Document:

EX 10.5 Addendum No. 2 to Lease Agreement 080707

     

    
      

      

    

    Standard
      Lease Addendum No. 2

    to
      Lease

    

    By
      and
      Between (Lessor): Green
      Bridge Capital Partners IV, LLC.

    

    

    Lessee:
      Ethos
      Environmental, Inc. a Nevada corporation

    

    
      	
               Address
                of Premises:   

            	6800 Gateway Park Drive, Units 1, 2, 3, & 4
	 	San Diego, California 92154

    

    

    

    Paragraph
      52. Maintenance, Repairs and Utility Installations

    

    Paragraph
      7.1 of the Lease is modified by inserting the following language at the end
      of
      sub-paragraph (a) of the paragraph numbered 7.1:

    

    Lessor
      acknowledges that certain equipment or facilities at the Leased premises,
      including, without limitation, certain facilities and structures not installed
      by Lessee, such as building plumbing, HVAC equipment, electrical, lighting
      facilities, fire protection system(s), exterior walls, foundations, roofs,
      roof
      coverings, roof penetrations, roof drainage systems, landscaping, driveways,
      parking lots, fences, retaining walls, sidewalks, parkways located adjacent
      to
      the Leased Premises, Utility Installations no matter where located, the
      landscaping irrigation systems, and the structural and exterior of the building
      and its walls where the leased premises is located are owned by the Gateway
      Park
      Owner’s Association (“Owner’s Association”). The Lessor and Lessee each
      acknowledge that under the Covenants, Conditions & Restrictions
      (“CC&Rs”) to which this Lease is subject, only an Owner has legal standing
      to assert rights to compel the Owner’s Association to make repairs and
      replacements to the structural components of the building, Utility
      Installations, the roof and exterior portions of the building that may be
      covered by the language of this paragraph 7.1 and paragraph 7.1 (a) and
      paragraph 7.1(b), below. Lessor and Lessee covenant and agree to cooperate
      and
      to consult with each other regarding the obligations set forth in Paragraph
      7.1
      of the Lease, and if necessary, Lessor shall initiate action to compel the
      Owner’s Association to perform its maintenance obligations under the CC&Rs,
      provided, however, Lessor may designate Lessee as a representative for the
      limited purpose of compelling the Owner’s Association to perform its obligations
      under the CC&Rs to keep the Premises, Utility Installations and Alterations
      in good order, condition and repair as required by Paragraphs 7.1 (a) and (b)
      of
      this Lease to keep all of the items listed in this paragraph in good order,
      condition and repair.ex10-6ethos.htm

    
      
        

        

      

      NONE
        OF THE SECURITIES TO WHICH THIS PRIVATE PLACEMENT SUBSCRIPTION AGREEMENT
        (THE
“SUBSCRIPTION AGREEMENT”) RELATES HAVE BEEN REGISTERED UNDER THE UNITED STATES
        SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR ANY U.S. STATE
        SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD IN
        THE
        UNITED STATES OR TO U.S. PERSONS (AS DEFINED HEREIN) EXCEPT PURSUANT TO AN
        EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
        REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE
        STATE SECURITIES LAWS.

      

      PRIVATE
        PLACEMENT SUBSCRIPTION AGREEMENT 

      (United
        States Accredited Subscribers Only)

      

      TO:
         ETHOS
        ENVIRONMENTAL, INC. (the “Company”) 

             
         6800
        GATEWAY PARK DRIVE

      SAN
        DIEGO, CA 92154 USA

      

      Purchase
        of Shares

      

      1.
         Subscription

      

      1.1
         The
        undersigned, namely, Green Bridge Capital Partners, IV, LLC, (the “Subscriber”)
        hereby irrevocably subscribes for and agrees to purchase from the Company,
        on
        the basis of the representations and warranties and subject to the terms
        and
        conditions set forth herein, 2,500,000 common shares in the capital of the
        Company (the “Shares”) at the price of US$0.80 per Share (such subscription and
        agreement to purchase being the “Subscription”) for the total purchase price of
        $2,000,000 (the “Subscription Proceeds”) which is tendered herewith, on the
        basis of the representations and warranties and subject to the terms and
        conditions set forth herein.

      

      1.2
         Subject
        to the terms hereof, the Subscription will be effective upon its acceptance
        by
        the Company. The Subscriber acknowledges that the offering of the Shares
        contemplated hereby is part a private placement of Shares having an aggregate
        subscription level of US$2,000,000 (the “Offering”). The Offering is not subject
        to any minimum aggregate subscription level.

      

      2.
         Payment

      

      2.1
         The
        Subscription Proceeds must accompany this Subscription and shall be paid
        by
        certified check or bank draft drawn on a U.S. national bank made payable
        and
        delivered to the Company. Alternatively, the Subscription Proceeds may be
        wired
        to the Company to the wiring instructions that are provided in this Subscription
        Agreement.

      

      2.2
         The
        Subscriber acknowledges and agrees that this Subscription Agreement, the
        Subscription Proceeds and any other documents delivered in connection herewith
        will be held on behalf of the Company. 

      2.3
         Where
        the
        Subscription Proceeds are paid to the Company, the Company is entitled to
        treat
        such Subscription Proceeds as an interest free loan to the Company until
        such
        time as the Subscription is accepted and the certificates representing the
        Shares have been issued to the Subscriber.

           
        

      3. 
             Questionnaire
        and Undertaking and Direction 

       

      3.1 The
        Subscriber must complete, sign and return to the Company the following
        documents: 

      

      (a) 
             two
        (2)
        executed copies of this Subscription Agreement; and 

      

       
         (b) 
             a
        Prospective Investor Suitability Questionnaire in the form attached as Appendix
        1 (the “Questionnaire”).
        

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      3.2   The
        Subscriber shall complete, sign and return to the Company as soon as possible,
        on request by the Company, any documents, questionnaires, notices and
        undertakings as may be required by regulatory authorities, stock exchanges
        and
        applicable law.

        

      4. 
             Closing 

      

      4.1   Closing
        of the offering (the “Offering”) of the Shares (the “Closing”) shall occur on
        ____, 2007, or on such other date as may be determined by the Company (the
        “Closing Date”).

       

      5. 
             Acknowledgements
        of Subscriber 

       

      5.1 
             The
        Subscriber acknowledges and agrees that: 

       

         (a) 
             the
        Shares have not been registered under the 1933 Act, or under any state
        securities or  “blue
        sky” laws of any state of the United States, and are being offered only in a
        transaction not involving  any
        public offering within the meaning of the 1933 Act, and, unless so registered,
        may not be offered or  sold
        in
        the United States or to U.S. Persons (as defined herein), except pursuant
        to an
        effective registration  statement
        under the 1933 Act, or pursuant to an exemption from, or in a transaction
        not
        subject to, the  registration
        requirements of the 1933 Act, and in each case only in accordance with
        applicable state  securities
        laws; 

       

         (b) 
             the
        Company will refuse to register any transfer of the Shares not made in
        accordance  with
        the
        provisions of Regulation S, pursuant to an effective registration statement
        under the 1933 Act or  pursuant
        to an available exemption from, or in a transaction not subject to, the
        registration requirements of  the
        1933
        Act; 

       

      (c) 
             the
        Company will undertake to register the Shares pursuant to that Registration
        Rights Agreement executed concurrently herewith; 

       

         (d) 
             the
        decision to execute this Subscription Agreement and purchase the Shares agreed
        to  be
        purchased hereunder has not been based upon any oral or written representation
        as to fact or otherwise  made
        by
        or on behalf of the Company and such decision is based entirely upon a review
        of
        information  (the
        “Company Information”) which has been provided by the Company to the Subscriber.
        If the Company  has
        presented a business plan or any other type of corporate profile to the
        Subscriber, the Subscriber  acknowledges
        that the business plan, the corporate profile and any projections or predictions
        contained in  any
        such
        documents may not be achieved or be achievable; 

       

         (e) 
             the
        Subscriber and the Subscriber's advisor(s) have had a reasonable opportunity
        to
        ask  questions
        of and receive answers from the Company regarding the Offering, and to obtain
        additional  information,
        to the extent possessed or obtainable without unreasonable effort or expense,
        necessary
        to  verify
        the accuracy of the information contained in the Company Information, or
        any
        business plan,  corporate
        profile or any other document provided to the Subscriber;

       

            
        (f)       the
        books
        and records of the Company were available upon reasonable notice for
 inspection,
        subject to certain confidentiality restrictions, by the Subscriber during
        reasonable business  hours
        at
        its principal place of business and that all documents, records and books
        pertaining to this  Offering
        have been made available for inspection by the Subscriber, the Subscriber's
        attorney and/or  advisor(s);
        

       

           
        (g)       by
        execution hereof the Subscriber has waived the need for the Company to
 communicate
        its acceptance of the purchase of the Shares pursuant to this Subscription
        Agreement; 

       

           
        (h)       the
        Company is entitled to rely on the representations and warranties and the
        statements  and
        answers of the Subscriber contained in this Subscription Agreement and in
        the
        Questionnaire, and the  Subscriber
        will hold harmless the Company from any loss or damage it may suffer as a
        result
        of the  Subscriber's
        failure to correctly complete this Subscription Agreement or the Questionnaire;
        

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      (i) 
             the
        Subscriber will indemnify and hold harmless the Company and, where applicable,
        its  respective
        directors, officers, employees, agents, advisors and shareholders from and
        against any and all  loss,
        liability, claim, damage and expense whatsoever (including, but not limited
        to,
        any and all fees, costs  and
        expenses whatsoever reasonably incurred in investigating, preparing or defending
        against any claim,  lawsuit,
        administrative proceeding or investigation whether commenced or threatened)
        arising out of or  based
        upon any representation or warranty of the Subscriber contained herein, the
        Questionnaire or in any  other
        document furnished by the Subscriber to the Company in connection herewith,
        being untrue in any  material
        respect or any breach or failure by the Subscriber to comply with any covenant
        or agreement  made
        by
        the Subscriber to the Company in connection therewith; 

       

          (j) 
             the
        issuance and sale of the Shares to the Subscriber will not be completed if
        it
        would be  unlawful
        or if, in the discretion of the Company acting reasonably, it is not in the
        best
        interests of the  Company;
        

       

          (k) 
             the
        Subscriber has been advised to consult its own legal, tax and other advisors
        with  respect
        to the merits and risks of an investment in the Shares and with respect to
        applicable resale  restrictions
        and it is solely responsible (and the Company is in any way responsible)
        for
        compliance with  applicable
        resale restrictions; 

          

          (l) 
             the
        Shares are not listed on any stock exchange or automated dealer quotation
        system
 and
        no
        representation has been made to the Subscriber that any of the Shares will
        become listed on any  stock
        exchange or automated dealer quotation system, except that currently certain
        market makers make  market
        in
        shares of the Company on the National Association of Securities Dealers Inc.'s
        OTC Bulletin  Board;
        

          

          (m) 
             neither
        the SEC nor any other securities commission or similar regulatory authority
        has
 reviewed
        or passed on the merits of the Shares; 

       

          (n) 
             no
        documents in connection with this Offering have been reviewed by the SEC
        or any
 state
        securities administrators; 

       

          (o) 
             there
        is
        no government or other insurance covering any of the Shares; and 

       

          (p) 
             this
        Subscription Agreement is not enforceable by the Subscriber unless it has
        been
 accepted
        by the Company, and the Subscriber acknowledges and agrees that the Company
        reserves the  right
        to
        reject any Subscription for any reason. 

      

      6. 
             Representations,
        Warranties and Covenants

       

      6.1     The
        Subscriber
        hereby
        represents and warrants to and covenants with the Company (which
        representations, warranties and covenants shall survive the Closing)
        that:

         

          (a) 
             the
        Subscriber is resident in the United States; 

       

          (b) 
             the
        Subscriber has received and carefully read this Subscription Agreement;

          

          (c) 
             the
        Subscriber has the legal capacity and competence to enter into and execute
        this
 Subscription
        Agreement and to take all actions required pursuant hereto and, if the
        Subscriber is a  corporation,
        it is duly incorporated and validly subsisting under the laws of its
        jurisdiction of incorporation  and
        all
        necessary approvals by its directors,  shareholders
        and others have been obtained to authorize  execution
        and performance of this Subscription Agreement on behalf of the Subscriber;
        

       

          (d) 
             the
        Subscriber (i) has adequate net worth and means of providing for its current
        financial  needs
        and
        possible personal contingencies, (ii) has no need for liquidity in this
        investment, and (iii) is able  to
        bear
        the economic risks of an investment in the Shares for an indefinite period
        of
        time, and can afford  the
        complete loss of such investment; 

      
        
          
          

        

        
          3

          
            

          

        

        
          
          
    (e) 
               the
          Subscriber is aware that an investment in the Company is speculative and
          involves  certain
          risks, including the possible loss of the investment; 

      

          

          (f) 
             the
        entering into of this Subscription Agreement and the transactions contemplated
         hereby
        do
        not result in the violation of any of the terms and provisions of any law
        applicable to, or, if  applicable,
        the constating documents of, the Subscriber, or of any agreement, written
        or
        oral, to which the  Subscriber
        may be a party or by which the Subscriber is or may be bound; 

         

          (g) 
             the
        Subscriber has duly executed and delivered this Subscription Agreement and
        it
 constitutes
        a valid and binding agreement of the Subscriber enforceable against the
        Subscriber; 

       

          (h) 
             the
        Subscriber has the requisite knowledge and experience in financial and business
         matters
        as to be capable of evaluating the merits and risks of the investment in
        the
        Shares and the  Company,
        and the Subscriber is providing evidence of such knowledge and experience
        in
        these matters  through
        the information requested in the Questionnaire; 

       

          (i) 
             the
        Subscriber understands and agrees that the Company and others will rely upon
        the
 truth
        and
        accuracy of the acknowledgements, representations and agreements contained
        in
        this  Subscription
        Agreement, and agrees that if any of such acknowledgements, representations
        and
 agreements
        are no longer  accurate
        or have been breached, the Subscriber shall promptly notify the  Company;
        

          

          (j) 
             All
        information contained in the Questionnaire is complete and accurate and may
        be
 relied
        upon by the Company, and the Subscriber will notify the Company immediately
        of
        any material  change
        in
        any such information occurring prior to the closing of the purchase of the
        Shares; 

       

          (k) 
             the
        Subscriber is purchasing the Shares for its own account for investment purposes
        only  and
        not
        for the account of any other person and not for distribution, assignment
        or
        resale to others, and no  other
        person has a direct or indirect beneficial interest is such Shares, and the
        Subscriber has not  subdivided
        his interest in the Shares with any other person; 

          

          (l) 
             the
        Subscriber is not an underwriter of, or dealer in, the common shares of the
        Company,  nor
        is
        the Subscriber participating, pursuant to a contractual agreement or otherwise,
        in the distribution of  the
        Shares; 

       

          (m) 
             the
        Subscriber has made an independent examination and investigation of an
        investment  in
        the
        Shares and the Company and has depended on the advice of its legal and financial
        advisors and  agrees
        that the Company will not be responsible in anyway whatsoever for the
        Subscriber's decision to  invest
        in
        the Shares and the Company; 

       

          (n) 
             if
        the
        Subscriber is acquiring the Shares as a fiduciary or agent for one or more
        investor  accounts,
        the investor accounts for which the Subscriber acts as a fiduciary or agent
        satisfy the definition  of
        an
“Accredited Investor”, as the term is defined under Regulation D of the 1933
        Act; 

       

          (o) 
             if
        the
        Subscriber is acquiring the Shares as a fiduciary or agent for one or more
        investor  accounts,
        the Subscriber has sole investment discretion with respect to each such account,
        and the  Subscriber
        has full power to make the foregoing acknowledgements, representations and
        agreements on  behalf
        of
        such account; 

       

          (p) 
             the
        Subscriber is not aware of any advertisement of any of the Shares and is
        not
 acquiring
        the Shares as a result of any form of general solicitation or general
        advertising including  advertisements,
        articles, notices or other communications published in any newspaper, magazine
        or similar  media
        or
        broadcast over radio or television, or any seminar or meeting whose attendees
        have been invited  by
        general solicitation or general advertising; and 

      
        
          
          

        

        
          4

          
            

          

        

        
          
          
    (q) 
               no
          person
          has made to the Subscriber any written or oral representations:

      

       

         (i) 
             that
        any
        person will resell or repurchase any of the Shares; 

       

         (ii) 
             that
        any
        person will refund the purchase price of any of the Shares; 

       

        
(iii) 
             as
        to the
        future price or value of any of the Shares; or 

              

          (iv) 
             that
        any
        of the Shares will be listed and posted for trading on any stock  exchange
        or automated dealer quotation system or that application has been made to
        list
        and post  any
        of
        the Shares of the Company on any stock exchange or automated dealer quotation
        system. 

        

      6.2 
The
        Company
        hereby
        represents and warrants to and covenants with the Subscriber (which
        representations, warranties and covenants shall survive the Closing)
        that:

       

          (a)  Organization,
        Good Standing and Qualification. The Company is a corporation duly organized,
        validly existing and in good standing under the laws of the State of Nevada
        and
        has full corporate power and authority to conduct its business.

       

      (b)  Capitalization
        and Voting Rights. Except as set forth in the Company’s SEC filings, issued and
        outstanding capital stock of the Company is as set forth in the Company’s
        Registration Statement filed with the SEC on Form SB-2 on June 13, 2007,
        and all
        issued and outstanding shares of the Company are validly issued, fully paid
        and
        nonassessable. Except as set forth herein and the Company’s SEC filings, there
        are no outstanding options, warrants, agreements, convertible securities,
        preemptive rights or other rights to subscribe for or to purchase any shares
        of
        capital stock of the Company. Except as set forth herein and in the Company’s
        SEC filings, and as otherwise required by law, there are no restrictions
        upon
        the voting or transfer of any of the shares of capital stock of the Company
        pursuant to the Company’s Articles of Incorporation (the “Articles of
        Incorporation”), By-Laws or other governing documents or any agreement or other
        instruments to which the Company is a party or by which the Company is
        bound.

       

      (c)  Authorization;
        Enforceability. The Company has all corporate right, power and authority to
        enter into this Agreement and to consummate the transactions contemplated
        hereby. All corporate action on the part of the Company, its directors and
        stockholders necessary for the (i) authorization execution, delivery and
        performance of this Agreement by the Company; and (ii) authorization, sale,
        issuance and delivery of the Securities contemplated hereby and the performance
        of the Company’s obligations hereunder has been taken. This Agreement has been
        duly executed and delivered by the Company and constitutes a legal, valid
        and
        binding obligation of the Company, enforceable against the Company in accordance
        with its terms, subject to laws of general application relating to bankruptcy,
        insolvency and the relief of debtors and rules of law governing specific
        performance, injunctive relief or other equitable remedies, and to limitations
        of public policy. The Common Stock, when issued and fully paid for in accordance
        with the terms of this Agreement, will be validly issued, fully paid and
        nonassessable. The issuance and sale of the Shares of Common Stock contemplated
        hereby will not give rise to any preemptive rights or rights of first refusal
        on
        behalf of any person which have not been waived in connection with this
        offering.

       

      (d)  No
        Conflict; Governmental Consents.

      
(i)  The
        execution and delivery by the Company of this Agreement and the consummation
        of
        the transactions contemplated hereby will not result in the violation of
        any
        material law, statute, rule, regulation, order, writ, injunction, judgment
        or
        decree of any court or governmental authority to or by which the Company
        is
        bound, or of any provision of the Articles of Incorporation or By-Laws of
        the
        Company, and will not conflict with, or result in a material breach or violation
        of, any of the terms or provisions of, or constitute (with due notice or
        lapse
        of time or both) a default under, any lease, loan agreement, mortgage, security
        agreement, trust indenture or other agreement or instrument to which the
        Company
        is a party or by which it is bound or to which any of its properties or assets
        is subject, nor result in the creation or imposition of any lien upon any
        of the
        properties or assets of the Company.

      
        
          
          

        

        
          5

          
            

          

        

        
          
          
(ii)  No
          consent, approval, authorization or other order of any governmental authority
          is
          required to be obtained by the Company in connection with the authorization,
          execution and delivery of this Agreement or with the authorization, issue
          and
          sale of the Shares, except such filings as may be required to be made with
          the
          SEC, NASD, NASDAQ and with any state or foreign blue sky or securities
          regulatory authority.

      

       

      (e)  Licenses.
        Except as otherwise set forth herein and in any related documents, the Company
        has sufficient licenses, permits and other governmental authorizations currently
        required for the conduct of its business or ownership of properties and is
        in
        all material respects in compliance therewith.

       

      (f)  Litigation. Except
        as may be disclosed herein and the Company’s SEC filings, the Company knows of
        no pending or threatened legal or governmental proceedings against the Company
        which could materially adversely affect the business, property, financial
        condition or operations of the Company or which materially and adversely
        questions the validity of this Agreement or any agreements related to the
        transactions contemplated hereby or the right of the Company to enter into
        any
        of such agreements, or to consummate the transactions contemplated hereby
        or
        thereby. The Company is not a party or subject to the provisions of any order,
        writ, injunction, judgment or decree of any court or government agency or
        instrumentality which could materially adversely affect the business, property,
        financial condition or operations of the Company. There is no action, suit,
        proceeding or investigation by the Company currently pending in any court
        or
        before any arbitrator or that the Company intends to initiate.

       

      (g)  Disclosure.
        The information set forth herein and in the related documents as of the date
        hereof contains no untrue statement of a material fact nor omits to state
        a
        material fact necessary in order to make the statements contained therein,
        in
        light of the circumstances under which they were made, not
        misleading.

       

      (h)  Investment
        Company. The Company is not an “investment company” within the meaning of such
        term under the Investment Company Act of 1940, as amended, and the rules
        and
        regulations of the SEC thereunder.

       

      (i)  Intellectual
        Property.

       

      (i)  To
        the
        best of its knowledge, the Company owns or possesses sufficient legal rights
        to
        all patents, trademarks, service marks, trade names, copyrights, trade secrets,
        licenses, information and other proprietary rights and processes necessary
        for
        its business as now conducted and as presently proposed to be conducted,
        without
        any known infringement of the rights of others. Except as otherwise set forth
        herein, there are no material outstanding options, licenses or agreements
        of any
        kind relating to the foregoing proprietary rights, nor is the Company bound
        by
        or a party to any material options, licenses or agreements of any kind with
        respect to the patents, trademarks, service marks, trade names, copyrights,
        trade secrets, licenses, information and other proprietary rights and processes
        of any other person or entity other than such licenses or agreements arising
        from the purchase of “off the shelf” or standard products. The Company has not
        received any written communications alleging that the Company has violated
        or,
        by conducting its business as presently proposed to be conducted, would violate
        any of the patents, trademarks, service marks, trade names, copyrights or
        trade
        secrets or other proprietary rights of any other person or entity. 

       

          (ii)  Except
        as
        otherwise set forth herein, the Company is not aware that any of its employees
        is obligated under any contract (including licenses, covenants or commitments
        of
        any nature) or other agreement, or subject to any judgment, decree or order
        of
        any court or administrative agency, that would interfere with their duties
        to
        the Company or that would conflict with the Company’s business as presently
        conducted. 

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

            (iii)  Neither
          the execution nor delivery of this Agreement, nor the carrying on of the
          Company’s business by the employees of the Company, nor the conduct of the
          Company’s business as presently conducted, will, to the Company’s knowledge,
          conflict with or result in a breach of the terms, conditions or provisions
          of,
          or constitute a default under, any contract, covenant or instrument under
          which
          any employee is now obligated.

         

      

          (iv)  To
        the
        best of the Company’s knowledge, no employee of the Company, nor any consultant
        with whom the Company has contracted, is in violation of any term of any
        employment contract, proprietary information agreement or any other agreement
        relating to the right of any such individual to be employed by, or to contract
        with, the Company because of the nature of the business conducted by the
        Company; and to the best of the Company’s knowledge the continued employment by
        the Company of its present employees, and the performance of the Company’s
        contracts with its independent contractors, will not result in any such
        violation. The Company has not received any written notice alleging that
        any
        such violation has occurred. Except as otherwise set forth herein and in
        the
        Company’s SEC filings, no employee of the Company has been granted the right to
        continued employment by the Company or to any compensation following termination
        of employment with the Company except for any of the same which would not
        have a
        material adverse effect on the business of the Company. The Company is not
        aware
        that any officer, key employee or group of employees intends to terminate
        his,
        her or their employment with the Company, nor does the Company have a present
        intention to terminate the employment of any officer, key employee or group
        of
        employees.

       

      (j)  Title
        to
        Properties and Assets; Liens, Etc. The Company has good and marketable title
        to
        its properties and assets, including the properties and assets reflected
        in the
        most recent balance sheet included in the Financial Statements, and good
        title
        to its leasehold estates, in each case subject to no mortgage, pledge, lien,
        lease, encumbrance or charge, other than (a) those resulting from taxes which
        have not yet become delinquent; (b) liens and encumbrances which do not
        materially detract from the value of the property subject thereto or materially
        impair the operations of the Company; (c) those disclosed herein and in the
        Company’s SEC filings; and (d) those that have otherwise arisen in the ordinary
        course of business. The Company is in compliance with all material terms
        of each
        lease to which it is a party or is otherwise bound.

       

      (k)  Obligations
        to Related Parties. Except as described in herein and in the Company’s SEC
        filings, there are no obligations of the Company to officers, directors,
        stockholders, or employees of the Company other than (a) for payment of salary
        or other compensation for services rendered, (b) reimbursement for reasonable
        expenses incurred on behalf of the Company and (c) for other standard employee
        benefits made generally available to all employees (including stock option
        agreements outstanding under any stock option plan approved by the Board
        of
        Directors of the Company). Except as may be disclosed in the herein and in
        the
        Company’s SEC filings, the Company is not a guarantor or indemnitor of any
        indebtedness of any other person, firm or corporation.

      

      6.3 In
        this
        Subscription Agreement, the term “U.S. Person” shall have the meaning ascribed
        thereto in Regulation S and for the purpose of the Subscription includes
        any
        person in the United States.

       
           
        

      7. 
             Acknowledgement
        and Waiver 

       

      7.1 
             The
        Subscriber has acknowledged that the decision to purchase the Shares was
        solely
        made on the basis of publicly available information. The Subscriber hereby
        waives, to the fullest extent permitted by law, any rights of withdrawal,
        rescission or compensation for damages to which the Subscriber might be entitled
        in connection with the distribution of any of the Shares. 

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      8. Representations
        and Warranties will be Relied Upon by the Company 

       

      8.1 
             The
        Subscriber acknowledges that the representations and warranties contained
        herein
        are made by it with the intention that they may be relied upon by the Company
        and its legal counsel in determining the Subscriber's eligibility to purchase
        the Shares under applicable securities legislation, or (if applicable) the
        eligibility of others on whose behalf it is contracting hereunder to purchase
        the Shares under applicable securities legislation.

        

      The
        Subscriber further agrees that by accepting delivery of the certificates
        representing the Shares on the Closing Date, it will be representing and
        warranting that the representations and warranties contained herein are true
        and
        correct as at the Closing Date with the same force and effect as if they
        had
        been made by the Subscriber at the Closing Date and that they will survive
        the
        purchase by the Subscriber of Shares and will continue in full force and
        effect
        notwithstanding any subsequent disposition by the Subscriber of such
        Shares.

      

      9. 
             Resale
        Restrictions 

       

      9.1 
             The
        Subscriber acknowledges that any resale of the Shares will be subject to
        resale
        restrictions contained in the securities legislation applicable to each
        Subscriber or proposed transferee. The Subscriber acknowledges that the Shares
        have not been registered under the 1933 Act of the securities laws of any
        state
        of the United States; however, the Company does intend to register the Shares
        per the terms set forth in that certain Registration Rights Agreement executed
        concurrently herewith. The Shares may not be offered or sold in the United
        States unless registered in accordance with federal securities laws and all
        applicable state securities laws or exemptions from such registration
        requirements are available.

       

      10. 
             Legending
        and Registration of Subject Shares 

       

      10.1 
             The
        Subscriber hereby acknowledges that that upon the issuance thereof, and until
        such time as the same is no longer required under the applicable securities
        laws
        and regulations, the certificates representing any of the Shares will bear
        a
        legend in substantially the following form:

      

      “NONE
        OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE UNITED
        STATES SECURITIES ACT OF 1933, AS AMENDED (THE “1933 ACT”), OR ANY U.S. STATE
        SECURITIES LAWS, AND, UNLESS SO REGISTERED, NONE MAY BE OFFERED OR SOLD EXCEPT
        PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE 1933 ACT OR PURSUANT
        TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
        REQUIREMENTS OF THE 1933 ACT AND IN EACH CASE ONLY IN ACCORDANCE WITH APPLICABLE
        STATE SECURITIES LAWS.”

      

      The
        Subscriber hereby acknowledges and agrees to the Company making a notation
        on
        its records or giving instructions to the registrar and transfer agent of
        the
        Company in order to implement the restrictions on transfer set forth and
        described in this Subscription Agreement.

      

      11. 
             Costs
        

       

      11.1     
        The
        Subscriber acknowledges and agrees that all costs and expenses incurred by
        the
        Subscriber (including any fees and disbursements of any special counsel retained
        by the Subscriber) relating to the purchase of the Shares shall be borne
        by the
        Subscriber.

       
          
        

      11.2   The
        Subscriber hereby acknowledges and agrees to the Company making a notation
        on
        its records or giving instructions to the registrar and transfer agent of
        the
        Company in order to implement the restrictions on transfer set forth and
        described in this Subscription Agreement.

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      12.  Governing
        Law 

       

      12.1 
             This
        Subscription Agreement is governed by the laws of the State of Nevada and
        the
        federal laws of the United States of America applicable therein. The Subscriber,
        in its personal or corporate capacity and, if applicable, on behalf of each
        beneficial purchaser for whom it is acting, irrevocably agrees to the
        jurisdiction of the State of Nevada.

       

      13. Survival  

        
        

      13.1   This
        Subscription Agreement, including without limitation the representations,
        warranties and covenants contained herein, shall survive and continue in
        full force and effect and be binding upon the parties hereto notwithstanding
        the
        completion of the purchase of the Shares by the Subscriber pursuant
        hereto.   

         
        

      14. 
         Assignment 
        

         
        

      14.1    This
        Subscription Agreement is not transferable or assignable.  

        
        

      15. Severability 

        
        

      15.1 
         The
        invalidity or unenforceability of any particular provision of this Subscription
        Agreement shall not affect or limit the validity or enforceability of the
        remaining provisions of this Subscription Agreement.   

        
        

      16. 
         Entire
        Agreement  

        
           
        

      16.1   Except
        as
        expressly provided in this Subscription Agreement and in the agreements,
        instruments and other documents contemplated or provided for herein, this
        Subscription Agreement contains the entire agreement between the parties
        with respect to the sale of the Shares and there are no other terms,
        conditions, representations or warranties, whether expressed, implied, oral
        or written, by statute or common law, by the Company or by anyone else. 

      17. 
         Notices  

       
           
        

      17.1  All
        notices and other communications hereunder shall be in writing and shall
        be
        deemed to have been duly given if mailed or transmitted by any standard
        form of telecommunication. Notices to the Subscriber shall be directed to
        the address on the signature page of this Subscription Agreement and notices
        to
        the Company shall be directed to it at the address written above,
        Attention: The President; fax number: (619) 575-9300.

      

      18. 
             Counterparts
        and Electronic Means 

       

      18.1 
             This
        Subscription Agreement may be executed in any number of counterparts, each
        of
        which, when so executed and delivered, shall constitute an original and all
        of
        which together shall constitute one instrument. Delivery of an executed copy
        of
        this Agreement by electronic facsimile transmission or other means of electronic
        communication capable of producing a printed copy will be deemed to be execution
        and delivery of this Agreement as of the date hereinafter set forth. 

        
          
            
            

          

          
            9

            
              

            

          

           

        
    IN
        WITNESS
        WHEREOF,
        the
        Subscriber has duly executed this Subscription Agreement as of the date
        hereinafter set forth.

      

      DELIVERY
        AND REGISTRATION INSTRUCTIONS

      

      
        	
                1. 
                      

              	
                Delivery
                  - please deliver the Share certificates to: 

              
	
                 

              	
                 _________________________________________________________________

              
	
                 

              	
                 _________________________________________________________________ 

              
	
                 

              	
                  
                  

              
	
                2. 
                      

              	
                Registration
                  - registration of the certificates which are to be delivered at
                  closing
                  should be made as follows: 

              
	
                     
                    _________________________________________________________________

              
	
                 

              	
                (name)
                  

              
	
                     
                    _________________________________________________________________

              
	
                 

              	
                (address)
                  

              
	
                  
                  

              
	
                3. 
                      

              	
                The
                  undersigned hereby acknowledges that he or she will deliver to
                  the Company
                  all such additional completed forms in respect of the Subscriber's
                  purchase of the Shares as may be required for filing with the appropriate
                  securities commissions and regulatory authorities. 

              
	
                 

              

      

      

      _________________________________________________________________

      (Name
        of
        Subscriber - Please type or print)

      

      _________________________________________________________________

      (Signature
        and, if applicable, Office)

      

      _________________________________________________________________

      (Address
        of Subscriber)

      

      _________________________________________________________________

      (City,
        State, and Zip Code of Subscriber)

      

      United
        States of America

      _________________________________________________________________

      (Country
        of Subscriber)

      

      _________________________________________________________________

      (Fax
        Number and email address)

        
          
            
            

          

          
            10

            
              

            

          

           

        
ACCEPTANCE

      

      The
        above-mentioned Subscription Agreement in respect of the Shares is hereby
        accepted by Ethos Environmental, Inc.

      

      DATED
        at
        __________________________________, the _______day of __________________,
        2007.

      

      

      ETHOS
        ENVIRONMENTAL, INC.

      

      

      ___________________________________________

      Title:

      Authorized
        Signatory

        
          
            
            

          

          
            11

            
              

            

          

           

        
APPENDIX
        1

       

      ACCREDITED
        INVESTOR QUESTIONNAIRE

      

      All
        capitalized terms herein, unless otherwise defined, have the meanings ascribed
        thereto in the Subscription Agreement.

      

      This
        Questionnaire is for use by each Subscriber who is a US person (as that term
        is
        defined Regulation S of the United States Securities Act of 1933 (the “1933
        Act”)) and has indicated an interest in purchasing Shares of ETHOS
        ENVIRONMENTAL, INC. (the “Company”). The purpose of this Questionnaire is to
        assure the Company that each Subscriber will meet the standards imposed by
        the
        1933 Act and the appropriate exemptions of applicable state securities laws.
        The
        Company will rely on the information contained in this Questionnaire for
        the
        purposes of such determination. The Shares will not be registered under the
        1933
        Act in reliance upon the exemption from registration afforded by Section
        3(b)
        and/or Section 4(2) and Regulation D of the 1933 Act. This Questionnaire
        is not
        an offer of the Shares or any other securities of the Company in any state
        other
        than those specifically authorized by the Company.

      

      All
        information contained in this Questionnaire will be treated as confidential.
        However, by signing and returning this Questionnaire, each Subscriber agrees
        that, if necessary, this Questionnaire may be presented to such parties as
        the
        Company deems appropriate to establish the availability, under the 1933 Act
        or
        applicable state securities law, of exemption from registration in connection
        with the sale of the Shares hereunder.

      

      The
        Subscriber covenants, represents and warrants to the Company that it satisfies
        one or more of the categories of “Accredited Investors”, as defined by
        Regulation D promulgated under the 1933 Act, as indicated below: (Please
        initial
        in the space provide those categories, if any, of an “Accredited Investor” which
        the Subscriber satisfies)

      

      
        	
                ______
                  Category 1  

              	
                An
                  organization described in Section 501(c)(3) of the United States
                  Internal
                  Revenue Code, 

              
	
                 
                  

              	
                a
                  corporation, a Massachusetts or similar business trust or partnership,
                  not
                  formed for the specific

              
	
                 
                  

              	
                purpose
                  of acquiring the Shares, with total assets in excess of US
                  $5,000,000; 

              
	
                ______
                  Category 2  

              	
                A
                  natural person whose individual net worth, or joint net worth
                  with that person's spouse, on the

              
	
                 
                  

              	
                date
                  of purchase exceeds US $1,000,000;  

              
	
                ______
                  Category 3  

              	
                A
                  natural person who had an individual income in excess of US $200,000
                  in each of the two most

              
	
                 
                  

              	
                recent
                  years or joint income with that person's spouse in excess of US
                  $300,000
                  in each of those years and has a reasonable expectation of reaching
                  the same income level in the current year; 

              
	
                ______
                  Category 4  

              	
                A
                  “bank” as defined under Section (3)(a)(2) of the 1933 Act or
                  savings and loan association or other institution as defined
                  in Section 3(a)(5)(A) of the 1933 Act acting in its individual or
                  fiduciary capacity; a broker dealer registered pursuant to Section 15
                  of the Securities Exchange Act of 1934 (United States); an insurance
                  company as defined in Section 2(13) of the 1933 Act; an investment
                  company registered under the Investment Company Act of 1940 (United
                  States) or a business development company as defined in Section
                  2(a)(48) of such Act; a Small Business Investment Company licensed by
                  the U.S. Small Business Administration under Section 301(c) or (d) of
                  the Small Business Investment Act of 1958 (United States); a plan
                  with total assets in excess of $5,000,000 established and maintained
                  by a state, a political subdivision thereof, or an agency or
                  instrumentality of a state or a political subdivision thereof, for
                  the benefit of its employees; an employee benefit plan within the
                  meaning
                  of the Employee Retirement Income Security Act of 1974 (United
                  States) whose investment decisions are made by a plan fiduciary, as
                  defined in Section 3(21) of such Act, which is either a bank, savings
                  and loan association, insurance company or registered investment
                  adviser, or if the employee benefit plan has total assets in excess
                  of $5,000,000, or, if a self- directed plan, whose investment decisions
                  are made solely by persons that are accredited
                  investors; 

              
	
                ______
                  Category 5  

              	
                A
                  private business development company as defined in Section 202(a)(22)
                  of the Investment Advisers Act of 1940
                  (United States); 

              
	
                ______
                  Category 6  

              	
                A
                  director or executive officer of the Company;  

              
	
                ______
                  Category 7  

              	
                A
                  trust with total assets in excess of $5,000,000, not formed for
                  the specific purpose of acquiring the Shares, whose purchase is
                  directed by a sophisticated person as described in Rule 506(b)(2)(ii)
                  under the 1933 Act; 

              
	
                ______
                  Category 8  

              	
                An
                  entity in which all of the equity owners satisfy the requirements
                  of one
                  or more of the foregoing categories; 

              
	
                 
                  

              	 

      

      

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

      Note
        that
        prospective Subscribers claiming to satisfy one of the above categories of
        Accredited Investor may be required to supply the Company with a balance
        sheet,
        prior years' federal income tax returns or other appropriate documentation
        to
        verify and substantiate the Subscriber's status as an Accredited
        Investor.

      

      If
        the
        Subscriber is an entity which initialed Category 8 in reliance upon the
        Accredited Investor categories above, state the name, address, total personal
        income from all sources for the previous calendar year, and the net worth
        (exclusive of home, home furnishings and personal automobiles) for each equity
        owner of the said entity:

       

        
          

        

         

          
            

          

        

      

       

        
          

        

      

      The
        Subscriber hereby certifies that the information contained in this Questionnaire
        is complete and accurate and the Subscriber will notify the Company promptly
        of
        any change in any such information. If this Questionnaire is being completed
        on
        behalf of a corporation, partnership, trust or estate, the person executing
        on
        behalf of the Subscriber represents that it has the authority to execute
        and
        deliver this Questionnaire on behalf of such entity.

      
 

      
        	
                 IN WITNESS WHEREOF, the undersigned has
                  executed this Questionnaire as of ____,2007

                 

              	 
	 If a Corporation, Partnership or Other Entity:	 If an Individual:
	
                 

                ___________________________________

                Print or Type Name of Entity

              	
                 

                _________________________________

                Signature

              
	
                 

                ___________________________________

                Signature of Authorized Signatory

              	
                 

                _________________________________

                Print or Type Name

              
	
                 

                ___________________________________

                Type of Entity

              	
                 

                _________________________________

                Social Security/Tax I.D. Number

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