Document:

LANDFILL GAS SALES AGREEMENT

                                     BETWEEN

                             CSMG TECHNOLOGIES, INC

                                       AND

                    E.I. DUPONT DE NEMOURS AND COMPANY, INC.

                                       AND

                               SHORELINE GAS, INC.

                                February 1, 2006

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                                TABLE OF CONTENTS

ARTICLE I DEFINITIONS AND INTERPRETATION.......................................1
ARTICLE II PRELIMINARY ACTS OF THE PARTIES.....................................3
ARTICLE III FACILITIES.........................................................5
ARTICLE IV PURCHASE AND SALE OBLIGATIONS.......................................5
ARTICLE V TITLE TO GAS.........................................................5
ARTICLE VI TERM OF AGREEMENT...................................................6
ARTICLE VII QUALITY OF GAS.....................................................7
ARTICLE VIII MEASUREMENT.......................................................8
ARTICLE IX DELIVERY PRESSURE...................................................9
ARTICLE X PRICE, BILLING AND PAYMENT...........................................9
ARTICLE XI INDEMNITY..........................................................11
ARTICLE XII DISPUTE RESOLUTION................................................12
ARTICLE XIII REPRESENTATIONS AND WARRANTIES...................................13
ARTICLE XIV GENERAL PROVISIONS................................................14

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THIS  LANDFILL  GAS SALES  AGREEMENT  made as of the 9th day of  January,  2006.
("Effective Date"), is by and between CSMG Technologies,  Inc.("CSMG"),  a Texas
corporation,  with principal  offices at 500 No.  Shoreline,  Suite 701,  Corpus
Christi,  TX,  78471 and E. I.  duPont de Nemours  and Co.  Inc.  ("DuPont"),  a
Delaware  Corporation with principal  offices at 1001 Market Street,  Wilmington
De.,  19898 and Shoreline Gas, Inc.  ("Shoreline"),  a Texas  corporation,  with
principal  offices at Wells  Fargo  Tower,  Suite  1900,  P.O.  Box 778,  Corpus
Christi, Texas 78403-0778,

WHEREAS  CSMG has  acquired  the rights to the  landfill  gas from the  Chastang
landfill, located at 17045 Highway 43, Mt. Vernon, Alabama 36560;

WHEREAS CSMG owns and operates a patented CO2 Separation Complex for the purpose
of processing the landfill gas to Gas;

WHEREAS CSMG has agreed to transport the Gas to the DuPont facility and sell the
Gas to DuPont on an as required by DuPont basis; and

WHEREAS  Shoreline has assisted CSMG in the development of this agreement and in
entitled to a fee from CSMG for such services;

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

                                   ARTICLE I.
                         DEFINITIONS AND INTERPRETATION

1.1 Definitions As used in this agreement, the following words and phrases shall
have the following meanings, respectively:

      "Accounting  Period"  means any period that begins on the first day of any
calendar  month and ends on the last day of such calendar  month during the term
hereunder.

      "BTU" means one or more British  Thermal  Units,  a measure of the heating
value of Landfill Gas.

      "CO2  Separation   Complex"  means  the  landfill  gas   conditioning  and
purification equipment that is owned, and operated by CSMG.

      "Agreement"  means this Landfill Gas Sales Agreement,  including  exhibits
and attachments,  and all amendments and modifications hereafter executed by the
parties hereto.

      "CSMG's Facilities" means the CO2 Separation  Complex,  associated piping,
condensate  sumps and pumps,  condensate  receiving  systems,  Control  Systems,
required  piping  to  transport  the Gas,  pressure  letdown  station  and other
equipment, installed or to be installed, as required for CSMG to comply with its
obligations to supply Gas to the Delivery Point.

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      "Delivery  Point" means the location of the billing meter installed at the
Dupont Plant..

      "DuPont  Plant" means  DuPont's  manufacturing  facility  located at Mount
Vernon, Alabama.

      "Gas " means the landfill gas produced from landfill gas after  processing
by CSMG's CO2 Separation Complex such that the Gas meets the Specifications.

      "Landfill Site" means the Chastang Solid Waste Sanitary  Landfill  located
at 17045 Hwy 43, Mount Vernon, Al.

      "MMBTU" means one million BTU.

      "Parties"  means each of CSMG,  DuPont and Shoreline and "Party" means any
one of them.

      "Specifications"  means  the  specifications  for  the Gas  which  will be
delivered by CSMG to DuPont at the Point of Delivery.

      "Year" means each calendar year or portion thereof during the term of this
Agreement.  The first Year shall consist of the period commencing on the date of
commencement  of the Trial  Period and ending on  December  31 of that  calendar
year.

1.2 Currency.  All dollar  amounts  referred to herein are expressed in terms of
United States dollars.

1.3  Sections.   The  division  of  this  agreement  into  articles,   sections,
subsections  and paragraphs and the insertion of headings is for  convenience of
reference only and shall not affect the  interpretation  or construction of this
agreement.

1.4  Construction.  In this  agreement,  the use of the  singular  number  shall
include  the  plural  and  vice  versa.  The use of  gender  shall  include  the
masculine,  feminine and neuter  genders and the word "person"  shall include an
individual, a trust, a partnership,  a body corporate or politic, an association
or any other form of incorporated or unincorporated organization or entity.

1.5  References to Laws. All  references  herein to any law,  rule,  regulation,
order or act of any government,  governmental  body or other  regulatory body or
authority  shall be  construed as a reference  thereto as amended or  re-enacted
from time to time or as a reference to any successor thereto.  All references to
any agreement shall include such agreement as amended or otherwise modified from
time to time.

1.6 Enforceability If any Article, Section or any portion of any Section of this
agreement  is  determined  to  be   unenforceable  or  invalid  for  any  reason
whatsoever,   that   enforceability   or   invalidity   shall  not   affect  the
enforceability or validity of the remaining  portions of this agreement and such
unenforceable  or invalid  Article,  Section or portion thereof shall be severed
from the remainder of this agreement.

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1.7 Applicable  Law and  Jurisdiction.  This Agreement  shall be governed by and
construed  and  enforced  in  accordance  with the laws of the State of Delaware
without giving effect to the principles of conflicts of law. The Agreement shall
not be governed by the U.N.  Convention on Agreements for the International Sale
of Goods.  The Parties consent and submit  exclusively to the  jurisdiction  and
service of process of the courts of the State of  Delaware  or the courts of the
United States located in Delaware.

1.8  Headings;  Severability.  The  headings  appearing  in this  Agreement  are
intended for  convenience  and reference  only,  and are not to be considered in
construing this  Agreement.  Every provision of this Agreement is intended to be
severable.  If any term or provision hereof is illegal or invalid for any reason
whatsoever,  such  illegality  or  invalidity  shall not affect the  validity or
legality of the remainder of this Agreement.

                                   ARTICLE II
                         PRELIMINARY ACTS OF THE PARTIES

2.1 Permits,  Authorizations.  Promptly  after the execution of this  Agreement,
CSMG shall make applications for all permits and authorizations required for the
performance of its obligations under this Agreement.

2.2 Mutual  Assistance.  Each Party shall be responsible for the acquisition and
payment of their respective permits and  authorizations.  However,  upon written
request,  the Parties shall use commercially  reasonable  efforts to support and
assist each other in the acquisition of any required permit or  authorization to
fulfill the obligations  hereunder,  at no out-of-pocket cost to the party being
requested for the support and  assistance.  Such support shall include,  without
limitation,  participation  in regulatory  proceedings and provision of relevant
information   concerning  each  Party's   operations  (other  than  confidential
information).

2.3 Public  Utility  Status.  No Party  hereto shall hold itself out as a public
utility nor to submit to the jurisdiction of the Alabama Regulatory  Commission,
or any  other  local,  state  or  federal  agency  by  reason  of the  purchase,
treatment,  delivery, transfer or sale of Gas hereunder, provided, however, that
CSMG agrees to comply,  to the extent  applicable,  with any laws or regulations
concerning the pipeline  transportation of Gas, pipeline safety or other matters
relating to the safe handling of Gas up to the Delivery  Point and DuPont agrees
to comply with such  regulations and laws in respect of the safe handling of the
Gas after the Delivery Point.

2.4 Access to DuPont's Plant.

      (a)   Upon request and subject to CSMG and its Contractors  complying with
            DuPont's safety and security  requirements for  Contractors,  DuPont
            shall allow  reasonable  access to CSMG, and its  Contractors,  when
            necessary,  to areas of DuPont's Plant selected by mutual  agreement
            of  the   parties,   for  purposes  of  the   engineering,   design,
            construction,  operation and  maintenance of Processing and Metering
            Equipment.

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      (b)   To the extent that CSMG performs any  activities on DuPont's  Plant,
            including  services  related to engineering,  design,  construction,
            operation and maintenance,  CSMG (including its  Contractors)  shall
            limit their activities to the areas reasonably  designated by DuPont
            and shall conduct no other  operations on DuPont's Plant without the
            express written consent of DuPont.

2.5  Contractor  Requirements.  The Agreement  entered into between CSMG and its
primary  Contractor  (hereinafter the  "Contractor") for the installation of the
processing  and  metering   equipment  on  DuPont's  Plant  (the   "Construction
Agreement")  will provide that the Contractor  will use only qualified  staff to
properly and lawfully perform the functions and take all reasonable  precautions
in the  performance  of the work so as to minimize  disruption of DuPont's Plant
operations.  The  Contractor's  implementation  plans shall be reviewed with the
liaison  personnel of CSMG and DuPont prior to work being performed.  CSMG's and
DuPont's  personnel will have the right to monitor the work as well as the right
to  suspend  activity  if  either  believes  that  the  Contractor's  activities
contravene  DuPont's  Plant  security  and/or  safety/work  practices  or  could
adversely  impact  DuPont's Plant in any manner not previously  contemplated  by
DuPont.  Contractor shall conduct its activities in a manner consistent with all
applicable laws, rules,  regulations and orders including,  without  limitation,
environmental laws,  occupational safety and health laws. CSMG acknowledges that
hazards may be involved in  performing  the work.  Accordingly,  the  Contractor
shall perform its services in accordance  with good  industry  practices,  shall
take necessary precautions in the removal, handling,  transporting and disposing
of material and product involved in the performance of its activities, and shall
take  reasonable  precautions to avoid an unhealthy or unsafe work  environment,
injuries to persons, damage to property, or pollution.

2.6  Compliance  by  Contractor.  CSMG shall be  responsible  to ensure that the
Contractor  will:  (i) comply  with  occupational  safety  and health  rules and
regulations  applicable to its activity;  (ii) comply with and coordinate visits
to  DuPont's  Plant with  DuPont's  security  officers,  including  any  sign-in
procedures;  (iii) obey all posted speed limits and other traffic  control signs
on DuPont's property;  (iv) repair, as mutually agreed by DuPont and Contractor,
any damage to  DuPont's  property  caused by the  Contractor's  activities;  (v)
immediately  report to  DuPont's  management,  all  incidents  with  potentially
adverse  safety,  health or  environmental  implications;  (vi) take  reasonable
precautions to minimize  disruption to DuPont's operations and to meet with CSMG
and DuPont in a timely  manner to  coordinate  with  DuPont's  personnel  on any
activity  involving  truck/trailer  blocking roadways,  entranceways,  breaks in
utility  tie-ins  (electrical,  steam,  water,  waste water),  burning or use of
torches, or the bringing of heavy equipment onto DuPont's Plant; (vii) clean and
remove debris or material;  (viii)  assign a project  manager who will have full
authority  to act on behalf of the  Contractor;  (ix)  prohibit  photography  or
video-recording  of any of DuPont's  structures or activities  without obtaining
DuPont's  prior  written  consent;  (x)  arrange  for  Contractor's   first-aid,
emergency  medical  treatment  and routine  medical  treatment  when  Contractor
personnel are at DuPont's Plant;  and (xi) advise their  employees,  Contractors
and agents  that it is the policy of CSMG to  prohibit  use,  possession,  sale,
manufacture,   dispensing,   and  distribution  of  drugs  or  other  controlled

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substances on DuPont's Plant and to prohibit in the workplace the presence of an
individual  with such  substances in the body for  non-medical  reasons and that
entry onto  DuPont's  Plant  constitutes  consent of DuPont's  inspection of the
person,  vehicle, and personal effects when entering,  while on, or upon leaving
DuPont's  Plant and any  person who is found in  violation  of the policy or who
refuses to permit inspection may be removed or barred from DuPont's Plant at the
discretion of DuPont.

                                  ARTICLE III
                                   FACILITIES

3.1 CSMG's Facilities.  CSMG is solely responsible for the ownership,  operation
and maintenance of the CSMG  Facilities,  including the CO2 Separation  Complex.
CSMG shall be solely  responsible for the design,  engineering,  construction of
the pipeline  required to transport  the Gas to DuPont's  Plant,  including  the
pressure step down station, associated piping and any custody transfer meters.

                                   ARTICLE IV
                          PURCHASE AND SALE OBLIGATIONS

4.1  Purchase  and Sale During each Year,  subject to CSMG being able to produce
sufficient  Gas meeting the  Specifications  at the Delivery  Point at a profit,
DuPont agrees to purchase from CSMG and CSMG agrees to produce and supply DuPont
on the terms set out herein a quantity of Gas which  represents a minimum of 80%
of DuPont's  requirements  for gas  (natural  gas and  landfill  gas) for energy
production  at the DuPont  Plant  during  such Year,  which  energy  needs would
otherwise  be  satisfied by the purchase of natural gas, to a maximum of 500,000
MM BTU during such Year.  DuPont's  consumption during each Year is estimated at
_____* to _________ MM BTU per year. CSMG acknowledges that DuPont's consumption
is not in equal  monthly  quantities.  Ten working  days before the first day of
every calendar  quarter  during the term hereof,  DuPont shall advise CSMG as to
DuPont's   estimated   consumption  for  such  calendar  quarter  The  estimated
consumption  volumes advised by DuPont (including those provided in this Article
IV) are estimates only and are not to be construed as a commitment by DuPont.

4.2 CSMG Operations.  CSMG will use commercial reasonable efforts to maintain in
full force and effect all permits,  certificates  of  occupancy  and licenses to
supply the Gas to  DuPont.  CSMG shall use  commercially  reasonable  efforts to
produce and deliver the maximum amount of Gas to DuPont.

                                   ARTICLE V
                                  TITLE TO GAS

5.1 Title to Landfill Gas. Title to the Gas sold hereunder  shall pass to DuPont
at the Delivery Point.

* All blanks omit confidential information filed separately with the SEC.

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5.2 Point of Transfer.  DuPont shall take title to and be in complete control of
the Gas delivered hereunder and responsible therefore,  from and after the Point
of  Delivery.  DuPont  shall have no  responsibility  or liability on account of
anything,  which may be done, happen or arise with respect to the Gas before its
delivery and CSMG hereby  releases  DuPont with respect to same. CSMG shall have
no responsibility of liability on account of anything which may be done, happen,
or arise with respect to the Gas after its delivery and DuPont  hereby  releases
CSMG with respect to same.

                                   ARTICLE VI
                                TERM OF AGREEMENT

6.1 Term. This Agreement shall become  effective upon execution hereof and shall
continue in effect, unless earlier terminated in accordance herewith,  until the
date which is 10 years  following the expiration of the Trial Period (as defined
further  herein).  After the expiration of the initial term, the Agreement shall
be automatically  extended for successive  terms of one (1) year;  provided that
either CSMG or DuPont may  terminate  this  Agreement  by written  notice to the
other  Parties,  received no later than one hundred eighty (180) days before the
end of the initial ten (10) year term or any one (1) year extension term hereof.
Such termination,  which shall be accomplished  without penalty unless otherwise
specifically  stated  herein,  shall not  relieve or release  any Party from any
rights,  liabilities, or obligations that may have accrued under law or terms of
the Agreement prior to the date of such termination.

6.2 Trial Period. The period commencing upon 30 days advance notice from CSMG to
DuPont  that the CSMG  Facilities  are ready to commence  deliveries  of Gas and
continuing for a period of thirty (30) days thereafter shall be considered to be
a trial period (the "Trial  Period") during which time CSMG shall satisfy itself
as to the  effectiveness  of its  system  and  confirm  that the Gas  meets  the
Specifications.  DuPont reserves the right, at the end of this Trial Period,  to
terminate  this  Agreement  without  penalty by the provision of written  notice
within  thirty  (30)  days  following  the  end of  the  Trial  Period  if it is
determined  that the quality of Gas  delivered  by CSMG during the Trial  Period
does not meet the Specifications.

6.3 No Release of Liability.  Termination of this Agreement shall not relieve or
release the Parties from any rights,  liabilities, or obligations which may have
arisen prior to the date of such  termination,  or which may arise on account of
such termination.

6.4 Termination for Breach.  In the event any Party breaches any substantive and
substantial  obligations  or covenants  hereunder  and has not cured such breach
within thirty (30) days of notice from any of the other Parties  requesting such
cure,  such other  Party  shall be entitled to  terminate  this  Agreement  upon
written notice. Any such termination shall be an additional remedy and shall not
prejudice the rights of the Parties not in default to recover any amounts due it
hereunder or any damages or loss suffered by it by virtue of such  default,  and
shall not  constitute  a waiver of any other  remedy to which the Parties not in
default may be entitled for breach of this Agreement.

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                                  ARTICLE VII
                                 QUALITY OF GAS

7.1A)  Landfill Gas Quality.  DuPont shall not be obligated to accept Gas at the
Delivery  Point  which does not meet the  following  specifications  measured by
volume (collectively the "Specifications"):

            (a)   Minimum  energy  content of ___ MM BTU per 1000 standard cubic
                  feet;
            (b)   Maximum CO2 content of __;
            (c)   Maximum O2 content of __;
            (d)   Maximum N2. content of __%
            (e)   The Total Sulphur content shall not exceed ___ ppm,
            (f)   The  Gas  shall  be  commercially  free  of  water  and  other
                  objectionable liquids at the temperature and pressure at which
                  the Gas is delivered
            (g)   All other  non-straight  chain  hydrocarbons not to exceed ___
                  ppm, and.
            (h)   Gas shall contain no  contaminants  that prohibit  DuPont from
                  operating  its boiler under its current  operating  permits or
                  which in any way would  necessitate  that DuPont's  boilers be
                  reclassified for combustion of hazardous waste.

DuPont  acknowledges  and  understands  that CSMG is collecting  and  processing
naturally  occurring  methane  Gas from a  landfill  site  and that  CSMG has no
control over or involvement of the nature or composition of the waste  deposited
into the  Landfill  Site which  gives rise to  production  of such gas.  The Gas
supplied  to DuPont  shall  meet the  specifications  as set forth in section 7A
unless  DuPont  notifies  CSMG of  acceptance  of gas  that  does  not  meet the
specifications. CSMG will install equipment to monitor and automatically cut-off
flow if the BTU  content  of the gas drops  below ___ BTU/ cubic  foot.  In such
event,  the system shall be designed  such that the gas supply shall  seamlessly
transition back to natural gas and DuPont shall have no obligation to accept the
Gas. Seller shall take commercially reasonable steps to minimize any downtime or
interruptions  of the  Landfill  Gas. If the BTU value is between ___  BTU/cubic
foot and ___BTU/cubic  foot and DuPont accepts the gas DuPont shall pay CSMG for
the gas accepted at the price specified in Article 10 titled "Price, Billing and
Payment".  If the BTU/cubic  foot drops below ___ BTU/cubic foot and DuPont does
not take the gas or below ___ BTU/ cubic foot CSMG has no  obligation  to supply
or replace any gas that CSMG is unable to supply under this contract.

Except as required to confirm that the Gas meets the  Specifications,  CSMG will
not and is not  under an  obligation  to test for  further  impurities  or other
contaminant  in the Gas. In the event that CSMG becomes aware of the presence of
an impurity or  contaminate  not set forth  above,  CSMG shall  promptly  inform
DuPont of the  presence of the  impurity or  contaminant.  Upon  receipt of such
notice  DuPont may, if it  believes,  acting  reasonably,  that the  impurity or
contaminant  will  adversely  impact its operations or pose a threat of personal
injury or property damage immediately suspend the operation of the contract. The
Parties  shall  enter into good faith  negotiations  to  determine  the cost and
feasibility  of  removing  such  impurity  or  contaminant  from the Gas. If the
Parties are unable to agree upon an amendment to this  Agreement to address such
impurity or contaminant removal within 120 days of the date of suspension of Gas
acceptance by DuPont,  either Party may terminate this Agreement without penalty
and such  termination  shall not  relieve or release  any Party from any rights,
liabilities,  or  obligations  that may have  accrued  under law or terms of the
Agreement prior to the date of such termination

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7.2  Measuring  Equipment.  The Parties  shall  agree to use on-line  continuous
measuring equipment to determine that the Gas meets the Specifications  which is
acceptable to all Parties,  acting  reasonably.  Results of  monitoring  will be
maintained and subject to audit by both Parties.

7.3  Disposal  of  Condensate.  CSMG shall be  responsible  for the  disposal of
condensate  materials and liquids  produced and collected  prior to the Delivery
Point. DuPont shall be responsible for the disposal of condensate  materials and
liquids produced and collected after the Delivery Point.

                                  ARTICLE VIII
                                   MEASUREMENT

8.1 Metering  Equipment.  At or near the entrance to the pipeline connecting the
Landfill Site with DuPont's Plant and at the Delivery  Point,  CSMG shall, at no
cost to DuPont, install, operate and maintain in accurate working order metering
devices  mutually  acceptable  to the  Parties  for the  measurement  of the Gas
(including Btu per cubic foot and gas quality per specification detailed in 7.1)
delivered  hereunder.  CSMG shall provide to DuPont remote  electronic  computer
access to CSMG's metering equipment (including chromatograph). DuPont shall have
access  to  the  metering  equipment  at all  reasonable  times,  but  readings,
calibrations  and adjustments  thereof shall only be made by CSMG.  DuPont shall
not be obligated to purchase any Gas which does not meet the Specifications.

8.2 Meter Tests.  CSMG shall maintain all metering  equipment in a good state of
repair,  shall ensure its accuracy  and shall make such  periodic  tests as CSMG
deems  necessary  to confirm  same but at a frequency of not less than once each
Year.  CSMG shall provide DuPont 10 working days advance notice of any such test
and DuPont  shall be entitled to witness such test.  Notwithstanding  the above,
DuPont may request CSMG conduct  additional  tests  ("Additional  Tests") of the
metering  equipment  at any time.  The expense of any  Additional  Test shall be
borne by DuPont if the metering equipment is found to be inaccurate by less than
two percent (2%) and otherwise  shall be borne by CSMG.  If, upon any test,  the
equipment is found to be inaccurate so that it affects the measurement  accuracy
by more than two percent (2%),  meter  readings  shall be corrected for a period
extending  back to the time such  inaccuracy  first occurred if that time can be
ascertained  but in no event shall an  adjustment be made covering a period more
than two years..  If that time is not  ascertainable,  corrections shall be made
for one half of the elapsed time since the pervious meter calibration.

8.3 Meter Out of Service.  If, for any reason,  CSMG's metering equipment is out
of  service  or out of repair  so that the  amount  of Gas  delivered  cannot be
ascertained or corrected  pursuant to Section 8.2, then,  during the period when
CSMG's metering  equipment is out of service or out on repair, the parties shall
utilize, in the following priority:

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      (i)   DuPont's metering equipment, if any; or

      (ii)  The Landfill Site's meter; or

      (iii) Records from recent similar periods.

                                   ARTICLE IX
                                DELIVERY PRESSURE

9.1 Delivery  Pressure.  CSMG will deliver Gas to DuPont hereunder at a pressure
sufficient for delivery of Gas to DuPont's  process (not less than ___ psig). It
is  presently  anticipated  that  the Gas will be  delivered  at a  pressure  of
approximately  ___ PSIG (but in no event in excess ___ PSIG).  In no event shall
DuPont be required to incur the cost of compression  or step down  facilities to
effect delivery of Gas hereunder.

                                   ARTICLE X
                           PRICE, BILLING AND PAYMENT

10.1 Price. The price paid by DuPont per MM BTU of Gas delivered and accepted by
DuPont at the Delivery  Point (the  "Price")  will be equal to the Inside Ferc's
Gas Market  Report  price of spot gas  delivered  to  pipeline  for the month of
delivery under the heading Florida Gas Transmission Company Index Zone 3, stated
in US Dollars per MM BTU ("Index  Price")  multiplied by the Discount  Factor as
defined  in  Paragraph  10.2  below.  In  the  event  Inside  Ferc  discontinues
publishing said Florida Zone Index, or if such index becomes unavailable for any
reason, the parties shall, both acting reasonably, select an alternate index for
use in calculating the price hereunder/

10.2 Discount  Factor.  The Price is determined  based on a discount factor (the
"Discount Factor" ) multiplied by the Index Price. The Discount Factor is equal:

      (a)   If the Index  Price is less  than  _____  per MM BTU,  the  Discount
            Factor during such month will be equal to _____;

      (b)   If the Index Price is greater than _____ per MM BTU and less than or
            equal to _____ per MM BTU,  the  Discount  Factor  during such month
            will be equal to _____ divided by the Index Price;

      (c)   If the  Index  Price is  greater  than  _____ per MM BTU and less or
            equal than _____ per MM BTU, the  Discount  Factor shall be equal to
            _____ of the index price; and

      (d)   If the Index Price is greater  than _____ per MM BTU,  the  Discount
            Factor for the price  shall be  determined  in  accordance  with the
            following formula:

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            Discount Factor = ___________________________________
                              ---------------------------------------
                                   Index Price

10.3 Billing.  For purposes of billing, the billing meter will be located at the
Delivery  Point on DuPont's  Plant.  On or before the fifteenth (15) day of each
Accounting Period, CSMG shall send an invoice to DuPont, correctly setting forth
the quantity of Gas delivered to DuPont during the preceding  Accounting  Period
to DuPont's address set out herein and shall include at a minimum:

            A.    CSMG's complete name and remit to address;
            B.    Quantity of Gas sold during the previous Accounting Period;
            C.    Price and billing units consistent with this Agreement;
            D.    Invoice date;
            E.    Total monetary amount.

10.4  Payment.  DuPont  shall pay to CSMG the amount  set forth in each  monthly
invoice on or before the date which is thirty  (30) days  following  the date of
such invoice.

10.5  Errors in  Billing.  If any Party  finds at any time  within two (2) years
after the date of any payment made  hereunder  that there has been an overcharge
or  undercharge,  the Party  finding the error shall  promptly  notify the other
Parties in  writing  detailing  the  amount of and reason for the error.  In the
event of an under charge, the undercharged party shall pay the amount due within
fifteen (15) days after the receipt of the invoice correcting such error. In the
event of an  overcharge,  the  overcharged  party shall  refund the  overpayment
within fifteen (15) days of the receipt of the notice of error.

10.6  Records.  Each Party  shall have the right,  at its sole  expense,  during
normal business hours and upon 10 working days prior written notice,  to examine
the other  Parties'  relevant  records  to the  extent  necessary  to verify the
accuracy of any statement, charge or notice or computation made hereunder.

10.7 Taxes.  CSMG shall pay or cause to be paid all taxes and assessments now or
hereafter  impose on CSMG with respect to Gas delivered  hereunder  prior to its
delivery  to DuPont,  and DuPont  shall pay or cause to be paid all taxes now or
hereafter  imposed on DuPont with respect to Gas delivered  hereunder  after its
receipt by DuPont. No Party shall be responsible or liable for facilities of the
Parties used for the purpose of carrying out the provisions of this Agreement.

                                     - 10 -
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                                   ARTICLE XI
                            INVOLVEMENT OF SHORELINE

11.1 Initial Assistance. CSMG and DuPont acknowledge that Shoreline has provided
certain  assistance in the development  and  structuring of this  Agreement.  As
consideration  for  such  services,  CSMG  shall  pay to  Shoreline  a fee  (the
"Shoreline Fee") equal to fee of 2% if the billing month exceeds 15,000 MMbtu or
3% if the  billing  month is below  15,000  MMbtu of all amounts  received  from
DuPont  pursuant to Article X hereto for  deliveries of Gas; for  clarification,
amounts will be owing by CSMG to  Shoreline  under this  Paragraph  11.1 only in
respect of actual amounts received by CSMG from DuPont hereunder.  The Shoreline
Fee shall be paid by CSMG within 30 days following the invoice date to DuPont by
CSMG.  CSMG shall  provide  Shoreline  with copies of all invoices  submitted to
DuPont pursuant to Paragraph 10.2 hereof.  DuPont assumes no  responsibility  or
liability for any services,  payments or other  obligations by CSMG to Shoreline
for gas purchased or services hereunder.

11.2 Accounting Structure.  It is acknowledged by CSMG and DuPont that Shoreline
intends to record the sales  transactions of Gas arising hereunder as a purchase
of Gas  from  CSMG by  Shoreline  and a  contemporaneous  sale  of  such  Gas by
Shoreline to DuPont. At the continuing  discretion of CSMG and DuPont,  CSMG and
DuPont shall take such reasonable measures to allow for such accounting,  but in
no event shall CSMG or DuPont suffer any adverse consequences of such accounting
structure.  For clarification,  in no event shall Shoreline assert any ownership
in the Gas nor shall  Shoreline  have any right to interrupt  the sale of Gas by
CSMG nor  purchase of Gas by DuPont.  Shoreline  shall have no right,  title nor
interest in the Gas or CSMG Facilities.

                                  ARTICLE XII
                                    INDEMNITY

12.1 Indemnity.  Each of Party (the  "Indemnifying  Party") shall, to the extent
permitted by law, fully  indemnify,  defend and hold harmless the other Parties,
their  employees,   officers  and  directors  (collectively,   the  "Indemnified
Parties")  in  proportion  to the  Indemnifying  Party's  causative  negligence,
causative  acts, or causative  omissions for all claims,  liabilities,  damages,
fines,  penalties,  losses or expenses  (including  reasonable  attorneys' fees,
settlements  and judgments but excluding any  consequential  damages)  resulting
from a breach of the  Agreement,  injury to or death of any  person  (including,
without limitation,  injury to or death of employees of the Indemnified Parties)
and  for  the  loss  of or  damage  to  personal  property  (including,  without
limitation,  damage to property of the Indemnified  Parties) or claims resulting
from damage to the environment  suffered by the Indemnified Parties resulting in
any way from a breach of Agreement, the causative negligence,  acts or omissions
of the Indemnifying Party or its agents, employees, subcontractors or assigns in
its  performance  under this  Agreement or while on,  entering or leaving DuPont
property.

12.2 Extent of Claims.  The  claims,  liabilities,  damages,  losses or expenses
covered hereunder include, but are not limited to, settlements, judgments (court
costs, attorneys' fees and other litigation expenses),  fines and penalties (but
excluding any consequential damages) arising out of actual or alleged (1) injury
or death of any person,  including  employees of the Indemnified Party; (2) loss
of or damage to property ,  including  property of the  Indemnified  Party;  (3)
breach of Agreement; and (4) damage to the environment resulting in any way from
a breach of Agreement, the joint causative negligence,  acts or omissions of the
Parties to this Agreement or their agents, employees,  subcontractors or assigns
in their performance under this Agreement.

                                     - 11 -
<PAGE>

                                  ARTICLE XIII
                               DISPUTE RESOLUTION

13.1  Dispute A Party may declare that a dispute  arising out of this  Agreement
("dispute")  exists by written notice to the other Parties  ("dispute  notice").
Within  fifteen  (15) days  after  receipt  of the  dispute  notice by the other
Parties, the Parties will escalate the dispute to a Director within the sourcing
organization of DuPont, a senior manager of the CSMG's corporate  management and
a senior manager of the Shoreline's  corporate  management,  none of which shall
have been directly involved in the dispute.

13.2  Non-Binding  Mediation If the  managers do not resolve the dispute  within
thirty (30) days after  receipt of the  dispute  notice,  then the Parties  will
attempt to resolve the dispute  through  third party  non-binding  mediation  in
English,  unless any Party objects in writing. The Parties will select a single,
mutually  acceptable,  mediator  who is  not or has  not  been  an  employee  or
Contractor  of any Party or  otherwise  does not have a conflict  of interest in
acting as the mediator. The mediator may hold a one (1) day mediation session at
a time  reasonably  determined  by the  mediator  during  which  each Party will
present its version of the dispute in a manner  determined by the mediator.  The
Parties will provide the mediator with  supporting  documentation  to the extent
and within  the time  periods  as  reasonably  requested  by the  mediator.  The
mediator  will  provide a decision to the Parties  within one hundred and twenty
(120) days after receipt of the dispute notice.

13.3  Process.  The  entire  non-binding   mediation  process  is  a  compromise
negotiation. All offers, promises,  communications and statements,  whether oral
or written, and any other actions during the course of the non-binding mediation
(including  submissions  to the  mediator)  by any  Party,  any  witness  or the
mediator:  (i) are confidential,  privileged and may not be disclosed (including
by the mediator); and (ii) are inadmissible, are not discoverable and may not be
used (or  referred  to) for any  purpose,  including  impeachment  or any  other
testimony,   in  any  arbitration,   judicial,   administrative   or  regulatory
proceeding.

Notwithstanding the foregoing:

      (a)   an executed  written  settlement  agreement  by the Parties  will be
            considered  binding  and  may  be  enforced  by the  Parties  to the
            settlement agreement;

      (b)   Information  disclosed to or known by a Party through  sources other
            than the mediation, or that is otherwise discoverable or admissible,
            shall not be rendered confidential,  privileged, inadmissible or not
            discoverable solely as a result of its use in the mediation provided
            that the mediator will be disqualified  as a witness,  consultant or
            expert for either party; and

                                     - 12 -
<PAGE>

      (c)   Each Party  reserves the right,  at any time,  to withdraw  from the
            dispute resolution or non-binding  mediation processes upon at least
            five (5) days prior written notice thereof to the other Parties, and
            exercise its other rights under this Agreement or through litigation
            provided  that  if a  Party  desires  to  petition  a  court  for an
            injunction  or a temporary  restraining  order,  it may do so at any
            time  without  notice  unless  otherwise   required  by  court.  All
            statutory or Agreementual  limitations that limit a Party's right to
            litigate  will  be  stayed  for  the  duration  of  the  non-binding
            mediation.

13.4 Sharing of Costs The Parties  participating  in the  non-binding  mediation
will  share  the cost of the  non-binding  mediation  session  and the  mediator
equally.  Each  Party  will  otherwise  bear its own  costs  arising  out of the
non-binding mediation process.

                                  ARTICLE XIV
                         REPRESENTATIONS AND WARRANTIES

14.1 DuPont.  DuPont  represents  and  warrants to each of the other  Parties as
follows:

      (a)   DuPont is a corporation duly incorporated and validly existing under
            the laws of the State of Delaware,  with full legal right, power and
            authority  to  enter  into  and to  fully  and  timely  perform  its
            obligations hereunder.

      (b)   DuPont has duly  authorized,  executed and delivered  this Agreement
            and  this   Agreement   constitutes  a  legal,   valid  and  binding
            obligation, enforceable against DuPont in accordance with its terms.

      (c)   Other than as previously disclosed in writing by DuPont to the other
            Parties,  DuPont has no knowledge of any action, suit or proceeding,
            at  law  or in  equity,  before  or by  any  court  or  governmental
            authority,  pending  or  threatened  against  DuPont,  in  which  an
            unfavorable  decision,  ruling or finding would materially adversely
            affect the performance by DuPont of its obligations hereunder or the
            other transactions  contemplated  hereby, or that, in any way, would
            materially  adversely affect the validity or  enforceability of this
            Agreement.

14.2 CSMG. CSMG represents and warrants to the other Parties as follows:

      (a)   CSMG is a corporation  duly  incorporated and validly existing under
            the laws of the State of Texas,  with full  legal  right,  power and
            authority  to  enter  into  and to  fully  and  timely  perform  its
            obligations hereunder.

      (b)   CSMG has duly authorized,  executed and delivered this Agreement and
            this Agreement  constitutes a legal, valid and binding obligation of
            CSMG, enforceable against CSMG in accordance with its terms.

      (c)   Other than as  previously  disclosed in writing by CSMG to the other
            Parties, CSMG has no knowledge of any action, suit or proceeding, at
            law or in equity, before or by any court or governmental  authority,
            pending  or  threatened   against  CSMG,  in  which  an  unfavorable

                                     - 13 -
<PAGE>

            decision,  ruling or finding would  materially  adversely affect the
            performance  by  CSMG  of its  obligations  hereunder  or the  other
            transactions  contemplated  hereby,  or  that,  in  any  way,  would
            materially  adversely affect the validity or  enforceability of this
            Agreement.

      (d)   CSMG has good title to the landfill gas and the right to sell Gas to
            DuPont.

14.3  Shoreline.  Shoreline  represents  and  warrants  to the other  Parties as
follows:

      (a)   Shoreline is a corporation  duly  incorporated  and validly existing
            under the laws of the State of Texas,  with full legal right,  power
            and  authority  to enter  into and to fully and timely  perform  its
            obligations hereunder.

      (b)   Shoreline has duly authorized, executed and delivered this Agreement
            and  this   Agreement   constitutes  a  legal,   valid  and  binding
            obligation,  enforceable  against  Shoreline in accordance  with its
            terms.

      (c)   Other than as  previously  disclosed  in writing by Shoreline to the
            other  Parties,  Shoreline  has no knowledge of any action,  suit or
            proceeding,  at  law  or in  equity,  before  or  by  any  court  or
            governmental authority,  pending or threatened against Shoreline, in
            which an unfavorable  decision,  ruling or finding would  materially
            adversely  affect the  performance  by Shoreline of its  obligations
            hereunder or the other transactions contemplated hereby, or that, in
            any  way,  would   materially   adversely  affect  the  validity  or
            enforceability of this Agreement.

                                   ARTICLE XV
                               GENERAL PROVISIONS

15.1 Subcontracting and Assignment

(a) Subcontracting.

In the event that CSMG shall  utilize  subcontractors  or agents to provide  any
portion of the  services  contemplated  to be supplied by CSMG  hereunder,  CSMG
shall  ensure that each  subcontractor  or agent and its  employees  satisfy the
requirements established for CSMG by DuPont pursuant to this Contract and CSMG's
employees including,  without limitation, the requirements set forth in Sections
15.9,  15.11 and 15.14.  CSMG shall be fully  responsible for the performance of
any such subcontractor or agents.

(b) Assignment

No Party shall assign or transfer  this  Agreement,  in whole or in part, or any
interest arising under this Agreement, or subcontract any work hereunder without
the prior  written  consent of the other  Parties,  which  consent  shall not be
unreasonably  withheld,  except that (i) CSMG shall be entitled,  without  prior
consent of any other  Party,  to assign this  Agreement  to any party  providing

                                     - 14 -
<PAGE>

financing for the  construction  and operation of the CSMG  Facilities  and (ii)
DuPont  shall be entitled  to assign  this  Agreement  to a  subsidiary  or to a
successor in interest in the DuPont Plant or the business  supporting the DuPont
Plant,  provided such assignee is  creditworthy  in the opinion of CSMG,  acting
reasonably.  Subject to the  provisions of this Section,  this Agreement and the
rights and  obligations  set out herein shall be binding upon the successors and
assigns of the Parties.

15.1 Notices. All notices, requests, demands, statements and or payment provided
for herein shall be in writing and sent to the parties  hereto at the  following
addresses:

            CSMG:               Attn: General Manager
                                CSMG Technologies, Inc.
                                500 No. Shoreline, Suite 701 No.
                                Corpus Christi, TX 78471

            DuPont:             Attn: DuPont Sourcing

                                Attention Energy and Gases
                                Barley Mill Plaza BMP 24/2288
                                PO Box 80024
                                Wilmington, DE. 19880-0024

            Shoreline:          Attn: General Manager
                                Wells Fargo Tower,
                                Suite 1900, P.O. Box 778,
                                Corpus Christi, Texas 78403-0778

            Payments shall      Attn. Accounts Receivable
               be made to.      CSMG Technologies, Inc.
                                500 No. Shoreline, Suite 701 No.
                                Corpus Christi, TX 78471

            Invoices shall      E.I. duPont de Nemours and Company
               be sent to.      Accounts Payable
                                1002 Industrial Road
                                Old Hickory Tennessee 37138

Such  notices,  etc.  shall be  deemed  to have been  given  and  received  when
personally  delivered  or upon  receipt as  evidence  by a U.S.  Postal  Service
Receipt for  Certified  Mail or evidence of delivery by a private  express  mail
service.  Any Party may change the address to which  communications  or payments
are to be made by written notice to the other Parties as set forth above.

                                     - 15 -
<PAGE>

15.2 Publicity and Corporate Identity. The Parties shall not use the name, trade
name, trademarks,  service marks owned by the other party, or logos of the other
party  in  any  publicity  releases,  news  releases,  annual  reports,  product
packaging,  signage,  stationary,  print  literature,  advertising  or  websites
without  securing the prior  written  approval of the other  party.  Each of the
Parties  shall  not,  without  prior  written  consent  of  the  other  Parties,
represent,  directly or indirectly,  that any product or service  offered by the
Parties has been approved or endorsed by the other Parties.

15.3  Minority  Vendors.  DuPont  requires CSMG to provide  maximum  practicable
utilization of minority subcontractors and vendors among its source of supply on
the DuPont Plant in performance  of this Agreement . Minorities  include but are
not limited to Black Americans,  Hispanic  Americans,  Native  Americans,  Asian
Pacific Americans and Native Hawaiian  organizations.  A minority business is at
least 51% owned by a minority or group of minorities  and has its management and
daily business  controlled by one or more such  individuals.  DuPont will assign
and CSMG shall set a minority  procurement  goal for CSMG at least  equal to the
corporate goal of DuPont.  CSMG shall either (a) report to DuPont on a quarterly
basis the dollar  amounts paid by CSMG during the  previous  quarter to minority
subcontractors  and vendors for Material and services used in the performance of
this Agreement or (b) provide a contact in CSMG's  organization  who can provide
such minority procurement information to DuPont.

15.4 Child and Forced  Labor.  CSMG is fully aware of the DuPont  Principles  on
Child and Forced Labor  ("DuPont  Principles").  CSMG certifies that it does not
and will not employ any person to perform any work  contemplated  hereunder  for
DuPont who is under  sixteen (16) years of age, or eighteen (18) years of age in
the case of hazardous services or work (hereinafter "Child Labor"),  unless CSMG
first  obtains the written  approval of the Vice  President of DuPont  Sourcing.
CSMG will use  reasonable  efforts to determine  whether its suppliers use Child
Labor in performing services or providing product,  and it certifies,  except to
the extent that it has obtained the prior written approval of the Vice President
of Sourcing, that it does not know of any of its suppliers of goods and services
for services or product that use Child Labor. CSMG certifies that the workers it
uses,  and will use, to produce and supply the products and services are present
voluntarily.  CSMG  certifies that it and its suppliers of goods and services do
not and will not  knowingly  use  forced  labor as it is  defined  in the DuPont
Principles.  CSMG  understands  that these  certifications  and undertakings are
essential to this  Agreement.  CSMG agrees to  indemnify  DuPont and hold DuPont
harmless with respect to any liability  arising from the  contravention  of this
provision by CSMG or any of its suppliers of goods or services. CSMG also agrees
that, in the event that DuPont determines that a violation of this provision has
occurred,  DuPont  shall  notify  CSMG and CSMG  shall  immediately  remedy  the
violation.  In the event that DuPont  determines  that CSMG has not remedied the
violation, such will be considered a fundamental breach hereunder and DuPont may
terminate this Agreement in accordance herewith.

15.5 Dupont Compliance,  DuPont  acknowledges and agrees to comply with DuPont's
Principles on Child and Forced Labor.

                                     - 16 -
<PAGE>

15.6 Fees. Except as otherwise  provided herein, the Parties shall pay their own
expenses including  attorney's fees, incident to the preparation and performance
of this  Agreement,  whether  or not the  transactions  contemplated  herein are
consummated.

15.7  Business  Ethics.  Neither  Shoreline  nor CSMG  shall  pay any  salaries,
commissions,  fees,  or make any payment to any  employee  of DuPont,  or to any
designee of any such employee,  or favor any employee of DuPont, or any designee
of  any  such  employee,   with  gifts  or  entertainment  valued  greater  than
twenty-five  dollars  ($25),  or with  services  or goods sold at less than full
market value.

15.8 Reservation of Rights.  Any Party's waiver of any of its remedies  afforded
hereunder  or by law is  without  prejudice  and shall not  operate to waive any
other  remedies  any Party  shall have  available  to it, nor shall such  waiver
operate to waive any  Party's  rights to any  remedies  due to a future  breach,
whether of a like or different  character.  Furthermore,  any termination of the
Agreement  shall not  relieve  or  release  any Party  hereto  from any  rights,
liabilities,  or obligations,  which it has accrued under law or under the terms
of the Agreement prior to the date of such termination.

15.9 Criminal Background Check. To the fullest extent permitted by law, prior to
assigning any CSMG employee to perform services on the DuPont Plant,  CSMG shall
have  performed  (and shall cause any  Contractor of CSMG to perform) a criminal
background check to determine  whether such assigned employee has been convicted
of any felony or  misdemeanor  crime during the prior seven (7) year period,  or
has any  known  criminal  conviction  that  occurred  beyond  the seven (7) year
period.  CSMG shall not, without DuPont's prior written approval,  permit a CSMG
employee to perform  services on the DuPont Plant if that CSMG employee has been
convicted of any felony or misdemeanor  crime within the previous seven (7) year
period. CSMG's criminal background check program shall be in compliance with the
Fair  Credit   Reporting   Act  and  DuPont   Contractor   Criminal   Background
Investigation  Requirements.  In the event of an emergency,  and only during the
time such  criminal  background  check is being  performed,  a CSMG employee may
temporarily  perform  services  on the  DuPont  Plant if such CSMG  employee  is
supervised and escorted one hundred percent of the time by a DuPont employee.

15.10  Confidentiality:   This  Agreement  and  its  terms  and  conditions  are
considered  Confidential  Information hereunder.  No Party shall disclose any of
the terms of this Agreement  without  securing the prior written approval of the
other  Parties  to this  Agreement  for a  period  of ten  (10)  years  from the
termination  or  expiration  of this  Agreement.  No Party  shall use (except in
furtherance of its  responsibilities  and obligations  hereunder) or disclose to
any third party or entity, any technical, commercial, organizational, scientific
or business information,  or intellectual property  (collectively  "Confidential
Information") disclosed to, learned by, or developed by, its employees or agents
under this Agreement  during or in conjunction  with  performance  with the work
hereunder. These restrictions or use and disclosure shall not apply to:

      (a)   Confidential  Information  already  known  to a  Party  when  it was
            disclosed by another Party as demonstrated by prior existing written
            records;

                                     - 17 -
<PAGE>

      (b)   Confidential  Information  that is or  becomes  known to the  public
            through no fault of a Party, its employees, officers, or agents;

      (c)   Confidential Information that is lawfully received by a Party from a
            third party who has the right to disclose it;

      (d)   Confidential  Information  if compelled to do so by a court or other
            tribunal of competent  jurisdiction,  provided however, that in such
            case a Party shall immediately upon receiving notice that disclosure
            may  be  required,  shall  give  written  notice  by  facsimile  and
            overnight  mail to the other  Parties so that such other Parties may
            seek a protective order or other remedy from said court or tribunal;
            and

      (e)   Confidential  information  that needs to be shared  with the current
            natural gas supplier to assure secondary supply of natural gas

CSMG shall take all reasonable steps, including those steps taken to protect its
own information,  data or other tangible or intangible  property that it regards
as proprietary or confidential,  to insure that the Confidential  Information is
not disclosed or duplicated  for the use of any third party,  and shall take all
reasonable steps to prevent its directors, officers and employees, having access
to the Confidential  Information,  from disclosing or making unauthorized use of
any Confidential  Information,  or from committing any acts, errors or omissions
that may result in a violation of the Agreement.

No right or  license,  either  express  or  implied,  under any  patent or other
intellectual  property is granted  hereunder to CSMG.  Nothing  contained in the
Agreement  will be construed  as  conferring  any rights to use in  advertising,
publicity,  or other marketing  activities any name, trade name,  trademark,  or
other designation of any Party and all Parties agree not to use the existence of
the  Agreement in any  promotional  activity  without the express  prior written
approval of the other Parties.

Except to the extent that CSMG is required  by Law to make  disclosures,  DuPont
agrees  that the  disclosure  of  Confidential  Information  without the express
written consent of DuPont shall constitute a default on the part of CSMG and its
obligations under the Agreement.

15.11  Compliance  with Laws and  Nondiscrimination.  CSMG shall comply with all
applicable laws, ordinances,  rules and regulations of governmental authorities,
including any import and export control laws and regulations, and, in the United
States,  all applicable  laws,  ordinances,  rules and regulations  covering the
production,  sale and delivery of the services  specified herein,  including the
Equal  Opportunity  Clause prescribed in 41 CFR 60-1.4;  the Affirmative  Action
Clause prescribed in 41 CFR 60-250.4,  regarding  disabled veterans and veterans
of the Vietnam  Era;  the  Affirmative  Action  Clause for  Handicapped  Workers
prescribed in 41 CFR 60-741.4;  48 CFR Chapter 1 Subpart 19.7,  regarding  Small
Business  and  Small   Disadvantaged   Business  Concerns;   Affirmative  Action
Compliance  Program  (41 CFR  60-1.40);  the  annual  filing of SF-100  Employer
Information  Report  (41  CFR  60-1.7);  41 CFR  60-1.8  prohibiting  segregated
facilities; the Fair Labor Standards Act of 1938, as amended; the Sarbanes-Oxley
Act of 2002, Section 303 and Securities  Exchange Act of 1934, as amended,  Rule
13b2-2.

                                     - 18 -
<PAGE>

15.12  Force  Majeure.  No  liability  shall  result to any Party  from delay in
performance  or from  nonperformance  caused  by act of God,  war,  governmental
action or inaction, labor strikes or inability to obtain fuel, materials,  power
or transportation  provided such circumstances are beyond the reasonable control
of the Party affected (each a "Force Majeure");  provided that inability to make
payments shall not be considered an event of Force  Majeure.  The affected Party
shall promptly notify the other Parties, in writing,  of the Force Majeure,  its
extent and probable  duration  thereof,  and shall be diligent in  attempting to
remove the cause(s) thereof. If the non-performing Party is unable to remove the
Force  Majeure  immediately,  the  Agreement  will be suspended  until the Force
Majeure is cured.

15.13 Contractor. It is understood that the employees, subcontractors,  methods,
equipment and facilities of each of the Parties shall at all times be under such
Party's exclusive direction and control.  The relationship of the Parties to one
another shall be that of an  independent  Contractor.  Nothing in this Agreement
shall be construed to constitute any Party,  or any of its or their employees or
subcontractors,  as an agent, associate,  joint venturer or partner of the other
Parties.

15.14 Substance Abuse.  CSMG shall advise its employees and the employees of its
subcontractors and agents that:

      (a)   it is the  policy of  DuPont  to  prohibit  use,  possession,  sale,
            manufacture,  dispensing,  and  distribution  of alcohol,  drugs, or
            other  controlled  substances  on a Plant,  and to  prohibit  in the
            workplace the presence of an individual  with such substances in the
            body for non-medical reasons;

      (b)   entry onto a Plant constitutes  consent to an inspection of the CSMG
            employee's  person,  vehicle,  and personal  effects when  entering,
            while on, or upon leaving a Plant; and

      (c)   any CSMG  employee  who is found in  violation  of the policy or who
            refuses to permit  inspection  may be removed or barred from a Plant
            at the discretion of DuPont.

CSMG,  upon  request of DuPont,  shall not assign or  reassign  any  employee to
operations  at the  DuPont  Plant  unless  such  employee  has  taken a drug and
controlled  substance  test  satisfactory  to  DuPont,  and the test has  proved
negative for those drugs and controlled substances listed in the document titled
"Minimally  Acceptable  Drug  and  Alcohol  Testing",   incorporated  herein  by
reference,  copies of which are  available  to CSMG  from the  DuPont  Agreement
Administrator.

CSMG also,  upon  request of DuPont,  shall  develop and  implement  procedures,
satisfactory to DuPont, to test its employees for alcohol,  drug, and controlled
substance use when CSMG suspects that a performance  deviation,  an incident, or
unusual  behavior of one (1) of CSMG's  employees at the DuPont Plant is related
to drug or controlled substance use.

                                     - 19 -
<PAGE>

In connection  with the above alcohol,  drug, and controlled  substance  testing
requirements,  CSMG shall secure the written consent of its employees to release
results of such  tests to DuPont.  DuPont  shall use such test  results  only in
connection with its decision to permit CSMG's employee to enter or remain at the
DuPont Plant, and to monitor  Agreement  compliance.  CSMG shall ensure that all
drug and  controlled  substance  testing  under this  Section  meets the minimum
requirements  set forth in the document  titled  "Minimally  Acceptable Drug and
Alcohol Testing".

All requirements of this Section shall apply only to the extent permitted by the
law of the place at the DuPont Plant.

15.15 Counterparts.  This Agreement may be executed and delivered in two or more
counterparts,  each of  which  shall be  deemed  an  original,  and all of which
together shall be deemed to constitute one and the same agreement.

15.16  Entire  Agreement.  This  Agreement  is  intended  by the  Parties as the
expression of their agreement with respect to such subject matter,  both written
and oral, and supersedes all previous agreements. This Agreement may be modified
only by a written  amendment  executed by both CSMG and DuPont,  except that any
amendment  to the  provisions  of  Article  XI hereof  or which  are  materially
prejudicial to the rights and interests of Shoreline hereunder shall require the
approval of Shoreline.

15.17 Further Assurances. The Parties hereto shall conduct such other activities
and/or obtain such other internal authority as may be required to effectuate the
purpose of this Contract.  Such activities  shall include  cooperating with each
other and any involved  governmental entities to obtain and procure any required
permits,  easements  and  other  rights  to  permit  the  fulfillment  of  their
respective obligation under this contract.

15.18 Time of the Essence. Time shall be of the essence of this agreement and of
every part hereof and no extension or variation of this agreement  shall operate
as a waiver of this provision.  When calculating the period of time within which
or  following  which  any  act is to be  done or  step  taken  pursuant  to this
agreement, the date which is the reference date in calculating such period shall
be excluded. If the last day of such period is not a Business Day, the period in
question shall end on the immediately following Business Day.

                     [Signatures are on the following page.]

                                     - 20 -
<PAGE>

IN WITNESS  WHEREOF,  the  Parties  hereto  have  caused the  execution  of this
Agreement by the officers  whose names appear below as of the date first written
above:

DUPONT                                  CSMG

By:                                     By:
    ------------------------------          ------------------------------

Print Name:                             Print Name:
            ----------------------                  ----------------------

Title:                                  Title:
       ---------------------------             ---------------------------

SHORELINE

By:
    ------------------------------

Print Name:
            ----------------------

Title:
       ---------------------------

Date: _________________________________, 2005

                                     - 21 -Unassociated Document

    AMENDED
      AND RESTATED SECURITIES
      PURCHASE AGREEMENT

    

    THIS
      AMENDED AND RESTATED SECURITIES PURCHASE AGREEMENT
      (this
“Agreement”),
      dated
      as of February 10, 2006, by and among BSI2000,
      INC.,
      a
      Delaware corporation (the “Company”),
      and
      the Buyers listed on Schedule I attached hereto (individually, a
“Buyer”
or
      collectively “Buyers”).

     

    RECITALS:

     

    WHEREAS,
      on or
      about November 3, 2005, the parties hereto entered into that certain Securities
      Purchase Agreement and convertible debenture and warrant issued thereto, a
      Second Amended and Restated Security Agreement, an Investor Registration Rights
      Agreement, an Escrow Agreement and Irrevocable Transfer Agent Instructions.
      This
      Agreement shall supersede the Securities Purchase Agreement dated November
      3,
      2005 to reflect the termination of the Escrow Agreement dated November 3, 2005
      pursuant to the Termination Agreement of even date herewith. Except as otherwise
      stated herein and as superseded by the Transaction Documents (as defined
      herein), all other documents entered into by the parties on November 3, 2005
      shall remain in full force and effect, including without limitation the Warrant
      issued to the Buyer on November 3, 2005;

     

    WHEREAS,
      the
      Company and the Buyer(s) are executing and delivering this Agreement in reliance
      upon an exemption from securities registration pursuant to Section 4(2) and/or
      Rule 506 of Regulation D (“Regulation
      D”)
      as
      promulgated by the U.S. Securities and Exchange Commission (the “SEC”)
      under
      the Securities Act of 1933, as amended (the “Securities
      Act”);

     

    WHEREAS,
      the
      parties desire that, upon the terms and subject to the conditions contained
      herein, the Company shall issue and sell to the Buyer(s), as provided herein,
      and the Buyer(s) shall purchase up to One Million Dollars ($1,000,000) of
      secured convertible debentures (the “Convertible
      Debentures”),
      which
      shall be convertible into shares of the Company’s common stock, par value $0.001
      (the “Common
      Stock”)
      (as
      converted, the “Conversion
      Shares”)
      of
      which Three Hundred Fifty Thousand Dollars ($350,000) was previously funded
      pursuant to the secured convertible debenture dated November 3, 2005 (the
“Prior
      Funding”),
      Three
      Hundred Thousand Dollars ($300,000) shall be funded on the fifth (5th)
      business day following the date hereof (the “First
      Closing”)
      (subject to notification of satisfaction of the conditions to the First Closing
      set forth herein and in Sections 6 and 7 below), One Hundred Thousand Dollars
      ($100,000) shall be funded on the fifth (5th)
      business day following the increase of the Company’s authorized number of Common
      Stock (the “Second
      Closing”)
      (subject to notification of satisfaction of the conditions to the Second Closing
      set forth herein and in Sections 6 and 7 below), and Two Hundred Fifty Thousand
      Dollars ($250,000) shall be funded two (2) business days prior to the date
      the
      registration statement (the “Registration
      Statement”)
      is
      filed, pursuant to the Investor Registration Rights Agreement dated the date
      hereof, with the United States Securities and Exchange Commission (the
“SEC”)
      (the
“Third
      Closing”)
      (subject to notification of satisfaction of the conditions to the Third Closing
      set forth herein and in Sections 6 and 7 below) (individually referred to as
      a
“Closing”
      collectively referred to as the “Closings”),
      for a
      total purchase price of up to One Million Dollars ($1,000,000), (the
“Purchase
      Price”)
      in the
      respective amounts set forth opposite each Buyer(s) name on Schedule I (the
      “Subscription
      Amount”);
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    WHEREAS,
      contemporaneously with the execution and delivery of this Agreement, the parties
      hereto are executing and delivering an Amended and Restated Investor
      Registration Rights Agreement substantially in the form attached hereto as
      Exhibit
      A
      (the
“Investor
      Registration Rights Agreement”)
      pursuant to which the Company has agreed to provide certain registration rights
      under the Securities Act and the rules and regulations promulgated there under,
      and applicable state securities laws; 

     

    WHEREAS,
      contemporaneously with the execution and delivery of this Agreement, the parties
      hereto are executing and delivering a Third Amended and Restated Security
      Agreement substantially in the form attached hereto as Exhibit
      B
      (the
“Security
      Agreement”)
      pursuant to which the Company has agreed to provide the Buyer a security
      interest in Pledged Collateral (as this term is defined in the Security
      Agreement) to secure the Company’s obligations under this Agreement, the
      Convertible Debenture, the Investor Registration Rights Agreement, the
      Irrevocable Transfer Agent Instructions, the Security Agreement or any other
      obligations of the Company to the Buyer; and

     

    WHEREAS,
      contemporaneously with the execution and delivery of this Agreement, the parties
      hereto are executing and delivering an Amended and Restated Irrevocable Transfer
      Agent Instructions substantially in the form attached hereto as Exhibit
      C
      (the
“Irrevocable
      Transfer Agent Instructions”).

     

    NOW,
      THEREFORE,
      for and
      in consideration of the mutual covenants and other agreements contained in
      this
      Agreement the Company and the Buyer(s) hereby agree as follows:

     

    1.  PURCHASE
      AND SALE OF CONVERTIBLE DEBENTURES.

     

    (a)  Purchase
      of Convertible Debentures.
      Subject
      to the satisfaction (or waiver) of the terms and conditions of this Agreement,
      each Buyer agrees, severally and not jointly, to purchase at each Closing and
      the Company agrees to sell and issue to each Buyer, severally and not jointly,
      at each Closing, Convertible Debentures in amounts corresponding with the
      Subscription Amount set forth opposite each Buyer’s name on Schedule I hereto.

     

    (b)  Closing
      Date.
      The
      First Closing of the purchase and sale of the Convertible Debentures shall
      take
      place at 10:00 a.m. Eastern Standard Time on the fifth (5th)
      business day following the date hereof, subject to notification of satisfaction
      of the conditions to the First Closing set forth herein and in Sections 6 and
      7
      below (or such later date as is mutually agreed to by the Company and the
      Buyer(s)) (the “First
      Closing Date”),
      the
      Second Closing of the purchase and sale of the Convertible Debentures shall
      take
      place at 10:00 a.m. Eastern Standard Time on the fifth (5th)
      business day following the increase of the Company’s authorized number of Common
      Stock, subject to notification of satisfaction of the conditions to the Second
      Closing set forth herein and in Sections 6 and 7 below (or such later date
      as is
      mutually agreed to by the Company and the Buyer(s)) (the “Second
      Closing Date”)
      and
      the Third Closing of the purchase and sale of the Convertible Debentures shall
      take place at 10:00 a.m. Eastern Standard Time two (2) business days prior
      to
      the date the Registration Statement is filed with the SEC, subject to
      notification of satisfaction of the conditions to the Second Closing set forth
      herein and in Sections 6 and 7 below (or such later date as is mutually agreed
      to by the Company and the Buyer(s)) (the “Third
      Closing Date”)
      (collectively referred to a the “Closing
      Dates”).
      The
      Closing shall occur on the respective Closing Dates at the offices of Yorkville
      Advisors, LLC, 101 Hudson Street, Suite 3700, Jersey City, New Jersey 07302
      (or
      such other place as is mutually agreed to by the Company and the Buyer(s)).
      

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (c)  Form
      of Payment.
      Subject
      to the satisfaction of the terms and conditions of this Agreement, on the
      Closing Dates, (i) the Buyers shall deliver to the Company such aggregate
      proceeds for the Convertible Debentures to be issued and sold to such Buyer(s),
      minus the fees to be paid directly from the proceeds the Closings as set forth
      herein, and (ii) the Company shall deliver to each Buyer, Convertible
      Debentures which such Buyer(s) is purchasing in amounts indicated opposite
      such
      Buyer’s name on Schedule I, duly executed on behalf of the Company.

     

    2.  BUYER’S
      REPRESENTATIONS AND WARRANTIES.

     

    Each
      Buyer represents and warrants, severally and not jointly, that:

     

    (a)  Investment
      Purpose.
      Each
      Buyer is acquiring the Convertible Debentures and, upon conversion of
      Convertible Debentures, the Buyer will acquire the Conversion Shares then
      issuable, for its own account for investment only 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 Securities Act;
      provided, however, that by making the representations herein, such Buyer
      reserves the right to dispose of the Conversion Shares at any time in accordance
      with or pursuant to an effective registration statement covering such Conversion
      Shares or an available exemption under the Securities Act.

     

    (b)  Accredited
      Investor Status.
      Each
      Buyer is an “Accredited
      Investor”
as
      that
      term is defined in Rule 501(a)(3) of Regulation D.

     

    (c)  Reliance
      on Exemptions.
      Each
      Buyer understands that the Convertible Debentures 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
      in part upon 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 such
      securities.

     

    (d)  Information.
      Each
      Buyer and its advisors (and his or, its counsel), if any, have been furnished
      with all materials relating to the business, finances and operations of the
      Company and information he deemed material to making an informed investment
      decision regarding his purchase of the Convertible Debentures and the Conversion
      Shares, which have been requested by such Buyer. Each Buyer and its advisors,
      if
      any, have been afforded the opportunity to ask questions of the Company and
      its
      management. 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 in Section 3 below. Each Buyer
      understands that its investment in the Convertible Debentures and the Conversion
      Shares involves a high degree of risk. Each Buyer is in a position regarding
      the
      Company, which, based upon employment, family relationship or economic
      bargaining power, enabled and enables such Buyer to obtain information from
      the
      Company in order to evaluate the merits and risks of this investment. Each
      Buyer
      has sought such accounting, legal and tax advice, as it has considered necessary
      to make an informed investment decision with respect to its acquisition of
      the
      Convertible Debentures and the Conversion Shares.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (e)  No
      Governmental Review.
      Each
      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 Convertible Debentures or the Conversion Shares, or the
      fairness or suitability of the investment in the Convertible Debentures or
      the
      Conversion Shares, nor have such authorities passed upon or endorsed the merits
      of the offering of the Convertible Debentures or the Conversion
      Shares.

     

    (f)  Transfer
      or Resale.
      Each
      Buyer understands that except as provided in the Investor Registration Rights
      Agreement: (i) the Convertible Debentures have not been and are not being
      registered under the Securities Act or any state securities laws, and may not
      be
      offered for sale, sold, assigned or transferred unless (A) subsequently
      registered thereunder, or (B) such Buyer shall have delivered to the Company
      an
      opinion of counsel, in a generally acceptable form, 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 requirements; (ii)
      any sale of such securities made in reliance on Rule 144 under the Securities
      Act (or a successor rule thereto) (“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 such 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 Securities Act) may require
      compliance with some other exemption under the Securities Act or the rules
      and
      regulations of the SEC thereunder; and (iii) neither the Company nor any other
      person is under any obligation to register such securities under the Securities
      Act or any state securities laws or to comply with the terms and conditions
      of
      any exemption thereunder. The Company reserves the right to place stop transfer
      instructions against the shares and certificates for the Conversion
      Shares.

     

    (g)  Legends.
      Each
      Buyer understands that the certificates or other instruments representing the
      Convertible Debentures and or the Conversion Shares shall bear a restrictive
      legend in substantially the following form (and a stop -transfer order may
      be
      placed against transfer of such stock certificates):

     

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
      SECURITIES HAVE BEEN ACQUIRED SOLELY FOR INVESTMENT PURPOSES AND NOT WITH A
      VIEW
      TOWARD RESALE AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
      IN
      THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
      THE
      SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR
      AN
      OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT
      REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS. 

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    The
      legend set forth above shall be removed and the Company within two (2) business
      days shall issue a certificate without such legend to the holder of the
      Conversion Shares upon which it is stamped, if, unless otherwise required by
      state securities laws, (i) in connection with a sale transaction, provided
      the
      Conversion Shares are registered under the Securities Act or (ii) in connection
      with a sale transaction, after such holder provides the Company with an opinion
      of counsel, which opinion shall be in form, substance and scope customary for
      opinions of counsel in comparable transactions, to the effect that a public
      sale, assignment or transfer of the Conversion Shares may be made without
      registration under the Securities Act. 

     

    (h)  Authorization,
      Enforcement.
      This
      Agreement has been duly and validly authorized, executed and delivered on behalf
      of such Buyer and is a valid and binding agreement of such Buyer enforceable
      in
      accordance with its terms, except as such enforceability may be limited by
      general principles of equity or applicable bankruptcy, insolvency,
      reorganization, moratorium, liquidation and other similar laws relating to,
      or
      affecting generally, the enforcement of applicable creditors’ rights and
      remedies.

     

    (i)  Receipt
      of Documents.
      Each
      Buyer and his or its counsel has received and read in their entirety: (i) this
      Agreement and each representation, warranty and covenant set forth herein,
      the
      Security Agreement, the Investor Registration Rights Agreement, the Escrow
      Agreement, and the Irrevocable Transfer Agent Agreement; (ii) all due diligence
      and other information necessary to verify the accuracy and completeness of
      such
      representations, warranties and covenants; (iii) the Company’s Form 10-KSB for
      the fiscal year ended December 31, 2004; (iv) the Company’s Form 10-QSB for the
      fiscal quarter ended September 30, 2005 and (v) answers to all questions each
      Buyer submitted to the Company regarding an investment in the Company; and
      each
      Buyer has relied on the information contained therein and has not been furnished
      any other documents, literature, memorandum or prospectus.

     

    (j)  Due
      Formation of Corporate and Other Buyers.
      If the
      Buyer(s) is a corporation, trust, partnership or other entity that is not an
      individual person, it has been formed and validly exists and has not been
      organized for the specific purpose of purchasing the Convertible Debentures
      and
      is not prohibited from doing so.

     

    (k)  No
      Legal Advice From the Company.
      Each
      Buyer acknowledges, that it had the opportunity to review this Agreement and
      the
      transactions contemplated by this Agreement with his or its own legal counsel
      and investment and tax advisors. Each Buyer is relying solely on such counsel
      and advisors and not on any statements or representations of the Company or
      any
      of its representatives or agents for legal, tax or investment advice with
      respect to this investment, the transactions contemplated by this Agreement
      or
      the securities laws of any jurisdiction. 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    3.  REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY.

     

    The
      Company represents and warrants to each of the Buyers that, except as set forth
      in the SEC Documents (as defined herein):

     

    (a)  Organization
      and Qualification.
      The
      Company and its subsidiaries are corporations duly organized and validly
      existing in good standing under the laws of the jurisdiction in which they
      are
      incorporated, and have the requisite corporate power to own their properties
      and
      to carry on their business as now being conducted. Each of the Company and
      its
      subsidiaries is duly qualified as a foreign corporation to do business and
      is in
      good standing in every jurisdiction in which 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 on the Company and its subsidiaries taken as a
      whole.

     

    (b)  Authorization,
      Enforcement, Compliance with Other Instruments.
      (i) The Company has the requisite corporate power and authority to enter
      into and perform this Agreement, the Security Agreement, the Investor
      Registration Rights Agreement, the Irrevocable Transfer Agent Agreement, the
      Warrants (as defined herein) and any related agreements (collectively the
“Transaction
      Documents”)
      and to
      issue the Convertible Debentures and the Conversion Shares in accordance with
      the terms hereof and thereof, (ii) the execution and delivery of the Transaction
      Documents by the Company and the consummation by it of the transactions
      contemplated hereby and thereby, including, without limitation, the issuance
      of
      the Convertible Debentures the Conversion Shares and the reservation for
      issuance and the issuance of the Conversion Shares issuable upon conversion
      or
      exercise thereof, have been duly authorized by the Company’s Board of Directors
      and no further consent or authorization is required by the Company, its Board
      of
      Directors or its stockholders, (iii) the Transaction Documents have been duly
      executed and delivered by the Company, (iv) the Transaction Documents constitute
      the valid and binding obligations of the Company enforceable against the Company
      in accordance with their terms, except as such enforceability may be limited
      by
      general principles of equity or applicable bankruptcy, insolvency,
      reorganization, moratorium, liquidation or similar laws relating to, or
      affecting generally, the enforcement of creditors’ rights and remedies. The
      authorized officer of the Company executing the Transaction Documents knows
      of
      no reason why the Company cannot file the registration statement as required
      under the Investor Registration Rights Agreement or perform any of the Company’s
      other obligations under such documents. 

     

    (c)  Capitalization.
      As of
      the date hereof the authorized capital stock of the Company consists of
      200,000,000 shares of Common Stock, par value $0.001, and 20,000,000 shares
      of
      Preferred Stock, par value $0.001 (“Preferred
      Stock”)
      of
      which 129,704,708 shares of Common Stock and no shares of preferred stock are
      issued and outstanding.. All of such outstanding shares have been validly issued
      and are fully paid and nonassessable. Except as disclosed in the SEC Documents
      (as defined in Section 3(f)), no shares of Common Stock are subject to
      preemptive rights or any other similar rights or any liens or encumbrances
      suffered or permitted by the Company. Except as disclosed in the SEC Documents,
      as of the date of this Agreement, (i) 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, any shares
      of
      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 shares of 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, any shares of capital stock of the
      Company or any of its subsidiaries, (ii) there are no outstanding debt
      securities and (iii) 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 Securities Act (except pursuant to the Registration
      Rights Agreement) and (iv) there are no outstanding registration statements
      and
      there are no outstanding comment letters from the SEC or any other regulatory
      agency. There are no securities or instruments containing anti-dilution or
      similar provisions that will be triggered by the issuance of the Convertible
      Debentures as described in this Agreement. The Company has furnished to the
      Buyer true and correct copies of the Company’s Articles of Incorporation, as
      amended and as in effect on the date hereof (the “Articles
      of Incorporation”),
      and
      the Company’s By-laws, as in effect on the date hereof (the “By-laws”),
      and
      the terms of all securities convertible into or exercisable for Common Stock
      and
      the material rights of the holders thereof in respect thereto other than stock
      options issued to employees and consultants. 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (d)  Issuance
      of Securities.
      The
      Convertible Debentures are duly authorized and, upon issuance in accordance
      with
      the terms hereof, shall be duly issued, fully paid and nonassessable, are free
      from all taxes, liens and charges with respect to the issue thereof. The
      Conversion Shares issuable upon conversion of the Convertible Debentures have
      been duly authorized and reserved for issuance. Upon conversion or exercise
      in
      accordance with the Convertible Debentures the Conversion Shares will be duly
      issued, fully paid and nonassessable.

     

    (e)  No
      Conflicts.
      Except
      as disclosed in the SEC Documents, the execution, delivery and performance
      of
      the Transaction Documents by the Company and the consummation by the Company
      of
      the transactions contemplated hereby will not (i) result in a violation of
      the
      Certificate of Incorporation, any certificate of designations of any outstanding
      series of preferred stock of the Company or the By-laws 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 the Company or any of its subsidiaries is a party, or result
      in a violation of any law, rule, regulation, order, judgment or decree
      (including federal and state securities laws and regulations and the rules
      and
      regulations of The National Association of Securities Dealers Inc.’s OTC
      Bulletin Board on which the Common Stock is quoted) applicable to the Company
      or
      any of its subsidiaries or by which any property or asset of the Company or
      any
      of its subsidiaries is bound or affected. Except as disclosed in the SEC
      Documents, neither the Company nor its subsidiaries is in violation of any
      term
      of or in default under its Articles of Incorporation or By-laws or their
      organizational charter or by-laws, respectively, or any material contract,
      agreement, mortgage, indebtedness, indenture, instrument, judgment, decree
      or
      order or any statute, rule or regulation applicable to the Company or its
      subsidiaries. The business of the Company and its subsidiaries is not being
      conducted, and shall not be conducted in violation of any material law,
      ordinance, or regulation of any governmental entity. Except as specifically
      contemplated by this Agreement and as required under the Securities Act and
      any
      applicable state securities laws, the Company is not required to obtain any
      consent, authorization or order of, or make any filing or registration with,
      any
      court or governmental agency in order for it to execute, deliver or perform
      any
      of its obligations under or contemplated by this Agreement or the Registration
      Rights Agreement in accordance with the terms hereof or thereof. Except as
      disclosed in the SEC Documents, all consents, authorizations, orders, filings
      and registrations which the Company is required to obtain pursuant to the
      preceding sentence have been obtained or effected on or prior to the date
      hereof. The Company and its subsidiaries are unaware of any facts or
      circumstance, which might give rise to any of the foregoing.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (f)  SEC
      Documents: Financial Statements.
      Since
      January 1, 2003, the Company has filed all reports, schedules, forms, statements
      and other documents required to be filed by it with the SEC under of the
      Securities Exchange Act of 1934, as amended (the “Exchange
      Act”)
      (all
      of the foregoing filed prior to the date hereof or amended after the date hereof
      and all exhibits included therein and financial statements and schedules thereto
      and documents incorporated by reference therein, being hereinafter referred
      to
      as the “SEC
      Documents”).
      The
      Company has delivered to the Buyers or their representatives, or made available
      through the SEC’s website at http://www.sec.gov., true and complete copies of
      the SEC Documents. As of their respective dates, the financial statements of
      the
      Company disclosed in the SEC Documents (the “Financial
      Statements”)
      complied as to form in all material respects with applicable accounting
      requirements and the published rules and regulations of the SEC with respect
      thereto. Such financial statements have been prepared in accordance with
      generally accepted accounting principles, consistently applied, 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). No other
      information provided by or on behalf of the Company to the Buyer which is not
      included in the SEC Documents, including, without limitation, information
      referred to in this Agreement, contains any untrue statement of a material
      fact
      or omits to state any material fact necessary in order to make the statements
      therein, in the light of the circumstances under which they were made, not
      misleading.

     

    (g)  10(b)-5.
      The SEC
      Documents do not include any untrue statements of material fact, nor do they
      omit to state any material fact required to be stated therein necessary to
      make
      the statements made, in light of the circumstances under which they were made,
      not misleading.

     

    (h)  Absence
      of Litigation.
      Except
      as disclosed in the SEC Documents, there is no action, suit, proceeding, inquiry
      or investigation before or by any court, public board, government agency,
      self-regulatory organization or body pending against or affecting the Company,
      the Common Stock or any of the Company’s subsidiaries, wherein an unfavorable
      decision, ruling or finding would (i) have a material adverse effect on the
      transactions contemplated hereby (ii) adversely affect the validity or
      enforceability of, or the authority or ability of the Company to perform its
      obligations under, this Agreement or any of the documents contemplated herein,
      or (iii) except as expressly disclosed in the SEC Documents, have a material
      adverse effect on the business, operations, properties, financial condition
      or
      results of operations of the Company and its subsidiaries taken as a
      whole.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (i)  Acknowledgment
      Regarding Buyer’s Purchase of the Convertible Debentures.
      The
      Company acknowledges and agrees that the Buyer(s) is acting solely in the
      capacity of an arm’s length purchaser with respect to this Agreement and the
      transactions contemplated hereby. The Company further acknowledges that the
      Buyer(s) is not acting as a financial advisor or fiduciary of the Company (or
      in
      any similar capacity) with respect to this Agreement and the transactions
      contemplated hereby and any advice given by the Buyer(s) or any of their
      respective representatives or agents in connection with this Agreement and
      the
      transactions contemplated hereby is merely incidental to such Buyer’s purchase
      of the Convertible Debentures or the Conversion Shares. The Company further
      represents to the Buyer that the Company’s decision to enter into this Agreement
      has been based solely on the independent evaluation by the Company and its
      representatives.

     

    (j)  No
      General Solicitation.
      Neither
      the Company, nor any of its 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 under the Securities Act) in connection
      with
      the offer or sale of the Convertible Debentures or the Conversion
      Shares.

     

    (k)  No
      Integrated Offering.
      Neither
      the Company, nor any of its affiliates, nor any person acting on its or their
      behalf has, directly or indirectly, made any offers or sales of any security
      or
      solicited any offers to buy any security, under circumstances that would require
      registration of the Convertible Debentures or the Conversion Shares under the
      Securities Act or cause this offering of the Convertible Debentures or the
      Conversion Shares to be integrated with prior offerings by the Company for
      purposes of the Securities Act.

     

    (l)  Employee
      Relations.
      Neither
      the Company nor any of its subsidiaries is involved in any labor dispute nor,
      to
      the knowledge of the Company or any of its subsidiaries, is any such dispute
      threatened. None of the Company’s or its subsidiaries’ employees is a member of
      a union and the Company and its subsidiaries believe that their relations with
      their employees are good.

     

    (m)  Intellectual
      Property Rights.
      The
      Company and its subsidiaries own or possess adequate rights or licenses to
      use
      all trademarks, trade names, service marks, service mark registrations, service
      names, patents, patent rights, copyrights, inventions, licenses, approvals,
      governmental authorizations, trade secrets and rights necessary to conduct
      their
      respective businesses as now conducted. The Company and its subsidiaries do
      not
      have any knowledge of any infringement by the Company or its subsidiaries of
      trademark, trade name rights, patents, patent rights, copyrights, inventions,
      licenses, service names, service marks, service mark registrations, trade secret
      or other similar rights of others, and, to the knowledge of the Company there
      is
      no claim, action or proceeding being made or brought against, or to the
      Company’s knowledge, being threatened against, the Company or its subsidiaries
      regarding trademark, trade name, patents, patent rights, invention, copyright,
      license, service names, service marks, service mark registrations, trade secret
      or other infringement; and the Company and its subsidiaries are unaware of
      any
      facts or circumstances which might give rise to any of the
      foregoing.

     

    (n)  Environmental
      Laws.
      The
      Company and its subsidiaries are (i) in compliance with any and all applicable
      foreign, federal, state and local laws and regulations relating to the
      protection of human health and safety, the environment or hazardous or toxic
      substances or wastes, pollutants or contaminants (“Environmental
      Laws”),
      (ii)
      have received all permits, licenses or other approvals required of them under
      applicable Environmental Laws to conduct their respective businesses and (iii)
      are in compliance with all terms and conditions of any such permit, license
      or
      approval.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (o)  Title.
      Any
      real property and facilities held under lease by the Company and its
      subsidiaries are held by them 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 its
      subsidiaries.

     

    (p)  Insurance.
      The
      Company and each of its subsidiaries are 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 the Company and its subsidiaries are engaged. Neither the Company
      nor
      any such subsidiary has been refused any insurance coverage sought or applied
      for and neither the Company nor any such 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 materially and
      adversely affect the condition, financial or otherwise, or the earnings,
      business or operations of the Company and its subsidiaries, taken as a
      whole.

     

    (q)  Regulatory
      Permits.
      The
      Company and its subsidiaries possess all material certificates, authorizations
      and permits issued by the appropriate federal, state or foreign regulatory
      authorities necessary to conduct their respective businesses, and neither the
      Company nor any such subsidiary has received any notice of proceedings relating
      to the revocation or modification of any such certificate, authorization or
      permit.

     

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

     

    (s)  No
      Material Adverse Breaches, etc.
      Except
      as set forth in the SEC Documents, neither the Company nor any of its
      subsidiaries is subject to any charter, corporate or other legal restriction,
      or
      any judgment, decree, order, rule or regulation which in the judgment of the
      Company’s officers has or is expected in the future to have a material adverse
      effect on the business, properties, operations, financial condition, results
      of
      operations or prospects of the Company or its subsidiaries. Except as set forth
      in the SEC Documents, neither the Company nor any of its subsidiaries is in
      breach of any contract or agreement which breach, in the judgment of the
      Company’s officers, has or is expected to have a material adverse effect on the
      business, properties, operations, financial condition, results of operations
      or
      prospects of the Company or its subsidiaries.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (t)  Tax
      Status.
      Except
      as set forth in the SEC Documents, the Company and each of its subsidiaries
      has
      made and filed all federal and state income and all other tax returns, reports
      and declarations required by any jurisdiction to which it is subject and (unless
      and only to the extent that the Company and each of its subsidiaries has set
      aside on its books provisions reasonably adequate for the payment of all unpaid
      and unreported taxes) 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 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. There are no unpaid taxes in any material amount 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.

     

    (u)  Certain
      Transactions.
      Except
      as set forth in the SEC Documents, and except for arm’s length transactions
      pursuant to which the Company makes payments in the ordinary course of business
      upon terms no less favorable than the Company could obtain from third parties
      and other than the grant of stock options disclosed in the SEC Documents, none
      of the officers, directors, or employees of the Company is presently a party
      to
      any transaction with the Company (other than for services as employees, officers
      and directors), including any contract, agreement or other arrangement providing
      for the furnishing of services to or by, providing for rental of real or
      personal property to or from, or otherwise requiring payments to or from any
      officer, director or such employee or, to the knowledge of the Company, any
      corporation, partnership, trust or other entity in which any officer, director,
      or any such employee has a substantial interest or is an officer, director,
      trustee or partner.

     

    (v)  Fees
      and Rights of First Refusal.
      The
      Company is not obligated to offer the securities offered hereunder on a right
      of
      first refusal basis or otherwise to any third parties including, but not limited
      to, current or former shareholders of the Company, underwriters, brokers, agents
      or other third parties.

     

    4.  COVENANTS.

     

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

     

    (b)  Form
      D.
      The
      Company agrees to file a Form D with respect to the Conversion Shares as
      required under Regulation D and to provide a copy thereof to each Buyer promptly
      after such filing. The Company shall, on or before the Closing Date, take such
      action as the Company shall reasonably determine is necessary to qualify the
      Conversion Shares, or obtain an exemption for the Conversion Shares for sale
      to
      the Buyers at the Closing pursuant to this Agreement under applicable securities
      or “Blue Sky” laws of the states of the United States, and shall provide
      evidence of any such action so taken to the Buyers on or prior to the Closing
      Date.

     

    (c)  Reporting
      Status.
      Until
      the earlier of (i) the date as of which the Buyer(s) may sell all of the
      Conversion Shares without restriction pursuant to Rule 144(k) promulgated under
      the Securities Act (or successor thereto), or (ii) the date on which (A) the
      Buyer(s) shall have sold all the Conversion Shares and (B) none of the
      Convertible Debentures are outstanding (the “Registration
      Period”),
      the
      Company shall file in a timely manner all reports required to be filed with
      the
      SEC pursuant to the Exchange Act and the regulations of the SEC thereunder,
      and
      the Company shall not terminate its status as an issuer required to file reports
      under the Exchange Act even if the Exchange Act or the rules and regulations
      thereunder would otherwise permit such termination.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (d)  Use
      of
      Proceeds.
      The
      Company will use the proceeds from the sale of the Convertible Debentures for
      general corporate and working capital purposes.

     

    (e)  Reservation
      of Shares.
      The
      Company shall take all action reasonably necessary to at all times have
      authorized, and reserved for the purpose of issuance, such number of shares
      of
      Common Stock as shall be necessary to effect the issuance of the Conversion
      Shares. If at any time the Company does not have available such shares of Common
      Stock as shall from time to time be sufficient to effect the conversion of
      all
      of the Conversion Shares, the Company shall call and hold a special meeting
      of
      the shareholders within thirty (30) days of such occurrence, for the sole
      purpose of increasing the number of shares authorized. The Company’s management
      shall recommend to the shareholders to vote in favor of increasing the number
      of
      shares of Common Stock authorized. Management shall also vote all of its shares
      in favor of increasing the number of authorized shares of Common
      Stock.

     

    (f)  Listings
      or Quotation.
      The
      Company shall promptly secure the listing or quotation of the Conversion Shares
      upon each national securities exchange, automated quotation system or The
      National Association of Securities Dealers Inc.’s Over-The-Counter Bulletin
      Board (“OTCBB”)
      or
      other market, if any, upon which shares of Common Stock are then listed or
      quoted (subject to official notice of issuance) and shall use its best efforts
      to maintain, so long as any other shares of Common Stock shall be so listed,
      such listing of all Conversion Shares from time to time issuable under the
      terms
      of this Agreement. The Company shall maintain the Common Stock’s authorization
      for quotation on the OTCBB.

     

    (g)  Fees
      and Expenses.
      

     

    (i)  Each
      of
      the Company and the Buyer(s) shall pay all costs and expenses incurred by such
      party in connection with the negotiation, investigation, preparation, execution
      and delivery of the Transaction Documents. The Company shall pay Yorkville
      Advisors Management LLC a fee equal to ten percent (10%) of the Purchase Price.
      

     

    (ii)  The
      Company shall pay a structuring fee to Yorkville Advisors Management, LLC of
      Ten
      Thousand Dollars ($10,000), which was previously paid on November 3, 2005.
      On
      the date hereof, the Company shall pay a structuring fee to Yorkville Advisors
      Management, LLC of Two Thousand Five Hundred Dollars ($2,500), which shall
      be
      paid directly from the proceeds of the First Closing.

     

    (iii)  The
      Company previously issued to the Buyer on November 3, 2005 a warrant to purchase
      Twenty Million (20,000,000) shares of the Company’s Common Stock for a
      period of five (5) years at an exercise price of $0.05 per share. On the date
      hereof, the Company shall issue to the Buyer warrants to purchase Twenty One
      Million Two Hundred Fifty Thousand (21,250,000) shares of the Company’s Common
      Stock as follows: (A) a warrant to purchase Fifteen Million (15,000,000) shares
      of the Company’s Common Stock for a period of five (5) years at an exercise
      price of $0.01 per share, (B) a warrant to purchase Five Million (5,000,000)
      shares of the Company’s Common Stock for a period of five (5) years at an
      exercise price of $0.02 per share and (C) a warrant to purchase One Million
      Two
      Hundred Fifty Thousand (1,250,000) shares of the Company’s Common Stock for
      a period of five (5) years at an exercise price of $0.04 per share. The warrant
      issued on November 3, 2005 and the warrants issued on the date hereof shall
      collectively be referred to as the “Warrants” and the shares of Common Stock
      underlying the Warrants shall be referred to as the “Warrant Shares.” The
      Warrant Shares shall have “piggy-back” and demand registration rights.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (iv)  The
      Company has previously issued to the Buyer One Million (1,000,000) shares of
      the
      Company’s Common Stock (the “Commitment
      Shares”).
      The
      Commitment Shares shall be deemed fully earned on the date hereof and shall
      have
“piggy-back” and demand registration rights. 

     

    (h)  Corporate
      Existence.
      So long
      as any of the Convertible Debentures remain outstanding, the Company shall
      not
      directly or indirectly consummate any merger, reorganization, restructuring,
      reverse stock split consolidation, sale of all or substantially all of the
      Company’s assets or any similar transaction or related transactions (each such
      transaction, an “Organizational
      Change”)
      unless, prior to the consummation an Organizational Change, the Company obtains
      the written consent of each Buyer. In any such case, the Company will make
      appropriate provision with respect to such holders’ rights and interests to
      insure that the provisions of this Section 4(h) will thereafter be applicable
      to
      the Convertible Debentures.

     

    (i)  Transactions
      With Affiliates.
      So long
      as any Convertible Debentures are outstanding, the Company shall not, and shall
      cause each of its subsidiaries not to, enter into, amend, modify or supplement,
      or permit any subsidiary to enter into, amend, modify or supplement any
      agreement, transaction, commitment, or arrangement with any of its or any
      subsidiary’s officers, directors, person who were officers or directors at any
      time during the previous two (2) years, stockholders who beneficially own five
      percent (5%) or more of the Common Stock, or Affiliates (as defined below)
      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
      five
      percent (5%) or more beneficial interest (each a “Related
      Party”),
      except for (a) customary employment arrangements and benefit programs on
      reasonable terms, (b) any investment in an Affiliate of the Company, (c) any
      agreement, transaction, commitment, or arrangement on an arms-length basis
      on
      terms no less favorable than terms which would have been obtainable from a
      person other than such Related Party, (d) any agreement, transaction,
      commitment, or arrangement which is approved by a majority of the disinterested
      directors of the Company; for purposes hereof, any director who is also an
      officer of the Company or any subsidiary of the Company shall not be a
      disinterested director with respect to any such agreement, transaction,
      commitment, or arrangement. “Affiliate”
for
      purposes hereof means, with respect to any person or entity, another person
      or
      entity that, directly or indirectly, (i) has a ten percent (10%) or more equity
      interest in that person or entity, (ii) has ten percent (10%) or more common
      ownership with that person or entity, (iii) controls that person or entity,
      or
      (iv) shares common control with that person or entity. “Control”
or
      “controls”
for
      purposes hereof means that a person or entity has the power, direct or indirect,
      to conduct or govern the policies of another person or entity.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    (j)  Transfer
      Agent.
      The
      Company covenants and agrees that, in the event that the Company’s agency
      relationship with the transfer agent should be terminated for any reason prior
      to a date which is two (2) years after the Closing Date, the Company shall
      immediately appoint a new transfer agent and shall require that the new transfer
      agent execute and agree to be bound by the terms of the Irrevocable Transfer
      Agent Instructions (as defined herein).

     

    (k)  Restriction
      on Issuance of the Capital Stock.
      Except
      for the shares of Common Stock issuable upon conversion of the secured
      convertible debenture dated November 3, 2005 and the shares of Common Stock
      issuable upon exercise of the Warrant dated November 3, 2005, the convertible
      debentures issued pursuant to the Securities Purchase Agreement dated June
      17,
      2005 and the shares of Common Stock issuable upon exercise of the Warrant dated
      June 17, 2005 and the shares of Common Stock issuable upon conversion of the
      convertible debentures issued pursuant to the Securities Purchase Agreement
      dated September 30, 2004, or any Common Stock issuable to the Buyer, so long
      as
      any Convertible Debentures are outstanding, the Company shall not, without
      the
      prior written consent of the Buyer(s), (i) issue or sell shares of Common Stock
      or Preferred Stock without consideration or for a consideration per share less
      than the bid price of the Common Stock, as quoted by Bloomberg, LP (the
“Bid
      Price”)
      determined immediately prior to its issuance, (ii) issue any warrant, option,
      right, contract, call, or other security instrument granting the holder thereof,
      the right to acquire Common Stock without consideration or for a consideration
      less than such Common Stock’s Bid Price value determined immediately prior to
      it’s issuance, (iii) enter into any security instrument granting the holder a
      security interest in any and all assets of the Company, or (iv) file any
      registration statement on Form S-8.

     

    (l)  Neither
      the Buyer(s) nor any of its affiliates have an open short position in the Common
      Stock of the Company, and the Buyer(s) agrees that it shall not, and that it
      will cause its affiliates not to, engage in any short sales of or hedging
      transactions with respect to the Common Stock as long as any Convertible
      Debenture or warrants to purchase the Warrant Shares shall remain outstanding.
      

     

    (m)  Rights
      of First Refusal.
      So
      long
      as any portion of Convertible Debentures are outstanding, if the Company intends
      to raise additional capital by the issuance or sale of capital stock of the
      Company, including without limitation shares of any class of common stock,
      any
      class of preferred stock, options, warrants or any other securities convertible
      or exercisable into shares of common stock (whether the offering is conducted
      by
      the Company, underwriter, placement agent or any third party) the Company shall
      be obligated to offer to the Buyers such issuance or sale of capital stock,
      by
      providing in writing the principal amount of capital it intends to raise and
      outline of the material terms of such capital raise, prior to the offering
      such
      issuance or sale of capital stock  to any third parties including, but not
      limited to, current or former officers or directors, current or former
      shareholders and/or investors of the obligor, underwriters, brokers, agents
      or
      other third parties.  The Buyers shall have ten (10) business days from
      receipt of such notice of the sale or issuance of capital stock to accept or
      reject all or a portion of such capital raising offer.

     

    
      
        
        

      

      
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    5.  TRANSFER
      AGENT INSTRUCTIONS.

     

    (a)  The
      Company shall issue the Irrevocable Transfer Agent Instructions to its transfer
      agent irrevocably appointing David Gonzalez, Esq. as the Company’s agent for
      purpose of having certificates issued, registered in the name of the Buyer(s)
      or
      its respective nominee(s), for the Conversion Shares representing such amounts
      of Convertible Debentures as specified from time to time by the Buyer(s) to
      the
      Company upon conversion of the Convertible Debentures, for interest owed
      pursuant to the Convertible Debenture, and for any and all Liquidated Damages
      (as this term is defined in the Investor Registration Rights Agreement). David
      Gonzalez, Esq. shall be paid a cash fee of Fifty Dollars ($50) for every
      occasion they act pursuant to the Irrevocable Transfer Agent Instructions.
      The
      Company shall not change its transfer agent without the express written consent
      of the Buyer(s), which may be withheld by the Buyer(s) in its sole discretion.
      Prior to registration of the Conversion Shares under the Securities Act, all
      such certificates shall bear the restrictive legend specified in Section 2(g)
      of
      this Agreement. The Company warrants that no instruction other than the
      Irrevocable Transfer Agent Instructions referred to in this Section 5, and
      stop
      transfer instructions to give effect to Section 2(g) hereof (in the case of
      the
      Conversion Shares prior to registration of such shares under the Securities
      Act)
      will be given by the Company to its transfer agent and that the Conversion
      Shares shall otherwise be freely transferable on the books and records of the
      Company as and to the extent provided in this Agreement and the Investor
      Registration Rights Agreement. Nothing in this Section 5 shall affect in any
      way
      the Buyer’s obligations and agreement to comply with all applicable securities
      laws upon resale of Conversion Shares. If the Buyer(s) provides the Company
      with
      an opinion of counsel, in form, scope and substance customary for opinions
      of
      counsel in comparable transactions to the effect that registration of a resale
      by the Buyer(s) of any of the Conversion Shares is not required under the
      Securities Act, the Company shall within two (2) business days instruct its
      transfer agent to issue one or more certificates in such name and in such
      denominations as specified by the Buyer. The Company acknowledges that a breach
      by it of its obligations hereunder will cause irreparable harm to the Buyer
      by
      vitiating the intent and purpose of the transaction contemplated hereby.
      Accordingly, the Company acknowledges that the remedy at law for a breach of
      its
      obligations under this Section 5 will be inadequate and agrees, in the event
      of
      a breach or threatened breach by the Company of the provisions of this
      Section 5, that the Buyer(s) shall be entitled, in addition to all other
      available remedies, to an 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.

     

    6.  CONDITIONS
      TO THE COMPANY’S OBLIGATION TO SELL.

     

    The
      obligation of the Company hereunder to issue and sell the Convertible Debentures
      to the Buyer(s) at the Closings is subject to the satisfaction, at or before
      the
      Closing Dates, of each of the following conditions, provided that these
      conditions are for the Company’s sole benefit and may be waived by the Company
      at any time in its sole discretion:

     

    (a)  Each
      Buyer shall have executed the Transaction Documents and delivered them to the
      Company.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    (b)  The
      Buyer(s) shall have delivered to the Company the Purchase Price for Convertible
      Debentures in respective amounts as set forth next to each Buyer as outlined
      on
      Schedule I attached hereto, minus any fees to be paid directly from the proceeds
      of the Closings as set forth herein, by wire transfer of immediately available
      U.S. funds pursuant to the wire instructions provided by the
      Company.

     

    (c)  The
      representations and warranties of the Buyer(s) shall be true and correct in
      all
      material respects as of the date when made and as of the Closing Dates as though
      made at that time (except for representations and warranties that speak as
      of a
      specific date), and the Buyer(s) 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 the Buyer(s)
      at or
      prior to the Closing Dates. 

     

    7.  CONDITIONS
      TO THE BUYER’S OBLIGATION TO PURCHASE.

     

    (a)  The
      obligation of the Buyer(s) hereunder to Purchase the Convertible Debentures
      at
      the First Closing is subject to the satisfaction, at or before the First Closing
      Date, of each of the following conditions:

     

    (i)  The
      Company shall have executed the Transaction Documents and delivered the same
      to
      the Buyer(s).

     

    (ii)  The
      Common Stock shall be authorized for quotation on the OTCBB, trading in the
      Common Stock shall not have been suspended for any reason, and all the
      Conversion Shares issuable upon the conversion of the Convertible Debentures
      shall be approved by the OTCBB. 

     

    (iii)  The
      representations and warranties of the Company shall be true and correct in
      all
      material respects (except to the extent that any of such representations and
      warranties is already qualified as to materiality in Section 3 above, in which
      case, such representations and warranties shall be true and correct without
      further qualification) as of the date when made and as of the First Closing
      Date
      as though made at that time (except for representations and warranties that
      speak as of a specific date) and the Company 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 the
      Company at or prior to the First Closing Date. If requested by the Buyer, the
      Buyer shall have received a certificate, executed by the President of the
      Company, dated as of the First Closing Date, to the foregoing effect and as
      to
      such other matters as may be reasonably requested by the Buyer including,
      without limitation an update as of the First Closing Date regarding the
      representation contained in Section 3(c) above.

     

    (iv)  The
      Company shall have executed and delivered to the Buyer(s) the Convertible
      Debentures in the respective amounts set forth opposite each Buyer(s) name
      on
      Schedule I attached hereto.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    (v)  The
      Buyer(s) shall have received an opinion of counsel from Kirkpatrick &
Lockhart Nicholson Graham, LLP in a form satisfactory to the
      Buyer(s).

     

    (vi)  The
      Company shall have provided to the Buyer(s) a certificate of good standing
      from
      the secretary of state from the state in which the company is
      incorporated.

     

    (vii)  The
      Company shall have provided to the Buyer an acknowledgement, to the satisfaction
      of the Buyer, from the Company’s independent certified public accountants as to
      its ability to provide all consents required in order to file a registration
      statement in connection with this transaction.

     

    (viii)  The
      Company shall have reserved out of its authorized and unissued Common Stock,
      solely for the purpose of effecting the conversion of the Convertible
      Debentures, shares of Common Stock to effect the conversion of all of the
      Conversion Shares then outstanding. 

     

    (ix)  The
      Irrevocable Transfer Agent Instructions, in form and substance satisfactory
      to
      the Buyer, shall have been delivered to and acknowledged in writing by the
      Company’s transfer agent.

     

    (x)  The
      Company shall have obtained the approval of its board of directors and a
      majority of its outstanding shares of capital stock (voting as separate classes,
      if required by applicable law) to approve and ratify this
      transaction.

     

    (xi)  The
      Company shall have issued to the Buyer the Commitment Shares.

     

    (b)  The
      obligation of the Buyer(s) hereunder to accept the Convertible Debentures at
      the
      Second Closing is subject to the satisfaction, at or before the Second Closing
      Date, of each of the following conditions:

     

    (i)  The
      Common Stock shall be authorized for quotation on the OTCBB, trading in the
      Common Stock shall not have been suspended for any reason, and all the
      Conversion Shares issuable upon the conversion of the Convertible Debentures
      shall be approved by the OTCBB. 

     

    (ii)  The
      representations and warranties of the Company shall be true and correct in
      all
      material respects (except to the extent that any of such representations and
      warranties is already qualified as to materiality in Section 3 above, in which
      case, such representations and warranties shall be true and correct without
      further qualification) as of the date when made and as of the Second Closing
      Date as though made at that time (except for representations and warranties
      that
      speak as of a specific date) and the Company 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 the
      Company at or prior to the Second Closing Date. If requested by the Buyer,
      the
      Buyer shall have received a certificate, executed by two officers of the
      Company, dated as of the Second Closing Date, to the foregoing effect and as
      to
      such other matters as may be reasonably requested by the Buyer including,
      without limitation an update as of the Second Closing Date regarding the
      representation contained in Section 3(c) above.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    (iii)  The
      Company shall have executed and delivered to the Buyer(s) the Convertible
      Debentures in the respective amounts set forth opposite each Buyer(s) name
      on
      Schedule I attached hereto.

     

    (iv)  The
      Company shall have increased its number of authorized shares of Common Stock
      to
      a number satisfactory to the Buyer. 

     

    (v)  No
      default or event of default shall have occurred under any Transaction
      Document.

     

    (c)  The
      obligation of the Buyer(s) hereunder to accept the Convertible Debentures at
      the
      Third Closing is subject to the satisfaction, at or before the Third Closing
      Date, of each of the following conditions:

     

    (i)  The
      Company shall have delivered to the Buyer the Commitment Shares as set forth
      in
      Section 4 herein. 

     

    (ii)  The
      Common Stock shall be authorized for quotation on the OTCBB, trading in the
      Common Stock shall not have been suspended for any reason, and all the
      Conversion Shares issuable upon the conversion of the Convertible Debentures
      shall be approved by the OTCBB. 

     

    (iii)  The
      representations and warranties of the Company shall be true and correct in
      all
      material respects (except to the extent that any of such representations and
      warranties is already qualified as to materiality in Section 3 above, in which
      case, such representations and warranties shall be true and correct without
      further qualification) as of the date when made and as of the Third Closing
      Date
      as though made at that time (except for representations and warranties that
      speak as of a specific date) and the Company 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 the
      Company at or prior to the Third Closing Date. If requested by the Buyer, the
      Buyer shall have received a certificate, executed by two officers of the
      Company, dated as of the Third Closing Date, to the foregoing effect and as
      to
      such other matters as may be reasonably requested by the Buyer including,
      without limitation an update as of the Third Closing Date regarding the
      representation contained in Section 3(c) above.

     

    (iv)  The
      Company shall have executed and delivered to the Buyer(s) the Note in the
      respective amounts set forth opposite each Buyer(s) name on Schedule I attached
      hereto.

     

    (v)  The
      Company shall have certified that all conditions to the Third Closing have
      been
      satisfied and that the Company will file the Registration Statement with the
      SEC
      in compliance with the rules and regulations promulgated by the SEC for filing
      thereof two (2) business days after the Third Closing. If requested by the
      Buyer, the Buyer shall have received a certificate, executed by the two officers
      of the Company, dated as of the Third Closing Date, to the foregoing effect.
      The
      Buyers have no obligation to fund at the Third Closing if the Company has filed
      the Registration Statement.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    (vi)  No
      default or event of default shall have occurred under any Transaction
      Document.

     

    8.  INDEMNIFICATION.

     

    (a)  In
      consideration of the Buyer’s execution and delivery of this Agreement and
      acquiring the Convertible Debentures and the Conversion Shares hereunder, and
      in
      addition to all of the Company’s other obligations under this Agreement, the
      Company shall defend, protect, indemnify and hold harmless the Buyer(s) and
      each
      other holder of the Convertible Debentures and the Conversion Shares, and all
      of
      their officers, directors, employees and agents (including, without
      limitation, those retained in connection with the transactions contemplated
      by
      this Agreement) (collectively, the “Buyer
      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 Buyer 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 the Buyer Indemnitees or any of them 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 this Agreement, the Convertible Debentures
      or
      the Investor Registration Rights Agreement 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 this Agreement, or the
      Investor Registration Rights Agreement 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 and arising out of or resulting
      from the execution, delivery, performance or enforcement of this Agreement
      or
      any other instrument, document or agreement executed pursuant hereto by any
      of
      the parties hereto, any transaction financed or to be financed in whole or
      in
      part, directly or indirectly, with the proceeds of the issuance of the
      Convertible Debentures or the status of the Buyer or holder of the Convertible
      Debentures the Conversion Shares, as a Buyer of Convertible Debentures in the
      Company. 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.

     

    (b)  In
      consideration of the Company’s execution and delivery of this Agreement, and in
      addition to all of the Buyer’s other obligations under this Agreement, the Buyer
      shall defend, protect, indemnify and hold harmless the Company and all of its
      officers, directors, employees and agents (including, without limitation, those
      retained in connection with the transactions contemplated by this Agreement)
      (collectively, the “Company
      Indemnitees”)
      from
      and against any and all Indemnified Liabilities incurred by the Indemnitees
      or
      any of them as a result of, or arising out of, or relating to (a) any
      misrepresentation or breach of any representation or warranty made by the
      Buyer(s) in this Agreement, instrument or document contemplated hereby or
      thereby executed by the Buyer, (b) any breach of any covenant, agreement or
      obligation of the Buyer(s) contained in this Agreement, the Investor
      Registration Rights Agreement or any other certificate, instrument or document
      contemplated hereby or thereby executed by the Buyer, or (c) any cause of
      action, suit or claim brought or made against such Company Indemnitee based
      on
      material misrepresentations or due to a material breach and arising out of
      or
      resulting from the execution, delivery, performance or enforcement of this
      Agreement, the Investor Registration Rights Agreement or any other instrument,
      document or agreement executed pursuant hereto by any of the parties hereto.
      To
      the extent that the foregoing undertaking by each Buyer may be unenforceable
      for
      any reason, each Buyer shall make the maximum contribution to the payment and
      satisfaction of each of the Indemnified Liabilities, which is permissible under
      applicable law.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    9.  GOVERNING
      LAW: MISCELLANEOUS.

     

    (a)  Governing
      Law.
      This
      Agreement shall be governed by and interpreted in accordance with the laws
      of
      the State of New Jersey without regard to the principles of conflict of laws.
      The parties further agree that any action between them shall be heard in Hudson
      County, New Jersey, and expressly consent to the jurisdiction and venue of
      the
      Superior Court of New Jersey, sitting in Hudson County and the United States
      District Court for the District of New Jersey sitting in Newark, New Jersey
      for
      the adjudication of any civil action asserted pursuant to this
      Paragraph.

     

    (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.
      In
      the event any signature page is delivered by facsimile transmission, the party
      using such means of delivery shall cause four (4) additional original executed
      signature pages to be physically delivered to the other party within five (5)
      days of the execution and delivery hereof.

     

    (c)  Headings.
      The
      headings of this Agreement are for convenience of reference 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
      Buyer(s), the Company, their affiliates and persons acting on their behalf
      with
      respect to the matters discussed herein, and this Agreement and the instruments
      referenced herein contain the entire understanding of the parties with respect
      to the matters covered herein and therein and, except as specifically set forth
      herein or therein, neither the Company nor any Buyer makes any representation,
      warranty, covenant or undertaking with respect to such matters. No provision
      of
      this Agreement may be waived or amended other than by an instrument in writing
      signed by the party to be charged with enforcement.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    (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; (ii) upon
      confirmation of receipt, when sent by facsimile; (iii) three (3) days after
      being sent by U.S. certified mail, return receipt requested, or (iv) one (1)
      day
      after deposit with a nationally recognized overnight delivery service, in each
      case properly addressed to the party to receive the same. The addresses and
      facsimile numbers for such communications shall be:

     

    
      	
              If
                to the Company, to:

            	
              BSI2000,
                INC.

            
	 	
              12600
                West Colfax Avenue, B410

            
	 	
              Lakewood,
                CO 80215

            
	 	
              Attention: Jack
                Harper, CEO

            
	 	
              Telephone: (303)
                231-9095

            
	 	
              Facsimile: (303)
                231-9002

            
	 	 
	
              With
                a copy to:

            	
              Kirkpatrick
                & Lockhart Nicholson Graham, LLP

            
	 	
              201
                South Biscayne Boulevard, Suite 2000

            
	 	
              Miami,
                Florida 33131

            
	 	
              Attention: Clayton
                E. Parker, Esq.

            
	 	
              Telephone: (305)
                539-3306

            
	 	
              Facsimile: (305)
                328-7095

            
	 	 

    

    If
      to the
      Buyer(s), to its address and facsimile number on Schedule I, with copies to
      the
      Buyer’s counsel as set forth on Schedule I. Each party shall provide five (5)
      days’ prior written notice to the other party of any change in address or
      facsimile number.

     

    (g)  Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their respective successors and assigns. Neither the Company nor any Buyer
      shall
      assign this Agreement or any rights or obligations hereunder without the prior
      written consent of the other party hereto.

     

    (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.

     

    (i)  Survival.
      Unless
      this Agreement is terminated under Section 9(l), the representations and
      warranties of the Company and the Buyer(s) contained in Sections 2 and 3, the
      agreements and covenants set forth in Sections 4, 5 and 9, and the
      indemnification provisions set forth in Section 8, shall survive the Closing
      for
      a period of two (2) years following the date on which the Convertible Debentures
      are converted in full. The Buyer(s) shall be responsible only for its own
      representations, warranties, agreements and covenants hereunder.

     

    (j)  Publicity.
      The
      Company and the Buyer(s) shall have the right to approve, before issuance any
      press release or any other public statement with respect to the transactions
      contemplated hereby made by any party; provided, however, that the Company
      shall
      be entitled, without the prior approval of the Buyer(s), to issue any press
      release or other public disclosure with respect to such transactions required
      under applicable securities or other laws or regulations (the Company shall
      use
      its best efforts to consult the Buyer(s) in connection with any such press
      release or other public disclosure prior to its release and Buyer(s) shall
      be
      provided with a copy thereof upon release thereof).

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    (k)  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 the 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.

     

    (l)  Termination.
      In the
      event that the Closing shall not have occurred with respect to the Buyers on
      or
      before five (5) business days from the date hereof due to the Company’s or the
      Buyer’s failure to satisfy the conditions set forth in Sections 6 and 7 above
      (and the non-breaching party’s failure to waive such unsatisfied condition(s)),
      the non-breaching party shall have the option to terminate this Agreement with
      respect to such breaching party at the close of business on such date without
      liability of any party to any other party; provided, however, that if this
      Agreement is terminated by the Company pursuant to this Section 9(l), the
      Company shall remain obligated to reimburse the Buyer(s) for the fees and
      expenses of Yorkville Advisors Management, LLC described in Section 4(g)
      above.

     

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

     

    

    [SIGNATURE
      PAGE FOLLOWS; REMAINDER OF PAGE INTENTIONALLY BLANK]

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Buyers and the Company have caused this Securities Purchase Agreement to be
      duly
      executed as of the date first written above.

     

    
      	 	 	 
	 	
              COMPANY:  

            
	 	
              BSI2000,
                INC. 

            
	 
 	 
 	 
 
	
            	By:  	 
	 	
              
Name:
              Jack Harper
	 	Title:
              President & CEO

    

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

    FORM
      OF INVESTOR REGISTRATION RIGHTS AGREEMENT

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      B

     

    SECURITY
      AGREEMENT

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
      C

    

    IRREVOCABLE
      TRANSFER AGENT INSTRUCTIONS

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SCHEDULE
      I

     

     

    SCHEDULE
      OF BUYERS 

     

    

    
      	
              Name

            	 	 	
              Signature

            	 	
              Address/Facsimile
                

              Number
                of Buyer

            	 	
              Amount
                of Subscription

            
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	
              Cornell
                Capital Partners, LP

            	 	By:	
              Yorkville
                Advisors, LLC

            	 	
              101
                Hudson Street - Suite 3700

            	 	
              $1,000,000

            
	 	 	Its:	
              General
                Partner

            	 	
              Jersey
                City, NJ 07303

            	 	 
	 	 	 	 	 	
              Facsimile: (201)
                985-8266

            	 	 
	 	 	 	 	 	 	 	 
	 	 	By:	
                 

            	 	 	 	 
	 	 	Name:	
              Mark
                Angelo 

            	 	 	 	 
	 	 	Its:	
              Portfolio
                Manager

            	 	 	 	 
	 	 	 	 	 	 	 	 
	
              With
                a copy to: 

            	 	 David
              Gonzalez, Esq.	 	
              101
                Hudson Street - Suite 3700

            	 	 
	 	 	 	 	 	
              Jersey
                City, NJ 07302

            	 	 
	 	 	 	 	 	
              Facsimile:
                (201) 985-8266

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