nonpublic
      Information.
      The
      Company shall not, and shall cause each of its Subsidiaries and each of their
      respective officers, directors, employees and agents, not to, provide any Buyer
      with any material, nonpublic information regarding the Company or any of its
      Subsidiaries from and after the filing of the Registration Statement (as such
      term is defined in the Registration Rights Agreement) without the express
      written consent of such Buyer.

     

    5. REGISTERS;
      TRANSFER AGENT INSTRUCTIONS.

     

    (a)
      Registers.
      The
      Company shall maintain at its principal executive offices (or such other office
      or agency of the Company), a register for the Shares and a register for the
      Warrants, in which the Company shall record the name and address of the Person
      in whose name the Shares or the Warrants, respectively, have been issued
      (including the name and address of each transferee), and Warrant Shares issuable
      upon exercise of the Warrants held by such Person. The Company shall keep the
      registers open and available at all times during business hours for inspection
      of any Buyer or its legal representatives.

     

    (b)
      Transfer
      Agent Instructions.
      Not
      later than the Effective Date (as defined in the Registration Rights Agreement),
      the Company shall cause its Shares to be eligible for transfer with its transfer
      agent pursuant to the Depository Trust Company Automated Securities Transfer
      Program. The Company shall issue instructions to its transfer agent in the
      form
      attached hereto as Exhibit D,
      and any
      subsequent transfer agent, to issue certificates or credit shares to the
      applicable balance accounts at DTC, registered in the name of each Buyer or
      its
      respective nominee(s), for the Shares issued at the Closing or upon exercise
      of
      the Warrants in such amounts as specified from time to time by each Buyer to
      the
      Company or upon exercise of the Warrants (the “Transfer
      Agent Instructions”).
      The
      Company warrants that no instruction other than the Transfer Agent Instructions
      referred to in this Section 5(b), and stop transfer instructions to give
      effect to Section 2(g) including in the event that the Registration
      Statement ceases to be effective under the Securities Act of 1933, will be
      given
      by the Company to its transfer agent, and that the Securities shall otherwise
      be
      freely transferable on the books and records of the Company, subject to
      compliance with applicable securities law, as and to the extent provided in
      this
      Agreement and the other Transaction Documents. If a Buyer effects a sale,
      assignment or transfer of the Securities in accordance with Section 2(f),
      the Company shall permit the transfer and shall promptly instruct its transfer
      agent to issue one or more certificates or credit shares to the applicable
      balance accounts at DTC in such name and in such denominations as specified
      by
      such Buyer to effect such sale, transfer or assignment. In the event that such
      sale, assignment or transfer involves Conversion Shares or Warrant Shares sold,
      assigned or transferred pursuant to an effective registration statement or
      pursuant to Rule 144, and Buyer provides evidence of compliance with Rule 144
      reasonably acceptable to the Company, the transfer agent shall, subject to
      compliance with applicable securities laws, issue such Securities to the Buyer,
      assignee or transferee, as the case may be, without any restrictive legend.
      The
      Company acknowledges that a breach by it of its obligations hereunder will
      cause
      irreparable harm to affected Buyers. Accordingly, the Company acknowledges
      that
      the remedy at law for a breach of its obligations under this Section 5(b)
      will be inadequate and agrees, in the event of a breach by the Company of the
      provisions of this Section 5(b), that any affected Buyers shall be
      entitled, in addition to all other available remedies, to an order and/or
      injunction restraining any breach and requiring immediate issuance and transfer,
      without the necessity of showing economic loss and without any bond or other
      security being required.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    6. CONDITIONS
      TO THE COMPANY’S OBLIGATION TO SELL. The obligation of the Company hereunder
      to issue and sell the Shares and the related Warrants to each Buyer at the
      Closing is subject to the satisfaction, at or before the Closing Date, of each
      of the following conditions, reasonably satisfactory to the Company, provided
      that these conditions are for the Company’s benefit and may be waived by the
      Company at any time in their sole discretion by providing each Buyer with prior
      written notice thereof:

     

    (a)
      Each
      Buyer shall have executed each of the Transaction Documents to which it is
      a
      party and delivered the same to the Company.

     

    (b)
      Each
      Buyer shall have delivered to the Escrow Agent (as defined in the Escrow
      Agreement) the Purchase Price for the Shares and the related Warrants being
      purchased by such Buyer at the Closing by wire transfer of immediately available
      funds pursuant to the wire instructions provided under the Escrow
      Agreement.

     

    (c)
      The
      representations and warranties of such Buyer shall be true and correct in all
      material respects (except for those representations and warranties that are
      qualified by materiality or Material Adverse Effect, which shall be true and
      correct in all respects) as of the date when made and as of the Closing Date
      as
      though made at that time (except for representations and warranties that speak
      as of a specific date, each of which shall be true and correct as of such date),
      and such Buyer shall have performed, satisfied and complied in all material
      respects with the covenants, agreements and conditions required by this
      Agreement to be performed, satisfied or complied with by such Buyer at or prior
      to the Closing Date. For clarification purposes only, the conditions set forth
      in each of the subsections of this Section 6, including, but not limited to,
      Sections 6(a) and (b), must be satisfied in all respects, or waived as provided
      for in this Section 6.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    7. CONDITIONS
      TO EACH BUYER’S OBLIGATION TO PURCHASE. The obligation of each Buyer
      hereunder to purchase the Shares and the related Warrants at the Closing is
      subject to the satisfaction, at or before the Closing Date, of each of the
      following conditions, provided that these conditions are for each Buyer’s sole
      benefit and may be waived by such Buyer at any time in its sole discretion
      by
      providing the Company with prior written notice thereof:

     

    (a)
      Each
      of
      the Company and each of their Subsidiaries, to the extent each is a party
      thereto, shall have executed and delivered to such Buyer (i) each of the
      Transaction Documents, (ii) certificates for the being purchased by such
      Buyer at the Closing pursuant to this Agreement and (iii) the Warrants (in
      such denominations as such Buyer shall request) being purchased by such Buyer
      at
      the Closing pursuant to this Agreement.

     

    (b)
      The
      Company shall have delivered to such Buyer a copy of the Transfer Agent
      Instructions, in the form of Exhibit D
      attached
      hereto, which instructions shall have been delivered to and acknowledged in
      writing by the Company’s transfer agent.

     

    (c)
      Such
      Buyer shall have received the opinions of Guzov Ofsink, LLC, the Company’s U.S.
      outside counsel, MHMK - Sociedade de Advogados, the Company’s outside Brazilian
      counsel, and Maples and Calder, the Company’s outside Cayman counsel, each dated
      as of the Closing Date, in substantially the forms identified on Exhibit E
      attached
      hereto.

     

    (d)
      The
      Company shall have delivered to such Buyer a copy of a certificate evidencing
      incorporation, partnership or the formation, as applicable, and good standing
      of
      the Company, and each of the Subsidiaries in such entity’s jurisdiction of
      formation issued by the Secretary of State (or comparable office) of such
      jurisdiction, as of a date within the 30 days prior to the Closing
      Date.

     

    (e)
      If
      applicable, the Company shall have delivered to such Buyer a certificate
      evidencing the Company's and each Subsidiary’s qualification as a foreign entity
      (or the equivalent) and good standing issued by the Secretary of State of the
      State (or comparable office) of each jurisdiction in which the Company or such
      Subsidiary is required to qualify as a foreign entity, each as of a date within
      30 days prior to the Closing Date. 

     

    (f)
      The
      Board
      of Directors shall have adopted resolutions consistent with Section 3(b)
      above and in a form reasonably acceptable to such Buyer (the “Resolutions”).

     

    (g)
      The
      Company, and each Subsidiary of the Company shall have delivered to such Buyer
      a
      secretary’s certificate in the form attached hereto as Exhibit
      F,
      executed by the secretary (or comparable office) of such Person and dated as
      of
      the Closing Date, certifying (A) that the attached resolutions adopted by
      the board of directors of such Person in connection with the Transaction
      Documents are true, complete and correct and remain unamended and in full force
      and effect, (B) that the attached articles of association, certificate of
      incorporation or certificate of formation of such Person, certified as of a
      date
      within 30 days of the Closing Date, by the secretary of state of the state
      of
      the jurisdiction of its organization, is true, complete and correct and remains
      unamended and in full force and effect, (C) that the attached memorandum of
      association, bylaws or limited liability company or operating agreement of
      such
      Person are true, complete and correct and remain unamended and in full force
      and
      effect and (D) as to the incumbency and specimen signature of each officer
      of
      such Person executing this Agreement, the other Transaction Documents and any
      other document delivered in connection herewith on behalf of such
      Person.

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    (h)
      The
      representations and warranties of the Company and any Subsidiary set forth
      in
      this Agreement or any other Transaction Document shall be true and correct
      in
      all material respects (except for those representations and warranties that
      are
      qualified by materiality or Material Adverse Effect, which shall be true and
      correct in all respects) as of the date when made and as of the Closing Date
      as
      though made at that time (except for representations and warranties which speak
      as of a specific date, each of which shall be true and correct as of such date)
      and the Company, or each Subsidiary, as applicable, shall have performed,
      satisfied and complied in all material respects with the covenants, agreements
      and conditions required by the Transaction Documents to be performed, satisfied
      or complied with by such entity at or prior to the Closing Date. Such Buyer
      shall have received a certificate delivered and executed by the President of
      each of the Company, dated as of the Closing Date, to the foregoing effect
      and
      as to such other matters as may be reasonably requested by such Buyer in the
      form attached hereto as Exhibit G.
      

     

    (i)
      The
      Company shall have delivered to such Buyer a copy of a letter from the Company’s
      transfer agent certifying the number of Shares outstanding as of a date within
      the five (5) Business Days prior to the Closing Date.

     

    (j)
      The
      Company shall have (i) obtained all governmental, regulatory or third party
      consents and approvals, if any, and (ii) made all filings under all
      applicable federal, state or foreign securities laws (to the extent such filings
      must be made on or prior to the Closing Date in each case) necessary to
      consummate the issuance and the sale of the Securities.

     

    (k)
      On
      or
      prior to the Closing, the Company, each Subsidiary party to any Immediate
      Acquisition Document and the Targets shall have entered into the Immediate
      Acquisition Documents and the transactions contemplated by all of such Immediate
      Acquisition Documents shall have been consummated, subject only to the payment
      of the cash consideration due to the sellers in such Immediate Acquisition
      Documents, which cash consideration shall be paid by the Escrow Agent pursuant
      to instructions given to the Escrow Agent under the Escrow
      Agreement.

     

    (l)
      The
      Company and the Placement Agent shall have instructed the Escrow Agent to
      deliver to the sellers under the Immediate Acquisition Documents the entire
      cash
      consideration due to such sellers under such Immediate Acquisition
      Documents.

     

    (m)
      Each
      of
      the holders of Shares of the Company, other than the Buyers shall have agreed
      to
      exchange its Shares for shares of capital stock of the Shell upon the same
      terms
      and conditions as agreed to by the Buyers pursuant to Section 4(r)(ii) of this
      Agreement and shall have delivered to the Buyers a letter to such effect.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    (n)
      The
      Company’s United States and Brazilian counsel, shall have delivered to the
      Placement Agent certifications, which indicate, individually and/or
      cumulatively, that each of the conditions in this Section 7 (other than this
      Section 7(n)) have been satisfied or waived by the Buyers.

     

    (o)
      [Intentionally
      omitted.]

     

    (p)
      [Intentionally
      omitted.]

     

    (q)
      [Intentionally
      omitted.]

     

    (r)
      [Intentionally
      omitted.]

     

    (s)
      No
      Material Adverse Effect shall have occurred.

     

    (t)
      The
      Company shall have delivered a certificate of an officer of the Company and
      each
      Subsidiary certifying as to the solvency of the Company or such
      Subsidiary.

     

    (u)
      The
      Company shall have delivered a pro forma balance sheet of the Company and its
      Subsidiaries reflecting the initial transactions contemplated hereunder,
      including, but not limited to, (A) the consummation of the Immediate
      Acquisitions and the other transactions contemplated by the Immediate
      Acquisition Documents, and (B) the issuance of the Convertible Notes on the
      Closing Date and use of the proceeds thereof, accompanied by a certificate,
      dated the Closing Date, of the chief financial officer of the Company stating
      that such pro forma balance sheet represents the reasonable, good faith opinion
      of such officer as to the subject matter thereof as of the date of such
      certificate.

     

    (v)
      [intentionally
      omitted.]

     

    (w)
      All
      proceedings in connection with the issuance of the Shares and the other
      transactions contemplated by this Agreement and the other Transaction Documents,
      and all documents incidental hereto and thereto, shall be reasonably
      satisfactory to the Buyers, and the Buyers shall have received all such
      information and such counterpart originals or certified or other copies of
      such
      documents as the Buyers may reasonably request.

     

    (x)
      [Intentionally
      omitted.]

     

    (y)
      [Intentionally
      omitted.]

     

    (z)
      The
      Company shall have delivered to each Buyer a copy of the consolidated audited
      financial statements of the Company prepared in accordance with GAAP prepared
      in
      accordance with GAAP for the
      period ended December 31, 2006,
      which
      financial statements shall contain an opinion of such auditor prepared in
      accordance with generally accepted auditing standards (which opinion shall
      be
      without (x) a “going concern” qualification or exception or (y) any
      qualification or exception as to the scope of such audit. The Company shall
      have
      delivered to each Buyer a copy of the unaudited consolidated pro forma financial
      statements of the Company for the period ended December 31, 2006 prepared in
      accordance with generally accepted auditing standards, which financial
      statements shall have been reviewed by auditors.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    (aa)
      [Intentionally
      omitted]

     

    (bb)
      Since
      December 31, 2006, there shall not have developed, occurred, or come into effect
      or existence any change, or any development involving a prospective change,
      in
      or affecting the position of the Company, financial or otherwise, that has
      had,
      or would be expected to have, a Material Adverse Effect.

     

    (cc)
      [Intentionally
      omitted.]

     

    (dd)
      [Intentionally
      omitted.]

     

    (ee)
      [Intentionally
      omitted.]

     

    (ff)
      The
      Company shall have delivered to such Buyer such other documents relating to
      the
      transactions contemplated by this Agreement as such Buyer or its counsel may
      reasonably request.

     

    (gg)
      Each
      of
      the Company and any Subsidiary party to the Escrow Agreement shall have
      delivered the Escrow Agreement duly executed by the Company and such
      Subsidiary.

     

    8. TERMINATION.
      In the event that the Closing shall not have occurred in respect of a Buyer
      on
      or before the tenth (10th)
      Business Day from the date hereof due to the Company’s or such Buyer’s failure
      to satisfy the conditions set forth in Sections 6 and 7 above (and the
      nonbreaching party’s failure to waive such unsatisfied condition(s)), the
      nonbreaching party shall have the option to terminate this Agreement in respect
      of such breaching party at the close of business on such date without liability
      of any party to any other party.

     

    9. MISCELLANEOUS.

     

    (a)
      Governing
      Law; Jurisdiction; Jury Trial.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be governed by the internal laws of the State of New
      York, without giving effect to any choice of law or conflict of law provision
      or
      rule (whether of the State of New York or any other jurisdictions) that would
      cause the application of the laws of any jurisdictions other than the State
      of
      New York. Each party hereby irrevocably submits to the exclusive jurisdiction
      of
      the state and federal courts sitting in The City of New York, Borough of
      Manhattan, for the adjudication of any dispute hereunder or in connection
      herewith or with any transaction contemplated hereby or discussed herein, 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 brought in an
      inconvenient forum or that the venue of such suit, action or proceeding is
      improper. 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 to such party at the address for such 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 Company hereby appoints Guzov Ofsink, LLC, 600 Madison Avenue, New York,
      New
      York 10022, as its agent for service of process in New York. EACH
      PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
      REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
      CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
      HEREBY.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    (b)
      Counterparts.
      This
      Agreement may be executed in two or more identical counterparts, all of which
      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;
      provided that a facsimile signature shall be considered due execution and shall
      be binding upon the signatory thereto with the same force and effect as if
      the
      signature were an original, not a facsimile signature.

     

    (c)
      Headings.
      The
      headings of this Agreement are for convenience of reference only and shall
      not
      form part of, or affect the interpretation of, this Agreement.

     

    (d)
      Severability.
      If any
      provision of this Agreement shall be invalid or unenforceable in any
      jurisdiction, such invalidity or unenforceability shall not affect the validity
      or enforceability of the remainder of this Agreement in that jurisdiction or
      the
      validity or enforceability of any provision of this Agreement in any other
      jurisdiction.

     

    (e)
      Entire
      Agreement; Amendments.
      This
      Agreement supersedes all other prior oral or written agreements between the
      Buyers, the Company, their affiliates and Persons acting on their behalf in
      respect of the matters discussed herein, and this Agreement, the Transaction
      Documents and the instruments referenced herein contain the entire understanding
      of the parties in respect of the matters covered herein and therein and, except
      as specifically set forth herein or therein, none of the Company and its
      Subsidiaries nor any Buyer makes any representation, warranty, covenant or
      undertaking in respect of such matters. No provision of this Agreement may
      be
      amended other than by an instrument in writing signed by the Company, and the
      Required Holders, and any amendment to this Agreement made in conformity with
      the provisions of this Section 9(e) shall be binding on all Buyers and
      holders of Securities as applicable. No provision hereof may be waived other
      than by an instrument in writing signed by the party against whom enforcement
      is
      sought. No such amendment shall be effective to the extent that it applies
      to
      less than all of the holders of the applicable Securities then outstanding.
      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 also is offered to all of the parties to the
      Transaction Documents, holders of Notes or holders of the Warrants, as the
      case
      may be. The Company has not, directly or indirectly, made any agreements with
      any Buyers relating to the terms or conditions of the transactions contemplated
      by the Transaction Documents except as set forth in the Transaction Documents.
      Without limiting the foregoing, the Company confirms that, except as set forth
      in this Agreement and the applicable Transaction Documents and the documents
      relating to the Note Unit Securities, if a buyer of Note Unit Securities, no
      Buyer has made any commitment or promise or has any other obligation to provide
      any financing to the Company or otherwise.

     

    (f)
      Notices.
      Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms of this Agreement must be in writing and will be deemed
      to
      have been delivered: (i) upon receipt, when delivered personally provided
      same is on a Business Day and, if not, on the next Business Day; (ii) upon
      receipt, when sent by facsimile (provided that confirmation of transmission
      is
      mechanically or electronically generated and kept on file by the sending party)
      provided same is on a Business Day and, if not, on the next Business Day;
      (iii) one (1) Business Day after deposit with an overnight courier
      service, in each case properly addressed to the party to receive the same;
      or
      (iv) if sent by certified mail, return receipt requested, when received or
      three (3) days after deposited in the mails, whichever occurs first. The
      addresses and facsimile numbers for such communications shall be:

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    If
      to the
      Company:

     

    Comanche
      Clean Energy Corporation

    c/o
      Maples & Calder Corporate Services Ltd.

    PO
      Box
      309 GT

    Ugland
      House

    South
      Church Street

    George
      Town

    Grand
      Cayman, Cayman Islands

    Tel:
      345-949-8066

    Fax:
      345-949-8080

    Attention:
      Graham Lockington

    Email:
       Graham.Lockington@MAPLESANDCALDER.com

    

    With
      a
      copy to:

     

    Comanche
      Clean Energy Corporation

    c/o
      FondElec

    One
      Dock
      Street

    Stamford,
      Ct. 06902 USa

    Tel:
      203-326-4570

    Fax:
      203-326-4578

    Attention:
      Thomas Cauchois

    Email:
      tcauchois@fondelec.com

     

    with
      a
      copy to:

     

    Guzov
      Ofsink, LLC

    600
      Madison Avenue, 14th
      Floor

    New
      York,
      NY 10022

    Tel:
      212-371-8008

    Fax:
      212-688-7273

    Attention:
      Darren L. Ofsink, Esq.

    Email:
      dofsink@golawintl.com

    

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    If
      to a
      Buyer, to its address and facsimile number set forth on the Schedule of
      Buyers, with copies to such Buyer’s representatives as set forth on the
      Schedule of Buyers,

     

    with
      a
      copy (for informational purposes only) to:

     

    Kramer,
      Levin Naftalis & Frankel LLP

    1177
      Avenue of the Americas

    New
      York,
      New York 10036

    Tel:
      212-715-9121

    Fax:
      212-715-8136

    Attention:
      David Levine

    Email:
      djlevine@KRAMERLEVIN.com 

    

    and

    

    Schulte
      Roth & Zabel LLP

    919
      Third
      Avenue

    New
      York,
      New York 10022

    Facsimile
      No.: (212) 593-5955

    Telephone
      No.: (212) 756-2000

    Attn.:
      Eleazer N. Klein, Esq.

    

    or
      to
      such other address and/or facsimile number and/or to the attention of such
      other
      Person as the recipient party has specified by written notice given to each
      other party five (5) days prior to the effectiveness of such change. Written
      confirmation of receipt (A) given by the recipient of such notice, consent,
      waiver or other communication, (B) mechanically or electronically generated
      by the sender’s facsimile machine containing the time, date, recipient facsimile
      number and an image of the first page of such transmission or (C) provided
      by an overnight courier service shall be rebuttable evidence of personal
      service, receipt by facsimile or receipt from an overnight courier service
      in
      accordance with clause (i), (ii) or (iii) above,
      respectively.

     

    (g)
      Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their respective successors and permitted assigns, including any purchasers
      of
      the Notes or the Warrants. The Company shall not assign this Agreement or any
      rights or obligations hereunder without the prior written consent of the
      Required Holders, including by way of a Fundamental Transaction (unless the
      Company is in compliance with the applicable provisions governing Fundamental
      Transactions set forth in the Warrants). Subject to compliance with applicable
      securities laws, a Buyer may assign some or all of its rights hereunder and
      under the other Transaction Documents without the consent of the Company, in
      which event such assignee shall be deemed to be a Buyer hereunder and thereunder
      in respect of such assigned rights. A Buyer making an assignment of this
      Agreement shall provide to the Company written notice of such assignment within
      ten (10) Business Days after such assignment is consummated; provided, however,
      that the failure by Buyer to provide or timely provide such notice shall not
      invalidate the assignment, but in such event the Buyer shall be liable to the
      Company to the extent the Company is damaged by such lack of notice or timely
      notice.

     

    (h)
      No
      Third Party Beneficiaries.
      This
      Agreement is intended for the benefit of the parties hereto and their respective
      permitted successors and assigns, and is not for the benefit of, nor may any
      provision hereof be enforced by, any other Person except to the extent set
      forth
      in Section 9(k).

     

    (i)
      Survival.
      Unless
      this Agreement is terminated under Section 8, the representations and
      warranties of the Company and the Buyers contained in Sections 2 and 3, and
      the agreements and covenants set forth in Sections 4, 5, 8 and 9 shall
      survive the Closing and the delivery, conversion and exercise of the Securities,
      as applicable. Each Buyer shall be responsible only for its own representations,
      warranties, agreements and covenants hereunder.

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    (j)
      Further
      Assurances.
      Each
      party shall do and perform, or cause to be done and performed, all such further
      acts and things, and shall execute and deliver all such other agreements,
      certificates, instruments and documents, as any other party may reasonably
      request in order to carry out the intent and accomplish the purposes of this
      Agreement and the consummation of the transactions contemplated
      hereby.

     

    (k)
      Indemnification.

     

    (i) In
      consideration of each Buyer’s execution and delivery of the Transaction
      Documents and acquiring the Securities thereunder and in addition to all of
      the
      Company’s other obligations under the Transaction Documents, unless this
      Agreement is terminated under Section 8 hereof, the Company shall defend,
      protect, indemnify and hold harmless each Buyer and each other holder of the
      Securities and all of their stockholders, partners, members, officers,
      directors, employees and direct or indirect investors and any of the foregoing
      Persons’ agents or other representatives (including, without limitation, those
      retained in connection with the transactions contemplated by this Agreement)
      (collectively, the “Indemnitees”)
      from
      and against any and all actions, causes of action, suits, claims, losses, costs,
      penalties, fees, liabilities and damages, and expenses in connection therewith
      (irrespective of whether any such Indemnitee is a party to the action for which
      indemnification hereunder is sought), and including reasonable attorneys’ fees
      and disbursements (the “Indemnified
      Liabilities”),
      incurred by any Indemnitee as a result of, or arising out of, or relating to
      (a) any misrepresentation or breach of any representation or warranty made
      by the Company in any Transaction Document or any other certificate, instrument
      or document contemplated hereby or thereby, (b) any breach of any covenant,
      agreement or obligation of the Company contained in any Transaction Document
      or
      any other certificate, instrument or document contemplated hereby or thereby
      or
      (c) any cause of action, suit or claim brought or made against such
      Indemnitee by a third party (including for these purposes a derivative action
      brought on behalf of the Company) and arising out of or resulting from
      (i) the execution, delivery, performance or enforcement of any Transaction
      Document or any other certificate, instrument or document contemplated hereby
      or
      thereby, (ii) any transaction financed or to be financed in whole or in
      part, directly or indirectly, with the proceeds of the issuance of the
      Securities, or (iii) the status of such Buyer or holder of the Securities
      as an investor in the Company pursuant to the transactions contemplated by
      the
      Transaction Documents. To the extent that the foregoing undertaking by the
      Company may be unenforceable for any reason, the Company shall make the maximum
      contribution to the payment and satisfaction of each of the Indemnified
      Liabilities which is permissible under applicable law provided that the Company
      shall not be obligated to indemnify a Buyer or for any Indemnified Liabilities
      caused by the gross negligence or willful misconduct of that Buyer .

     

    (ii) Promptly
      after receipt by Indemnitee under this Section 9(k) of notice of the
      commencement of any action or proceeding (including any governmental action
      or
      proceeding) involving an Indemnified Liability, such Indemnitee shall, if a
      claim in respect thereof is to be made against any indemnifying party under
      this
      Section 9(k), deliver to the indemnifying party a written notice of the
      commencement thereof, and the indemnifying party shall have the right to
      participate in, and, to the extent the indemnifying party so desires, jointly
      with any other indemnifying party similarly noticed, to assume control of the
      defense thereof with counsel mutually satisfactory to the indemnifying party
      and
      the Indemnitee, as the case may be; provided,
      however,
      that an
      Indemnitee shall have the right to retain its own counsel with the fees and
      expenses of not more than one counsel for such Indemnitee to be paid by the
      indemnifying party, if, in the reasonable opinion of counsel retained by the
      indemnifying party, the representation by such counsel of the Indemnitee and
      the
      indemnifying party would be inappropriate due to actual or potential differing
      interests between such Indemnitee and any other party represented by such
      counsel in such proceeding. In the case of an Indemnitee, legal counsel referred
      to in the immediately preceding sentence shall be selected by Required
      Holders,
      to which
      the claim relates. The Indemnitee shall cooperate fully with the indemnifying
      party in connection with any negotiation or defense of any such action or claim
      by the indemnifying party and shall furnish to the indemnifying party all
      information reasonably available to the Indemnitee which relates to such action
      or claim. The indemnifying party shall keep the Indemnitee reasonably apprised
      at all times as to the status of the defense or any settlement negotiations
      in
      respect thereof. No indemnifying party shall be liable for any settlement of
      any
      action, claim or proceeding effected without its prior written consent;
provided,
      however,
      that
      the indemnifying party shall not unreasonably withhold, delay or condition
      its
      consent. No indemnifying party shall, without the prior written consent of
      the
      Indemnitee, consent to entry of any judgment or enter into any settlement or
      other compromise which does not include as an unconditional term thereof the
      giving by the claimant or plaintiff to such Indemnitee of a release from all
      liability in respect to such claim or litigation, and such settlement shall
      not
      include any admission as to fault on the part of the Indemnitee. Following
      indemnification as provided for hereunder, the indemnifying party shall be
      subrogated to all rights of the Indemnitee in respect of all third parties,
      firms or corporations relating to the matter for which indemnification has
      been
      made. The failure to deliver written notice to the indemnifying party within
      a
      reasonable time of the commencement of any such action shall not relieve such
      indemnifying party of any liability to the Indemnitee under this Section 9(k),
      except to the extent that the indemnifying party is materially prejudiced in
      its
      ability to defend such action.

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    (iii) The
      indemnification required by this Section 9(k) shall be made by periodic payments
      of the amount thereof during the course of the investigation or defense, as
      and
      when bills are received or Indemnified Liabilities are incurred.

     

    (iv) (iii)
      The
      indemnity agreements contained herein shall be in addition to (A) any cause
      of
      action or similar right of the Indemnitee against the indemnifying party or
      others, and (B) any liabilities the indemnifying party may be subject to
      pursuant to the law.

     

    (l)
      No
      Strict Construction.
      The
      language used in the Transaction Documents 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.

     

    (m)
      Remedies.
      Each
      Buyer and each holder of the Securities shall have all rights and remedies
      set
      forth in the Transaction Documents and all rights and remedies which such
      holders have been granted at any time under any other agreement or contract
      and
      all of the rights which such holders have under any law. Any Person having
      any
      rights under any provision of this Agreement shall be entitled to enforce such
      rights specifically (without posting a bond or other security), to recover
      damages by reason of any breach of any provision of this Agreement and to
      exercise all other rights granted by law. Furthermore, the Company recognizes
      that in the event that it fails to perform, observe, or discharge any or all
      of
      its obligations under the Transaction Documents, any remedy at law may prove
      to
      be inadequate relief to the Buyers. The Company therefore agrees that the Buyers
      shall be entitled to seek temporary and permanent injunctive relief in any
      such
      case without the necessity of proving actual damages and without posting a
      bond
      or other security.

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

    (n)
      Rescission
      and Withdrawal Right.
      Notwithstanding anything to the contrary contained in (and without limiting
      any
      similar provisions of) the Transaction Documents, whenever any Buyer exercises
      a
      right, election, demand or option under a Transaction Document and the Company
      does not timely perform its related obligations within the periods therein
      provided, then such Buyer may rescind or withdraw, in its sole discretion from
      time to time upon written notice to the Company, any relevant notice, demand
      or
      election in whole or in part without prejudice to its future actions and
      rights

     

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

     

    (p)
      Independent
      Nature of Buyers’ Obligations and Rights.
      The
      obligations of each Buyer under any Transaction Document are several and not
      joint with the obligations of any other Buyer, and no Buyer shall be responsible
      in any way for the performance of the obligations of any other Buyer under
      any
      Transaction Document. Nothing contained herein or in any other Transaction
      Document, and no action taken by any Buyer pursuant hereto or thereto, shall
      be
      deemed to constitute the Buyers as a partnership, an association, a joint
      venture or any other kind of entity, or create a presumption that the Buyers
      are
      in any way acting in concert or as a group in respect of such obligations or
      the
      transactions contemplated by the Transaction Documents and the Company
      acknowledges that the Buyers are not acting in concert or as a group in respect
      of such obligations or the transactions contemplated by the Transaction
      Documents. Each Buyer confirms that it has independently participated in the
      negotiation of the transaction contemplated by this Agreement and the
      Transaction Documents with the advice of its own counsel and advisors, that
      it
      has independently determined to enter into the transactions contemplated hereby
      and thereby, that it is not relying on any advice from or evaluation by any
      other Buyer, and that it is not acting in concert with any other Buyer in making
      its purchase of Securities hereunder or in monitoring its investment in the
      Company. The Buyers and, to its knowledge, the Company agree that no action
      taken by any Buyer pursuant hereto or to the other Transaction Documents, shall
      be deemed to constitute the Buyers as a partnership, an association, a joint
      venture or any other kind of entity or group, or create a presumption that
      the
      Buyers are in any way acting in concert or would deem such Buyers to be members
      of a “group” for purposes of Section 13(d) of the 1934 Act. The Buyers each
      confirm that they have not agreed to act together for the purpose of acquiring,
      holding, voting or disposing of equity securities of the Company. The Company
      has elected to provide all Buyers with the same terms and Transaction Documents
      for the convenience of the Company and not because it was required or requested
      to do so by any of the Buyers. The Company acknowledges on behalf of itself
      and
      the Company that such procedure in respect of the Transaction Documents in
      no
      way creates a presumption that the Buyers are in any way acting in concert
      or as
      a “group” for purposes of Section 13(d) of the 1934 Act in respect of the
      Transaction Documents or the transactions contemplated hereby or thereby. Each
      Buyer shall be entitled to independently protect and enforce its rights,
      including, without limitation, the rights arising out of this Agreement, or
      out
      of the Registration Rights Agreement, its Note, its Warrant and the right of
      set-off under the Guaranties, and it shall not be necessary for any other Buyer
      to be joined as an additional party in any proceeding for such
      purpose.

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

    (q)
      [intentionally
      omitted.]

     

    (r)
      Definitions:
      For
      purposes of this Securities Purchase Agreement and the Notes, the following
      terms shall have the following meanings:

     

    "Solvent"
      means,
      with respect to any Person on a particular date, that on such date i) the fair
      value of the property of such Person is not less than the total amount of the
      liabilities of such Person (and including as assets for this purpose at a fair
      valuation all rights of subrogation, contribution or indemnification arising
      pursuant to any guarantees given by such Person, to the extent such amount
      is
      readily ascertainable), ii) the present fair salable value of the assets of
      such
      Person (and including as assets for this purpose at a fair valuation all rights
      of subrogation, contribution or indemnification arising pursuant to any
      guarantees given by such Person, to the extent such amount is readily
      ascertainable) is not less than the amount that will be required to pay the
      probable liability of such Person on its existing debts as they become absolute
      and matured, iii) such Person is able to realize upon its assets and pay its
      debts and other liabilities, contingent obligations and other commitments as
      they mature in the normal course of business, iv) such Person does not intend
      to, and does not believe that it will, incur debts or liabilities beyond such
      Person's ability to pay as such debts and liabilities mature, and v) such Person
      is not engaged in business or a transaction, and is not about to engage in
      business or a transaction, for which such Person's property would constitute
      unreasonably small capital. 

     

    "Subsidiary"
      means,
      from time to time, any entity in which the Company, directly or indirectly,
      owns
      any of the capital stock, equity or similar interest or voting power of such
      entity at the date of this Agreement.

     

    [Signature
      Pages Follow]

    

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      each
      Buyer and the Company have caused their respective signature page to this
      Securities Purchase Agreement to be duly executed as of the date first written
      above.

     

    
      	 	 	 
	 	
              COMPANY:

            
	 	 
	 	COMANCHE CLEAN ENERGY
              CORPORATION
	 
 	 
 	 
 
	
            	By:  	 
	 	
              

              Name:

              Title:

            

       

      
        	 	 	 
	 	
                
                  BUYERS:

                

              
	 	 
	 	
                [_____________________]

              
	 	 
	
              	By:  	 
	 	
                

                Name:

                Title:

              

      

       

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

    

    

    SCHEDULE
      OF BUYERS

    

    
      	
              (1)

            	
               

            	
              (2)

            	
               

            	
              (3)

            	
               

            	
              (4)

            	
               

            	
              (5)

            	
               

            	
              (6)

            
	
              Buyer

            	
               

            	
              Address,Telephone
                Number and E-Mail

            	
               

            	
              Number
                of Shares

            	
               

            	
              Number
                of Warrant Shares

            	
               

            	
              Purchase
                Price

            	
               

            	
              Legal
                Representative’s Address, Telephone Number and Facsimile
                Number

            
	
              Sandelman
                Partners Multi-Strategy Master Fund, Ltd.

            	 	
              500
                Park Ave., 3rd Fl. New York, NY 10022

              212-299-7625

              besty@sandptrs.com

            	 	
              375,200

            	 	
              281,400

            	 	
              $1,876,000

            	 	
              Schulte,
                Roth & Zabel LLP, 919 Third Avenue, New York, New York
                10022

              Attn:
                Jennifer E.D. Clarke, Esq.

              212-756-2410
                (p)

            
	 	 	 	 	 	 	 	 	 	 	 
	
              Utilico
                Emerging Markets Limited

            	 	
              Exchange
                House, 8th Fl. Primrose St. London, EC2A 2NY- United Kingdom

              44
                1372 271 486

              james@analysis-research.net

            	 	
              545,400

            	 	
              409,050

            	
               

            	
              $2,727,000

            	 	
              Kramer,
                Levin, Naftalis & Frankel LLP

              1177
                Avenue of the Americas, New York, New York 10036

              Attn:
                Christopher Auguste, Esq.

              212-715-9121
                (p)

              212-715-8136
                (f)

            
	 	 	 	 	 	 	 	 	 	 	 
	
              Whitebox
                Hedged High Yield Partners, LP

            	 	
              3033
                Excelsior Blvd., #300 Minneapolis, MN 55416

              612-253-6067

              mpaska@whiteboxadvisors.com

            	 	
              395,488
                

            	 	
              296,616
                

            	 	
              $1,977,440
                

            	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Whitebox
                Intermarket Partners, LP

            	 	
              3033
                Excelsior Blvd., #300 Minneapolis, MN 55416

              612-253-6067

              mpaska@whiteboxadvisors.com

            	 	
              40,912
                

            	 	
              30,684
                

            	
               

            	
              $204,560
                

            	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Armstrong
                Equity Partners, LP

            	 	
              2100
                McKinney, #1700 Dallas, TX 75201

              214-220-3609

              brad@aeplp.com

            	 	
              60,000
                

            	 	
              45,000
                

            	 	
              $300,000
                

            	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              MHR
                Capital Partners Master Account LP

            	 	
              40
                W. 57th St., 24th Fl. New York, NY 10019

              212-728-5429

              ppanigrahi@mhrfund.com

            	 	
              366,780
                

            	 	
              275,085
                

            	 	
              $1,833,902
                

            	 	
              Stroock
                & Stroock & Lavan LLP

              180
                Maiden Lane

              New
                York, NY 10038

              Attn:
                Brad Kulman, Esq.

              (212)
                806-6442 (p)

              (212)
                806-7142

            
	 	 	 	 	 	 	 	 	 	 	 
	
              MHR
                Capital Partners (100) LP

            	 	
              40
                W. 57th St., 24th Fl. New York, NY 10019

              212-728-5429

              ppanigrahi@mhrfund.com

            	 	
              42,311
                

            	 	
              31,733
                

               

            	 	
              $211,553
                

            	 	 

    

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

    
      	
              Paragon
                Capital, L.P.

            	 	
              110
                E. 59th St., 29th Fl. New York, NY 10022

              212-593-3157

              alan@paragonlp.com

            	 	
              28,000
                

            	 	
              21,000
                

            	 	
              $140,000
                

            	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Alpine
                Capital (Cayman) Master, LP

            	 	
              400
                Madison Ave., 8th Fl. New York, NY 10017

              212-317-2400

              carlos@alpinecapitalgroup.com

            	 	
              13,800
                

            	 	
              10,350
                

            	 	
              $69,000
                

            	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Cranshire
                Capital, LP

            	 	
              3100
                Dundee Rd., #703 Northbrook, IL 60062

              847-562-9030

              lprosser@cranshirecapital.com

            	 	
              50,000
                

            	 	
              37,500
                

            	 	
              $250,000
                

            	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Deephaven
                Distressed Opportunities Trading Ltd

            	 	
              130
                Cheshire Ln., #102 Minnetonka, MN 55305

              952-249-5419

              datkins@deephavenfunds.com

            	 	
              71,800
                

            	 	
              53,850
                

            	 	
              $359,000
                

            	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              Deephaven
                Event Trading Ltd

            	 	
              130
                Cheshire Ln., #102 Minnetonka, MN 55305

              952-249-5419

              datkins@deephavenfunds.com

            	 	
              201,000
                

            	 	
              150,750
                

            	 	
              $1,005,000
                

            	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
              R&R
                Biotech Partners LLC

            	 	
              1270
                Avenue of the Americas, 16th Floor, New York, NY 10020

              212-356-0509

              ppinou@rodmanandrenshaw.com

            	 	
              136,509
                

            	 	
              102,382
                

            	 	
              $682,545
                

            	 	 

    

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

     

    EXHIBITS
      

     

    
      	
              Exhibit A

            	 	
              Form
                of Warrant

            
	
              Exhibit B

            	 	
              Form
                of Lockup Agreement

            
	
              Exhibit
                C

            	 	
              Form
                of Escrow Agreement

            
	
              Exhibit D

            	 	
              Form
                of Transfer Agent Instructions

            
	
              Exhibit E

            	 	
              Form
                of Opinions of Counsel

            
	
              Exhibit F

            	 	
              Form
                of Secretary’s Certificate

            
	
              Exhibit G
                

            	 	
              Form
                of Officer’s Certificate

            

    

     

    SCHEDULES
      

     

    
      	
              Schedule
                1

            	 	
              Management
                Restricted Stock

            
	
              Schedule
                2

            	 	
              Immediate
                Acquisition Documents

            
	
              Schedule 3(a)

            	 	
              Organization
                and Qualification

            
	
              Schedule 3(f)

            	 	
              Acknowledgement
                Regarding Buyer’s Purchase of Securities

            
	
              Schedule 3(k)

            	 	
              Absence
                of Certain Changes

            
	
              Schedule 3(n)

            	 	
              Transactions
                with Affiliates

            
	
              Schedule 3(o)

            	 	
              Equity
                Capitalization; Debt

            
	
              Schedule 3(p)

            	 	
              Indebtedness
                and Other Contracts 

            
	
              Schedule 3(t)

            	 	
              Title

            
	
              Schedule 3(u)

            	 	
              Intellectual
                Property Rights

            
	
              Schedule 3(x)

            	 	
              Tax
                Status

            
	
              Schedule 3(ff)

            	 	
              ERISA

            
	
              Schedule 4(d)

            	 	
              Use
                of Proceeds

            

    

    

    
      
        
        

      

      
        41SECURITIES
      PURCHASE AGREEMENT

     

    SECURITIES
      PURCHASE AGREEMENT
      (the
“Agreement”),
      dated
      as of March 30, 2007, by and among Comanche Clean Energy Corporation, a Cayman
      Islands corporation, with headquarters located c/o Maples & Calder CS, South
      Church Street, George Town, Grand Cayman, Cayman Islands (the “Company”),
      and
      the investors listed on the Schedule of Buyers attached hereto
      (individually, a “Buyer”
and
      collectively, the “Buyers”).

     

    WHEREAS:

    

    A. The
      Company and each Buyer is executing and delivering this Agreement in reliance
      upon the exemptions from securities registration afforded by Section 4(2)
      of the Securities Act of 1933, as amended (the “1933
      Act”),
      Rule
      506 of Regulation D (“Regulation
      D”)
      as
      promulgated by the United States Securities and Exchange Commission (the
“SEC”)
      under
      the 1933 Act and/or Regulation S promulgated by the SEC under the 1933
      Act.

     

    B. The
      Buyers, severally, and not jointly, wish to purchase, and the Company wishes
      to
      sell, upon the terms and conditions stated in this Agreement, (i) secured
      convertible notes, in the form attached hereto as Exhibit A,
      in an
      aggregate original Principal Amount of not less than $35,000,000 and not more
      than $60,000,000 (as amended, restated, supplemented and/or modified from time
      to time in accordance with the provisions thereof, collectively, the
“Notes”)
      and
      (ii) warrants, in substantially the form attached hereto as Exhibit B
      (as
      amended, restated, supplemented and/or modified from time to time in accordance
      with the provisions thereof, the “Warrants”),
      to
      acquire up to that number of Ordinary Shares, par value $.001 per share, of
      the
      Company (“Shares”)
      equal to
      the quotient obtained by dividing (a) 40% of the original aggregate Principal
      Amount of the Notes purchased by the Buyers at Closing (as defined in Section
      1(a)), by (b) the Conversion Price (as defined in the Notes) as of the Closing
      (the Shares issuable upon exercise of the Warrants, the “Warrant
      Shares”).

     

    C. The
      Notes, the Conversion Shares, the Warrants and the Warrant Shares collectively
      are referred to herein as the “Securities”.

     

    D. The
      Note
      (i) will rank (A) pari
      passu
      with all
      Other Notes (as defined in the Notes), (B) senior to the Subordinated
      Indebtedness (as defined in the Notes), all Indebtedness (as defined in the
      Notes) not constituting Permitted Indebtedness (as defined in the Notes) and
      all
      Permitted Indebtedness expressly designated as ranking junior to the Notes,
      and
      (C) pari
      passu
      with all
      other Permitted Indebtedness and (ii) will be secured by a first priority
      perfected security interest in substantially all of the shares of capital stock
      of each of (i) Comanche Corporation, a Cayman Islands company and a wholly-owned
      subsidiary of the Company (“Comanche
      Corporation”),
      (ii)
      Comanche Clean Energy LLC, a Delaware limited liability company and a
      wholly-owned subsidiary of Comanche Corporation (“Comanche
      LLC”,
      together with the Company, Comanche Corporation, each a “Pledgor”
and
      collectively, the “Pledgors”),
      and
      Comanche Participações Do Brasil Ltda., a Brazilian limited liability company
      and a wholly-owned subsidiary of Comanche LLC (“Comanche
      Participacoes”),
      as
      evidenced by pledge agreements in the forms attached hereto as Exhibit D
      (as the
      same may be amended, restated, supplemented and/or modified from time to time
      in
      accordance with the provisions thereof, such agreements, taken together, herein
      referred to as the “Pledge
      Agreement”)
      and
      the Guaranty from (i) Comanche Corporation, (ii) Comanche LLC, and (iii)
      Comanche Participacoes (together with Comanche Corporation, Comanche LLC, each
      a
“Guarantor”
and
      collectively, the “Guarantors”)
      in the
      form attached hereto as Exhibit F
      (as the
      same may be amended, restated, supplemented and/or modified from time to time
      in
      accordance with the provisions thereof, the “Guaranty”,
      and
      together with the Pledge Agreement, as each may be amended, restated,
      supplemented and/or modified from time to time in accordance with the provisions
      thereof, collectively the “Security
      Documents”).

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    E. In
      connection with the Immediate Acquisitions (as defined below), (i) the Company
      shall issue Shares (together with existing Shares held by the management of
      the
      Company as listed on Schedule 1 hereof, collectively the “Management
      Restricted Stock”)
      to
      certain members of management of the Company, and its Subsidiaries (together
      with management of the Company listed on such Schedule, the “Management
      Members”),
      and
      (ii) the Company shall issue Shares (the “Acquisition
      Sellers Stock”)
      to
      certain selling parties in the Immediate Acquisitions (as defined below) (the
      “Acquisition
      Sellers”).
      Each
      Management Member and Acquisition Seller will execute and deliver a lockup
      agreement, the form of which is attached hereto as Exhibit G (as the same may
      be
      amended, restated, supplemented and/or modified from time to time in accordance
      with the provisions thereof, the “Lockup
      Agreements”),
      pursuant to which the resale of the Management Restricted Stock and the
      Acquisition Seller Stock shall be limited. 

     

    F. Contemporaneously
      herewith, the Company is entering into a securities purchase agreement, by
      and
      among the Company and the buyers listed on the Schedule of Buyers attached
      thereto (the “Common
      PIPE Buyers”),
      (the
“Common
      PIPE Securities Purchase Agreement”),
      wherein the Company agrees, upon the terms and subject to the conditions of
      the
      Common PIPE Securities Purchase Agreement, to issue and sell to the Common
      PIPE
      Buyers (i)  Shares (the “Common
      PIPE Common Shares”),
      and
      (ii) certain warrants (the “Common
      PIPE Warrants”),
      which
      will be exercisable to purchase additional Shares (as exercised, the
“Common
      PIPE Warrant Shares”)
      in
      accordance with the terms of the Common PIPE Warrants.

     

    G. Contemporaneously
      with the Closing, the Buyers, the Common PIPE Buyers and the Company will
      execute and deliver a Registration Rights Agreement (as amended, restated,
      supplemented and/or modified from time to time in accordance with the provisions
      thereof, the “Registration
      Rights Agreement”),
      pursuant to which the Company will agree to provide certain registration rights
      in respect of the Conversion Shares, the Warrant Shares, the Common PIPE Common
      Shares and Common PIPE Warrant Shares under the 1933 Act and the rules and
      regulations promulgated thereunder, and applicable state securities
      laws.

     

    H. The
      Common PIPE Common Shares, Common PIPE Warrants and Common PIPE Warrant Shares
      collectively are referred to herein as the “Common
      PIPE Securities”,
      and
      the offering thereof, the “Common
      PIPE Offering”.

     

    I. Prior
      to
      the date hereof, Comanche Participacoes has entered into agreements for the
      acquisition of certain Clean Fuel Assets (as defined in the Notes) which
      agreements are annexed hereto as Schedule 2 (collectively, the “Immediate
      Acquisition Documents”),
      pursuant to which Comanche Participacoes will, with certain of the proceeds
      of
      the transactions contemplated hereby, acquire the Clean Fuel Assets covered
      by
      the Immediate Acquisition Documents (the “Immediate
      Acquisitions”,
      and
      together with the development of or investment in a new Clean Fuel Asset,
      collectively, the “Acquisitions”),
      and
      the consummation of the transactions contemplated under the Immediate
      Acquisition Documents shall occur no later than the time period provided in
      Section 4(x). Any subsidiary created or acquired by the Company or any of its
      Subsidiaries in connection with the Immediate Acquisitions is hereafter referred
      to as a “Target”,
      and
      collectively, the “Targets”.)
      For
      purposes of the Agreement and other Transaction Documents (as defined below),
      “Acquisition
      Documents”
means,
      collectively, the transaction documents in connection with the
      Acquisitions.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    J. Capitalized
      terms used but not otherwise defined herein shall have the meanings ascribed
      to
      such terms in the Notes.

     

    NOW,
      THEREFORE,
      the
      Company and each Buyer hereby agree as follows:

     

    1. PURCHASE
      AND SALE OF NOTES AND WARRANTS.

     

    (a)
      Purchase
      Notes and Warrants.
      Subject
      to the satisfaction (or waiver) of the conditions set forth in Sections 6
      and 7 below, the Company shall issue and sell to each Buyer, and each Buyer
      severally, but not jointly, agrees to purchase from the Company on the Closing
      Date (as defined below), (x) the Principal Amount of Notes set forth
      opposite such Buyer’s name in column (3) on the Schedule of Buyers and
      (y) the related Warrants to acquire up to that number of Warrant Shares set
      forth opposite such Buyer’s name in column (4) on the Schedule of Buyers
      (the “Closing”).

     

    (b)
      Closing.
      The
      date and time of the Closing (the “Closing
      Date”)
      shall
      be 10:00 a.m., New York City time, on the first day other than Saturday, Sunday
      or other day on which commercial banks in the City of New York are authorized
      or
      required by law to remain closed (a “Business
      Day”)
      following the satisfaction (or waiver) and notification of the Company of
      satisfaction (or waiver) of the conditions to the Closing set forth in
      Sections 6 and 7 below (or such later or earlier date as is mutually agreed
      to by the Company and Buyers holding the right to purchase at least 50% of
      the
      aggregate Principal Amount of the Notes). The Closing shall occur on the Closing
      Date at the offices of Guzov Ofsink, LLC, 600 Madison Avenue, 14th
      Floor,
      New York, New York 10022, or such other place as the Company and the Buyers
      holding the right to purchase at least 50% of the aggregate Principal Amount
      of
      the Notes shall mutually agree.

     

    (c)
      Purchase
      Price.
      The
      aggregate purchase price for the Notes and the Warrants to be purchased by
      each
      such Buyer at the Closing (the “Purchase
      Price”)
      shall
      be the amount set forth opposite such Buyer’s name in column (5) of the
      Schedule of Buyers. Each Buyer shall pay $1.00 for each $1.00 of Principal
      Amount of Notes and related Warrants to be purchased by such Buyer at the
      Closing.

     

    (d)
      Form
      of Payment.
      On or
      before the Closing Date, (i) each Buyer shall deposit its respective
      Purchase Price for the Notes and Warrants to be issued and sold to such Buyer
      at
      the Closing to the escrow account by wire transfer of immediately available
      funds in accordance with the provisions of the Escrow Agreement dated the date
      hereof, by and among the Buyers, the Company, and Tri-State Title & Escrow,
      LLC, as the Escrow Agent (the “Escrow Agreement”), and (ii) the Company
      shall deliver to its counsel the Notes (allocated in the Principal Amounts
      as
      such Buyer shall request) representing such Principal Amount of the Notes which
      such Buyer is then purchasing hereunder along with warrants representing the
      Warrants (allocated in the amounts as such Buyer shall request) which such
      Buyer
      is purchasing, in each case duly executed on behalf of the Company and
      registered in the name of such Buyer or, subject to compliance with applicable
      securities laws, its designee (as to such Buyer, the “Buyer’s
      Notes and Warrants”).
      

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (e)
      Release
      of Purchase Price and Notes and Warrants.
      Subject
      to the satisfaction of the conditions set forth in Sections 6 and 7 of this
      Agreement, on the Closing Date the Company shall (i) cause the Escrow Agent
      to
      release the Purchase Price to the Company or its designees in accordance with
      the provisions of the Escrow Agreement, and (ii) cause the Company’s counsel to
      deliver to each Buyer the Buyer’s Notes and Warrants registered in the name of
      such Buyer,

     

    2. BUYER’S
      REPRESENTATIONS AND WARRANTIES. Each Buyer represents and warrants,
      severally and not jointly, as of the date of this Agreement and on the Closing
      Date, with respect to only itself that:

     

    (a) No
      Public Sale or Distribution.
      Such
      Buyer is acquiring the Notes, and the Warrants, and upon conversion of the
      Notes
      and exercise of the Warrants will acquire the Conversion Shares issuable upon
      conversion of the Notes and the Warrant Shares issuable upon exercise thereof,
      for its own account and not with a view towards, or for resale in connection
      with, the public sale or distribution thereof, except pursuant to sales
      registered or exempted under the 1933 Act and such Buyer does not have a present
      arrangement to effect any distribution of the Securities to or through any
      person or entity; provided,
      however,
      that by
      making the representations herein, such Buyer does not agree to hold any of
      the
      Securities for any minimum or other specific term and reserves the right to
      dispose of the Securities at any time in accordance with or pursuant to a
      registration statement or an exemption under the 1933 Act and pursuant to the
      applicable terms of the Transaction Documents (as defined in Section 3(b)).
      Such Buyer does not presently have any agreement or understanding, directly
      or
      indirectly, with any Person (as defined in Section 3(p)) to distribute any
      of the Securities.

     

    (b) Accredited
      Investor Status.
      Such
      Buyer is an “accredited investor” as that term is defined in Rule 501(a) of
      Regulation D.

     

    (c) Reliance
      on Exemptions.
      Such
      Buyer understands that the Securities are being offered and sold to it in
      reliance on specific exemptions from the registration requirements of United
      States federal and state securities laws and that the Company is relying upon,
      among other things, the truth and accuracy of, and such Buyer’s compliance with,
      the representations, warranties, agreements, acknowledgments and understandings
      of such Buyer set forth herein in order to determine the availability of such
      exemptions and the eligibility of such Buyer to acquire the
      Securities.

     

    (d)
       Information.
      Such
      Buyer and its advisors, if any, have been furnished with all materials relating
      to the business, finances and operations of the Company and the Acquisition
      and
      materials relating to the offer and sale of the Securities which have been
      requested by such Buyer. Such Buyer and its advisors, if any, have been afforded
      the opportunity to ask questions of the Company. Neither such inquiries nor
      any
      other due diligence investigations conducted by such Buyer or its advisors,
      if
      any, or its representatives shall modify, amend or affect such Buyer’s right to
      rely on the Company’s representations and warranties contained herein. Such
      Buyer understands that its investment in the Securities involves a high degree
      of risk and is able to afford a complete loss of such investment. Such Buyer
      has
      sought such accounting, legal and tax advice as it has considered necessary
      to
      make an informed investment decision in respect of its acquisition of the
      Securities.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

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

     

    (f)
       Transfer
      or Resale.
      Such
      Buyer understands that except as provided in the Registration Rights Agreement:
      (i) the Securities have not been and are not being registered under the
      1933 Act or any state securities laws, and may not be offered for sale, sold,
      assigned or transferred unless (A) subsequently registered thereunder,
      (B) such Buyer shall have delivered to the Company an opinion of counsel,
      in a form reasonably acceptable to the Company, to the effect that such
      Securities to be sold, assigned or transferred may be sold, assigned or
      transferred pursuant to an exemption from such registration, or (C) such
      Buyer provides the Company with assurance reasonably acceptable to the Company
      that such Securities can be sold, assigned or transferred pursuant to Rule
      144
      or Rule 144A promulgated under the 1933 Act, as amended, (or a successor
      rule thereto) (collectively, “Rule
      144”);
      (ii) any sale of the Securities made in reliance on Rule 144 may be made
      only in accordance with the terms of Rule 144 and further, if Rule 144 is not
      applicable, any resale of the Securities under circumstances in which the seller
      (or the Person through whom the sale is made) may be deemed to be an underwriter
      (as that term is defined in the 1933 Act) may require compliance with some
      other
      exemption under the 1933 Act or the rules and regulations of the SEC thereunder;
      and (iii) none of the Company or any other Person is under any obligation
      to register the Securities under the 1933 Act or any state securities laws
      or to
      comply with the terms and conditions of any exemption thereunder.
      Notwithstanding the foregoing, and subject to compliance with applicable
      securities laws, the Securities may be pledged in connection with a bona fide
      margin account or other loan or financing arrangement secured by the Securities
      and such pledge of Securities shall not be deemed to be a transfer, sale or
      assignment of the Securities hereunder, unless required by law, and no Buyer
      effecting a pledge of Securities shall be required to provide the Company with
      any notice thereof or otherwise make any delivery to the Company pursuant to
      this Agreement or any other Transaction Document, including without limitation,
      this Section 2(f).

     

    (g)
       Legends.
      Such
      Buyer understands that the certificates or other instruments representing the
      Notes and the Warrants and the stock certificates representing the Conversion
      Shares and the Warrant Shares, except as set forth below, shall bear any legend
      as required by the “blue sky” laws of any state and a restrictive legend in
      substantially the following form (and a stop-transfer order may be placed
      against transfer of such certificates):

     

    NEITHER
      THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR
      THE
      SECURITIES INTO WHICH THESE SECURITIES ARE [CONVERTIBLE] [EXERCISABLE]] HAVE
      BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
      STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD,
      TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION
      STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
      OR
      (B) AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE ISSUER, IN A GENERALLY
      ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS
      SOLD PURSUANT TO, AND IN ACCORDANCE WITH, RULE 144 OR RULE 144A UNDER SAID
      ACT.
      NOTWITHSTANDING THE FOREGOING, SUBJECT TO COMPLIANCE WITH APPLICABLE SECURITIES
      LAWS, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
      ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES. THIS
      INSTRUMENT IS SUBJECT TO THE TERMS OF A SECURITIES PURCHASE AGREEMENT (NOTES
      AND
      WARRANTS), DATED AS OF MARCH 30, 2007, BY AND AMONG COMANCHE CLEAN ENERGY
      CORPORATION AND THE BUYERS LISTED THEREIN.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    The
      legend set forth above shall be removed and the Company shall issue a
      certificate without such legend to the holder of the Securities upon which
      it is
      stamped or, in the case of Conversion Shares or Warrant Shares, issue to such
      holder by electronic delivery at the applicable balance account at The
      Depository Trust Company ("DTC"),
      if,
      unless otherwise required by state securities laws, (i) such Securities are
      registered for resale under the 1933 Act, provided that upon receipt of notice
      from the Company that the applicable registration statement is not, or no longer
      is effective in respect of the resale of such Securities, the Holder will not
      transfer such Securities (other than pursuant to clauses 2(g)(ii) or
      2(g)(iii) below) until the Company notifies the Holder that the applicable
      registration statement becomes effective (again), (ii) in connection with a
      sale, assignment or other transfer, such holder provides the Company with an
      opinion of counsel reasonably satisfactory to the Company, in a generally
      acceptable form, to the effect that such sale, assignment or transfer of the
      Securities may be made without registration under the applicable requirements
      of
      the 1933 Act and that such legend is no longer required, or (iii) such
      holder provides the Company with assurances reasonably acceptable to the Company
      that the Securities can be sold, assigned or transferred pursuant to Rule 144
      or
      Rule 144A, and such Holder delivers the legended Securities to the Company
      or
      the Company’s transfer agent.

     

    (h) Validity;
      Enforcement.
      This
      Agreement has been, and, when the other Transaction Documents (as defined below)
      to which such Buyer is a party are executed and delivered in accordance with
      the
      terms and conditions contemplated hereby and thereby, such documents shall
      have
      been duly and validly authorized, executed and delivered on behalf of such
      Buyer
      and shall constitute the legal, valid and binding obligations of such Buyer
      enforceable against such Buyer in accordance with their respective terms, except
      as such enforceability may be limited by general principles of equity or to
      applicable bankruptcy, insolvency, reorganization, fraudulent conveyance or
      transfer, moratorium, liquidation and other similar laws relating to, or
      affecting generally, the enforcement of applicable creditors’ rights and
      remedies.

     

    (i) No
      Conflicts.
      The
      execution, delivery and performance by such Buyer of this Agreement and the
      other Transaction Documents to which such Buyer is a party and the consummation
      by such Buyer of the transactions contemplated hereby and thereby will not
      (i) result in a violation of any organizational documents of such Buyer or
      (ii) conflict with, or constitute a default (or an event which with notice
      or lapse of time or both would become a default) under, or give to others any
      rights of termination, amendment, acceleration or cancellation of, any
      agreement, indenture or instrument to which such Buyer is a party, or
      (iii) result in a violation of any law, rule, regulation, order, judgment
      or decree (including federal and state securities laws) applicable to such
      Buyer
      or by which any property or asset of the Buyer is bound or affected, except
      in
      the case of clauses (ii) and (iii) above, for such conflicts,
      defaults, rights or violations which would not, individually or in the
      aggregate, reasonably be expected to have a material adverse effect on the
      ability of such Buyer to perform its obligations hereunder or under any of
      the
      other Transaction Documents. Each Buyer agrees that it has independently, based
      on such documents and information it deemed appropriate, made its decision
      to
      enter into this Agreement and purchase the Notes and Warrants.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (j) Residency.
      Such
      Buyer is a resident of that jurisdiction specified below its address on the
      Schedule of Buyers.

     

    (k) Placement
      Agent.
      Such
      Buyer understands that Rodman & Renshaw, LLC (the “Placement Agent”)
      has
      acted solely as the agent of the Company in this placement of the Securities,
      and that the Agent makes no representation or warranty with regard to the merits
      of this transaction or as to the accuracy of any information such Buyer may
      have
      received in connection therewith. Such Buyer acknowledges that it has not relied
      on any information prepared by the Agent or advice furnished by or on behalf
      of
      the Agent. Such Buyer agrees that it has, independently and without reliance
      on
      Agent, and based on such documents and information as it has deemed appropriate,
      made its own credit analysis of the Company, the Targets and the Acquisition
      and
      has made its own decision to enter into this Agreement and purchase the
      applicable Securities.

     

    3. REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY. The Company represents and warrants to each
      of the Buyers on the date hereof and on the Closing Date that:

     

    (a)
      Organization
      and Qualification.
      Set
      forth on Schedule 3(a)
      is a
      true and correct list of the entities in which the Company or any Subsidiary,
      directly or indirectly, owns capital stock or holds an equity or similar
      interest, together with their respective jurisdictions of organization and
      the
      percentage of the outstanding capital stock or other equity interests of such
      entity that is held by the Company or such Subsidiary or any of their respective
      Subsidiaries. Schedule 3(a)
      also
      sets forth a true and correct corporate structure of the Company and its
      subsidiaries immediately following the Closing giving pro forma effect to the
      Immediate Acquisitions (including for this purpose only, the Targets). Other
      than with respect to the entities listed on Schedule 3(a),
      the
      Company does not, directly or indirectly, own any securities or beneficial
      ownership interests in any other Person (including through joint ventures or
      partnership arrangements) or has any investment in any other Person. The Company
      and its “Subsidiaries”
(which
      for purposes of this Agreement means any entity in which the Company or any
      of
      its Subsidiaries, directly or indirectly, owns any of the capital stock, equity
      or similar interests or voting power of such entity at the date of this
      Agreement) are entities duly organized and
      validly existing and in good standing under the laws of the jurisdiction in
      which they are formed, and have the requisite power and authority to own their
      properties and to carry on their business as now being conducted. If applicable,
      each of the Company and the Subsidiaries is duly qualified as a foreign entity
      to do business and, to the extent legally applicable, is in good standing in
      every jurisdiction in which its ownership of property or the nature of the
      business conducted by it makes such qualification necessary, except to the
      extent that the failure to be so qualified or be in good standing would not
      have
      a Material Adverse Effect. As used in this Agreement, “Material
      Adverse Effect”
means
      any material adverse effect on the business, properties, assets, prospects,
      operations, results of operations or condition (financial or otherwise) of
      the
      Company and its Subsidiaries, taken as a whole, or on the transactions
      contemplated hereby and the other Transaction Documents or by the agreements
      and
      instruments to be entered into in connection herewith or therewith, or on the
      authority or ability of the Company or any Subsidiary to perform its obligations
      under the Transaction Documents (as defined below). Except as set forth in
      Schedule 3(a),
      the
      Company and each Subsidiary holds all right, title and interest in and to 100%
      of the capital stock, equity or similar interests of each of its respective
      Subsidiaries, in each case, free and clear of any Liens (as defined below)
      other
      than Permitted Liens (as defined in the Notes) including any restriction on
      the
      use, voting, transfer, receipt of income or other exercise of any attributes
      of
      free and clear ownership by a current holder, and no such Subsidiary owns
      capital stock or holds an equity or similar interest in any other Person. As
      used in this Agreement, “Lien”
means,
      with respect of any asset, any mortgage, lien, pledge, hypothecation, charge,
      security interest, encumbrance or adverse claim of any kind and any restrictive
      covenant, condition, restriction or exception of any kind that has the practical
      effect of creating a mortgage, lien, pledge, hypothecation, charge, security
      interest, encumbrance or adverse claim of any kind (including any of the
      foregoing created by, arising under or evidenced by any conditional sale or
      other title retention agreement, the interest of a lessor with respect to a
      "Capital Lease" (in accordance with generally accepted accounting principles),
      or any financing lease having substantially the same economic effect as any
      of
      the foregoing).

     

    
      
        
        

      

      
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    (b)
      Authorization;
      Enforcement; Validity.
      The
      Company has the requisite corporate power and authority to enter into and
      perform its obligations under this Agreement, the Registration Rights Agreement,
      the Guaranty, the Pledge Agreement, the Escrow Agreement (as defined below),
      the
      Warrants and each of the other agreements entered into by the parties hereto
      in
      connection with the transactions contemplated by this Agreement to which it
      is a
      party (such documents, and together with the Notes, the Warrants, the
      Registration Rights Agreement, the Security Documents, the Transfer Agent
      Instructions, and each of the other agreements to be entered into in connection
      with the transactions contemplated by this Agreement, as amended, restated,
      supplemented and/or modified from time to time in accordance with the provisions
      thereof, collectively, the “Transaction
      Documents”)
      and to
      consummate the transactions contemplated herein and therein in accordance with
      the terms hereof and thereof. The execution and delivery of the Transaction
      Documents by the Company and the consummation by the Company of the transactions
      contemplated hereby and thereby, have been duly authorized by the board of
      directors of the Company (the “Board
      of Directors”)
      and
      other than as set forth in Section 3(e) hereof, no further filing, consent
      or authorization is required by the Company, its stockholders or the Board
      of
      Directors. To the extent that a Person that is a Subsidiary is a party to or
      bound by a Transaction Document or an Immediate Acquisition Document, such
      Subsidiary has the requisite power and authority to enter into and perform
      its
      obligations under such Transaction Document or Immediate Acquisition Document
      and the execution and delivery of such Transaction Document by such Subsidiary
      and the consummation by such Subsidiary of the transactions contemplated thereby
      have been duly authorized by the board of directors or equivalent body of such
      Subsidiary and no further consent or authorization is required by such
      Subsidiary, its equity holders or its board of directors or equivalent body.
      This Agreement, the other Transaction Documents and the Immediate Acquisition
      Documents have been duly executed and delivered by the Company or its
      Subsidiary, as applicable, and constitute the legal, valid and binding
      obligations of such parties enforceable against such parties in accordance
      with
      their respective terms, except as such enforceability may be limited by general
      principles of equity or applicable bankruptcy, insolvency, reorganization,
      fraudulent conveyance or transfer, moratorium, liquidation or similar laws
      relating to, or affecting generally, the enforcement of applicable creditors’
rights and remedies. As of the Closing, the Transaction Documents dated after
      the date of this Agreement and on or prior to the date of the Closing shall
      have
      been duly executed and delivered by the Company or its Subsidiary, if
      applicable, and shall constitute the valid and binding obligations of such
      parties, enforceable against such parties in accordance with their terms except
      as enforceability may be limited by general principles of equity or applicable
      bankruptcy, insolvency, reorganization, fraudulent conveyance or transfer,
      moratorium or similar laws relating to, or affecting generally, the enforcement
      of creditors’ rights and remedies.

     

    
      
        
        

      

      
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    (c)
      Offer
      of Securities; Issuance of Securities.
      Subject
      to the accuracy of Buyer’s representations and warranties hereunder, the offer
      by the Company of the Securities is exempt from registration under the 1933
      Act.
      The issuance of the Notes and the Warrants are duly authorized and are free
      from
      all taxes, liens and charges in respect of the issue thereof other than
      Permitted Liens (as defined in the Notes). As of the Closing, a number of Shares
      shall have been duly authorized and reserved for issuance which equals 125%
      of
      the maximum number of Shares issuable upon the conversion of the Notes and
      the
      exercise of the Warrants Upon conversion of the Notes in accordance with the
      terms thereof the Conversion Shares, and upon exercise in accordance with the
      Warrants, the Warrant Shares, will be validly issued, fully paid and
      nonassessable and free from all preemptive or similar rights, taxes, liens
      and
      charges in respect of the issue thereof other than Permitted Liens, with the
      holders being entitled to all rights accorded to a holder of Shares.

     

    (d)
      No
      Conflicts.
      The
      execution, delivery and performance of the Transaction Documents by the Company,
      and if applicable its Subsidiaries, and the consummation by such parties of
      the
      transactions contemplated hereby and thereby and the granting of a security
      interest in the Collateral will not (i) result in a violation of any
      articles of association, certificate of incorporation, certificate of formation,
      any certificate of designations or other constituent documents of the Company
      or
      any of the Subsidiaries, any capital stock of the Company or any of the
      Subsidiaries or bylaws of the Company or any of the Subsidiaries or
      (ii) conflict with, or constitute a default (or an event which with notice
      or lapse of time or both would become a default) in any respect under, or give
      to others any rights of termination, amendment, acceleration or cancellation
      of,
      or other remedy in respect of, any agreement, indenture or instrument to which
      the Company or any of the Subsidiaries is a party, or (iii) result in a
      violation of any Requirements of Law, except (other than pursuant to clauses
      (i)
      and (iii) above) for such violations, conflicts, defaults or rights which would
      not, individually or in the aggregate, have a Material Adverse Effect. As used
      in this Agreement, (A) “Requirements
      of Law”
means,
      as to any Person, any United States or foreign law, statute, treaty, rule,
      regulation, right, privilege, qualification, license or franchise or
      determination of an arbitrator or a court or other Governmental Entity, in
      each
      case applicable or binding upon such Person or any of its property or to which
      such Person or any of its property is subject or pertaining to any or all of
      the
      transactions contemplated or referred to herein and (B) “Governmental
      Entity”
means
      the government of any nation, state, city, locality or other political
      subdivision thereof, any entity exercising executive, legislative, judicial,
      regulatory or administrative functions of or pertaining to government and any
      corporation or other entity owned or controlled, through stock or capital
      ownership or otherwise, by any of the foregoing.

     

    (e)
      Consents.
      Neither
      the Company nor any of the Subsidiaries is required to obtain any consent,
      authorization or order of, or make any filing or registration with, any court,
      governmental agency or any regulatory or self-regulatory agency or any other
      Person in order for it to execute, deliver or perform any of its obligations
      under or contemplated by the Transaction Documents to which it is a party,
      in
      each case in accordance with the terms hereof or thereof, except for the
      following consents, authorizations, orders, filings and registrations:
      (i) the filing of appropriate UCC financing statements (or the equivalent)
      with the appropriate states and other authorities pursuant to the Pledge
      Agreement; (ii) filings required by applicable federal, state or foreign
      securities laws; (iii) filings required by Brazilian law to register foreign
      investment; and (iv) the registration statement and related state
      securities law filings required by the Registration Rights Agreement. All
      consents, authorizations, orders, filings and registrations which the Company
      is
      required to have obtained prior to the date hereof pursuant to the preceding
      sentence have been obtained or effected. Notwithstanding the first two sentences
      of this Section 3(e), to the extent that any Foreign Subsidiary is required
      to
      obtain any consent, authorization or order, or make any filing or registration,
      but has not done so, such failure shall not constitute a default hereunder
      or
      under the other Transaction Documents if such failure(s), individually or in
      the
      aggregate, would not have a Material Adverse Effect.

     

    
      
        
        

      

      
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    (f)
      Acknowledgment
      Regarding Buyer’s Purchase of Securities.
      The
      Company acknowledges and agrees that each Buyer is acting solely in the capacity
      of an arm’s length purchaser in respect of the Transaction Documents and the
      transactions contemplated hereby and thereby and that, except as set forth
      on
Schedule 3(f),
      no
      Buyer is (i) an officer or director of the Company, (ii) an
“affiliate” of the Company (as defined in Rule 144) or (iii) to the
      knowledge of the Company, a “beneficial owner” of more than 10% of the shares of
      Common Stock (as defined for purposes of Rule 13d-3 of the Securities Exchange
      Act of 1934, as amended (the “1934
      Act”)).
      The
      Company further acknowledges that, except as set forth on Schedule 3(f),
      to the
      knowledge of the Company, no Buyer is acting as a financial advisor or fiduciary
      of the Company or any of its Subsidiary (or in any similar capacity) in respect
      of the Transaction Documents and the transactions contemplated hereby and
      thereby, and any advice given by a Buyer or any of its representatives or agents
      in connection with the Transaction Documents and the transactions contemplated
      hereby and thereby is merely incidental to such Buyer’s purchase of the
      Securities. The Company further represents to each Buyer that the decision
      of
      the Company and each of the Subsidiaries to enter into the Transaction Documents
      to which such Person is a party has been based solely on the independent
      evaluation by the Company, such Subsidiaries and their respective
      representatives.

     

    (g)
      No
      General Solicitation; Placement Agent’s Fees.
      None of
      the Company, any of its Subsidiaries, any of their respective Affiliates, nor
      any Person acting on its or their behalf, has engaged in any form of general
      solicitation or general advertising (within the meaning of Regulation D) in
      connection with the offer or sale of the Securities. The Company shall be
      responsible for the payment of any placement agent’s fees, financial advisory
      fees, or brokers’ commissions (other than for persons engaged by any Buyer or
      its investment advisor) relating to or arising out of the transactions
      contemplated hereby. The Company shall pay, and hold each Buyer harmless
      against, any liability, loss or expense (including, without limitation,
      attorneys’ fees and out-of-pocket expenses) arising in connection with any such
      claim. The Company acknowledges that it has engaged the Agent as placement
      agent
      in connection with the sale of the Securities. Other than the Agent, the fees
      and expenses of whom shall be borne by the Company, the Company has not engaged
      any placement agent or other agent in connection with the sale of the
      Securities.

     

    (h)
      No
      Integrated Offering.
      None of
      the Company, any of its Subsidiaries and any of their respective Affiliates,
      nor
      any Person acting on its or their behalf has made, directly or indirectly,
      any
      offers or sales of any security or solicited any offers to buy any security,
      under circumstances that would require registration of any of the Securities
      under the 1933 Act or cause this offering of the Securities to be integrated
      with prior or concurrent offerings by the Company for purposes of the 1933
      Act
      other than the Common PIPE Offering and the Acquisitions, which Common PIPE
      Offering and the Acquisitions have been undertaken only in such a manner as
      to
      not adversely affect the exemption from registration enjoyed by the sale of
      the
      Securities pursuant to this Agreement. None of the Company, any of its
      Subsidiaries and their respective Affiliates or any Person acting on their
      behalf will take any action or steps referred to in the preceding sentence
      that
      would require registration of any of the Securities under the 1933 Act or cause
      the offering of the Securities to be integrated with other offerings. Except
      as
      otherwise stated, as used in this Agreement, “Affiliate”
means
      any Person who is an “affiliate”
as
      defined in Rule 12b-2 of the General Rules and Regulations under the 1934
      Act.

     

    
      
        
        

      

      
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    (i)
      Application
      of Takeover Protections; Rights Agreement.
      The
      Company and its board of directors have taken all necessary action, if any,
      in
      order to render inapplicable any control share acquisition, business
      combination, poison pill (including any distribution under a rights agreement)
      or other similar anti-takeover provision under the Company’s articles of
      association and memorandum of association (as amended and in effect on the
      date
      hereof) or the laws of the jurisdiction of its formation or otherwise which
      is
      or could become applicable to any Buyer as a result of the transactions
      contemplated by the Securities Purchase Agreement, including, without
      limitation, the Company’s issuance of the Securities and any Buyer's ownership
      of the Securities. The Company has not adopted a stockholder rights plan or
      similar arrangement relating to accumulations of beneficial ownership of Shares
      or a change in control of the Company. 

    

    (j)
      Financial
      Statements.
      The
      consolidated financial statements of the Company and its Subsidiaries have
      been
      prepared in accordance with the generally accepted accounting principles of
      the
      jurisdiction of its organization (“GAAP”),
      during the periods involved (except (i) as may be otherwise indicated in
      such financial statements or the notes thereto, or (ii) in the case of
      unaudited interim statements, to the extent they may exclude footnotes or may
      be
      condensed or summary statements) and fairly present in all material respects
      the
      financial position of the Company as of the dates thereof and the results of
      its
      operations and cash flows for the periods then ended (subject, in the case
      of
      unaudited statements, to normal year-end audit adjustments that, to the
      Company's knowledge, are not material, individually or in the aggregate. Except
      for liabilities and obligations incurred in the ordinary course of business
      and
      consistent with past practice, liabilities and obligations reflected on or
      reserved against in the December 31, 2006 interim consolidated balance sheets
      of
      the Company or in the December 31, 2006 interim consolidated balance sheets
      of
      any Subsidiary, as applicable, prepared in accordance with GAAP (the
“Balance
      Sheets”)
      and as
      otherwise contemplated hereby or disclosed herein or in the disclosure schedules
      to this Agreement (the "Disclosure
      Schedules"),
      since
      December 31, 2006, inclusive of such date, none of the Company nor any
      Subsidiary has incurred any liabilities or obligations that would be required
      to
      be reflected or reserved against in a balance sheet of the Company or such
      Subsidiary, as applicable, prepared in accordance with the principles used
      in
      the preparation of the Balance Sheets. None of the Company or, to the Company's
      knowledge, any stockholder, officer or director of the Company has issued any
      press release or made any other public statement or communication on behalf
      of
      the Company or otherwise relating to the Company or any of its Subsidiaries
      that
      contains any untrue statement of a material fact or omits any statement of
      material fact necessary in order to make the statements therein, in the light
      of
      the circumstances under which they were made, not misleading.

     

    
      
        
        

      

      
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    (k)
      Absence
      of Certain Changes.
      Since
      December 31, 2006, there has been no change or development in the business,
      properties, operations, condition (financial or otherwise), results of
      operations of the Company or any Subsidiary that has had or would reasonably
      be
      expected to have a Material Adverse Effect. Except as set forth on Schedule
      3(k),
      since
      December 31, 2006, (and before giving effect to the transactions contemplated
      under the Transaction Documents) none of the Company or any of its Subsidiaries
      has (i) declared or paid any dividends other than as would have been
      permitted under the Notes, (ii) sold any assets, individually or in the
      aggregate, in excess of $1,000,000 outside of the ordinary course of business,
      (iii) had capital expenditures, individually or in the aggregate, in excess
      of $1,000,000 or (iv) waived any material rights in respect of any
      Indebtedness or other rights in excess of $500,000 owed to it. None of the
      Company or any of its Subsidiaries has taken any steps to seek protection
      pursuant to any bankruptcy law nor does the Company have any knowledge or reason
      to believe that its creditors or the creditors of any Subsidiary intend to
      initiate involuntary bankruptcy proceedings or any actual knowledge of any
      fact
      which would reasonably lead a creditor to do so. Neither the Company nor any
      Subsidiary of the Company is as of the date hereof, and after giving effect
      to
      the transactions contemplated hereby to occur at the Closing will be, Insolvent
      (as defined below). For purposes of this Section 3(k), “Insolvent”
means,
      in respect of any Person, (i) the present fair saleable value of such
      Person’s assets (and including as assets for this purpose at a fair valuation
      all rights of subrogation, contribution or indemnification arising pursuant
      to
      any guarantees given by such Person) is less than the amount required to pay
      such Person’s (after giving effect to the Acquisitions) total Indebtedness (as
      defined in Section 3(p)), (ii) such Person is unable to pay its debts
      and liabilities, subordinated, contingent or otherwise, as such debts and
      liabilities become absolute and matured, (iii) such Person intends at any
      time to incur or believes that it will at any time incur debts that would be
      beyond its ability to pay as such debts mature or (iv) such Person has
      unreasonably small capital with which to conduct the business in which it is
      engaged as such business is now conducted and is proposed to be
      conducted.

     

    (l)
      Conduct
      of Business; Regulatory Permits.
      None
      of
      the Company or any Subsidiary is in violation of any term of or in default
      under
      its articles of association, certificate of incorporation, certificate of
      formation, any certificate of designations of any outstanding series of
      preferred stock of such company or Bylaws or their organizational charter or
      other constituent documents or bylaws, respectively except for such violations
      or defaults which would not, individually or in the aggregate, reasonably be
      expected to have a Material Adverse Effect. None of the Company or any
      Subsidiary is in violation of any judgment, decree or order or any statute,
      ordinance, rule or regulation applicable to such entity, and none of the Company
      or any Subsidiary will conduct its respective business in violation of any
      of
      the foregoing, except for such violations and/or possible violations which
      would
      not, individually or in the aggregate, reasonably be expected to have a Material
      Adverse Effect. The Company and each Subsidiary possess all certificates,
      authorizations and permits issued by the appropriate regulatory authorities
      necessary to conduct their respective businesses, except where the failure
      to
      possess such certificates, authorizations or permits would not have,
      individually or in the aggregate, a Material Adverse Effect, and none of the
      Company or any Subsidiary has received any notice of proceedings relating to
      the
      revocation or modification of any such certificate, authorization or permit
      except where such proceedings, revocation or modification would not have a
      Material Adverse Effect.

     

    
      
        
        

      

      
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    (m)
      Foreign
      Corrupt Practices.
      None of
      the Company or any Subsidiary, nor, any director, officer, agent, employee
      or
      other Person acting on behalf of any of them has, in the course of its actions
      for, or on behalf of, such entity (i) used any corporate funds for any
      unlawful contribution, gift, entertainment or other unlawful expenses relating
      to political activity; (ii) made any direct or indirect unlawful payment to
      any foreign or domestic government official or employee from corporate funds;
      (iii) violated or is in violation of any provision of the U.S. Foreign
      Corrupt Practices Act of 1977, as amended; or (iv) made any unlawful bribe,
      rebate, payoff, influence payment, kickback or other unlawful payment to any
      foreign or domestic government official or employee. (n)Transactions
      With Affiliates.
      Except
      as set forth in Schedule
      3(n) hereto,
      other than the issuance of restricted stock and the other arrangements disclosed
      on Schedule
      3(n),
      none of
      the officers, directors or employees of any of the Company or any Subsidiary
      is
      presently a party to any transaction with any of the Company or any Subsidiary
      (other than for ordinary course services as employees, officers or directors),
      including any contract, agreement or other arrangement providing for the
      furnishing of services to or by, providing for rental of real or personal
      property to or from, or otherwise requiring payments to or from any such
      officer, director or employee or, to the knowledge of the Company, any
      corporation, partnership, trust or other entity in which any such officer,
      director, or employee has a substantial interest or is an officer, director,
      trustee or partner.

     

    (o)
      Equity
      Capitalization.
      As of
      the date hereof and before giving effect to the Acquisitions, and the financings
      contemplated in the Transaction Documents, the authorized capital stock of
      the
      Company consists of 100,000,000 Ordinary Shares, par value $.001 per Share
      (“Ordinary
      Shares”),
      2,290,818 of which as of the date hereof, are issued and outstanding, and
      10,000,000 Preference Shares, par value $.001 per Share (“Preference
      Shares”,
      and
      collectively with Ordinary Shares, the “Shares”),
      none
      of which are issued or outstanding as of the date hereof. All of the outstanding
      Ordinary Shares have been validly issued and are fully paid and nonassessable.
      Except as disclosed in Schedule 3(o):
      (i) none of the Company’s capital stock is subject to preemptive rights or
      any other similar rights or any Liens suffered or permitted by the Company;
      (ii) there are no outstanding options, warrants, scrip, rights to subscribe
      to, calls or commitments of any character whatsoever relating to, or securities
      or rights convertible into, or exercisable or exchangeable for, any capital
      stock of the Company or any of its Subsidiaries, or contracts, commitments,
      understandings or arrangements by which the Company or any of its Subsidiaries
      is or may become bound to issue additional capital stock of the Company or
      any
      of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls
      or commitments of any character whatsoever relating to, or securities or rights
      convertible into, or exercisable or exchangeable for, any capital stock of
      the
      Company or any of its Subsidiaries; (iii) there are no outstanding debt
      securities, notes, credit agreements, credit facilities or other agreements,
      documents or instruments evidencing Indebtedness of the Company or any of its
      Subsidiaries or by which the Company or any of its Subsidiaries is or may become
      bound, except for such Indebtedness which (x) will be paid or satisfied in
      full
      substantially concurrently with the Closing with the proceeds of the purchase
      of
      securities hereunder, of the Common PIPE Offering, or (y) constitutes Permitted
      Indebtedness (as defined in the Notes); (iv) there are no financing
      statements securing obligations in any material amounts, either singly or in
      the
      aggregate, filed in connection with the Company or any of its Subsidiaries
      other
      than financing statements evidencing Permitted Liens or filed pursuant to the
      Pledge Agreement; (v) there are no agreements or arrangements under which
      the Company or any of its Subsidiaries is obligated to register the sale of
      any
      of their securities under the 1933 Act (except pursuant to (A) the Registration
      Rights Agreement and the Common PIPE Registration Rights Agreement and (B)
      registration rights the Company has agreed to or may agree to provide to the
      Agent, the existing shareholders listed on Schedule 3(o) attached hereto,
      certain members of management and the current holders of the Shares; provided,
      that, the registration rights described in the foregoing clause (B) shall not
      require the Company to include the shares covered by such registration rights
      in
      the registration statement to be filed by the Company pursuant to Section 2(a)
      of the Registration Rights Agreement or Section 2(a) of the Common PIPE
      Registration Rights Agreement and such registration rights shall be subject
      to
      any registration rights granted to the Persons under Registration Rights
      Agreement and the Common PIPE Registration Rights Agreement; (vi) there are
      no outstanding securities or instruments of the Company or any of its
      Subsidiaries which contain any redemption or similar provisions, and there
      are
      no contracts, commitments, understandings or arrangements by which the Company
      or any of its Subsidiaries is or may become bound to redeem a security of the
      Company or any of such Subsidiaries; (vii) there are no securities or
      instruments containing anti-dilution or similar provisions that will be
      triggered by the issuance of the Securities; (viii) the Company does not
      have any stock appreciation rights or “phantom stock” plans or agreements or any
      similar plan or agreement; (ix) all the Company’s outstanding options and
      warrants shall be cancelled at Closing; and (x) no securities of the
      Company or any Subsidiary are listed or quoted on any stock exchange or
      automated quotation system. The Company has made available to the Buyers true,
      correct and complete copies of the Company’s memorandum and articles of
      association, as amended and as in effect on the date hereof, and all agreements
      relating to securities convertible into, or exercisable or exchangeable for,
      Shares and the material rights of the holders thereof in respect
      thereof.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    (p)
      Indebtedness
      and Other Contracts.
      Except
      as disclosed in Schedule
      3(p),
      none of
      the Company or any Subsidiary (i) has any outstanding Indebtedness (as defined
      below) except for Permitted Indebtedness and such Indebtedness which will be
      paid or satisfied in full substantially concurrently with Closing with the
      proceeds of the purchase of securities hereunder, of the Common PIPE Offering,
      (ii) is a party to any contract, agreement or instrument, the violation of
      which, or default under which, by the other party(ies) to such contract,
      agreement or instrument would reasonably be expected to result in a Material
      Adverse Effect, (iii) is in violation of any term of or in default under any
      contract, agreement or instrument relating to any Indebtedness, except where
      such violations and defaults would not result, individually or in the aggregate,
      in a Material Adverse Effect, or (iv) is a party to any contract, agreement
      or
      instrument relating to any Indebtedness, the performance of which, in the
      judgment of the Company’s officers, would be reasonably expected to have a
      Material Adverse Effect. After giving effect to the issuance of the Notes and
      Warrants as contemplated by the this Agreement and Shares and Warrants pursuant
      to the Common PIPE Securities Purchase Agreement, none of the Company or any
      Subsidiary will have any outstanding Indebtedness, except for Permitted
      Indebtedness. For purposes of this Agreement: (x) Indebtedness”
of
      any
      Person means, without duplication (A) all indebtedness for borrowed money,
      (B)
      all obligations issued, undertaken or assumed as the deferred purchase price
      of
      property or services, including (without limitation) “capital leases” in
      accordance with generally accepted accounting principles (other than trade
      payables entered into in the ordinary course of business), (C) all reimbursement
      or payment obligations in respect of letters of credit, surety bonds and other
      similar instruments, (D) all obligations evidenced by notes, bonds, debentures
      or similar instruments, including obligations so evidenced incurred in
      connection with the acquisition of property, assets or businesses, (E) all
      indebtedness created or arising under any conditional sale or other title
      retention agreement, or incurred as financing, in either case in respect of
      any
      property or assets acquired with the proceeds of such indebtedness (even though
      the rights and remedies of the seller or bank under such agreement in the event
      of default are limited to repossession or sale of such property), (F) all
      monetary obligations under any leasing or similar arrangement which, in
      connection with generally accepted accounting principles, consistently applied
      for the periods covered thereby, is classified as a capital lease, (G) all
      indebtedness referred to in clauses (A) through (F) above secured by (or for
      which the holder of such Indebtedness has an existing right, contingent or
      otherwise, to be secured by) any mortgage, lien, pledge, charge, security
      interest or other encumbrance upon or in any property or assets (including
      accounts and contract rights) owned by any Person, even though the Person which
      owns such assets or property has not assumed or become liable for the payment
      of
      such indebtedness, and (H) all Contingent Obligations in respect of indebtedness
      or obligations of others of the kinds referred to in clauses (A) through (G)
      above; (y) “Contingent
      Obligation”
means,
      as to any Person, any direct or indirect liability, contingent or otherwise,
      of
      that Person in respect of any indebtedness, lease, dividend or other obligation
      of another Person if the primary purpose or intent of the Person incurring
      such
      liability, or the primary effect thereof, is to provide assurance to the obligee
      of such liability that such liability will be paid or discharged, or that any
      agreements relating thereto will be complied with, or that the holders of such
      liability will be protected (in whole or in part) against loss in respect
      thereof; and (z) “Person”
means
      an individual, a limited liability company, a partnership, a joint venture,
      a
      corporation, a trust, an unincorporated organization or a government or any
      department or agency thereof.

     

    
      
        
        

      

      
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    (q)
      Absence
      of Litigation.
      There
      is no action, suit, proceeding, inquiry or investigation that if adversely
      determined, individually or in the aggregate, would have a Material Adverse
      Effect before or by, any court, public board, government agency, self-regulatory
      organization or body pending or, to the knowledge of the Company, threatened
      against or affecting the Company, any Subsidiary, any of their respective
      officers or directors, or the Shares.

     

    (r)
      Insurance.
      The
      Company and each Subsidiary is insured by insurers of recognized financial
      responsibility against such losses and risks and in such amounts as management
      of the Company believes to be prudent and customary in the businesses in which
      such entities are engaged. None of the Company or any Subsidiary has any reason
      to believe that it will not be able to renew its existing insurance coverage
      as
      and when such coverage expires or to obtain similar coverage from similar
      insurers as may be necessary to continue its business at a cost that would
      not
      have a Material Adverse Effect.

     

    (s)
      Employee
      Relations.

     

    (i) None
      of
      the Company or any Subsidiary is a party to any collective bargaining agreement
      or employs any member of a union. The Company and its Subsidiaries believe
      that
      the Company’s relations with its employees and the relations of its Subsidiaries
      with their respective Subsidiaries are good. No executive officer (as defined
      in
      Rule 3b-7 promulgated under the 1934 Act) of the Company or any Subsidiary
      has
      notified the Company or such Subsidiary that such officer intends to leave
      the
      Company or Subsidiary, as applicable, or otherwise intends to terminate such
      officer’s employment with the Company or Subsidiary. To the knowledge of the
      Company, no executive officer of the Company or any Subsidiary is, or is now
      expected to be, in violation of any material term of any employment contract,
      confidentiality, disclosure or proprietary information agreement,
      non-competition agreement, or any other contract or agreement or any restrictive
      covenant and the continued employment of each such executive officer does not
      subject the Company or any Subsidiary to any liability in respect of any of
      the
      foregoing matters except such violations and/or liabilities that would not
      individually or in the aggregate be reasonably expected to have a Material
      Adverse Effect.

     

    
      
        
        

      

      
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    (ii) The
      Company and the Subsidiaries are in compliance with all federal, state, local
      and foreign laws and regulations respecting labor, employment and employment
      practices and benefits, terms and conditions of employment and wages and hours,
      except where failure to be in compliance therewith would not result, either
      individually or in the aggregate, in a Material Adverse Effect.

     

    (t)
      Title.
      The
      Company and the Subsidiaries have good and marketable title in fee simple to
      all
      real property and good and valid title to all personal property owned by them
      which is material to the business of the Company or Subsidiary, as applicable,
      in each case free and clear of all Liens except for Permitted Liens (as defined
      in the Notes), except where failure to have good and valid title, individually
      or in the aggregate, would not be reasonably expected to have a Material Adverse
      Effect. Except as set forth on Schedule
      3(t),
      any
      real property and facilities held under lease by the Company or any of the
      Subsidiaries are held by the applicable entity under valid, subsisting and
      enforceable leases with such exceptions as are not material and do not interfere
      with the use made and proposed to be made of such property and buildings by
      the
      Company and such Subsidiaries. Where failures to have such valid, subsisting
      and
      enforceable lease(s) exist, such failures, in the aggregate, would not have
      a
      Material Adverse Effect.

     

    (u)
      Intellectual
      Property Rights.
      The
      Company and the Subsidiaries own or possess, adequate rights or licenses to
      use
      all trademarks, trade names, service marks and all applications and
      registrations therefor, patents, patent rights, copyrights, original works
      of
      authorship, inventions, licenses, approvals, governmental authorizations, trade
      secrets and other intellectual property rights (“Intellectual
      Property Rights”)
      necessary to conduct their respective businesses as now conducted. Except as
      set
      forth on Schedule
      3(u),
      none of
      the Company’s or any Subsidiary’s registered, or applied for, Intellectual
      Property Rights have expired or terminated or have been abandoned, or are
      expected to expire or terminate or expected to be abandoned, within three years
      from the date of this Agreement. The terminations, expirations or abandonments
      of such registered, or applied for, Intellectual Property Rights would not,
      in
      the aggregate, have a Material Adverse Effect. The Company does not have any
      knowledge of any infringement by the Company or any of the Subsidiaries of
      Intellectual Property Rights of others except of such infringement that would
      not have a Material Adverse Effect. Except as set forth on Schedule
      3(u),
      there
      is no claim, action or proceeding being made or brought, or to the knowledge
      of
      the Company, being threatened, against the Company or any Subsidiary regarding
      their respective Intellectual Property Rights and any such claims, actions
      and
      proceedings being made, brought or threatened would not in the aggregate, have
      a
      Material Adverse Effect. The Company is unaware of any facts or circumstances
      which might give rise to any of the foregoing infringements or claims, actions
      or proceedings which would, individually or in the aggregate, have a Material
      Adverse Effect. The Company and the Subsidiaries have taken reasonable security
      measures to protect the secrecy, confidentiality and value of all of their
      Intellectual Property Rights.

     

    (v)
      Environmental
      Laws.
      The
      Company and the Subsidiaries (i) are in compliance with any and all
      Environmental Laws (as hereinafter defined), (ii) have received all
      permits, licenses or other approvals required of them under applicable
      Environmental Laws to conduct their respective businesses, (iii) are in
      compliance with all terms and conditions of any such permit, license or approval
      and (iv) to the Company’s knowledge, there are no events, conditions or
      circumstances reasonably likely to result in liability of the Company or any
      Subsidiary pursuant to Environmental Laws, except where, in the foregoing
      clauses (i) through (iv) the failure to so comply with such Environmental Laws,
      permits, licenses or other approvals or to obtain such permits, licenses or
      approvals would not be reasonably expected to have, individually or in the
      aggregate, a Material Adverse Effect. The term “Environmental
      Laws”
means
      all federal, state, local or foreign laws relating to pollution or protection
      of
      human health or the environment (including, without limitation, ambient air,
      surface water, groundwater, land surface or subsurface strata), including,
      without limitation, laws relating to emissions, discharges, releases or
      threatened releases of chemicals, pollutants, contaminants, or toxic or
      hazardous substances or wastes (collectively, “Hazardous
      Materials”)
      into
      the environment, or otherwise relating to the manufacture, processing,
      distribution, use, treatment, storage, disposal, transport or handling of
      Hazardous Materials, as well as all authorizations, codes, decrees, demands
      or
      demand letters, injunctions, judgments, licenses, notices or notice letters,
      orders, permits, plans or regulations issued, entered, promulgated or approved
      thereunder.

     

    
      
        
        

      

      
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    (w)
      Subsidiary
      Rights.
      The
      Company or one of its Subsidiaries has the unrestricted right to vote, and
      (subject to limitations imposed by applicable law) to receive dividends and
      distributions on, all capital securities of the Subsidiaries owned by the
      Company or such Subsidiary, respectively, subject to the Transaction Documents.
      

     

    (x)
      Tax
      Status.
      Except
      as set forth on Schedule 3(x),
      each of
      the Company and Subsidiaries (i) has made or filed all foreign, federal,
      state and local income and all other tax returns, reports and declarations
      required by any jurisdiction to which it is subject, (ii) has paid all
      taxes and other governmental assessments and charges that are material in
      amount, shown or determined to be due on such returns, reports and declarations,
      except those being contested in good faith and for which the Company has made
      appropriate reserves on its books and (iii) has set aside on its books
      provision reasonably adequate for the payment of all taxes for periods
      subsequent to the periods to which such returns, reports or declarations apply.
      Except as set forth on Schedule 3(x),
      there
      are no material unpaid taxes claimed to be due by the taxing authority of any
      jurisdiction, and the officers of the Company know of no basis for any such
      claim. Each of the claims set forth on Schedule
      3(x)
      is being
      contested in good faith or would not be expected, individually or in the
      aggregate, to have a Material Adverse Effect. Except as set forth on
Schedule 3(x),
      no
      liens have been filed securing taxes and other governmental assessments and
      charges and no claims are being asserted by or against the Company or any of
      the
      Subsidiaries in respect of any taxes (other than liens for taxes not yet due
      and
      payable) or other governmental assessments or charges. Except as set forth
      on
Schedule 3(x),
      none of
      the Company or any of the Subsidiaries has received notice of assessment or
      proposed assessment of any taxes claimed to be owed by it or any other Person
      on
      its behalf. Except as disclosed on Schedule 3(x),
      none of
      the Company or any of the Subsidiaries is a party to any tax sharing or tax
      indemnity agreement or any other agreement of a similar nature that remains
      in
      effect. None of the items set forth on Schedule 3(x)
      would,
      individually or in the aggregate, have a Material Adverse Effect. Each of the
      Company and the Subsidiaries has complied in all material respects with all
      applicable legal requirements relating to the payment and withholding of taxes
      and, within the time and in the manner prescribed by law, has withheld from
      wages, fees and other payments and paid over to the proper governmental or
      regulatory authorities all amounts required.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

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

     

    (z)
      Disclosure.
      Each of
      this Agreement (including the Schedules hereto), the other Transaction
      Documents, and that certain Private Placement Memorandum dated March 28, 2007
      (the “Private
      Placement Memorandum”),
      furnished by or on behalf of the Company regarding the Company or the
      Subsidiaries, and their respective businesses and the transactions contemplated
      hereby (other than any forward-looking statement or management opinion) is
      true
      and correct in all material respects and does not contain any untrue statement
      of a material fact or omit to state any material fact necessary in order to
      make
      the statements made therein, in the light of the circumstances under which
      they
      were made, not misleading, such representation, with respect to the Targets
      and
      the Immediate Acquisitions being made on the basis of the best knowledge of
      the
      Company or any Subsidiary. Each press release issued by the Company or its
      Subsidiaries during the twelve (12) months preceding the date of this Agreement
      did not at the time of release contain any untrue statement of a material fact
      or omit to state a material fact required to be stated therein or necessary
      in
      order to make the statements therein, in the light of the circumstances under
      which they were made, not misleading. No event or circumstance has occurred
      or
      information exists in respect of the Company or any of its Subsidiaries or
      its
      or their business, properties, operations or financial condition, which, under
      applicable law, rule or regulation, requires public disclosure or announcement
      by the Company but which has not been so publicly announced or disclosed, except
      where such failure would not reasonably be expected to have a Material Adverse
      Effect.

     

    (aa)
      Manipulation
      of Price.
      The
      Company has not, and to its knowledge no one acting on its behalf has, (i)
      taken, directly or indirectly, any action designed to cause or to result in
      the
      stabilization or manipulation of the price of any security of the Company to
      facilitate the sale or resale of any of the Securities, (ii) sold, bid for,
      purchased, or paid any compensation for soliciting purchases of, any of the
      Securities, or (iii) paid or agreed to pay to any person any compensation for
      soliciting another to purchase any other securities of the Company other than
      the engagement of Rodman & Renshaw, LLC by the Company as agent in
      connection with the Common PIPE Offering and the offering pursuant which the
      Securities are being sold pursuant to this Agreement and the execution of the
      lock-up agreement relating to the Management Restricted Stock.

    

     

    (bb)
      U.S.
      Real Property Holding Corporation.
      The
      Company is not, nor has it ever been, a U.S. real property holding corporation
      within the meaning of Section 897 of the Internal Revenue Code of 1986, as
      amended, and the Company shall so certify upon any Buyer’s request.

     

    (cc)
      No
      Other Agreements.
      As of
      the Closing Date, the Company has not, directly or indirectly, made any
      agreements with any Buyers relating to the terms or conditions of the
      transactions contemplated by the Transaction Documents, except as set forth
      in
      the Transaction Documents.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    (dd)
      Immediate
      Acquisition Documents.
      To the
      best knowledge of the Company, the representations and warranties made by each
      Target in the Immediate Acquisition Documents are true and correct in all
      material respects (except for those representations and warranties that are
      qualified by materiality, which are true and correct in all respects) as of
      the
      date when made (except for representations and warranties that speak as of
      a
      specific date, which are true and correct as of such date).. The Company does
      not have any reason to believe that such representations and warranties shall
      not be true and correct in all material respects (except for those
      representations and warranties that are qualified by materiality, which are
      expected to continue to be true and correct in all respects) as of the Immediate
      Acquisition Closing (as defined in Section 4(x)).

     

    (ee)
      Regulations
      T, U and X.
      Neither
      the Company nor any other Subsidiary is and will be engaged in the business
      of
      extending credit for the purpose of purchasing or carrying margin stock (within
      the meaning of Regulation T, U or X of the Board of Governors of the Federal
      Reserve System as now and from time to time hereafter in effect), and no
      proceeds of any Note will be used to purchase or carry any margin stock or
      to
      extend credit to others for the purpose of purchasing or carrying any margin
      stock. 

     

    (ff)
      ERISA.
      

     

    (i) Except
      as
      listed on Schedule
      (ff)
      hereto,
      none of the Company or any of its Subsidiaries or any of their ERISA Affiliates
      maintains or contributes to, or within the preceding six (6) years has
      maintained or contributed to, any Employee Benefit Plan. Neither the Company
      nor
      any of its Subsidiaries have any current labor problems or disputes that have
      resulted in, or which such Person reasonably believes would be expected to
      have,
      a Material Adverse Effect. No Employee Benefit Plan has an accumulated or waived
      funding deficiency or permitted decrease which would create a deficiency in
      its
      funding standard account or has applied for an extension of any amortization
      period within the meaning of Section 412 of the Internal Revenue Code of 1986,
      as amended (or any successor statute thereto) and the regulations thereunder
      (the “Code”)
      as of
      the date hereof, and no Lien imposed under the Code or ERISA exists or is likely
      to arise on account of any Employee Benefit Plan within the meaning of Section
      412 of the Code. 

     

    (ii) Liabilities
      under any Employee Benefit Plan of the Company or any of its Subsidiaries have
      been appropriately reflected on the financial statements of the Company and
      its
      Subsidiaries in accordance with GAAP.

     

    (iii) All
      of
      the Employee Benefit Plans are and have been established and administered in
      all
      respects in accordance with all applicable laws, regulations or orders with
      respect thereto, no such failure to comply therewith has, or would be reasonably
      expected to have, a Material Adverse Effect. To the extent that any Employee
      Benefit Plan maintained by the Company or any of its Subsidiaries is intended
      to
      qualify for favorable tax treatment under any applicable law, regulation or
      order, to the knowledge of the Company and the Subsidiaries, no fact or
      circumstance exists that would reasonably be expected to adversely affect the
      tax-exempt status of such Employee Benefit Plan. 

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    (iv) All
      obligations regarding the Employee Benefit Plans have been satisfied to the
      extent due and owing on the date hereof, there are no outstanding defaults
      or
      violations by any party to any Employee Benefit Plan and no taxes, penalties
      or
      fees are owing under any of the Employee Benefit Plans where such obligations,
      defaults, violations, unpaid taxes, unpaid penalties or unpaid fees have or
      would reasonably be expected to have a Material Adverse Effect. Except as set
      forth on Schedule
      (ff),
      neither
      the Company or any ERISA Affiliate has incurred any withdrawal liability under
      ERISA with respect to any Multiemployer Plan, or is aware of any facts
      indicating that it or any of its ERISA Affiliates may in the future incur any
      such withdrawal liability, that has, or would reasonably be expected to have,
      a
      Material Adverse Effect.

     

    (v) the
      Company and each of its Subsidiaries have made available to the Buyers true,
      correct and complete copies of all material Employee Benefit Plans as amended
      as
      of the date hereof, as requested by any Buyer. 

     

    (vi) Each
      Employee Benefit Plan is fully funded to the extent required by any applicable
      law, regulation or order.

     

    (vii) Except
      as
      disclosed in Schedule
      (ff)
      or as
      required by any applicable law, including, without limitation, the Consolidated
      Omnibus Budget Reconciliation Act of 1986 or any similar state law, regulation
      or order, none of the Employee Benefit Plans provides health and welfare
      benefits to retired employees or to the beneficiaries or dependents of retired
      employees.

     

    (viii) As
      used
      in this Agreement, “Employee
      Benefit Plan”
means
      an employee benefit plan (other than a Multiemployer Plan) covered by Title
      IV
      of ERISA and maintained (or that was maintained at any time during the six
      (6)
      calendar years preceding the date of this Agreement) for employees of the
      Company, any of its Subsidiaries or any of its ERISA Affiliates; “ERISA”
means
      the Employee Retirement Income Security Act of 1974, as amended, and any
      successor statute of similar import, and regulations thereunder, in each case,
      as in effect from time to time. References to sections of ERISA shall be
      construed also to refer to any successor sections; and “ERISA
      Affiliate”
means
      (a) any Person subject to ERISA whose employees are treated as employed by
      the
      same employer as the employees of Parent or any of its Subsidiaries under Code
      Section 414(b), (b) any trade or business subject to ERISA whose employees
      are
      treated as employed by the same employer as the employees of Parent or any
      of
      its Subsidiaries under Code Section 414(c), (c) solely for purposes of Section
      302 of ERISA and Section 412 of the Code, any organization subject to ERISA
      that
      is a member of an affiliated service group of which Parent or any of its
      Subsidiaries is a member under Code Section 414(m), or (d) solely for purposes
      of Section 302 of ERISA and Section 412 of the Code, any Person subject to
      ERISA
      that is a party to an arrangement with Parent or any of its Subsidiaries and
      whose employees are aggregated with the employees of Parent or any of its
      Subsidiaries under Code Section 414(o).

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    (gg)
      Anti-Terrorism
      Laws and Anti-Money Laundering Laws.

     

    (i) None
      of
      the Company or its Subsidiaries is, and to the knowledge of the Company, no
      Person who owns a controlling interest in or otherwise controls the Company
      or
      any of its Subsidiaries is or is anticipated to be, (i) listed on the Specially
      Designated Nationals and Blocked Persons List maintained by the Office of
      Foreign Assets Control ("OFAC"),
      Department of the Treasury, and/or on any other similar list (collectively,
      the
      "Lists")
      maintained by the OFAC pursuant to any authorizing statute, Executive Order
      or
      regulation (collectively, "OFAC
      Laws and Regulations");
      or
      (ii) a Person (a "Designated
      Person")
      either
      (A) included within the term "designated national" as defined in the Cuban
      Assets Control Regulations, 31 C.F.R. Part 515, or (B) designated under Sections
      1(a), 1(b), 1(c) or 1(d) of Executive Order No. 13224, 66 Fed. Reg. 49079
      (published September 25, 2001) or similarly designated under any related
      enabling legislation or any other similar Executive Orders (collectively, the
      "Executive
      Orders").

     

    (ii) None
      of
      the Company or its Subsidiaries (x) is a Person or entity with which any Buyer
      is prohibited from dealing or otherwise engaging in any transaction by any
      OFAC
      Laws and Regulations and the Executive Orders (collectively, the "Anti-Terrorism
      Law")
      or
      (ii) is a Person or entity that commits, threatens or conspires to commit or
      supports "terrorism" as defined in the Executive Orders or (y) is affiliated
      or
      associated with a Person or entity listed in the preceding clause (x) or clause
      (y). To the knowledge of the Company, none of the Company or its Subsidiaries
      or
      Affiliates, nor any brokers or other agents acting in any capacity in connection
      with the securities being offered in connection herewith (A) deals in, or
      otherwise engages in any transaction relating to, any property or interests
      in
      property blocked pursuant to the Executive Orders or (B) engages in or conspires
      to engage in any transaction that evades or avoids, or has the purpose of
      evading or avoiding, or attempts to violate, any of the prohibitions set forth
      in any Anti-Terrorism Law.

     

    (iii) To
      the
      knowledge of the Company, none of the Company or its Subsidiaries nor any holder
      of a direct or indirect interest in the Company or any of its Subsidiaries
      (x)
      is under investigation by any governmental authority for, or has been charged
      with, or convicted of, money laundering under 18 U.S.C. §§ 1956 and 1957, drug
      trafficking, terrorist-related activities or other money laundering predicate
      crimes, or any violation of the Bank Secrecy Act (31 U.S.C. Section 5311 et.
      seq.), and its implementing regulations, Title 31 Part 103 of the U.S. Code
      of
      Federal Regulations (the "BSA"),
      (y)
      has been assessed civil penalties under any all applicable laws, regulations
      and
      government guidance on the prevention and detection of money laundering,
      including 18 U.S.C. Section 1956 and 1957, (the "Anti-Money
      Laundering Laws"),
      or
      (z) has had any of its funds seized or forfeited in an action under any
      Anti-Money Laundering Laws.

     

    4. COVENANTS.

     

    (a)
      Best
      Efforts.
      Each
      party shall use its best efforts timely to satisfy each of the covenants and
      the
      conditions to be satisfied by it as provided in Sections 5, 6 and 7 of this
      Agreement.

     

    
      
        
        

      

      
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    (b)
      Securities
      Law Filings.
      The
      Company agrees to timely make any securities law filings in respect of the
      Securities as required under any federal, state and foreign securities laws
      and
      to provide a copy thereof to each Buyer promptly upon request after such filing.
      The Company shall, on or before the Closing Date, take such action as the
      Company shall reasonably determine is necessary in order to obtain an exemption
      for or to qualify the Securities for sale to the Buyers at the Closing pursuant
      to this Agreement under applicable federal, state and foreign securities laws
      (or to obtain an exemption from such qualification), and shall upon request
      provide evidence of any such action so taken to the Buyers on or prior to the
      Closing Date.

     

    (c)
      Reporting
      Status.
      Commencing on the Effective Date (as defined in the Registration Rights
      Agreement) and until the later of the date on which (i) the Investors (as
      defined in the Registration Rights Agreement) shall have sold all the Conversion
      Shares and Warrant Shares and (ii) none of the Notes or Warrants is
      outstanding (the “Reporting
      Period”),
      the
      Company shall timely file all reports required to be filed with the SEC pursuant
      to the 1934 Act, provided that prior to the filing of the registration statement
      with the SEC as required by the Registration Rights Agreement, compliance with
      the current public information requirements of Rule 144(c) thereunder shall
      be
      sufficient. The Company shall not terminate its status as an issuer required
      to
      file reports under the 1934 Act, even if the 1934 Act or the rules and
      regulations thereunder would permit such termination.

     

    (d)
      Use
      of
      Proceeds.
      The
      Company will use the proceeds from the sale of the Securities for general
      corporate purposes, including general and administrative expenses and for the
      purposes set forth on Schedule 4(d)
      (and not
      for the redemption or repurchase of any of its or its Subsidiaries’ equity
      securities or to settle any outstanding litigation). For clarification purposes
      only, the acquisition of securities in a Permitted Acquisition (as defined
      in
      the Notes) pursuant to which the applicable acquisition target becomes a
      Subsidiary (or a joint venture partner) shall not be prohibited by this
      Section 4(d).

     

    (e)
      Financial
      Information.
      The
      Company agrees to send the following to each Investor during the Reporting
      Period (i) unless the following are filed with the SEC through EDGAR and are
      promptly (and in any event, within two business hours) available to the public
      through the EDGAR system, within three (3) Business Days after the filing
      thereof with the SEC, a copy of any of the periodic report or any other interim
      reports or any consolidated balance sheets, income statements, stockholders’
equity statements and/or cash flow statements filed with the SEC for any period
      other than annual, any reports on Form 6-K and any registration statements
      (other than on Form S-8) or amendments filed pursuant to the 1933 Act, (ii)
      promptly and in any event, within one (1) Business Day after the release thereof
      (unless such press release is available on PR Newswire or Business Wire),
      facsimile or e-mailed copies of all press releases issued by the Company or
      any
      of its Subsidiaries, and (iii) copies of any notices and other information
      made
      available or given to the stockholders of the Company generally,
      contemporaneously with the making available or giving thereof to the
      stockholders.

     

    (f)
      Fees.
      Subject
      to Section 8 below, at Closing, the Company shall pay an expense allowance
      to the Agent or its designee(s) for all reasonable costs and expenses incurred
      in connection with the transactions contemplated by the Transaction Documents
      (including all reasonable legal fees and disbursements in connection therewith,
      documentation and implementation of the transactions contemplated by the
      Transaction Documents and due diligence in connection therewith), in an amount
      not to exceed $50,000. The Company shall pay any placement agent’s fees,
      financial advisory fees, or broker’s commissions (other than for Persons engaged
      by any Buyer) relating to or arising out of the transactions contemplated
      hereby, including, without limitation, any fees or commissions payable to the
      Agent. Except as otherwise set forth in the Transaction Documents, each party
      to
      this Agreement shall bear its own expenses in connection with the sale of the
      Securities to the Buyers except that the Company shall pay all actual reasonable
      attorneys' fees and expenses (including disbursements and out-of-pocket
      expenses) for one counsel to the Purchasers incurred by the Purchasers in
      connection with the transactions contemplated by this Agreement.

     

    
      
        
        

      

      
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    (g)
      Pledge
      of Securities.
      The
      Company acknowledges and agrees, subject to compliance with applicable
      securities laws, that the Securities may be pledged by an Investor in connection
      with a bona fide margin agreement or other loan or financing arrangement that
      is
      secured by the Securities. Except as otherwise required by applicable securities
      laws, the pledge of Securities shall not be deemed to be a transfer, sale or
      assignment of the Securities hereunder, and no Investor effecting a pledge
      of
      Securities shall be required to provide the Company with any notice thereof
      or
      otherwise make any delivery to the Company pursuant to this Agreement or any
      other Transaction Document, including, without limitation, Section 2(f);
      provided that an Investor and its pledgee shall be required to comply with
      the
      provisions of Section 2(f) in order to effect a sale, transfer or
      assignment of Securities to such pledgee. The Company hereby agrees to execute
      and deliver such documentation as a pledgee of the Securities may reasonably
      request in connection with a pledge of the Securities to such pledgee by an
      Investor at the expense of the Investor or pledgee.

     

    (h)
      Participation
      Rights for Future Financings.
      The
      Buyers shall have the right to participate in future financings by the Company
      to the extent set forth in Sections 15(b) through 15(f) of the
      Notes.

     

    (i)
      Transactions
      With Affiliates.
      From
      the date of this Agreement until the first date following the Closing Date
      on
      which no Notes or Warrants are outstanding, the Company shall not, and shall
      cause each of its Subsidiaries not to, without the prior written consent of
      the
      Holders representing a majority of the aggregate amount of the Notes then
      outstanding (the "Required
      Holders";
      provided,
      however,
      that
      any Note that is held by an Affiliate of the Company shall not be deemed to
      be
      outstanding for the purposes of the determination of Required Holders) enter
      into, amend, modify or supplement any material transaction, contract, agreement,
      instrument, commitment, understanding or other arrangement with any of its
      or
      any Subsidiary’s officers, directors, Persons who were officers or directors at
      any time during the previous two years, stockholders, or Affiliates of the
      Company or any of its Subsidiaries, or with any individual related by blood,
      marriage or adoption to any such individual or with any entity in which any
      such
      entity or individual owns a beneficial interest, unless such agreement,
      amendment, modification or supplement is (A) entered into pursuant to arm's
      length negotiation, (B) customary employment arrangements and benefit programs
      on reasonable terms, or (C) otherwise permitted under the terms of the
      Notes.

     

    (j)
      Additional
      Notes; Variable Securities; Dilutive Issuances.
      For so
      long as any Buyer beneficially owns any Securities, the Company shall not issue
      any Notes or other securities that would cause a breach or default under the
      Notes. For so long as any Notes or Warrants remain outstanding, the Company
      shall not, in any manner, issue or sell any rights, warrants or options to
      subscribe for or purchase Shares or directly or indirectly convertible into
      or
      exchangeable or exercisable for Shares at a price which varies or may vary
      with
      the market price of the Shares, including by way of one or more reset(s) to
      any
      fixed price, unless the conversion, exchange or exercise price of any such
      security cannot be less than the then applicable Conversion Price (as defined
      in
      the Notes) in respect of the Shares into which any Note is convertible or the
      then applicable Exercise Price (as defined in the Warrants) in respect of the
      Shares into which any Warrant is exercisable. Notwithstanding the foregoing
      sentence, the Company is permitted hereby to issue the Notes and Warrants
      provided for hereby and the Warrants under the Common PIPE, which provide in
      certain circumstances for adjustments to their exercise and conversion prices,
      as applicable. 

     

    
      
        
        

      

      
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    (k)
      Corporate
      Existence.
      So long
      as any Buyer beneficially owns any Notes or Warrants, as applicable, the Company
      shall not be party to any Fundamental Transaction (as defined in the Notes)
      unless the Company is in compliance with the applicable provisions governing
      Fundamental Transactions set forth in the Notes and the Warrants.

     

    (l)
      Reservation
      of Shares.
      For as
      long as any Buyer owns any Notes or Warrants, the Company shall take all actions
      necessary to at all times after the Closing Date have authorized, and reserved
      for the purpose of issuance, no less than 125% of the sum of (i) the number
      of Shares issuable upon conversion of all of the Notes issued at Closing,
      (ii) the number of Shares issuable upon exercise of the Warrants issued at
      the Closing, and (iii) the number of Shares issuable upon exercise of the
      Common PIPE Warrants (without taking into account any limitations on the
      conversion of the Notes or exercise of the Warrants or Common PIPE Warrants
      set
      forth in the Notes, Warrants and Common PIPE Warrants,
      respectively).

     

    (m)
      Conduct
      of Business.
      The
      business of the Company and its Subsidiaries shall not be conducted in violation
      of Requirements of Law, except where such violations would not result, either
      individually or in the aggregate, in a Material Adverse Effect.

     

    (n)
      Compliance
      with Notes Covenants.
      From
      the date of this Agreement until the first date following the Closing Date
      on
      which no Notes are outstanding, the Company shall comply with and not violate
      or
      breach, and shall cause the Subsidiaries, as applicable, to comply with and
      not
      violate or breach, the covenants and agreements set forth in Section 14 of
      the Notes as the same may hereafter be amended, being incorporated herein and
      made a part hereof.

     

    (o)
      No
      Additional Registered Securities.
      From
      the Closing Date until the earlier of the date that is ninety (90) Trading
      Days
      following the Effective Date (as defined in the Registration Rights Agreement)
      and the date the Investors shall have sold all the Conversion Shares and Warrant
      Shares, the Company will not file a registration statement under the 1933 Act,
      or allow any such registration statement to become effective, in respect of
      any
      securities other than (A) the Registration Statement contemplated by the
      Registration Rights Agreement and the Common PIPE Registration Rights Agreement,
      (B) subject to Section 3(o), any registration statement to be filed by the
      Company pursuant to any registration rights the Company has agreed to or may
      agree to provide to the Agent, the existing shareholders listed on Schedule
      3(o)
      attached hereto, certain members of management and the current holders of the
      Shares, and/or (C) a registration statement on Form S-8.

     

    (p)
      Integration.
      None of
      the Company, any of its Subsidiaries, any of its or their affiliates (as defined
      in Rule 501(b) under the 1933 Act) nor any person acting on behalf the Company,
      its Subsidiaries or such affiliate will sell, offer for sale or solicit offers
      to buy or otherwise negotiate in respect of any security (as defined in the
      1933
      Act) including the Common PIPE Securities which will be integrated with the
      sale
      of the Securities or the Conversion Shares in a manner which would require
      the
      registration under the 1933 Act of the Securities or require stockholder
      approval under the rules and regulations of the applicable Principal Market
      (as
      defined in the Notes) and the Company will take all action that is appropriate
      or necessary to assure that its offerings of other securities (other than the
      Common PIPE Securities) will not be integrated for purposes of the 1933 Act
      or
      the rules and regulations of the applicable Principal Market (as defined in
      the
      Notes) with the issuance of Securities contemplated hereby.

     

    
      
        
        

      

      
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    (q)
      No
      Inconsistent Agreement or Actions.
      From
      the date of this Agreement until the first date following the Closing Date
      on
      which no Notes are outstanding, the Company and its Subsidiaries shall not
      enter
      into any contract, agreement or understanding which limit or restrict the
      Company’s or any of its Subsidiaries’ ability to perform under, or take any
      other voluntary action to avoid or seek to avoid the observance or performance
      of any of the terms to be observed or performed by it under, this Agreement
      or
      any of the other Transaction Documents. 

     

    (r)
      Collateral
      Agent.

     

    (i) Each
      Buyer hereby (x) appoints Tri-State Title & Escrow, LLC, as the
      collateral agent for such Buyer hereunder (the “Collateral
      Agent”),
      and
      (y) each Buyer hereby authorizes the Collateral Agent (and its officers,
      directors, employees and agents) in such capacity to take any and all such
      actions on its behalf with respect to the Collateral (as defined in the Pledge
      Agreement) and the Obligations in accordance with the terms of this Agreement,
      the Guaranty, and the Pledge Agreement. The Collateral Agent shall not have,
      by
      reason hereof or any of the other Transaction Documents, a fiduciary
      relationship in respect of any Buyer. Neither the Collateral Agent nor any
      of
      its officers, directors, employees and agents shall have any liability to any
      Buyer for any action taken or omitted to be taken in connection herewith or
      therewith except to the extent caused by its own gross negligence or willful
      misconduct, and each Buyer agrees to defend, protect, indemnify and hold
      harmless the Collateral Agent and all of its officers, directors, employees and
      agents (collectively, the “CA
      Indemnitees”)
      from
      and against any losses, damages, liabilities, obligations, penalties, actions,
      judgments, suits, fees, costs and expenses (including, without limitation,
      reasonable attorneys’ fees, costs and expenses) incurred by such CA Indemnitee,
      whether direct, indirect or consequential, arising from or in connection with
      the performance by such CA Indemnitee of the duties and obligations of
      Collateral Agent pursuant hereto, to the Guaranty, and/or to the Pledge
      Agreement.

     

    (ii) The
      Collateral Agent may resign from the performance of all its functions and duties
      hereunder at any time by giving at least fifteen (15) Business Days’ prior
      written notice to the Company and each holder of the Notes. Such resignation
      shall take effect upon the acceptance by a successor Collateral Agent of
      appointment as provided below. Upon any such notice of resignation, the holders
      of a majority of the outstanding principal under the Notes shall appoint a
      successor Collateral Agent. Upon the acceptance of the appointment as Collateral
      Agent, such successor Collateral Agent shall succeed to and become vested with
      all the rights, powers, privileges and duties of the retiring Collateral Agent,
      and the retiring Collateral Agent shall be discharged from its duties and
      obligations under this Agreement. After any Collateral Agent’s resignation
      hereunder, the provisions of this Section 4(r) shall inure to its benefit.
      If a successor Collateral Agent shall not have been so appointed within said
      fifteen (15) Business Day period, the retiring Collateral Agent shall then
      appoint a successor Collateral Agent who shall serve until such time, if any,
      as
      the holders of a majority of the outstanding principal under the Notes appoint
      a
      successor Collateral Agent as provided above.

     

    
      
        
        

      

      
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    (iii) Without
      limiting the generality of the foregoing, each Buyer hereby irrevocably appoints
      and authorizes Collateral Agent to execute and deliver the Pledge Agreement
      (on
      substantially the terms set forth in the forms of such documents attached as
      exhibits hereto) for and on behalf of such Buyer and to perform all of the
      obligations and duties of Collateral Agent provided for therein, and each Buyer
      shall be bound by the terms of the Guaranty, and the Pledge Agreement as if
      such
      Buyer were an original signatory thereto. As to (x) any matters not expressly
      provided for by this Agreement and the other Transaction Documents (including,
      without limitation, enforcement of any security interests) and (y) any
      amendments, consents or waivers of any Transaction Document, the Collateral
      Agent shall not be required to exercise any discretion or take any action,
      but
      shall be required to act or to refrain from acting (and shall be fully protected
      in so acting or refraining from acting) upon the instructions of the Required
      Holders, and such instructions of the Required Holders shall be binding upon
      all
      Holders.

     

    (iv) The
      Collateral Agent shall have no duties or responsibilities except those expressly
      set forth in this Agreement or in the other Transaction Documents. The duties
      of
      the Collateral Agent shall be mechanical and administrative in nature. The
      Collateral Agent shall not have by reason of this Agreement or any other
      Transaction Document a fiduciary relationship in respect of any Holder. Nothing
      in this Agreement or any other Transaction Document, express or implied, is
      intended to or shall be construed to impose upon the Collateral Agent any
      obligations in respect of this Agreement or any other Transaction Document
      except as expressly set forth herein or therein.

     

    (v) If
      the
      Company seeks the consent or approval of the Required Holders to the taking
      or
      refraining from taking any action hereunder, the Company shall send notice
      thereof to each Holder. Any such consents shall be solicited and tabulated
      by
      the Company, or a solicitation and/or tabulation agent engaged by the Company,
      subject to the Collateral Agent’s right to receive all such consents and satisfy
      itself as to (x) the authenticity of such consents (y) receipt of such
      consents from Holders representing a sufficient Principal Amount of Notes,
      and
      (z) any other matters that the Collateral Agent, in its sole discretion
      deems necessary or advisable. It shall not be necessary for such Holders to
      approve the particular form of any proposed amendment or waiver, but it shall
      be
      sufficient if the written consents of the Required Holders reflect the approval
      of the substance thereof. The Company shall provide the Collateral Agent with
      copies of any such written consent(s).

     

    
      
        
        

      

      
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    (vi) The
      Collateral Agent shall promptly notify each Holder any time that the Required
      Holders have instructed the Collateral Agent to act or refrain from acting
      pursuant hereto. the Company or
      the
      Collateral Agent may at any time request instructions from the Holders in
      respect of any actions or approvals which by the terms of this Agreement or
      of
      any of the other Transaction Documents the Collateral Agent is permitted or
      required to take or to grant, and if such instructions are promptly requested,
      the Collateral Agent shall be absolutely entitled to refrain from taking any
      action or to withhold any approval under any of the Transaction Documents until
      it shall have received such instructions from the Required Holders. Without
      limiting the foregoing, no Holder shall have any right of action whatsoever
      against the Collateral Agent as a result of the Collateral Agent acting or
      refraining from acting under this Agreement or any of the other Transaction
      Documents in accordance with the instructions of the Required Holders unless
      consent of all Holders is required by the terms of such document.

     

    (s)
      OTC
      Bulletin Board.
      Upon
      the effectiveness of the Registration Statement (as defined in the Registration
      Rights Agreement), the Company shall use best efforts to comply with the rules
      of the Principal Market (as defined in the Note) and to cause all of the
      Registrable Securities (as defined in the Registration Rights Agreement) covered
      by a Registration Statement (as defined in the Registration Rights Agreement)
      to
      be quoted thereon, unless listed or quoted on another market. The Company shall
      promptly secure the listing of all of the Registrable Securities upon each
      national securities exchange and automated quotation system, if any, upon which
      Shares are then listed (subject to official notice of issuance) and shall
      maintain, so long as any other Shares shall be so listed, such listing of all
      Registrable Securities from time to time issuable under the terms of the
      Transaction Documents. The Company shall cause its Subsidiaries not to take
      any
      action which would be reasonably expected to result in the suspension or
      termination of trading of the Shares on the Principal Market (as defined in
      the
      Note). The Company shall pay all fees and expenses in connection with satisfying
      its obligations under this Section 4(s).

     

    (t)
      Guaranty.
      On or
      prior to the Closing, each Guarantor shall execute a Guaranty in the form
      attached hereto as Exhibit F
      and the
      Company and each of the other Pledgor shall execute and deliver the Pledge
      Agreement in the form attached hereto as Exhibit D,
      respectively. In addition, if the Company or any Pledgor shall hereafter own,
      create or

    acquire
      any other Subsidiary, other than a direct or indirect operating Subsidiary
      of
      the Company, that is not a Pledgor hereunder or a party to a Guaranty, then
      the
      Company or such Pledgor shall promptly notify the Collateral Agent thereof
      and
      the Company or such Pledgor shall cause such Subsidiary, other than a direct
      or
      indirect operating Subsidiary of the Company, to become a party to a Guaranty
      and to enter into a Pledge Agreement with the Collateral Agent, as agent of
      the
      Buyers and to duly execute and/or deliver resolutions, incumbency certificates,
      opinions of counsel and other documents, in form and substance reasonably
      acceptable to the Collateral Agent or as the Collateral Agent shall reasonably
      request in respect thereof.

    

    (u)
      Regulation
      M.
      The
      Company will not take any action prohibited by Regulation M under the 1934
      Act,
      in connection with the distribution of the Securities contemplated
      hereby.

     

    
      
        
        

      

      
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    (v)
      General
      Solicitation.
      None of
      the Company, any of its Affiliates or any person acting within the scope of
      their delegated authority on behalf of the Company or such affiliate will
      solicit any offer to buy or offer or sell the Securities by means of any form
      of
      general solicitation or general advertising within the meaning of Regulation
      D,
      including: (i) any advertisement, article, notice or other communication
      published in any newspaper, magazine or similar medium or broadcast over
      television or radio; and (ii) any seminar or meeting whose attendees have
      been invited by any general solicitation or general advertising.

     

    (w)
      Restriction
      on Issuance of Preference Shares.
      At
      all
      times that more than 20% of the original Principal Amount of the Notes shall
      remain outstanding, the Company shall not issue any preference or preferred
      securities without the approval of at least (i) 75% of the shares of outstanding
      capital stock of the Company and (ii) written consent of the holders of
      outstanding Notes representing not less than 75% of the Note Shares on an
      as-converted basis. 

     

    (x)
      Closing
      of Immediate Acquisitions.
      The
      Company shall, and shall cause each of its Subsidiaries to, use its best efforts
      to cause the transactions contemplated under the Immediate Acquisition Documents
      to be consummated, except for those matters which in the aggregate do not have
      a
      Material Adverse Effect (the “Immediate
      Acquisition Closing”)
      on or
      prior to the Closing Date. Upon the consummation of the Immediate Acquisitions,
      an officer of the Company shall deliver a certificate to the Escrow Agent
      stating that the Company has legal ownership of the stock of the Immediate
      Acquisitions under applicable law and that the Purchase Price may be released
      to
      the Company pursuant to the terms of the Escrow Agreement. 

     

    (y)
      Non-Disclosure
      of Buyers’ Names.
      The
      Company shall not publicly disclose the name of any Buyer, or include the name
      of any Buyer in any filing with the SEC or any regulatory agency or Principal
      Market, without the prior written consent of such Buyer, except (i) for
      disclosure thereof in filings made under the United States securities laws
      or
      (ii) as required by law, the regulations of the stock exchange or automatic
      quotation system upon which the Company’s Shares are then traded or any order of
      any court or other governmental agency, in which case the Company shall provide
      such Buyer with prior notice of such disclosure and the opportunity to review
      and comment on such disclosure.

     

    (z)
      Reverse
      Merger.
      (i) The
      Company shall use its best efforts to effectuate not later than April 30, 2007
      a
      share exchange transaction pursuant to which all of the outstanding Shares
      of
      the Company together with all of the Notes and Warrants issued pursuant to
      this
      Agreement and the Common PIPE Securities Purchase Agreement shall be exchanged
      for equivalent securities of a British Virgin Islands corporation which shall
      have the class of its common equity securities registered under the Securities
      Exchange Act of 1934, but which shall have substantially no other assets,
      liabilities or business (the “Shell”) and as a result of which immediately after
      the consummation of the share exchange, holders of shares of capital stock
      of
      the Shell, other than (A) the Common PIPE Buyers, (B) holders of Management
      Restricted Stock and (C) holders of Acquisition Sellers Stock, shall own not
      more than 2.17% of the outstanding shares of capital stock of the Shell (the
      “Share
      Exchange”);
      provided, however, that the Company shall have no obligation to facilitate
      the
      Share Exchange unless the Company is advised by a Buyer or the Placement Agent,
      on or before April 15, 2007, that a corporation meeting the foregoing criteria
      is available to be the subject of the Share Exchange and the Company does not
      reasonably determine after conducting reasonable due diligence procedures that
      such identified corporation does not meet some or all of the foregoing criteria.
      

     

    
      
        
        

      

      
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    (ii)
      Each
      of the Buyers agrees to consummate the Share Exchange promptly upon terms and
      conditions and documents reasonably acceptable to the Buyers provided that
      the
      Shell meets all of the criteria specified in Section 4(z)(i).

     

    (aa)
      Nonpublic
      Information.
      The
      Company shall not, and shall cause each of its Subsidiaries and each of their
      respective officers, directors, employees and agents, not to, provide any Buyer
      with any material, nonpublic information regarding the Company or any of its
      Subsidiaries from and after the filing of the Registration Statement (as such
      term is defined in the Registration Rights Agreement) without the express
      written consent of such Buyer.

     

    5. REGISTERS;
      TRANSFER AGENT INSTRUCTIONS.

     

    (a)
      Registers.
      The
      Company shall maintain at its principal executive offices (or such other office
      or agency of the Company), a register for the Notes and a register for the
      Warrants, in which the Company shall record the name and address of the Person
      in whose name the Notes or the Warrants, respectively, have been issued
      (including the name and address of each transferee), the Principal Amount of
      Notes held by such Person, the number of Conversion Shares issuable upon
      conversion of the Notes, and Warrant Shares issuable upon exercise of the
      Warrants held by such Person. The Company shall keep the registers open and
      available at all times during business hours for inspection of any Buyer or
      its
      legal representatives.

     

    (b)
      Transfer
      Agent Instructions.
      Not
      later than the Effective Date (as defined in the Registration Rights Agreement),
      the Company shall cause its Shares to be eligible for transfer with its transfer
      agent pursuant to the Depository Trust Company Automated Securities Transfer
      Program. The Company shall issue instructions to its transfer agent in the
      form
      attached hereto as Exhibit I,
      and any
      subsequent transfer agent, to issue certificates or credit shares to the
      applicable balance accounts at DTC, registered in the name of each Buyer or
      its
      respective nominee(s), for the Conversion Shares and the Warrant Shares issued
      at the Closing or upon conversion of the Notes or exercise of the Warrants
      in
      such amounts as specified from time to time by each Buyer to the Company upon
      conversion of the Notes or exercise of the Warrants in the form of Exhibit I
      attached
      hereto (the “Transfer
      Agent Instructions”).
      The
      Company warrants that no instruction other than the Irrevocable Transfer Agent
      Instructions referred to in this Section 5(b), and stop transfer
      instructions to give effect to Section 2(g) including in the event that the
      Registration Statement ceases to be effective under the Securities Act of 1933,
      will be given by the Company to its transfer agent, and that the Securities
      shall otherwise be freely transferable on the books and records of the Company,
      subject to compliance with applicable securities law, as and to the extent
      provided in this Agreement and the other Transaction Documents. If a Buyer
      effects a sale, assignment or transfer of the Securities in accordance with
      Section 2(f), the Company shall permit the transfer and shall promptly
      instruct its transfer agent to issue one or more certificates or credit shares
      to the applicable balance accounts at DTC in such name and in such denominations
      as specified by such Buyer to effect such sale, transfer or assignment. In
      the
      event that such sale, assignment or transfer involves Conversion Shares or
      Warrant Shares sold, assigned or transferred pursuant to an effective
      registration statement or pursuant to Rule 144, and Buyer provides evidence
      of
      compliance with Rule 144 reasonably acceptable to the Company, the transfer
      agent shall, subject to compliance with applicable securities laws, issue such
      Securities to the Buyer, assignee or transferee, as the case may be, without
      any
      restrictive legend. The Company acknowledges that a breach by it of its
      obligations hereunder will cause irreparable harm to affected Buyers.
      Accordingly, the Company acknowledges that the remedy at law for a breach of
      its
      obligations under this Section 5(b) will be inadequate and agrees, in the
      event of a breach by the Company of the provisions of this Section 5(b),
      that any affected Buyers shall be entitled, in addition to all other available
      remedies, to an order and/or injunction restraining any breach and requiring
      immediate issuance and transfer, without the necessity of showing economic
      loss
      and without any bond or other security being required.

     

    
      
        
        

      

      
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    6. CONDITIONS
      TO THE COMPANY’S OBLIGATION TO SELL. The obligation of the Company hereunder
      to issue and sell the Notes and the related Warrants to each Buyer at the
      Closing is subject to the satisfaction, at or before the Closing Date, of each
      of the following conditions, reasonably satisfactory to the Company, provided
      that these conditions are for the Company’s benefit and may be waived by the
      Company at any time in their sole discretion by providing each Buyer with prior
      written notice thereof:

     

    (a)
      Each
      Buyer and Collateral Agent shall have executed each of the Transaction Documents
      to which it is a party and delivered the same to the Company.

     

    (b)
      Each
      Buyer shall have delivered to the Escrow Agent (as defined in the Escrow
      Agreement) the Purchase Price for the Notes and the related Warrants being
      purchased by such Buyer at the Closing by wire transfer of immediately available
      funds pursuant to the wire instructions provided under the Escrow
      Agreement.

     

    (c)
      The
      representations and warranties of such Buyer shall be true and correct in all
      material respects (except for those representations and warranties that are
      qualified by materiality or Material Adverse Effect, which shall be true and
      correct in all respects) as of the date when made and as of the Closing Date
      as
      though made at that time (except for representations and warranties that speak
      as of a specific date, each of which shall be true and correct as of such date),
      and such Buyer shall have performed, satisfied and complied in all material
      respects with the covenants, agreements and conditions required by this
      Agreement to be performed, satisfied or complied with by such Buyer at or prior
      to the Closing Date. For clarification purposes only, the conditions set forth
      in each of the subsections of this Section 6, including, but not limited to,
      Sections 6(a) and (b), must be satisfied in all respects, or waived as provided
      for in this Section 6.

     

    7. CONDITIONS
      TO EACH BUYER’S OBLIGATION TO PURCHASE. The obligation of each Buyer
      hereunder to purchase the Notes and the related Warrants at the Closing is
      subject to the satisfaction, at or before the Closing Date, of each of the
      following conditions, provided that these conditions are for each Buyer’s sole
      benefit and may be waived by such Buyer at any time in its sole discretion
      by
      providing the Company with prior written notice thereof:

     

    (a)
      Each
      of
      the Company and each of their Subsidiaries, to the extent each is a party
      thereto, shall have executed and delivered to such Buyer or to the Company’s
      counsel for delivery to such Buyer (i) each of the Transaction Documents,
      (ii) the Notes (in such Principal Amounts as such Buyer shall request)
      being purchased by such Buyer at the Closing pursuant to this Agreement and
      (iii) the Warrants (in such denominations as such Buyer shall request)
      being purchased by such Buyer at the Closing pursuant to this Agreement.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    (b)
      The
      Company shall have delivered to such Buyer a copy of the Transfer Agent
      Instructions, in the form of Exhibit I
      attached
      hereto, which instructions shall have been delivered to and acknowledged in
      writing by the Company’s transfer agent.

     

    (c)
      Such
      Buyer shall have received the opinions of Guzov Ofsink, LLC, the Company’s U.S.
      outside counsel, MHMK - Sociedade de Advogados, the Company’s outside Brazilian
      counsel, and Maples and Calder, the Company’s outside Cayman counsel, each dated
      as of the Closing Date, in substantially the forms identified on Exhibit J
      attached
      hereto.

     

    (d)
      The
      Company shall have delivered to such Buyer a copy of a certificate evidencing
      incorporation, partnership or the formation, as applicable, and good standing
      of
      the Company, and each of the Subsidiaries in such entity’s jurisdiction of
      formation issued by the Secretary of State (or comparable office) of such
      jurisdiction, as of a date within the 30 days prior to the Closing
      Date.

     

    (e)
      If
      applicable, the Company shall have delivered to such Buyer a certificate
      evidencing the Company's and each Subsidiary’s qualification as a foreign entity
      (or the equivalent) and good standing issued by the Secretary of State of the
      State (or comparable office) of each jurisdiction in which the Company or such
      Subsidiary is required to qualify as a foreign entity, each as of a date within
      30 days prior to the Closing Date. 

     

    (f)
      The
      Board
      of Directors shall have adopted resolutions consistent with Section 3(b)
      above and in a form reasonably acceptable to such Buyer (the “Resolutions”).

     

    (g)
      The
      Company, and each Subsidiary of the Company shall have delivered to such Buyer
      a
      secretary’s certificate in the form attached hereto as Exhibit
      K,
      executed by the secretary (or comparable office) of such Person and dated as
      of
      the Closing Date, certifying (A) that the attached resolutions adopted by
      the board of directors of such Person in connection with the Transaction
      Documents are true, complete and correct and remain unamended and in full force
      and effect, (B) that the attached articles of association, certificate of
      incorporation or certificate of formation of such Person, certified as of a
      date
      within 30 days of the Closing Date, by the secretary of state of the state
      of
      the jurisdiction of its organization, is true, complete and correct and remains
      unamended and in full force and effect, (C) that the attached memorandum of
      association, bylaws or limited liability company or operating agreement of
      such
      Person are true, complete and correct and remain unamended and in full force
      and
      effect and (D) as to the incumbency and specimen signature of each officer
      of
      such Person executing this Agreement, the other Transaction Documents and any
      other document delivered in connection herewith on behalf of such
      Person.

     

    (h)
      The
      representations and warranties of the Company and any Subsidiary set forth
      in
      this Agreement or any other Transaction Document shall be true and correct
      in
      all material respects (except for those representations and warranties that
      are
      qualified by materiality or Material Adverse Effect, which shall be true and
      correct in all respects) as of the date when made and as of the Closing Date
      as
      though made at that time (except for representations and warranties which speak
      as of a specific date, each of which shall be true and correct as of such date)
      and the Company, or each Subsidiary, as applicable, shall have performed,
      satisfied and complied in all material respects with the covenants, agreements
      and conditions required by the Transaction Documents to be performed, satisfied
      or complied with by such entity at or prior to the Closing Date. Such Buyer
      shall have received a certificate delivered and executed by the President of
      each of the Company, dated as of the Closing Date, to the foregoing effect
      and
      as to such other matters as may be reasonably requested by such Buyer in the
      form attached hereto as Exhibit L.
      

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    (i)
      The
      Company shall have delivered to such Buyer a copy of a letter from the Company’s
      transfer agent certifying the number of Shares outstanding as of a date within
      the five (5) Business Days prior to the Closing Date.

     

    (j)
      The
      Company shall have (i) obtained all governmental, regulatory or third party
      consents and approvals, if any, and (ii) made all filings under all
      applicable federal, state or foreign securities laws (to the extent such filings
      must be made on or prior to the Closing Date in each case) necessary to
      consummate the issuance and the sale of the Securities.

     

    (k)
      On
      or
      prior to the Closing, the Company, each Subsidiary party to any Immediate
      Acquisition Document and the Targets shall have entered into the Immediate
      Acquisition Documents and the transactions contemplated by all of such Immediate
      Acquisition Documents shall have been consummated, subject only to the payment
      of the cash consideration due to the sellers in such Immediate Acquisition
      Documents, which cash consideration shall be paid by the Escrow Agent pursuant
      to instructions given to the Escrow Agent under the Escrow
      Agreement.

     

    (l)
      The
      Company shall have filed such financing statements and other documents in such
      offices as the Collateral Agent may request to perfect the security interests
      granted under the Pledge Agreement.

     

    (m)
      The
      Company and the Placement Agent shall have instructed the Escrow Agent to
      deliver to the sellers under the Immediate Acquisition Documents the entire
      cash
      consideration due to such sellers under such Immediate Acquisition
      Documents.

     

    (n)The
      Company and each other Pledgor shall have delivered a Pledge Agreement duly
      executed by the Company and such other Pledgor, and the Company shall have
      delivered to the Collateral Agent undated instruments of transfer as the
      Collateral Agent may request representing all of the equity interests owned
      by
      the Company or any such Pledgor.

     

    (o)
      Each
      of
      the holders of Shares of the Company, other than the Buyers, shall have agreed
      to exchange its Shares for shares of capital stock of the Shell upon the same
      terms and conditions as agreed to by the Buyers pursuant to Section 4(z)(ii)
      of
      this Agreement and shall have delivered to the Buyers a letter to such effect.
      

     

    (p)
      The
      Company’s United States and Brazilian counsel, shall have delivered to the
      Placement Agent certifications, which indicate, individually and/or
      cumulatively, that each of the conditions in this Section 7 (other than this
      Section 7(p)) have been satisfied or waived by the Buyers.

     

    (q)
      [Intentionally
      omitted.]

     

    (r)
      [Intentionally
      omitted.]

     

    (s)
      No
      Material Adverse Effect shall have occurred.

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    (t)
      The
      Company shall have delivered a certificate of an officer of the Company and
      each
      Subsidiary certifying as to the solvency of the Company or such
      Subsidiary.

     

    (u)
      The
      Company shall have delivered a pro forma balance sheet of the Company and its
      Subsidiaries reflecting the initial transactions contemplated hereunder,
      including, but not limited to, (A) the consummation of the Immediate
      Acquisitions and the other transactions contemplated by the Immediate
      Acquisition Documents, and (B) the issuance of the Notes on the Closing Date
      and
      use of the proceeds thereof, accompanied by a certificate, dated the Closing
      Date, of the chief financial officer of the Company stating that such pro forma
      balance sheet represents the reasonable, good faith opinion of such officer
      as
      to the subject matter thereof as of the date of such certificate.

     

    (v)
      [intentionally
      omitted.]

     

    (w)
      All
      proceedings in connection with the issuance of the Notes and the other
      transactions contemplated by this Agreement and the other Transaction Documents,
      and all documents incidental hereto and thereto, shall be reasonably
      satisfactory to the Buyers, and the Buyers shall have received all such
      information and such counterpart originals or certified or other copies of
      such
      documents as the Collateral Agent may reasonably request.

     

    (x)
      [Intentionally
      omitted.]

     

    (y)
      [Intentionally
      omitted.]

     

    (z)
      The
      Company shall have delivered to each Buyer a copy of the consolidated audited
      financial statements of the Company prepared in accordance with GAAP prepared
      in
      accordance with GAAP for the
      period ended December 31, 2006,
      which
      financial statements shall contain an opinion of such auditor prepared in
      accordance with generally accepted auditing standards (which opinion shall
      be
      without (x) a “going concern” qualification or exception or (y) any
      qualification or exception as to the scope of such audit. The Company shall
      have
      delivered to each Buyer a copy of the unaudited consolidated pro forma financial
      statements of the Company for the period ended December 31, 2006 prepared in
      accordance with generally accepted auditing standards, which financial
      statements shall have been reviewed by auditors.

     

    (aa)
      [
      Intentionally omitted]

     

    (bb)
      Since
      December 31, 2006, there shall not have developed, occurred, or come into effect
      or existence any change, or any development involving a prospective change,
      in
      or affecting the position of the Company, financial or otherwise, that has
      had,
      or would be expected to have, a Material Adverse Effect.

     

    (cc)
      [Intentionally
      omitted.]

     

    (dd)
      [Intentionally
      omitted.]

     

    (ee)
      [Intentionally
      omitted.]

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    (ff)
      The
      Company shall have delivered to such Buyer such other documents relating to
      the
      transactions contemplated by this Agreement as such Buyer or its counsel may
      reasonably request.

     

    (gg)
      Each
      of
      the Company and any Subsidiary party to the Escrow Agreement shall have
      delivered the Escrow Agreement duly executed by the Company and such
      Subsidiary.

     

    8. TERMINATION.
      In the event that the Closing shall not have occurred in respect of a Buyer
      on
      or before the tenth (10th)
      Business Day from the date hereof due to the Company’s or such Buyer’s failure
      to satisfy the conditions set forth in Sections 6 and 7 above (and the
      nonbreaching party’s failure to waive such unsatisfied condition(s)), the
      nonbreaching party shall have the option to terminate this Agreement in respect
      of such breaching party at the close of business on such date without liability
      of any party to any other party. 

     

    9. MISCELLANEOUS.

     

    (a)
      Governing
      Law; Jurisdiction; Jury Trial.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be governed by the internal laws of the State of New
      York, without giving effect to any choice of law or conflict of law provision
      or
      rule (whether of the State of New York or any other jurisdictions) that would
      cause the application of the laws of any jurisdictions other than the State
      of
      New York. Each party hereby irrevocably submits to the exclusive jurisdiction
      of
      the state and federal courts sitting in The City of New York, Borough of
      Manhattan, for the adjudication of any dispute hereunder or in connection
      herewith or with any transaction contemplated hereby or discussed herein, 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 brought in an
      inconvenient forum or that the venue of such suit, action or proceeding is
      improper. 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 to such party at the address for such 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 Company hereby appoints Guzov Ofsink, LLC, 600 Madison Avenue, New York,
      New
      York 10022, as its agent for service of process in New York. EACH
      PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
      REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
      CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
      HEREBY.

     

    (b)
      Counterparts.
      This
      Agreement may be executed in two or more identical counterparts, all of which
      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;
      provided that a facsimile signature shall be considered due execution and shall
      be binding upon the signatory thereto with the same force and effect as if
      the
      signature were an original, not a facsimile signature.

     

    (c)
      Headings.
      The
      headings of this Agreement are for convenience of reference only and shall
      not
      form part of, or affect the interpretation of, this Agreement.

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    (d)
      Severability.
      If any
      provision of this Agreement shall be invalid or unenforceable in any
      jurisdiction, such invalidity or unenforceability shall not affect the validity
      or enforceability of the remainder of this Agreement in that jurisdiction or
      the
      validity or enforceability of any provision of this Agreement in any other
      jurisdiction.

     

    (e)
      Entire
      Agreement; Amendments.
      This
      Agreement supersedes all other prior oral or written agreements between the
      Buyers, the Company, their affiliates and Persons acting on their behalf in
      respect of the matters discussed herein, and this Agreement, the Transaction
      Documents and the instruments referenced herein contain the entire understanding
      of the parties in respect of the matters covered herein and therein and, except
      as specifically set forth herein or therein, none of the Company and its
      Subsidiaries nor any Buyer makes any representation, warranty, covenant or
      undertaking in respect of such matters. No provision of this Agreement may
      be
      amended other than by an instrument in writing signed by the Company, and the
      Required Holders, and any amendment to this Agreement made in conformity with
      the provisions of this Section 9(e) shall be binding on all Buyers and
      holders of Securities as applicable. No provision hereof may be waived other
      than by an instrument in writing signed by the party against whom enforcement
      is
      sought. No such amendment shall be effective to the extent that it applies
      to
      less than all of the holders of the applicable Securities then outstanding.
      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 also is offered to all of the parties to the
      Transaction Documents, holders of Notes or holders of the Warrants, as the
      case
      may be. The Company has not, directly or indirectly, made any agreements with
      any Buyers relating to the terms or conditions of the transactions contemplated
      by the Transaction Documents except as set forth in the Transaction Documents.
      Without limiting the foregoing, the Company confirms that, except as set forth
      in this Agreement and the applicable Transaction Documents and the documents
      relating to the Common PIPE Securities, if a buyer of Common PIPE Securities,
      no
      Buyer has made any commitment or promise or has any other obligation to provide
      any financing to the Company or otherwise.

     

    (f)
      Notices.
      Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms of this Agreement must be in writing and will be deemed
      to
      have been delivered: (i) upon receipt, when delivered personally provided
      same is on a Business Day and, if not, on the next Business Day; (ii) upon
      receipt, when sent by facsimile (provided that confirmation of transmission
      is
      mechanically or electronically generated and kept on file by the sending party)
      provided same is on a Business Day and, if not, on the next Business Day;
      (iii) one (1) Business Day after deposit with an overnight courier
      service, in each case properly addressed to the party to receive the same;
      or
      (iv) if sent by certified mail, return receipt requested, when received or
      three (3) days after deposited in the mails, whichever occurs first. The
      addresses and facsimile numbers for such communications shall be:

     

    If
      to the
      Company:

     

    Comanche
      Clean Energy Corporation

    c/o
      Maples & Calder Corporate Services Ltd.

    PO
      Box
      309 GT

    Ugland
      House

    South
      Church Street

    George
      Town

    Grand
      Cayman, Cayman Islands

    Tel:
      345-949-8066

    Fax:
      345-949-8080

    Attention:
      Graham Lockington

    Email:
       Graham.Lockington@MAPLESANDCALDER.com
      

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

    With
      a
      copy to:

     

    Comanche
      Clean Energy Corporation

    c/o
      FondElec

    One
      Dock
      Street

    Stamford,
      Ct. 06902 USa

    Tel:
      203-326-4570

    Fax:
      203-326-4578

    Attention:
      Thomas Cauchois

    Email:
      tcauchois@fondelec.com

     

    with
      a
      copy to:

     

    Guzov
      Ofsink, LLC

    600
      Madison Avenue, 14th
      Floor

    New
      York,
      NY 10022

    Tel:
      212-371-8008

    Fax:
      212-688-7273

    Attention:
      Darren L. Ofsink, Esq.

    Email:
      dofsink@golawintl.com

     

    If
      to a
      Buyer, to its address and facsimile number set forth on the Schedule of
      Buyers, with copies to such Buyer’s representatives as set forth on the
      Schedule of Buyers,

     

    with
      a
      copy (for informational purposes only) to:

     

    Kramer
      Levin Naftalis & Frankel LLP

    1177
      Avenue of the Americas

    New
      York,
      New York 10036

    Tel:
      212-715-9100

    Fax:
      212-715-8000

    Attention:
      Christopher S. Auguste

    Email:
      CAuguste@kramerlevin.com 

    

    and

    

    Schulte
      Roth & Zabel LLP

    919
      Third
      Avenue

    New
      York,
      New York 10022

    Facsimile
      No.: (212) 593-5955

    Telephone
      No.: (212) 756-2000

    Attn.:
      Eleazer N. Klein, Esq.

    

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

    or
      to
      such other address and/or facsimile number and/or to the attention of such
      other
      Person as the recipient party has specified by written notice given to each
      other party five (5) days prior to the effectiveness of such change. Written
      confirmation of receipt (A) given by the recipient of such notice, consent,
      waiver or other communication, (B) mechanically or electronically generated
      by the sender’s facsimile machine containing the time, date, recipient facsimile
      number and an image of the first page of such transmission or (C) provided
      by an overnight courier service shall be rebuttable evidence of personal
      service, receipt by facsimile or receipt from an overnight courier service
      in
      accordance with clause (i), (ii) or (iii) above,
      respectively.

     

    (g)
      Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their respective successors and permitted assigns, including any purchasers
      of
      the Notes or the Warrants. The Company shall not assign this Agreement or any
      rights or obligations hereunder without the prior written consent of the
      Required Holders, including by way of a Fundamental Transaction (unless the
      Company is in compliance with the applicable provisions governing Fundamental
      Transactions set forth in the Notes and the Warrants). Subject to compliance
      with applicable securities laws, a Buyer may assign some or all of its rights
      hereunder and under the other Transaction Documents without the consent of
      the
      Company, in which event such assignee shall be deemed to be a Buyer hereunder
      and thereunder in respect of such assigned rights. A Buyer or the Collateral
      Agent making an assignment of this Agreement shall provide the Company (and
      in
      the case of an assignment by a Buyer, the Collateral Agent) with written notice
      of such assignment within ten (10) Business Days after such assignment is
      consummated; provided, however, that the failure by a Buyer or the Collateral
      Agent to provide or timely provide such notice shall not invalidate the
      assignment.

     

    (h)
      No
      Third Party Beneficiaries.
      This
      Agreement is intended for the benefit of the parties hereto and their respective
      permitted successors and assigns, and is not for the benefit of, nor may any
      provision hereof be enforced by, any other Person except to the extent set
      forth
      in Section 9(k).

     

    (i)
      Survival.
      Unless
      this Agreement is terminated under Section 8, the representations and
      warranties of the Company and the Buyers contained in Sections 2 and 3, and
      the agreements and covenants set forth in Sections 4, 5, 8 and 9 shall
      survive the Closing and the delivery, conversion and exercise of the Securities,
      as applicable. Each Buyer shall be responsible only for its own representations,
      warranties, agreements and covenants hereunder.

     

    (j)
      Further
      Assurances.
      Each
      party shall do and perform, or cause to be done and performed, all such further
      acts and things, and shall execute and deliver all such other agreements,
      certificates, instruments and documents, as any other party may reasonably
      request in order to carry out the intent and accomplish the purposes of this
      Agreement and the consummation of the transactions contemplated
      hereby.

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

     

    (k)
      Indemnification.

     

    (i) In
      consideration of each Buyer’s execution and delivery of the Transaction
      Documents and acquiring the Securities thereunder and in addition to all of
      the
      Company’s other obligations under the Transaction Documents, unless this
      Agreement is terminated under Section 8 hereof, the Company shall defend,
      protect, indemnify and hold harmless each Buyer and each other holder of the
      Securities and all of their stockholders, partners, members, officers,
      directors, employees and direct or indirect investors and any of the foregoing
      Persons’ agents or other representatives (including, without limitation, those
      retained in connection with the transactions contemplated by this Agreement)
      (collectively, the “Indemnitees”)
      from
      and against any and all actions, causes of action, suits, claims, losses, costs,
      penalties, fees, liabilities and damages, and expenses in connection therewith
      (irrespective of whether any such Indemnitee is a party to the action for which
      indemnification hereunder is sought), and including reasonable attorneys’ fees
      and disbursements (the “Indemnified
      Liabilities”),
      incurred by any Indemnitee as a result of, or arising out of, or relating to
      (a) any misrepresentation or breach of any representation or warranty made
      by the Company in any Transaction Document or any other certificate, instrument
      or document contemplated hereby or thereby, (b) any breach of any covenant,
      agreement or obligation of the Company contained in any Transaction Document
      or
      any other certificate, instrument or document contemplated hereby or thereby
      or
      (c) any cause of action, suit or claim brought or made against such
      Indemnitee by a third party (including for these purposes a derivative action
      brought on behalf of the Company) and arising out of or resulting from
      (i) the execution, delivery, performance or enforcement of any Transaction
      Document or any other certificate, instrument or document contemplated hereby
      or
      thereby, (ii) any transaction financed or to be financed in whole or in
      part, directly or indirectly, with the proceeds of the issuance of the
      Securities, or (iii) the status of such Buyer or holder of the Securities
      as an investor in the Company pursuant to the transactions contemplated by
      the
      Transaction Documents. To the extent that the foregoing undertaking by the
      Company may be unenforceable for any reason, the Company shall make the maximum
      contribution to the payment and satisfaction of each of the Indemnified
      Liabilities which is permissible under applicable law provided that the Company
      shall not be obligated to indemnify a Buyer or Collateral Agent for any
      Indemnified Liabilities caused by the gross negligence or willful misconduct
      of
      that Buyer and the Company shall not be obligated to indemnify the Collateral
      Agent for any Indemnified Liabilities caused by the gross negligence or willful
      misconduct of the Collateral Agent. 

     

    (ii) Promptly
      after receipt by Indemnitee under this Section 9(k) of notice of the
      commencement of any action or proceeding (including any governmental action
      or
      proceeding) involving an Indemnified Liability, such Indemnitee shall, if a
      claim in respect thereof is to be made against any indemnifying party under
      this
      Section 9(k), deliver to the indemnifying party a written notice of the
      commencement thereof, and the indemnifying party shall have the right to
      participate in, and, to the extent the indemnifying party so desires, jointly
      with any other indemnifying party similarly noticed, to assume control of the
      defense thereof with counsel mutually satisfactory to the indemnifying party
      and
      the Indemnitee, as the case may be; provided,
      however,
      that an
      Indemnitee shall have the right to retain its own counsel with the fees and
      expenses of not more than one counsel for such Indemnitee to be paid by the
      indemnifying party, if, in the reasonable opinion of counsel retained by the
      indemnifying party, the representation by such counsel of the Indemnitee and
      the
      indemnifying party would be inappropriate due to actual or potential differing
      interests between such Indemnitee and any other party represented by such
      counsel in such proceeding. In the case of an Indemnitee, legal counsel referred
      to in the immediately preceding sentence shall be selected by Required
      Holders,
      to which
      the claim relates. The Indemnitee shall cooperate fully with the indemnifying
      party in connection with any negotiation or defense of any such action or claim
      by the indemnifying party and shall furnish to the indemnifying party all
      information reasonably available to the Indemnitee which relates to such action
      or claim. The indemnifying party shall keep the Indemnitee reasonably apprised
      at all times as to the status of the defense or any settlement negotiations
      in
      respect thereof. No indemnifying party shall be liable for any settlement of
      any
      action, claim or proceeding effected without its prior written consent;
provided,
      however,
      that
      the indemnifying party shall not unreasonably withhold, delay or condition
      its
      consent. No indemnifying party shall, without the prior written consent of
      the
      Indemnitee, consent to entry of any judgment or enter into any settlement or
      other compromise which does not include as an unconditional term thereof the
      giving by the claimant or plaintiff to such Indemnitee of a release from all
      liability in respect to such claim or litigation, and such settlement shall
      not
      include any admission as to fault on the part of the Indemnitee. Following
      indemnification as provided for hereunder, the indemnifying party shall be
      subrogated to all rights of the Indemnitee in respect of all third parties,
      firms or corporations relating to the matter for which indemnification has
      been
      made. The failure to deliver written notice to the indemnifying party within
      a
      reasonable time of the commencement of any such action shall not relieve such
      indemnifying party of any liability to the Indemnitee under this Section 9(k),
      except to the extent that the indemnifying party is materially prejudiced in
      its
      ability to defend such action.

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

    (iii) The
      indemnification required by this Section 9(k) shall be made by periodic payments
      of the amount thereof during the course of the investigation or defense, as
      and
      when bills are received or Indemnified Liabilities are incurred.

     

    (iv) (iii)
      The
      indemnity agreements contained herein shall be in addition to (A) any cause
      of
      action or similar right of the Indemnitee against the indemnifying party or
      others, and (B) any liabilities the indemnifying party may be subject to
      pursuant to the law.

     

    (l)
      No
      Strict Construction.
      The
      language used in the Transaction Documents 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.

     

    (m)
      Remedies.
      Each
      Buyer and each holder of the Securities shall have all rights and remedies
      set
      forth in the Transaction Documents and all rights and remedies which such
      holders have been granted at any time under any other agreement or contract
      and
      all of the rights which such holders have under any law. Any Person having
      any
      rights under any provision of this Agreement shall be entitled to enforce such
      rights specifically (without posting a bond or other security), to recover
      damages by reason of any breach of any provision of this Agreement and to
      exercise all other rights granted by law. Furthermore, the Company recognizes
      that in the event that it fails to perform, observe, or discharge any or all
      of
      its obligations under the Transaction Documents, any remedy at law may prove
      to
      be inadequate relief to the Buyers. The Company therefore agrees that the Buyers
      shall be entitled to seek temporary and permanent injunctive relief in any
      such
      case without the necessity of proving actual damages and without posting a
      bond
      or other security.

     

    (n)
      Rescission
      and Withdrawal Right.
      Notwithstanding anything to the contrary contained in (and without limiting
      any
      similar provisions of) the Transaction Documents, whenever any Buyer exercises
      a
      right, election, demand or option under a Transaction Document and the Company
      does not timely perform its related obligations within the periods therein
      provided, then such Buyer may rescind or withdraw, in its sole discretion from
      time to time upon written notice to the Company, any relevant notice, demand
      or
      election in whole or in part without prejudice to its future actions and
      rights

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

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

     

    (p)
      Independent
      Nature of Buyers’ Obligations and Rights.
      The
      obligations of each Buyer under any Transaction Document are several and not
      joint with the obligations of any other Buyer, and no Buyer shall be responsible
      in any way for the performance of the obligations of any other Buyer under
      any
      Transaction Document. Nothing contained herein or in any other Transaction
      Document, and no action taken by any Buyer pursuant hereto or thereto, shall
      be
      deemed to constitute the Buyers as a partnership, an association, a joint
      venture or any other kind of entity, or create a presumption that the Buyers
      are
      in any way acting in concert or as a group in respect of such obligations or
      the
      transactions contemplated by the Transaction Documents and the Company
      acknowledges that the Buyers are not acting in concert or as a group in respect
      of such obligations or the transactions contemplated by the Transaction
      Documents. Each Buyer confirms that it has independently participated in the
      negotiation of the transaction contemplated by this Agreement and the
      Transaction Documents with the advice of its own counsel and advisors, that
      it
      has independently determined to enter into the transactions contemplated hereby
      and thereby, that it is not relying on any advice from or evaluation by any
      other Buyer, and that it is not acting in concert with any other Buyer in making
      its purchase of Securities hereunder or in monitoring its investment in the
      Company. The Buyers and, to its knowledge, the Company agree that no action
      taken by any Buyer pursuant hereto or to the other Transaction Documents, shall
      be deemed to constitute the Buyers as a partnership, an association, a joint
      venture or any other kind of entity or group, or create a presumption that
      the
      Buyers are in any way acting in concert or would deem such Buyers to be members
      of a “group” for purposes of Section 13(d) of the 1934 Act. The Buyers each
      confirm that they have not agreed to act together for the purpose of acquiring,
      holding, voting or disposing of equity securities of the Company. The Company
      has elected to provide all Buyers with the same terms and Transaction Documents
      for the convenience of the Company and not because it was required or requested
      to do so by any of the Buyers. The Company acknowledges on behalf of itself
      and
      the Company that such procedure in respect of the Transaction Documents in
      no
      way creates a presumption that the Buyers are in any way acting in concert
      or as
      a “group” for purposes of Section 13(d) of the 1934 Act in respect of the
      Transaction Documents or the transactions contemplated hereby or thereby. Each
      Buyer shall be entitled to independently protect and enforce its rights,
      including, without limitation, the rights arising out of this Agreement, or
      out
      of the Registration Rights Agreement, its Note, its Warrant and the right of
      set-off under the Guaranties, and it shall not be necessary for any other Buyer
      to be joined as an additional party in any proceeding for such
      purpose.

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

     

    (q)
      [intentionally
      omitted.]

     

    (r)
      Definitions:
      For
      purposes of this Securities Purchase Agreement and the Notes, the following
      terms shall have the following meanings:

     

    "Noteholder
      Documents"
      means
      the Securities Purchase Agreement, the Notes, and all agreements, documents
      and instruments executed and/or delivered in connection therewith, as all of
      the
      foregoing now exist or may hereafter be amended, modified, supplemented,
      extended, renewed, restated or replaced.

     

    "PIPE
      Documents"
      means
      the Securities Purchase Agreement (Common Shares and Warrants), dated on or
      about the date hereof, between the Company and the buyers party thereto, and
      all
      agreements, documents and instruments executed and/or delivered in connection
      therewith, as all of the foregoing now exist or may hereafter be amended,
      modified, supplemented, extended, renewed, restated or replaced.

     

    "Principal
      Amount"
      shall
      mean the Principal (as defined in the Notes) amount.

     

    "Solvent"
      means,
      with respect to any Person on a particular date, that on such date i) the fair
      value of the property of such Person is not less than the total amount of the
      liabilities of such Person (and including as assets for this purpose at a fair
      valuation all rights of subrogation, contribution or indemnification arising
      pursuant to any guarantees given by such Person, to the extent such amount
      is
      readily ascertainable), ii) the present fair salable value of the assets of
      such
      Person (and including as assets for this purpose at a fair valuation all rights
      of subrogation, contribution or indemnification arising pursuant to any
      guarantees given by such Person, to the extent such amount is readily
      ascertainable) is not less than the amount that will be required to pay the
      probable liability of such Person on its existing debts as they become absolute
      and matured, iii) such Person is able to realize upon its assets and pay its
      debts and other liabilities, contingent obligations and other commitments as
      they mature in the normal course of business, iv) such Person does not intend
      to, and does not believe that it will, incur debts or liabilities beyond such
      Person's ability to pay as such debts and liabilities mature, and v) such Person
      is not engaged in business or a transaction, and is not about to engage in
      business or a transaction, for which such Person's property would constitute
      unreasonably small capital. 

     

    "Subsidiary"
      means,
      from time to time, any entity in which the Company, directly or indirectly,
      owns
      any of the capital stock, equity or similar interest or voting power of such
      entity at the date of this Agreement.

     

    [Signature
      Pages Follow]

    

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      each
      Buyer and the Company have caused their respective signature page to this
      Securities Purchase Agreement to be duly executed as of the date first written
      above.

     

    
      	 	 	 
	 	
              COMPANY:

            
	 	 
	 	COMANCHE CLEAN ENERGY
              CORPORATION
	 
 	 
 	 
 
	
            	By:  	
            
	 	
              

              Name:

              Title:

            

    

     

    ACKNOWLEDGED
      AND AGREED

    as
      of the
      date first written above solely

    as
      to
      Sections 4(r) and 4(t), and 7(k), 7(l), 7(n), 

    7(q),
      7(r), 7(v) and 7(w) and 9(g), 9(k) 

    and
      9(o)
      of this Securities Purchase 

    Agreement

    

    By:
      Tri-State Title & Escrow, LLC 

    

    _______________________________

    Name:

    Title:

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      each
      Buyer and the Company have caused their respective signature page to this
      Securities Purchase Agreement to be duly executed as of the date first written
      above.

    
      
        	 	 	 
	 	
                
                  BUYERS:

                

              
	 	 
	 	
                [_____________________]

              
	 
 	 
 	 
 
	
              	By:  	
              
	 	
                

                Name:

                Title:

              

      

    

     

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      OF BUYERS

    

      
        	
                (1)

              	
                 

              	
                (2)

              	
                 

              	
                (3)

              	
                 

              	
                (4)

              	
                 

              	
                (5)

              	
                 

              	
                (6)

              
	 	 	 	 	 	 	 	 	 	 	 
	
                Buyer

              	
                 

              	
                Address,
                  Telephone Number and E-Mail

              	
                 

              	
                Original
                  Principal Amount of Notes

              	
                 

              	
                Number
                  of Warrant Shares

              	
                 

              	
                Purchase
                  Price

              	
                 

              	
                Legal
                  Representative’s Address, Telephone Number and Facsimile
                  Number

              
	
                Sandelman
                  Partners Multi-Strategy Master Fund, Ltd.

              	 	
                500
                  Park Ave., 3rd Fl. New York, NY 10022

                212-299-7625

                besty@sandptrs.com

              	 	
                $5,004,000
                  

              	 	
                363,927
                  

              	 	
                $5,004,000
                  

              	 	
                Schulte,
                  Roth & Zabel LLP, 919 Third Avenue, New York, New York
                  10022

                Attn:
                  Jennifer E.D. Clarke, Esq.

                212-756-2410
                  (p)

              
	 	 	 	 	 	 	 	 	 	 	 
	
                Utilico
                  Emerging Markets Limited

              	 	
                Exchange
                  House, 8th Fl. Primrose St. London, EC2A 2NY- United Kingdom

                44
                  1372 271 486

                james@analysis-research.net

              	 	
                $7,273,000
                  

              	 	
                528,945
                  

              	 	
                $7,273,000
                  

              	 	
                Kramer,
                  Levin, Naftalis & Frankel LLP

                1177
                  Avenue of the Americas, New York, New York 10036

                Attn:
                  Christopher Auguste, Esq.

                212-715-9121
                  (p)

                212-715-8136
                  (f)

              
	 	 	 	 	 	 	 	 	 	 	 
	
                MHR
                  Capital Partners Master Account LP

              	 	
                40
                  W. 57th St., 24th Fl. New York, NY 10019

                212-728-5429

                ppanigrahi@mhrfund.com

              	 	
                $4,890,403
                  

              	 	
                355,666
                  

              	 	
                $4,890,403
                  

              	 	
                Stroock
                  & Stroock & Lavan LLP

                180
                  Maiden Lane

                New
                  York, NY 10038

                Attn:
                  Brad Kulman, Esq.

                (212)
                  806-6442 (p)

                (212)
                  806-7142

              
	 	 	 	 	 	 	 	 	 	 	 
	
                MHR
                  Capital Partners (100) LP

              	 	
                40
                  W. 57th St., 24th Fl. New York, NY 10019

                212-728-5429

                ppanigrahi@mhrfund.com

              	 	
                $564,142
                  

              	 	
                41,029
                  

              	 	
                $564,142
                  

              	 	
                Stroock
                  & Stroock & Lavan LLP

                180
                  Maiden Lane

                New
                  York, NY 10038

                Attn:
                  Brad Kulman, Esq.

                (212)
                  806-6442 (p)

                (212)
                  806-7142

              
	 	 	 	 	 	 	 	 	 	 	 
	
                Wolverine
                  Convertible Arbitrage Fund Trading Ltd

              	 	
                175
                  W. Jackson Blvd., #200 Chicago, IL 60604

                312-884-3880

                asujdak@wolve.com

              	 	
                $2,550,000
                  

              	 	
                185,455
                  

              	 	
                $2,550,000
                  

              	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
                GPC
                  LX LLC

              	 	
                175
                  W. Jackson Blvd., #200 Chicago, IL 60604

                312-884-3880

                asujdak@wolve.com

              	 	
                $200,000
                  

              	 	
                14,545
                  

              	 	
                $200,000
                  

              	 	 

      

       

      
        
          
          

        

        
          44

          
            

          

        

        
          
          

        

      

       

      
        	
                Alpine
                  Capital (Cayman) Master, LP

              	 	
                400
                  Madison Ave., 8th Fl. New York, NY 10017

                212-317-2400

                carlos@alpinecapitalgroup.com

              	 	
                $181,000
                  

              	 	
                13,164
                  

              	 	
                $181,000
                  

              	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
                Armstrong
                  Equity Partners, LP

              	 	
                2100
                  McKinney, #1700 Dallas, TX 75201

                214-220-3609

                brad@aeplp.com

              	 	
                $1,000,000
                  

              	 	
                72,727
                  

              	 	
                $1,000,000
                  

              	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
                Whitebox
                  Hedged High Yield Partners, LP

              	 	
                3033
                  Excelsior Blvd., #300 Minneapolis, MN 55416

                612-253-6067

                mpaska@whiteboxadvisors.com

              	 	
                $6,272,562
                  

              	 	
                456,186
                  

              	 	
                $6,272,562
                  

              	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
                Whitebox
                  Intermarket Partners, LP

              	 	
                3033
                  Excelsior Blvd., #300 Minneapolis, MN 55416

                612-253-6067

                mpaska@whiteboxadvisors.com

              	 	
                $545,438
                  

              	 	
                39,668
                  

              	 	
                $545,438
                  

              	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
                Deephaven
                  Distressed Opportunities Trading Ltd

              	 	
                130
                  Cheshire Ln., #102 Minnetonka, MN 55305

                952-249-5419

                datkins@deephavenfunds.com

              	 	
                $1,220,000
                  

              	 	
                88,727
                  

              	 	
                $1,220,000
                  

              	 	 
	 	 	 	 	 	 	 	 	 	 	 
	
                Deephaven
                  Event Trading Ltd

              	 	
                130
                  Cheshire Ln., #102 Minnetonka, MN 55305

                952-249-5419

                datkins@deephavenfunds.com

              	 	
                $3,416,000
                  

              	 	
                248,436
                  

              	 	
                $3,416,000
                  

              	 	 

      

    

     

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

    EXHIBITS
      

     

    
      	
              Exhibit A

            	 	
              Form
                of Notes

            
	
              Exhibit B

            	 	
              Form
                of Warrant

            
	
              Exhibit C

            	 	
              Form
                of Registration Rights Agreement

            
	
              Exhibit D

            	 	
              Form
                of Pledge Agreement

            
	
              Exhibit
                E

            	 	
              [Intentionally
                omitted]

            
	
              Exhibit F

            	 	
              Form
                of Guaranty

            
	
              Exhibit G

            	 	
              Form
                of Lockup Agreement

            
	
              Exhibit H

            	 	
              [Intentionally
                omitted]

            
	
              Exhibit I

            	 	
              Form
                of Transfer Agent Instructions

            
	
              Exhibit J

            	 	
              Form
                of Opinions of Counsel

            
	
              Exhibit K

            	 	
              Form
                of Secretary’s Certificate

            
	
              Exhibit L
                

            	 	
              Form
                of Officer’s Certificate

            

    

     

    SCHEDULES
      

     

    
      	
              Schedule
                1

            	 	
              Management
                Restricted Stock

            
	
              Schedule
                2

            	 	
              Immediate
                Acquisition Documents

            
	
              Schedule 3(a)

            	 	
              Organization
                and Qualification

            
	
              Schedule 3(f)

            	 	
              Acknowledgement
                Regarding Buyer’s Purchase of Securities

            
	
              Schedule 3(k)

            	 	
              Absence
                of Certain Changes

            
	
              Schedule 3(n)

            	 	
              Transactions
                with Affiliates

            
	
              Schedule 3(o)

            	 	
              Equity
                Capitalization; Debt

            
	
              Schedule 3(p)

            	 	
              Indebtedness
                and Other Contracts 

            
	
              Schedule 3(t)

            	 	
              Title

            
	
              Schedule 3(u)

            	 	
              Intellectual
                Property Rights

            
	
              Schedule 3(x)

            	 	
              Tax
                Status

            
	
              Schedule 3(ff)

            	 	
              ERISA

            
	
              Schedule 4(d)

            	 	
              Use
                of Proceeds

            

    

    

    
      
        
        

      

      
        46

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