Document:

Form of senior debt security -- medium-term note

 Exhibit 4.01 
 LEHMAN BROTHERS HOLDINGS INC. 
 19.75% Reverse Exchangeable Notes Linked to the Least Performing Common Stock in a Basket of
Common Stocks due February 19, 2009 
  

			
	Number R-1	  	$1,000,000
	ISIN US5249086V71	  	CUSIP 5249086V7

 See Reverse for Certain Definitions 
 THIS SECURITY (THIS “SECURITY”) IS A GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN
THE NAME OF A DEPOSITORY OR A NOMINEE THEREOF. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR SECURITIES IN CERTIFICATED FORM, THIS SECURITY MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A
NOMINEE OF THE DEPOSITORY TO SUCH DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY. UNLESS THIS SECURITY IS PRESENTED BY AN AUTHORIZED
REPRESENTATIVE OF THE DEPOSITORY TO LEHMAN BROTHERS HOLDINGS INC. OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY SECURITY ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 LEHMAN BROTHERS
HOLDINGS INC., a corporation duly organized and existing under the laws of the State of Delaware (hereinafter called the “Company”), for value received, hereby promises to pay to CEDE & CO. or registered assigns, at the
office or agency of the Company in the Borough of Manhattan, The City of New York, on the Maturity Date, in such coin or currency of the United States of America at the time of payment shall be legal tender for the payment of public and private
debts, for each $1,000 principal amount of the Securities represented hereby, an amount equal to the Payment at Maturity and to make coupon payments on the principal amount hereof, as provided below under “Coupon Payments.” 
 Any amount payable on the Maturity Date hereon will be paid only upon presentation and surrender of this Security. 
 REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS SECURITY SET FORTH ON THE REVERSE HEREOF WHICH FURTHER PROVISIONS SHALL FOR ALL PURPOSES HAVE
THE SAME EFFECT AS IF SET FORTH AT THIS PLACE. 

 IN WITNESS WHEREOF, Lehman Brothers Holdings Inc. has caused this instrument to be signed by its
Chairman of the Board, its President, its Vice Chairman, its Chief Financial Officer, one of its Vice Presidents or its Treasurer, by manual or facsimile signature under its corporate seal, attested by its Secretary or one of its Assistant
Secretaries by manual or facsimile signature. 
  

							
	Dated: February 19, 2008	 	LEHMAN BROTHERS HOLDINGS INC.	 	
				
	[SEAL]	 	By:	 	  
	 	
		 		 	Vice President	 	
				
		 	Attest:	 	  
	 	
		 		 	Assistant Secretary	 	

  
 TRUSTEE’S CERTIFICATE OF
AUTHENTICATION 
 This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 
  

			
	 CITIBANK, N.A.
     as
Trustee

		
	By:	 	  

		 	    Authorized Officer

  

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 Reverse of Security 
 This Security is one of a duly authorized series of Securities of the Company designated as 19.75% Reverse Exchangeable Notes Linked to the Least Performing Common Stock in a Basket of Common Stocks Due
February 19, 2009 (herein called the “Securities”). The Company may, without the consent of the holders of the Securities, create and issue additional securities ranking equally with the Securities and otherwise similar in all
respects so that such additional securities shall be consolidated and form a single series with the Securities; provided that no additional securities can be issued if an Event of Default has occurred with respect to the Securities. This series of
Securities is one of an indefinite number of series of debt securities of the Company, issued and to be issued under an indenture, dated as of September 1, 1987, as amended (herein called the “Indenture”), duly executed and
delivered by the Company and Citibank N.A., as trustee (herein called the “Trustee”, which term includes any successor trustee under the Indenture), to which Indenture and all indentures supplemental thereto reference is hereby made
for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Company, the Trustee and the Holders of the Securities. 
 The Payment at Maturity and the amount to be paid on each Coupon Payment Date, at the request of the Trustee, shall be determined by the Calculation Agent pursuant to the Calculation Agency Agreement. The Trustee
shall fully rely on the determination by the Calculation Agent of the Payment at Maturity and the amount to be paid on each Coupon Payment Date and shall have no duty to make any such determination. The Calculation Agent will provide written notice
to the Trustee at its New York office, on which notice the Trustee may conclusively rely, of the Payment at Maturity and the amount to be paid on each Coupon Payment Date on or prior to 11:00 a.m. on the Business Day preceding the Maturity Date and
each Coupon Payment Date. 
 All calculations with respect to the Initial Share Prices, the Prices or Closing Prices, as applicable, of the
Reference Stocks during the Monitoring Period, the Final Share Prices and the Payment at Maturity will be rounded to the nearest ten-thousandth, with five one hundred-thousandths rounded upward (e.g., .76545 would be rounded up to .7655); and
all dollar amounts paid on the aggregate principal amount of Securities per Holder will be rounded to the nearest cent, with one-half cent rounded upward. 
 This Security is not subject to any sinking fund. 
 If an Event of Default with respect to the Securities
shall occur and be continuing, the amounts payable on all of the Securities may be declared due and payable in the manner and with the effect provided in the Indenture. The amount payable to the Holder hereof upon any acceleration permitted under
the Indenture will be equal to the Payment at Maturity calculated as though the date of acceleration were the Maturity Date, and the third Business Day immediately preceding the date of acceleration were the Observation Date, plus, if applicable,
any accrued and unpaid coupon payments on the Securities. Upon any acceleration of the Securities, any coupon payment will be calculated on the basis of a 360-day year of twelve 30-day months and the actual number of days elapsed from and including
the previous Coupon Payment Date for which a coupon payment was made. If the maturity of the Securities is accelerated because of an Event of Default, the Company shall, or shall cause the Calculation Agent to, provide written notice to the Trustee
at its New York office, on which notice the Trustee may conclusively rely, and to The Depository Trust Company of the cash amount due with respect to the Securities as promptly as possible and in no event later than two Business Days after the date
of acceleration. 

 The Indenture contains provisions permitting the Company and the Trustee, with the consent of the
holders of not less than 66 2/3% in aggregate principal amount of each series of Securities at the time Outstanding to be
affected (each series voting as a class), evidenced as in the Indenture provided, to execute supplemental indentures adding any provisions to, or changing in any manner or eliminating any of the provisions of the Indenture or of any supplemental
indenture or modifying in any manner the rights of the holders of the Securities of all such series; provided, however, that no such supplemental indenture shall, among other things, (i) change the fixed maturity of any
Security, or reduce the principal amount thereof, or reduce the rate or extend the time of payment of interest thereon, if any, or reduce any premium payable on redemption, or make the principal thereof, or premium, if any, or interest thereon, if
any, payable in any coin or currency other than that hereinabove provided, without the consent of the holder of each Security so affected, or (ii) change the place of payment on any Security, or impair the right to institute suit for payment on
any Security, or reduce the aforesaid percentage of Securities, the holders of which are required to consent to any such supplemental indenture, without the consent of the holders of each Security so affected. It is also provided in the Indenture
that, prior to any declaration accelerating the maturity of any series of Securities, the holders of a majority in aggregate principal amount of the Securities of such series Outstanding may on behalf of the holders of all the Securities of such
series waive any past default or Event of Default under the Indenture with respect to such series and its consequences, except a default in the payment of interest, if any, or the principal of, or premium, if any, on any of the Securities of such
series, or in the payment of any sinking fund installment or analogous obligation with respect to Securities of such series. Any such consent or waiver by the Holder of this Security shall be conclusive and binding upon such Holder and upon all
future holders and owners of this Security and any Securities which may be issued in exchange or substitution hereof, irrespective of whether or not any notation thereof is made upon this Security or such other Securities. 
 No reference herein to the Indenture and no provision of this Security or of the Indenture shall alter or impair the obligation of the Company, which is
absolute and unconditional, to pay the Payment at Maturity and coupon payments with respect to this Security. 
 The Securities are issuable
in denominations of $1,000 and any whole multiples of $1,000. 
 The Company, the Trustee, and any agent of the Company or of the Trustee
may deem and treat the registered holder (the “Holder”) hereof as the absolute owner of this Security (whether or not this Security shall be overdue and notwithstanding any notation of ownership or other writing hereon), for the
purpose of receiving payment hereof, or on account hereof, and for all other purposes and neither the Company nor the Trustee nor any agent of the Company or of the Trustee shall be affected by any notice to the contrary. All such payments made to
or upon the order of such registered holder shall, to the extent of the sum or sums paid, effectually satisfy and discharge liability for moneys payable on this Security. 
 No recourse for the payment of the principal of, premium, if any, or interest on this Security, or for any claim based hereon or otherwise in respect
hereof, and no recourse under or upon any obligation, covenant or agreement of the Company in the Indenture or any indenture supplemental thereto or in any Security, or because of the creation of any indebtedness represented thereby, shall be had
against any incorporator, stockholder, officer or director, as such, past, present or future, of the Company or of any successor corporation, either directly or through the Company or any successor corporation, whether by virtue of any constitution,
statute or rule of law 

  

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or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the
issue hereof, expressly waived and released. 
 As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registrable in the Security Register, upon surrender of this Security for registration of transfer at the Corporate Trust Office or agency in a Place of Payment for this Security, duly endorsed by, or accompanied by a
written instrument of transfer in form satisfactory to the Company and the Security Registrar duly executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon one or more new Securities of this series or
of like tenor and of authorized denominations and for the same aggregate principal amount, will be issued to the designated transferee or transferees. 
 The Company intends to treat, and by purchasing this Security, the Holder agrees to treat, for all tax purposes, this Security as a financial contract, rather than as a debt instrument. 
 THE INDENTURE AND THIS SECURITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 
 Definitions 
 Set forth below are definitions of the
terms used in this Security. 
 “Basket” shall mean the basket initially composed of the common stocks of Intel Corporation
(Nasdaq: INTC), The Walt Disney Company (NYSE: DIS) and General Electric Company (NYSE: GE) (each, a “Reference Stock” and, collectively, the “Reference Stocks”). Any Reference Stock issuer may be changed in certain
circumstances, as described below under “Anti-dilution Adjustments—Reorganization Events.” 
 “Business
Day”, notwithstanding any provision in the Indenture, shall mean any day that is not a Saturday or Sunday and that is not a day on which banking institutions in the City of New York are authorized or obligated by law to close. 

“Calculation Agency Agreement” shall mean the Calculation Agency Agreement, dated as of December 21, 2006 between the Company
and the Calculation Agent, as amended from time to time, or any successor calculation agency agreement. 
 “Calculation
Agent” shall mean the person that has entered into an agreement with the Company providing for, among other things, the determination of the Payment at Maturity, which term shall, unless the context otherwise requires, include its
successors and assigns. The initial Calculation Agent shall be Lehman Brothers Inc. 
 “Cash Value” shall mean the amount
in cash equal to the product of (1) $1,000 divided by the Initial Share Price of the Least Performing Reference Stock and (2) the Final Share Price of the Least Performing Reference Stock. 
 “Closing Price” of one share of each Reference Stock (or one unit of any other security for which a Closing Price must be determined)
on any Trading Day means: 
  

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	 	•	 	 if such Reference Stock (or any such other security) is listed or admitted to trading on a national securities exchange, the last reported sale price, regular way,
of the principal trading session on such day on the principal United States securities exchange registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), on which such Reference Stock (or any such other
security) is listed or admitted to trading, 

  

	 	•	 	 if such Reference Stock (or any such other security) is listed or admitted to trading on any national securities exchange but the last reported sale price is not
available pursuant to the preceding bullet point, the last reported sale price of the principal trading session on the over-the-counter market as reported on the OTC Bulletin Board Service (the “OTC Bulletin Board”) operated by the
Financial Industry Regulatory Authority, Inc. on such day; 

  

	 	•	 	 if such Reference Stock (or any such other security) is not listed or admitted to trading on any national securities exchange but is included in the OTC Bulletin
Board, the last reported sale price of the principal trading session on the OTC Bulletin Board on such day; or 

  

	 	•	 	 if, because of a Market Disruption Event or otherwise, the last reported sale price for the Reference Stock (or any such other security) is not available for such
day pursuant to the preceding bullet points, then (i) if such Market Disruption Event has occurred on a day other than an Observation Date, the calculation agent’s good faith estimate of the price of the Reference Stock (or such other
security) as of the close of trading on such trading day, in its sole discretion, and (ii) if such Market Disruption Event has occurred with respect to the Reference Stock on any originally scheduled Observation Date, the price determined
pursuant to the last proviso in the definition of “Observation Date.” 

 The term OTC Bulletin Board will include any successor
service thereto. 
 “Company” shall have the meaning set forth on the face of this Security. 
 “Coupon Payment Date” shall mean the 19th day of each month, commencing on March 19, 2008 to, and including, the Maturity Date. If
any Coupon Payment Date falls on a day that is not a Business Day, then any payment required to be made on such Coupon Payment Date will instead be made on the next succeeding Business Day following such scheduled Coupon Payment Date, unless that
day falls in the next calendar month, in which case the Coupon Payment Date will be the first preceding day that is a Business Day; provided, however, that the final coupon payment will be made with the Payment at Maturity. 
 “Coupon Period” is the period beginning on, and including, the issue date of the Securities and ending on, but excluding, the first
Coupon Payment Date, and each successive period beginning on, and including, a Coupon Payment Date and ending on, but excluding, the next succeeding Coupon Payment Date. 
 “Coupon Rate” shall mean 19.75% per annum. 
 “Final Share Price” for
each Reference Stock shall equal the Closing Price of the Reference Stock on the Observation Date. 
  

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 “Holder” shall have the meaning set forth on the reverse of this Security. 

“Indenture” shall have the meaning set forth on the reverse of this Security. 
 “Initial Share Price” for each Reference Stock shall equal the Closing Price of such Reference Stock on the Pricing Date, divided by
the Stock Adjustment Factor for such Reference Stock. The Initial Share Price of each Reference Stock shall initially be as follows: 
  

				
	 Reference Stock
	  	Initial Share Price
	 Intel Corporation
	  	$	21.21
	 The Walt Disney Company
	  	$	32.78
	 General Electric Company
	  	$	34.98

 “Least Performing Reference Stock” shall mean the Reference Stock with the
lowest value of all the Reference Stocks included in the Basket, with value calculated as the product of (i) $1,000 divided by the Initial Share Price for such Reference Stock times (ii) the Final Share Price for such Reference Stock.

 “Market Disruption Event” means, with respect to each Reference Stock (or any other security for which a Closing Price
must be determined): 
 (1)    the occurrence or existence of a suspension, absence or material limitation of trading of
such Reference Stock (or such security) on the primary market for such Reference Stock (or such security) at any time during the one hour period preceding the close of the principal trading session in such market; 
 (2)    a breakdown or failure in the price and trade reporting systems of the primary market for such Reference Stock (or such
security) as a result of which the reported trading prices for such Reference Stock (or such security) during the last one hour period preceding the close of the principal trading session in such market are materially inaccurate; 
 (3)    the occurrence or existence of a suspension, absence or material limitation of trading on the primary market for trading in
futures or options contracts related to such Reference Stock (or such security), if available, at any time during the last one hour period preceding the close of the principal trading session in the applicable market; or 
 (4)    a decision to permanently discontinue trading in the relevant futures or options contracts, 
 in each case as determined by the Calculation Agent in its sole discretion. 
 For the purpose of determining whether a Market Disruption Event has occurred: 
 (1)    a limitation on the hours or number of days of trading will not constitute a Market Disruption Event if it results from an announced change in the regular business hours of the Relevant Exchange or market for such
Reference Stock, 
 (2)    limitations pursuant to the rules of any Relevant Exchange similar to NYSE Rule 80B (or any
applicable rule or regulation enacted or promulgated by the NYSE, any other U.S. self-regulatory organization, the Securities Exchange Commission or any other relevant 

  

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authority of scope similar to NYSE Rule 80B as determined by the Calculation Agent in its sole discretion) on trading during significant market fluctuations
will constitute a suspension, absence or material limitation of trading, 
 (3)    a suspension of trading in futures or
options contracts on such Reference Stock (or such security) by the primary securities market trading in such contracts, if available, by reason of: 
  

	 	•	 	 a price change exceeding limits set by such securities exchange or market, 

  

	 	•	 	 an imbalance of orders relating to such contracts, or 

  

	 	•	 	 a disparity in bid and ask quotes relating to such contracts 

 will, in each such case, constitute a suspension, absence or material limitation of trading in futures or options contracts related to such Reference Stock (or such security); and 
 (4)    a “suspension, absence or material limitation of trading” on the primary securities market on which futures or
options contracts related to such Reference Stock (or such other security) are traded will not include any time when such securities market is itself closed for trading under ordinary circumstances. 
 “Maturity Date” shall mean February 19, 2009, unless that day is not a Business Day, in which case the amount equal to the Payment
at Maturity will be made on the next succeeding Business Day following February 19, 2009; provided, that if due to a non-Trading Day or a Market Disruption Event, the Observation Date is postponed so that it falls less than three
Business Days prior to the scheduled Maturity Date, the Maturity Date will be the third Business Day following the Observation Date, as postponed. 
 “Monitoring Period” shall mean the period from, but excluding, the Pricing Date to, and including, the Observation Date. 
 “NYSE” shall mean The New York Stock Exchange, Inc. 
 “Observation Date” shall mean
February 13, 2009, provided, however, that if the Observation Date is not a Trading Day or if there is a Market Disruption Event on such day with respect to a Reference Stock, the Calculation Agent will: (1) with respect to
each Reference Stock for which such day is a Trading Day and for which a Market Disruption Event has not occurred, determine the Final Share Price of the Reference Stock by reference to the Closing Price of the Reference Stock on that
Trading Day; and (2) with respect to each Reference Stock for which such day is not a Trading Day or for which a Market Disruption Event has occurred, determine the Final Share Price of the Reference Stock by reference to the
Closing Price of the Reference Stock on the next Trading Day for the Reference Stock on which there is not a Market Disruption Event; provided, however, if a Market Disruption Event with respect to the Reference Stock occurs on each of the
eight scheduled Trading Days following the originally scheduled Observation Date, then the Calculation Agent shall determine the Final Share Price of the Reference Stock based upon its good faith estimate of the price of the Reference Stock as of
the close of trading on that eighth scheduled Trading Day, in its sole discretion. 
  

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 “Payment at Maturity”, as calculated by the Calculation Agent, for each $1,000
principal amount Security shall equal $1,000 plus any accrued and unpaid coupon payments unless: 
 (i)    the
Final Share Price of any Reference Stock is less than its Initial Share Price; and 
 (ii)    a Trigger Event has
occurred. 
 If the conditions described in (i) and (ii) are both satisfied, the Payment at Maturity shall be, instead of $1,000 for each $1,000
principal amount Security, the number of shares of the Least Performing Reference Stock equal to the Physical Delivery Amount plus any cash that the Company will pay in lieu of fractional shares in an amount equal to the product of the Final Share
Price of the Least Performing Reference Stock multiplied by such fractional amount, plus any accrued and unpaid coupon payments. However, the Company may elect, in lieu of delivering the Physical Delivery Amount, to pay the Cash Value of the
Physical Delivery Amount. 
 The Company may designate any of its affiliates to deliver any shares of the Least Performing Reference Stock
pursuant to the terms of the Securities and the Company shall be discharged of any obligation to deliver such shares of the Least Performing Reference Stock to the extent of such performance by its affiliates. 
 “Physical Delivery Amount” shall mean the number of shares of the Least Performing Reference Stock, per $1,000 principal amount of the
Securities, equal to $1,000 divided by the Initial Share Price of the Least Performing Reference Stock. 
 “Place of
Payment” shall mean the place or places where the Payment at Maturity on the Securities is payable. 
 “Price” of
one share of each Reference Stock (or one unit of any other security for which a Price must be determined) on any Trading Day means: 
  

	 	•	 	 if such Reference Stock (or any such other security) is listed or admitted to trading on a national securities exchange, the highest intraday bid price on such day
on the principal United States securities exchange registered under the Exchange Act, on which such Reference Stock (or any such other security) is listed or admitted to trading; 

  

	 	•	 	 if such Reference Stock (or any such other security) is not listed or admitted to trading on any national securities exchange but is included in the OTC Bulletin
Board, the highest reported bid price reported on the OTC Bulletin Board on such day; or 

  

	 	•	 	 if a bid price is not available pursuant to the preceding bullet points, the Calculation Agent’s good faith estimate of such bid price, in its sole discretion.

 The term OTC Bulletin Board will include any successor service thereto. 
 “Pricing Date” shall mean February 13, 2008. 
  

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 “Reference Stock” shall be as defined under “Basket.” 
 “Relevant Exchange” for each Reference Stock shall mean the primary U.S. exchange or market for trading for such Reference Stock.

 “Securities” shall have the meaning set forth on the reverse of this Security. 
 “Security” shall have the meaning set forth on the face of this Security. 
 “Stock Adjustment Factor” for each Reference Stock shall initially equal 1.0, subject to adjustment under certain circumstances as
described under “Anti-dilution Adjustments” below. 
 “Trading Day” means a day, as determined by the Calculation
Agent, on which trading is generally conducted on the NYSE, the American Stock Exchange (the “AMEX”), the Nasdaq Global Select Market, the Nasdaq Global Market, the Chicago Mercantile Inc., the Chicago Board Options Exchange, Incorporated
and in the over-the-counter market for equity securities in the United States. 
 “Trigger Event” shall occur if, on any
Trading Day during the Monitoring Period, the Closing Price of any Reference Stock is below such Reference Stock’s Trigger Price. 
 “Trigger Price” for each Reference Stock shall equal a dollar amount that represents 80% of the applicable Initial Share Price of such Reference Stock in effect on such Trading Day. The Trigger Price of each Reference Stock
shall initially be as follows: 
  

				
	 Issuer
	  	Trigger Price
	 Intel Corporation
	  	$	16.968
	 The Walt Disney Company
	  	$	26.224
	 General Electric Company
	  	$	27.984

 “Trustee” shall have the meaning set forth on the reverse of this Security.

 All terms used but not defined in this Security are used herein as defined in the Calculation Agency Agreement or the Indenture.

 Calculation Agent 
 The Calculation
Agent will determine, among other things, the Initial Share Price of each Reference Stock, the Trigger Price applicable to each of the Reference Stocks, the Price of each Reference Stock quoted on the applicable Relevant Exchange at any time or the
Closing Price of each Reference Stock on any Trading Day, as applicable, in each case during the Monitoring Period, the Stock Adjustment Factor of each Reference Stock, anti-dilution adjustments and reorganization events, the selection of any
Successor Reference Stock, the Final Share Price of each Reference Stock, the amount of any coupon payment payable on any Coupon Payment Date and the Payment at Maturity, as well as, in determining whether a Trigger Event has occurred, whether and
how much the Price or Closing Price, as applicable, of each Reference Stock during the Monitoring Period and the Final Share Price of each Reference Stock have declined from the relevant Initial Share Price. In addition, the Calculation Agent will
determine whether there has been a Market Disruption Event and whether a day is a Coupon Payment Date. All determinations 

  

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made by the Calculation Agent will be at the sole discretion of the Calculation Agent and will, in the absence of manifest error, be conclusive for all
purposes and binding on Holders and the Company. The Company may appoint a different Calculation Agent from time to time after the date of the original issue of the Securities without the Holders’ consent and without notifying Holders.

 Anti-dilution Adjustments 
 The Stock
Adjustment Factor for each Reference Stock is subject to adjustment by the Calculation Agent as a result of the anti-dilution and reorganization adjustments described in this section. 
 No adjustments to any Stock Adjustment Factor will be required unless such Stock Adjustment Factor adjustment would require a change of at least 0.1% in
such Stock Adjustment Factor then in effect. A Stock Adjustment Factor resulting from any of the adjustments specified in this section will be rounded to the nearest one ten-thousandth with five one hundred-thousandths being rounded upward. The
Calculation Agent will not be required to make any adjustments to the Stock Adjustment Factor for any Reference Stock after the close of business on the Business Day immediately preceding the Maturity Date. 
 No adjustments to the Stock Adjustment Factor for any Reference Stock will be required other than those specified below. 
 The Calculation Agent shall be solely responsible for (1) the determination and calculation of any adjustments to the Stock Adjustment Factors and
of any related determinations and calculations with respect to any distributions of stock, other securities or other property or assets, including cash, in connection with any corporate event described in this section, and (2) the determination
of any Successor Reference Stock, and its determinations and calculations shall be conclusive absent manifest error. 
 The Company will,
within ten Business Days following the occurrence of an event that requires an adjustment to any Stock Adjustment Factor (other than as a result of a Reorganization Event as described below), or if the Company is not aware of this occurrence, as
soon as practicable after becoming so aware, provide notice to the Calculation Agent, which shall provide written notice to the trustee, which shall provide notice to Holders of the occurrence of this event and, if applicable, a statement in
reasonable detail setting forth such adjusted Stock Adjustment Factor. 
 Stock Splits and Reverse Stock Splits 
 If a Reference Stock is subject to a stock split or reverse stock split, then once any split has become effective, the Stock Adjustment Factor relating
to such Reference Stock will be adjusted so that the new Stock Adjustment Factor shall equal the product of: 
  

	 	•	 	 the prior Stock Adjustment Factor for such Reference Stock, and 

  

	 	•	 	 the number of shares which a holder of one share of such Reference Stock before the effective date of that stock split or reverse stock split would have owned or
been entitled to receive immediately following the applicable effective date. 

  

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 Stock Dividends or Distributions 
 If a Reference Stock is subject to a (i) stock dividend, i.e., issuance of additional shares of such Reference Stock, that is given ratably to all
holders of shares of such Reference Stock, or (ii) distribution of shares of such Reference Stock as a result of the triggering of any provision of the corporate charter of the issuer of such Reference Stock, then, once the dividend has become
effective and the shares are trading ex-dividend, the Stock Adjustment Factor for such Reference Stock will be adjusted so that the new Stock Adjustment Factor for such Reference Stock shall equal the prior Stock Adjustment Factor for such Reference
Stock plus the product of: 
  

	 	•	 	 the prior Stock Adjustment Factor for such Reference Stock, and 

  

	 	•	 	 the number of additional shares issued in the stock dividend with respect to one share of such Reference Stock. 

 Non-cash Distributions 
 If the
issuer of a Reference Stock distributes shares of capital stock, evidences of indebtedness or other assets or property of the issuer of such Reference Stock to holders of such Reference Stock (other than (i) dividends, distributions and rights
or warrants referred to under “—Stock Splits and Reverse Stock Splits” and “—Stock Dividends or Distributions” above and (ii) cash distributions or dividends referred under “—Cash Dividends or
Distributions” below), then, once the distribution has become effective and the shares are trading ex-dividend, the Stock Adjustment Factor for such Reference Stock will be adjusted so that the new Stock Adjustment Factor for such Reference
Stock shall equal the product of: 
  

	 	•	 	 the prior Stock Adjustment Factor for such Reference Stock, and 

  

	 	•	 	 a fraction, the numerator of which is the Current Market Price of such Reference Stock and the denominator of which is the amount by which such Current Market Price
exceeds the Fair Market Value of such distribution; provided that if the Fair Market Value of such distribution equals or exceeds the Current Market Price of such Reference Stock, the Calculation Agent shall determine in its sole discretion the
appropriate adjustment to the Stock Adjustment Factor for such Reference Stock. 

 The “Current Market Price” of
a Reference Stock means the arithmetic average of the Closing Prices of such Reference Stock for the ten Trading Days prior to the Trading Day immediately preceding the ex-dividend date of the distribution requiring an adjustment to the Stock
Adjustment Factor for such Reference Stock. 
 The “ex-dividend date” shall mean the first Trading Day on which transactions in
such Reference Stock trade on the Relevant Exchange without the right to receive that distribution. 
 The “Fair Market Value” of
any such distribution means the value of such distribution on the ex-dividend date for such distribution, as determined by the Calculation Agent. 

  

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If such distribution consists of property traded on the ex-dividend date on a U.S. national securities exchange, the Fair Market Value will equal the Closing
Price of such distributed property on such ex-dividend date. 
 Notwithstanding the foregoing, a distribution on a Reference Stock described
in clause (a), (d) or (e) of the section entitled “—Reorganization Events” below that also would require an adjustment under this section shall not cause an adjustment to the Stock Adjustment Factor of such Reference Stock
and shall only be treated as a Reorganization Event (as defined below) pursuant to clause (a), (d) or (e) under the section entitled “—Reorganization Events.” A distribution on a Reference Stock described in the section
entitled “—Issuance of Transferable Rights or Warrants” that also would require an adjustment under this section shall only cause an adjustment pursuant to the section entitled “—Issuance of Transferable Rights or
Warrants.” 
 Cash Dividends or Distributions 
 If the issuer of a Reference Stock pays dividends or makes other distributions consisting exclusively of cash to all holders of such Reference Stock during any fiscal quarter during the term of the notes, in an
aggregate amount that, together with other such dividends or distributions made during such quarterly fiscal period, exceeds the Dividend Threshold, then, once the dividend or distribution has become effective and the shares are trading ex-dividend,
the Stock Adjustment Factor for such Reference Stock will be adjusted so that the new Stock Adjustment Factor for such Reference Stock shall equal the product of: 
  

	 	•	 	 the prior Stock Adjustment Factor for such Reference Stock, and 

  

	 	•	 	 a fraction, the numerator of which is the Current Market Price of such Reference Stock and the denominator of which is the amount by which such Current Market Price
exceeds the amount in cash per share the issuer of such Reference Stock distributes to holders of such Reference Stock in excess of the Dividend Threshold; provided that if the amount in cash per share of such dividend or distribution equals or
exceeds the Current Market Price of such Reference Stock, the Calculation Agent shall determine in its sole discretion the appropriate adjustment to the Stock Adjustment Factor for such Reference Stock. 

 “Dividend Threshold” shall mean the amount of any cash dividend or cash distribution distributed per share of a Reference Stock that exceeds
the immediately preceding cash dividend or other cash distribution, if any, per share of such Reference Stock by more than 10% of the Closing Price of such Reference Stock on the Trading Day immediately preceding the ex-dividend date. 
 Issuance of Transferable Rights or Warrants 
 If the issuer of a Reference Stock issues transferable rights or warrants to all holders of such Reference Stock to subscribe for or purchase such Reference Stock, including new or existing rights to purchase such Reference Stock at an
exercise price per share less than the closing price of such Reference Stock on both (i) the date the exercise price of such rights or warrants is determined and (ii) the expiration date of such rights and warrants pursuant to a
shareholder’s rights plan or arrangement, and if the expiration date of such rights or warrants 

  

 11 

 
precedes the Maturity Date, then the Stock Adjustment Factor for such Reference Stock will be adjusted on the business day immediately following the issuance
of such transferable rights or warrants so that the new Stock Adjustment Factor for such Reference Stock shall equal the prior Stock Adjustment Factor for such Reference Stock plus the product of: 
  

	 	•	 	 the prior Stock Adjustment Factor for such Reference Stock, and 

  

	 	•	 	 the number of shares of such Reference Stock that can be purchased with the cash value of such warrants or rights distributed on one share of such Reference Stock.

 The number of shares that can be purchased will be based on the Closing Price of such Reference Stock on the date the
new Stock Adjustment Factor for such Reference Stock is determined. The cash value of such warrants or rights, if the warrants or rights are traded on a U.S. national securities exchange, will equal the Closing Price of such warrant or right, or, if
the warrants or rights are not traded on a U.S. national securities exchange, will be determined by the Calculation Agent and will equal the average (mean) of the bid prices obtained from three dealers at 3:00 p.m., New York City time, on the date
the new Stock Adjustment Factor for such Reference Stock is determined, provided that if only two such bid prices are available, then the cash value of such warrants or rights will equal the average (mean) of such bids and if only one such bid is
available, then the cash value of such warrants or rights will equal such bid. 
 Reorganization Events 
 If prior to the maturity date, 
  

	 	(a)	there occurs any reclassification or change of a Reference Stock, including, without limitation, as a result of the issuance of tracking stock by the issuer of such Reference Stock,

  

	 	(b)	the issuer of a Reference Stock, or any surviving entity or subsequent surviving entity of the issuer of a Reference Stock (a “Successor Entity”), has been subject to a
merger, combination or consolidation and is not the surviving entity, 

  

	 	(c)	any statutory exchange of securities of the issuer of a Reference Stock or any Successor Entity with another corporation occurs, other than pursuant to clause (b) above,

  

	 	(d)	the issuer of a Reference Stock is liquidated or is subject to a proceeding under any applicable bankruptcy, insolvency or other similar law, 

  

	 	(e)	the issuer of a Reference Stock issues to all of its shareholders equity securities of an issuer other than the issuer of such Reference Stock, other than in a transaction described
in clauses (b), (c) or (d) above (a “Spin-off Event”), or 

  

	 	(f)	a tender or exchange offer or going-private transaction is commenced for all the outstanding shares of the issuer of a Reference Stock and is consummated for all or substantially
all of such shares, as determined by the Calculation Agent in its sole discretion (an event in clauses (a) through (f), a “Reorganization Event”), 

  

 12 

 then, instead of adjusting the Stock Adjustment Factor for such Reference Stock, the Calculation Agent, in its sole
discretion without consideration for the interests of investors, shall either: 
  

	 	(A)	determine a Successor Reference Stock (as defined below) to such Reference Stock that experiences any such Reorganization Event (the “Original Reference Stock”) after the
close of the principal trading session on the Trading Day immediately prior to the effective date of such Reorganization Event in accordance with the following paragraph (each successor reference stock as so determined, a “Successor Reference
Stock” and such successor reference stock issuer, a “Successor Reference Stock Issuer”); or 

  

	 	(B)	deem the Closing Price and the Stock Adjustment Factor of such Original Reference Stock on the Trading Day immediately prior to the effective date of such Reorganization Event to be
the Closing Price (in the case of daily monitoring) or Price (in the case of continuous monitoring) and Stock Adjustment Factor of such Original Reference Stock on every remaining Trading Day to, and including, the last Trading Day in the Monitoring
Period. 

 Upon the determination by the Calculation Agent of any Successor Reference Stock pursuant to clause (A) of the
preceding sentence, references in this Security to such “Reference Stock” shall no longer be deemed to refer to the Original Reference Stock and shall be deemed instead to refer to any such Successor Reference Stock for all purposes, and
references in Security to “issuer” of the Original Reference Stock shall be deemed to be to any such Successor Reference Stock Issuer. 
 Upon the selection of any Successor Reference Stock by the Calculation Agent pursuant to clause (A) of the preceding sentence: 
  

	 	(i)	the Initial Share Price for such Successor Reference Stock will be the Closing Price of such Successor Reference Stock on the Trading Day immediately following the effective date of
the Reorganization Event multiplied by the Initial Share Price of the Original Reference Stock and divided by the Closing Price of the Original Reference Stock on the Trading Day immediately prior to the effective date of such Reorganization Event;

  

	 	(ii)	the Trigger Price for such Successor Reference Stock will be an amount that represents the same percentage of the Initial Share Price for such Successor Reference Stock as the
percentage of the Initial Share Price of the Original Reference Stock represented by the Trigger Price of the Original Reference Stock, as determined by the Calculation Agent; and 

  

	 	(iii)	the Stock Adjustment Factor for such Successor Reference Stock shall be 1.0, subject to adjustment for certain corporate events related to such Successor Reference Stock in
accordance with “— Anti-dilution Adjustments.” 

  

 13 

 For the avoidance of doubt, in the case of an issuance by the issuer of a Reference Stock to all of its
shareholders of equity securities of an issuer other than the issuer of such Reference Stock as described in clause (e) above, if the Closing Price of such Reference Stock as of the effective date of such issuance does not increase or decline
by at least 50% from the Initial Share Price of such Reference Stock, such issuance shall not constitute a Reorganization Event and no adjustments shall be made under this “— Reorganization Events” section. Instead, such Reference
Stock will be subject to adjustments as described under “— Non-cash Distributions” above. 
 The “Successor Reference
Stock” will be the common stock of a U.S. company selected by the Calculation Agent from among the common stocks of U.S. companies then registered to trade on the NYSE, Nasdaq Global Select Market or Nasdaq Global Market that is not already a
Reference Stock, with the same primary Standard Industrial Classification Code (“SIC Code”) as the Original Reference Stock that, in the sole discretion of the Calculation Agent, is the most comparable to the Original Reference Stock,
taking into account such factors as the Calculation Agent deems relevant, including, without limitation, market capitalization, dividend history and stock price volatility; provided, however, that a Successor Reference Stock will not
be any stock that is subject to a trading restriction under the trading restriction policies of the Company or any of its affiliates that would materially limit the ability of the Company or any of its affiliates to hedge the notes with respect to
such stock (a “Hedging Restriction”); provided further that if a Successor Reference Stock cannot be identified as set forth above for which a Hedging Restriction does not exist, the Successor Reference Stock will be selected
by the Calculation Agent from the largest market capitalization stock of a U.S. company within the same Division and Major Group classification (as defined by the Office of Management and Budget) as the primary SIC Code for the Original Reference
Stock. 
 Following a Reorganization Event in which a Successor Reference Stock is selected, the Stock Adjustment Factor of the Successor
Reference Stock will be subject to adjustment as described above under this “Anti-dilution Adjustments” section, and, if no Successor Reference Stock is selected, the Original Reference Stock Issuer will, upon a subsequent Reorganization
Event, be subject to the election by the Calculation Agent described in clause (A) and (B) of the first paragraph under “— Anti-dilution Adjustments — Reorganization Events.” 
 The Company will, or will cause the Calculation Agent to, provide written notice to the Trustee, to the Company and to The Depository Trust Company
(“DTC”) within thirty business days immediately following the effective date of any Reorganization Event, of the Successor Reference Stock Issuer, the Successor Reference Stock, the Trigger Price and the Initial Share Price for such
Successor Reference Stock, as well as the Original Reference Stock so replaced. The Company expects that such notice will be passed on to Holders in accordance with the standard rules and procedures of DTC and its direct and indirect participants.

 Coupon Payments 
 For each Coupon
Period for each $1,000 principal amount Security, the coupon payment for each Coupon Period will be calculated as follows: 
 $1,000 x Coupon
Rate x (number of days in the Coupon Period / 360), 
  

 14 

 where the number of days will be calculated on the basis of a year of 360 days with twelve months of thirty days each.

 Coupon payments will be made at the Coupon Rate. Coupon payments will accrue from, and including, the issue date of the Securities to,
but excluding, the Maturity Date. Coupon payments will be paid in arrears on each Coupon Payment Date to, and including, the Maturity Date, to the Holders at the close of business on the date 15 calendar days prior to that Coupon Payment Date,
whether or not such fifteenth calendar day is a Business Day. If the Maturity Date is adjusted as the result of a Market Disruption Event, the coupon payment due on the Maturity Date will be made on the Maturity Date as adjusted, with the same force
and effect as if the Maturity Date had not been adjusted, but no additional coupon payment will accrue or be payable as a result of the delayed payment. 
  

 15 

 The following abbreviations, when used in the inscription on the face of the within Security, shall be
construed as though they were written out in full according to applicable laws or regulations: 
  

							
	TEN COM -	    	as tenants in common	    	UNIF GIFT MIN ACT - _________ Custodian  _________
		    		    	                          (Cust)             
     (Minor)

	TEN ENT -	    	as tenants by the entireties	    	under Uniform Gifts to Minors
	JT TEN -	    	as joint tenants with right of	    	Act	  	  

		    	Survivorship and not as tenants in common	    		  	(State)

 Additional abbreviations may also be used though not in the above list. 
                                       
                   
 FOR VALUE RECEIVED, the
undersigned hereby sells, assigns and transfers unto 
 PLEASE INSERT SOCIAL SECURITY OR OTHER 
 IDENTIFYING NUMBER OF ASSIGNEE 
  

			
	 	 	
	 	
	 	 	

  
  
  

	
	 

 (Name and Address of Assignee, including zip code, must be printed or typewritten.) 
  
  

	
	 

 the within Security, and all rights thereunder, hereby irrevocably constituting and appointing 
  
  

	
	 

 to transfer the said Security on the books of the Company, with full power of substitution in the premises.

 Dated: 
 __________________________________________ 
 NOTICE: The signature to this assignment must correspond with the name as it appears
upon the face of the within Security in every particular, without alteration or enlargement or any change whatever. 
 Signature(s) Guaranteed: 

___________________________ 
 THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN
ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED MEDALLION SIGNATURE GUARANTEE PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15. 
  

 16Preferred Stock Purchase Agreement

 Exhibit 10.1 
 ELANDIA INTERNATIONAL INC. 
 a Delaware corporation 
 PREFERRED STOCK PURCHASE AGREEMENT 
 THIS PREFERRED STOCK PURCHASE AGREEMENT, dated as of the 20th day of February, 2008 (the “Agreement”), is entered into by and between eLandia International Inc., a Delaware corporation (the
“Company”), and Stanford International Bank Ltd., an Antiguan banking corporation (“SIBL” or the “Purchaser”). 
 W I T N E S S E T H: 
 WHEREAS,
the Company and the Purchaser are executing and delivering this Agreement in reliance upon the exemptions from registration provided by Regulation D (“Regulation D”) promulgated by the Securities and Exchange
Commission (the “Commission”) under the Securities Act of 1933, as amended (the “Securities Act”), and/or Section 4(2) of the Securities Act; and 
 WHEREAS, upon the terms and conditions of this Agreement, the Purchaser has agreed to purchase, and the Company wishes to issue and sell, for an
aggregate purchase price of $40,000,000 (i) 5,925,926 shares of the Company’s Series B Convertible Preferred Stock, $0.00001 par value per share (the “Series B Preferred Stock”) and (ii) warrants (the
“Warrants”) to purchase an aggregate of 4,158,000 shares of common stock, $0.00001 par value per share, of the Company (the “Common Stock”), subject to adjustment as provided in the
Warrants, which Warrants will be in the form attached hereto as Exhibit A; and 
 WHEREAS, the Series B Preferred Stock shall be
convertible into shares of Common Stock pursuant to the terms set forth in that certain Certificate of Designations, Rights and Preferences of Series B Convertible Preferred Stock, as filed with the Delaware Secretary of State on November 21,
2007 (the “Series B Certificate of Designation”), and the Warrants may be exercised for the purchase of Common Stock, pursuant to the terms set forth therein; and 
 NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree as follows: 
 1. AGREEMENT TO PURCHASE; PURCHASE PRICE

 (a) Initial Series B Funding. Subject to the terms and conditions in this Agreement, the Purchaser hereby agrees to purchase
from the Company, and the Company hereby agrees to issue and sell to the Purchaser and its assignees (i) 5,925,926 shares of Series B Preferred Stock and (ii) Warrants to purchase 4,158,000 shares of Common Stock, subject to adjustment as
provided in the Warrants, for an aggregate purchase price of $40,000,000 ($6.75 per share of Series B Preferred Stock), which shall be payable in immediately available funds on the applicable closing dates as determined pursuant to Section 1(b)
below. 

 (b) Closings. The Series B Preferred Stock and the Warrants to be purchased by the Purchaser and
its assignees under Section 1(a), in such denominations and such names as are set forth on Schedule A attached hereto or as the Purchaser may request from the Company upon at least three business days prior notice of any closing (any name other
than the Purchaser shall be an affiliate of Purchaser or an assignee of Purchaser), shall be delivered by or on behalf of the Company for the account of the Purchaser, against payment by the Purchaser of the purchase price required by this
Section 1. Such payment of purchase price shall be in cash and made by wire transfer to an account designated by the Company by 5:00 PM, Eastern Standard Time, in the amounts and on the applicable closing dates set forth below. Subject to the
terms and conditions of this Agreement, (i) the Company and Purchaser shall close on the first purchase of shares of Series B Preferred Stock and the Warrants as set forth below (the “First Closing”)
within seven (7) days following the appointment of Mr. Pedro (Pete) Pizarro (“Pizarro”) as Chief Executive Officer of the Company in accordance with the terms of the employment agreement
attached hereto as Exhibit B (the “Pizarro Employment Agreement”) (the date of such First Closing, the “First Closing Date”), and (ii) the Company and
Purchaser shall close on each subsequent purchase of shares of Series B Preferred Stock in accordance with the funding schedule set forth below (the date of each closing hereunder, a “Closing Date”).

  

								
	 CLOSING DATE
	  	PURCHASE
PRICE	  	NUMBER OF SHARES
OF SERIES B
PREFERRED STOCK	  	NUMBER
OF WARRANTS
	 First Closing Date
	  	$	2,000,000	  	296,297	  	4,158,000
	 First Closing Date + 7 days
	  	$	2,000,000	  	296,297	  	—  
	 First Closing Date + 14 days
	  	$	2,000,000	  	296,297	  	—  
	 First Closing Date + 21 days
	  	$	2,000,000	  	296,297	  	—  
	 First Closing Date + 28 days
	  	$	2,000,000	  	296,297	  	—  
	 First Closing Date + 35 days
	  	$	2,000,000	  	296,297	  	—  
	 First Closing Date + 42 days
	  	$	2,000,000	  	296,296	  	—  
	 First Closing Date + 49 days
	  	$	2,000,000	  	296,296	  	—  
	 First Closing Date + 56 days
	  	$	2,000,000	  	296,296	  	—  
	 First Closing Date + 63 days
	  	$	2,000,000	  	296,296	  	—  
	 First Closing Date + 70 days
	  	$	2,000,000	  	296,296	  	—  
	 First Closing Date + 77 days
	  	$	2,000,000	  	296,296	  	—  
	 First Closing Date + 84 days
	  	$	2,000,000	  	296,296	  	—  
	 First Closing Date + 91 days
	  	$	2,000,000	  	296,296	  	—  
	 First Closing Date + 98 days
	  	$	2,000,000	  	296,296	  	—  
	 First Closing Date + 105 days
	  	$	 2,000,000	  	296,296	  	—  
	 First Closing Date + 112 days
	  	$	2,000,000	  	296,296	  	—  
	 First Closing Date + 119 days
	  	$	2,000,000	  	296,296	  	—  
	 First Closing Date + 126 days
	  	$	2,000,000	  	296,296	  	—  
	 First Closing Date + 133 days
	  	$	2,000,000	  	296,296	  	—  
		  	 	 	  	 	  	
	 TOTAL:
	  	$	40,000,000	  	5,925,926	  	4,158,000
		  	 	 	  	 	  	 

  

 2 

 To the extent any Closing Date falls on a day other than a Business Day, such Closing Date shall be the next Business
Day. “Business Day” means any day except a Saturday, Sunday or other day in which federal banking institutions in the United States or banking institutions in Miami, Florida are authorized by law or regulation to
close. 
 (c) Bridge Loan. Contemporaneously with the appointment of Pizarro as Chief Executive Officer of the Company in accordance
with the terms of the Pizarro Employment Agreement (and provided that the Company has obtained all required consents from the Company’s existing lenders), the Company and the Purchaser shall execute and deliver the Loan Agreement (the
“Bridge Loan Agreement”) attached hereto as Exhibit C. In the event of Purchaser’s conversion of all principal and interest then outstanding under the Bridge Loan Agreement (the “Outstanding
Amount”) into the right to receive in satisfaction thereof shares of Series B Preferred Stock, SIBL shall, as of such conversion date, subscribe for, and the Company shall issue to Purchaser, that number of shares of Series B
Preferred Stock equal to the Outstanding Amount divided by the then current Conversion Price (as defined in the Series B Certificate of Designation) applicable to the Series B Preferred Stock. In the event that all of the South Pacific Assets (as
defined in Section 5(h) below) are sold prior to December 31, 2008, the Purchaser, on December 31, 2008, shall subscribe for, and the Company shall issue to Purchaser, that number of shares of Series B Preferred Stock equal to the
(i) amount by which the Net Cash Proceeds (defined in the Bridge Loan Agreement) are less than $40,000,000 divided by (ii) the then current Conversion Price (as defined in the Series B Certificate of Designation) applicable to the Series B
Preferred Stock. With respect to each share of Series B Preferred Stock issued pursuant to this Section 1(c), the Company shall issue to Purchaser simultaneously with such issuance .7017 Warrants to purchase shares of Common Stock. 

(d) Additional Funding. Subject to the terms and conditions in this Agreement, the Purchaser agrees to purchase from the Company, and the
Company agrees to issue and sell to the Purchaser, on or after December 31, 2008 and pursuant to a funding Schedule mutually agreeable to the Company and Purchaser (provided such funding schedule contemplates completion of funding within 90
days following December 31, 2008), an additional $20,000,000 (the “Additional Funding”) worth of Series B Preferred Stock at a purchase price of $6.75 per share. Unless the Company and Purchaser agree otherwise,
the Company shall submit each request for Additional Funding (a “Request”) to the Purchaser at least two weeks before the desired funding date. In connection with each Request, the Company shall state the number of
shares of Series B Preferred Stock to be sold, in increments of 50,000 shares at a purchase price of $6.75 per share, and shall provide to Purchaser the proposed use of proceeds, together with such information 

  

 3 

 
relating thereto as Purchaser shall reasonably request. With respect to each share of Series B Preferred Stock issued pursuant to this Section 1(d), the
Company shall issue to Purchaser simultaneously with such issuance .7017 Warrants to purchase shares of Common Stock. Notwithstanding the foregoing, (i) the Company will undertake its best efforts to solicit and receive commitments, prior to
December 31, 2008, for supplemental equity investments from parties other than SIBL and its affiliates for up to $20,000,000, and (ii) Purchaser’s purchase obligation in respect of such Additional Funding shall be reduced on a
dollar-for-dollar basis by any such investments or bona fide commitments received by Company before December 31, 2008. 
 2.
REPRESENTATIONS AND WARRANTIES OF THE PURCHASER; ACCESS TO INFORMATION; INDEPENDENT INVESTIGATION 
 The Purchaser represents and warrants to, and
covenants and agrees with, the Company as follows: 
 (a) Qualified Investor. The Purchaser is (i) experienced in making
investments of the kind described in this Agreement and the related documents, (ii) able to afford the entire loss of its investment in the Series B Preferred Stock and the Warrants, and (iii) an “Accredited
Investor” as defined in Rule 501(a) of Regulation D and knows of no reason to anticipate any material change in its financial condition for the foreseeable future. 
 (b) Speculative Nature of Investment. The Purchaser understands and acknowledges that the Company has a limited financial and operating history
and that an investment in the Company is highly speculative and involves substantial risks. The Purchaser can bear the economic risk of the Purchaser’s investment and is able, without impairing the Purchaser’s financial condition, to hold
the Series B Preferred Stock, the Warrants and the Conversion Shares (as defined below) for an indefinite period of time and to suffer a complete loss of such Purchaser’s investment. 
 (c) Restricted Securities. The securities are “restricted securities” as defined in Rule 144 promulgated under the Securities Act. All
subsequent offers and sales by the Purchaser of the Series B Preferred Stock and the Warrants and the Common Stock issuable upon conversion of the Series B Preferred Stock or exercise of the Warrants shall be made pursuant to an effective
registration statement under the Securities Act or pursuant to an applicable exemption from such registration. 
 (d) Reliance on
Representations. The Purchaser understands that the Series B Preferred Stock and the Warrants are being offered and sold to it and its assignees in reliance upon exemptions from the registration requirements of the United States federal
securities laws, and that the Company is relying upon the truthfulness and accuracy of the Purchaser’s representations and warranties, and the Purchaser’s compliance with its covenants and agreements, each as set forth herein, in order to
determine the availability of such exemptions and the eligibility of the Purchaser to acquire the Series B Preferred Stock and the Warrants. 
 (e) Access to Information. The Purchaser (i) has been provided with sufficient information with respect to the business of the Company for the Purchaser to determine the suitability of making an investment in the Company and
such documents relating to 

  

 4 

 
the Company as the Purchaser has requested and the Purchaser has carefully reviewed the same, (ii) has been provided with such additional information
with respect to the Company and its business and financial condition as the Purchaser, or the Purchaser’s agent or attorney, has requested, and (iii) has had access to management of the Company and the opportunity to discuss the
information provided by management of the Company and any questions that the Purchaser had with respect thereto have been answered to the full satisfaction of the Purchaser. 
 (f) Legality. The Purchaser has the requisite corporate power and authority to enter into this Agreement. 
 (g) Residency. The residency of the Purchaser (or, in the case of a partnership or corporation, such entity’s principal place of business) is
No. 11 Pavilion Drive, St. John’s, Antigua, West Indies. 
 (h) Authorization. 
 (i) The Purchaser has all requisite power and authority to execute and deliver the Agreement and any related agreements, to purchase the
Series B Preferred Stock and the Warrants hereunder and to carry out and perform its obligations under the terms of the Agreement and any related agreements. All action on the part of the Purchaser necessary for the authorization, execution,
delivery and performance of the Agreement and any related agreements, and the performance of all of the Purchaser’s obligations under the Agreement and any related agreements, has been taken or will be taken prior to the First Closing Date.

 (ii) This Agreement and any related agreements, and the transactions contemplated hereby and thereby, have been duly and
validly authorized by the Purchaser, and such agreements, when executed and delivered by each of the Purchaser and the Company will each be a valid and binding agreement of the Purchaser, enforceable in accordance with their respective terms, except
(A) as limited by laws of general application relating to bankruptcy, insolvency and the relief of debtors, (B) as limited by rules of law governing specific performance, injunctive relief or other equitable remedies and by general
principles of equity and (C) to the extent the indemnification provisions contained in the Registration Rights Agreement (as defined below) may further be limited by applicable laws and principles of public policy. 
 (iii) No consent, approval, authorization, order, filing, registration or qualification of or with any court, governmental authority or
third person is required to be obtained by the Purchaser in connection with the execution and delivery of the Agreement or any related agreements by the Purchaser or the performance of the Purchaser’s obligations hereunder or thereunder.

 (i) Adequate Resources. The Purchaser, or an affiliate of the Purchaser, has sufficient liquid assets to deliver the aggregate
purchase price during the term of the Agreement. 
 (j) Investment. The Purchaser is acquiring the Series B Preferred Stock and the
Warrants for investment for the Purchaser’s own account, not as a nominee or agent, and not with the view to, or for resale in connection with, any distribution 

  

 5 

 
thereof, nor with any present intention of distributing or selling such Series B Preferred Stock or Warrants. The Purchaser is aware of the limits on resale
imposed by virtue of the transaction contemplated by this Agreement and is aware that the Series B Preferred Stock and the Warrants will bear restrictive legends. 
 (k) Litigation. There is no action, suit, proceeding or investigation pending or, to the Knowledge of the Purchaser (as defined herein), currently threatened against the Purchaser that questions the validity of
the Primary Documents (as defined below) or the right of Purchaser to enter into any such agreements or to consummate the transactions contemplated hereby and thereby, nor, to the Knowledge of Purchaser, is there any basis for the foregoing. All
references to the “Knowledge” means the actual knowledge of the person in question or the knowledge such person could reasonably be expected to have each after reasonable investigation and due diligence. 
 (l) Broker’s Fees and Commissions. Except for a fee payable to Stanford Group Company (“SGC”) by Purchaser
pursuant to Section 8, neither the Purchaser nor any of its officers, partners, employees or agents has employed any investment banker, broker, or finder in connection with the transactions contemplated by this Agreement, the Warrants, and the
Registration Rights Agreement (collectively, the “Primary Documents”), and neither the Company nor the Purchaser has, nor will, incur, directly or indirectly, as a result of any action taken by the Purchaser, any
liability for brokerage or finders’ fees or agents’ commissions or any similar charges in connection with the transactions contemplated by the Primary Documents. 
 (m) Tax Advisors. The Purchaser has reviewed with its own tax advisors the U.S. federal, state, local and foreign tax consequences of this
investment and the transactions contemplated by the Primary Documents. With respect to such matters, the Purchaser relies solely on such advisors and not on any statements or representations of the Company or any of its agents, written or oral. The
Purchaser understands that it (and not the Company) shall be responsible for its own tax liability that may arise as a result of this investment or the transactions contemplated by the Primary Documents. 
 3. REPRESENTATIONS OF THE COMPANY 
 The Company
represents and warrants to, and covenants and agrees with, the Purchaser that: 
 (a) Organization. The Company is a corporation duly
organized, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to carry on its business as now conducted. The Company owns directly or indirectly each of the entities set
forth on Schedule 3(a) attached hereto (the “Subsidiaries”) in the manner described on such Schedule. Except as set forth on Schedule 3(a), the Company owns, directly or indirectly, 100% of the legal and beneficial
interest in each such Subsidiary, and no Subsidiary has any legal or equitable obligation to issue any equity or other securities to any person. The Company has no interest in any other entities except for its Subsidiaries. Each of the Subsidiaries
is duly organized, validly existing and in good standing under the laws of its state of organization and has all requisite power and authority to carry on its business as now conducted. Each of the Company and the Subsidiaries is duly qualified as a
foreign corporation or limited liability 

  

 6 

 
company and in good standing in all jurisdictions in which either the ownership or use of the properties owned or used by it, or the nature of the activities
conducted by it, requires such qualification, except as would not have a material adverse effect on the business or financial condition of the Company and the Subsidiaries, taken as a whole (a “Material Adverse
Effect”). The minute books and stock record and membership books and other similar records of the Company or equivalent documents have been provided to the Purchaser and its counsel prior to the execution of this Agreement, are
complete and correct in all material respects and have been maintained in accordance with sound business practices. Such minute books contain true and complete records of all actions taken at all meetings and by all written consents in lieu of
meetings of the directors, stockholders, members, managers and committees of the board of directors of the subject entities from the date of organization through the date hereof. The Company has, prior to the execution of this Agreement, delivered
to the Purchaser true and complete copies of the Certificate of Incorporation, Bylaws, and equivalent documents of the Company and the Subsidiaries, each as amended through the date hereof. Neither the Company nor any Subsidiary is in violation of
any provisions of its Certificate of Incorporation, Bylaws or equivalent documents. 
 (b) Authorization; Enforcement. The Company has
the requisite corporate power and authority to enter into and to consummate the transactions contemplated by each of the Primary Documents and otherwise to carry out its obligations hereunder or thereunder. The execution and delivery of each of the
Primary Documents by the Company and the consummation by it of the transactions contemplated hereby or thereby have been duly authorized by all necessary action on the part of the Company and no further consent or action is required by the Company
or any Subsidiary. Each of the Primary Documents has been (or upon delivery will be) duly executed by the Company and, when delivered in accordance with the terms hereof, will constitute the valid and binding obligation of the Company enforceable
against the Company in accordance with its terms, except (i) as limited by laws of general application relating to bankruptcy, insolvency and the relief of debtors, (ii) as limited by rules of law governing specific performance, injunctive
relief or other equitable remedies and by general principles of equity and (iii) to the extent the indemnification provisions contained in the Registration Rights Agreement may further be limited by applicable laws and principles of public
policy. 
 (c) Capitalization. On the date hereof (exclusive of any Series B Preferred Stock or Warrants to be issued hereunder), the
authorized capital of the Company consists of: (i) 50,000,000 shares of Common Stock, par value $0.00001 per share, of which 17,029,313 shares are issued and outstanding; (ii) 35,000,000 shares of preferred stock, par value $0.00001 per
share, of which – 0 – shares of Series A Convertible Preferred Stock are issued and outstanding and 4,740,741 shares of Series B Preferred Stock are outstanding; (iii) 2,606,700 shares of Common Stock reserved for issuance upon
exercise of granted (and to be granted) options under the Company’s 2007 Stock Option and Incentive Plan, of which 912,867 shares of Common Stock are issuable upon exercise of outstanding stock options granted pursuant to the Company’s
2007 Stock Option and Incentive Plan; and (iv) 414,259 shares of Common Stock underlying currently exercisable warrants. In addition, the Company is the maker of convertible promissory notes which may be converted at any time, at the option of
Purchaser into 6,060,000 shares of Series A Preferred Stock which are ultimately convertible into that same amount of shares of Common Stock, subject to adjustment as provided in the Certificate of Designations, Rights and Preferences of the Series
A Convertible Preferred Stock, as filed with the Delaware Secretary of State on 

  

 7 

 
October 1, 2007. Also, Latin Node, Inc., a Subsidiary of the Company, is the maker of a convertible promissory note in favor of Laurus Master Fund,
Ltd., which note may be converted into 956,522 shares of Common Stock. Except as set forth in this Section 3(c) or as disclosed on Schedule 3(c) attached hereto, there are no (A) options, warrants or other rights, agreements, arrangements
or commitments of any character relating to the issued or unissued capital stock of the Company or any Subsidiary or obligating the Company or any Subsidiary to issue or sell any shares of capital stock of, or other equity interests in, the Company
or any Subsidiary, (B) voting securities of the Company or securities convertible, exchangeable or exercisable for shares of capital stock or voting securities of the Company, or (C) equity equivalents, interests in the ownership or
earnings of the Company or any Subsidiary or similar rights. All shares of Common Stock subject to issuance as aforesaid, upon issuance on the terms and conditions specified in the instruments pursuant to which they are issuable, will be duly
authorized, validly issued, fully paid and non assessable and free of preemptive (or similar) rights. Other than the Company’s 2007 Stock Option and Incentive Plan and the commitments of the Company under the Pizarro Employment Agreement, there
are no outstanding contractual obligations of the Company or any Subsidiary to repurchase, redeem or otherwise acquire any shares of Common Stock or any capital stock of any Subsidiary or to provide funds to or make any investment (in the form of a
loan, capital contribution or otherwise) in any Subsidiary or any other person. Except as disclosed on Schedule 3(c) attached hereto, none of the Company or any Subsidiary is a party to any stockholders’ agreement, share transfer restriction,
voting trust agreement, registration rights agreement or similar agreement relating to any equity securities of the Company or any Subsidiary or any other Contract relating to disposition, voting or dividends with respect to any equity securities of
the Company or of any Subsidiary. All dividends on the Common Stock that have been declared or have accrued prior to the date of this Agreement have been paid in full. There are no anti-dilution or price adjustment provisions regarding any security
issued by the Company (or in any agreement providing rights to security holders) that will be triggered by the issuance of the Securities (as defined in Section 4(a) below). 
 (d) Concerning the Common Stock, the Preferred Stock and the Warrants. The Series B Preferred Stock, the Warrants and the Common Stock issuable
upon conversion of the Series B Preferred Stock and upon exercise of the Warrants when issued and delivered and paid for in compliance with the provisions of this Agreement, shall be duly and validly issued, fully paid and non-assessable and will
not subject the holder thereof to personal liability by reason of being such a holder. 
 (e) Authorized Shares. The Company shall
have available a sufficient number of authorized and unissued shares of Common Stock as may be necessary to effect conversion of the Series B Preferred Stock and the exercise of the Warrants. The Company understands and acknowledges the potentially
dilutive effect to the Common Stock of the issuance of shares of Common Stock upon the conversion of the Series B Preferred Stock and the exercise of the Warrants. The Company further acknowledges that its obligation to issue shares of Common Stock
upon conversion of the Series B Preferred Stock and upon exercise of the Warrants is absolute and unconditional regardless of the dilutive effect that such issuance may have on the ownership interests of other stockholders of the Company.

  

 8 

 (f) Legality. The Company has the requisite corporate power and authority to enter into this
Agreement, and to issue and deliver the Series B Preferred Stock, the Warrants and the Common Stock issuable upon conversion of the Series B Preferred Stock and the exercise of the Warrants. 
 (g) Financial Statements. Except as set forth on Schedule 3(g) attached hereto: (i) the financial statements and related notes thereto
contained in the Company’s filings with the Commission (the “Company Financials”) are correct and complete in all material respects, comply in all material respects with the Securities Exchange Act of 1934, as
amended (the “Exchange Act”), and the rules and regulations of the Commission promulgated thereunder and have been prepared in accordance with United States generally accepted accounting principles applied on a basis
consistent throughout the periods indicated and consistent with each other; (ii) the Company Financials present fairly and accurately the financial condition and operating results of the Company in all material respects as of the dates and
during the periods indicated therein and are consistent with the books and records of the Company; and (iii) except as set forth in the Company Financials, the Company has no material liabilities, contingent or otherwise, other than liabilities
disclosed on the balance sheet as of September 30, 2007. Since January 1, 2004, there has been no change in any accounting policies, principles, methods or practices, including any change with respect to reserves (whether for bad debts,
contingent liabilities or otherwise), of the Company, other than as required by United States generally accepted accounting principles. The unaudited Company Financials do not contain additional financial statements and footnotes required under
United States generally accepted accounting principles, and are subject to normal year-end adjustments. 
 (h) Commission Filings.
Except as set forth on Schedule 3(h) attached hereto: (i) the Company has made all filings with the Commission that it has been required to make under the Securities Act and the Exchange Act and has furnished or made available to the Purchaser
true and complete copies of all the documents it has filed with the Commission since its inception, all in the forms so filed (collectively, the “Commission Filings”) including, without limitation, that certain Form
8-K filed with the Commission on February 5, 2008 (the “Most Recent Form 8-K”); and (ii) as of their respective filing dates, the Commission Filings already filed by the Company or to be filed by the Company
after the date hereof but before the First Closing Date complied or, if filed after the date hereof, will comply in all material respects with the requirements of the Securities Act and the Exchange Act, and the rules and regulations of the
Commission promulgated thereunder, as the case may be, and none of such Commission Filings contained or will contain any untrue statement of a material fact or omitted or will omit any material fact required to be stated therein or necessary to make
the statements made therein, in light of the circumstances in which they were made, not misleading, except to the extent such Commission Filings have been all prior to the date of this Agreement corrected, updated or superseded by a document
subsequently filed with Commission. As of the date hereof, there are no material unresolved comments issued by the staff of the Commission with respect to any of the Commission Filings. 
 (i) Non-Contravention. The execution and delivery of this Agreement and each of the other Primary Documents, and the consummation by the Company
of the transactions contemplated by this Agreement and each of the other Primary Documents, do not and will not conflict with, or result in a breach by the Company or any Subsidiary of, or give any third party any right of termination, 

  

 9 

 
cancellation, acceleration or modification in or with respect to, any of the terms or provisions of, or constitute a default under, (A) its Certificate
of Incorporation, Bylaws or other equivalent documents, as amended through the date hereof, (B) any material indenture, mortgage, deed of trust, lease or other material agreement or instrument to which the Company or any Subsidiary is a party
or by which it or any of its properties or assets are bound, or (C) any existing applicable law, rule, or regulation or any applicable decree, judgment or order of any court or federal, state, securities industry or foreign regulatory body,
administrative agency, or any other governmental body having jurisdiction over the Company or any Subsidiary or any of their properties or assets (collectively, “Legal Requirements”), other than those which have been
waived or satisfied on or prior to the First Closing Date. 
 (j) Approvals and Filings. No authorization, approval or consent of any
court, governmental body, regulatory agency, self-regulatory organization, stock exchange or market or the stockholders of the Company is required to be obtained by the Company or any Subsidiary for the entry into or the performance of this
Agreement and the other Primary Documents. 
 (k) Compliance With Legal Requirements. Except as disclosed in the Commission Filings,
neither the Company nor any Subsidiary has violated in any material respect, and is not currently in material default under, any Legal Requirement applicable to it, or any of its assets or properties, where such violation could reasonably be
expected to have a Material Adverse Effect. 
 (l) Absence of Certain Changes. Since January 1, 2007, except as previously
disclosed in the Commission Filings or as set forth in Schedule 3(l), there has been no event or condition that has had, or is reasonably likely to have, a Material Adverse Effect. 
 (m) Indebtedness to Officers, Directors and Stockholders. Except as set forth on Schedule 3(m) attached hereto, neither the Company nor any
Subsidiary is indebted to any of its stockholders, officers or directors or their Affiliates in any amount whatsoever (including, without limitation, any deferred compensation, salaries or rent payable). 
 (n) Relationships with Related Persons. Except as disclosed in the Commission Filings, no officer, director, or principal stockholder of the
Company or any Subsidiary nor any Related Person (as defined below) of any of the foregoing has, or since December 31, 2005, has had, any interest in any property (whether real, personal, or mixed and whether tangible or intangible) used in or
pertaining to the business of the Company or any Subsidiary. Except as disclosed in the Commission Filings, no officer, director, or principal stockholder of the Company nor any Related Person of the any of the foregoing is, or since
December 31, 2005, has owned an equity interest or any other financial or profit interest in, a Person (as defined below) that has (i) had business dealings or a material financial interest in any transaction with the Company or any
Subsidiary, or (ii) engaged in competition with the Company or any Subsidiary with respect to any line of the merchandise or services of such company (a “Competing Business”) in any market presently served by such
company except for ownership of less than one percent of the outstanding capital stock of any Competing Business that is publicly traded on any recognized exchange or in the over-the-counter market. Except for (A) Contracts between the Company
and Purchaser and (B) employment agreements disclosed in the Commission Filings, no director, officer, or principal 

  

 10 

 
stockholder of the Company or any Subsidiary nor any Related Person of any of the foregoing is a party to any Contract with, or has claim or right against,
the Company or any Subsidiary. As used in this Agreement, “Person” means any individual, corporation (including any non-profit corporation), general or limited partnership, limited liability company, joint venture,
estate, trust, association, organization, labor union, or other entity or any governmental body; “Related Person” means, (X) with respect to a particular individual, (a) each other member of such
individual’s Family (as defined below); (b) any Person that is directly or indirectly controlled by such individual or one or more members of such individual’s Family; (c) any Person in which such individual or members of such
individual’s Family hold (individually or in the aggregate) a Material Interest (as defined below); and (d) any Person with respect to which such individual or one or more members of such individual’s Family serves as a director,
officer, partner, executor, or trustee (or in a similar capacity); (Y) with respect to a specified Person other than an individual, (a) any Person that directly or indirectly controls, is directly or indirectly controlled by, or is
directly or indirectly under common control with such specified Person; (b) any Person that holds a Material Interest in such specified Person; (c) each Person that serves as a director, officer, partner, executor, or trustee of such
specified Person (or in a similar capacity); (d) any Person in which such specified Person holds a Material Interest; (e) any Person with respect to which such specified Person serves as a general partner or a trustee (or in a similar
capacity); and (f) any Related Person of any individual described in clause (b) or (c). For purposes of the foregoing definition, (a) the “Family” of an individual includes (i) the individual,
(ii) the individual’s spouse and former spouses, (iii) any other natural person who is related to the individual or the individual’s spouse within the second degree, and (iv) any other natural person who resides with such
individual, and (b) “Material Interest” means direct or indirect beneficial ownership (as defined in Rule 13d-3 under the Exchange Act) of voting securities or other voting interests representing at least 1% of
the outstanding voting power of a Person or equity securities or other equity interests representing at least 1% of the outstanding equity securities or equity securities in a Person. 
 (o) Title to Properties; Liens and Encumbrances. The Company and each Subsidiary has good and marketable title to all of its material properties
and assets, both real and personal, and has good title to all its leasehold interests. Except as disclosed in the Commission Filings, all material properties and assets reflected in the Company Financials are free and clear of all Encumbrances (as
defined below) except for (i) liens for current taxes not yet due and payable, (ii) liens imposed by law and incurred in the ordinary course of business for obligations not past due, (iii) liens in respect of pledges or deposits under
workers’ compensation laws or similar legislation and (iv) liens, Encumbrances and defects in title which do not in any case materially detract from the value of the property subject thereto or have a Material Adverse Effect, and which
have arisen in the ordinary course of business. As used in this Agreement, “Encumbrance” means any charge, claim, community property interest, condition, equitable interest, lien, pledge, security interest, right of
first refusal, or restriction of any kind, including any restriction on use, voting, transfer, receipt of income, or exercise of any other attribute of ownership. 
 (p) Permits. The Company and each Subsidiary has all permits, licenses and any similar authority necessary for the conduct of its business as now conducted, except where the failure to have such permits and
licenses would not materially and adversely affect the business or financial condition of such company. Neither the Company nor any Subsidiary is in default in any respect under any of such permits, licenses or similar authority. 
  

 11 

 (q) Absence of Litigation. There is no action, suit, proceeding, inquiry or investigation before
or by any court, public board or body, or arbitration tribunal pending or, to the Knowledge of the Company, threatened, against or affecting the Company or any Subsidiary, in which an unfavorable decision, ruling or finding would have a Material
Adverse Effect on the Company or such Subsidiary or the transactions contemplated by the Primary Documents, or which would adversely affect the validity or enforceability of, or the authority or ability of the Company to perform its obligations
under, the Primary Documents. All references to the “Knowledge of the Company” in this Agreement shall mean the actual knowledge of the Company or the knowledge that the Company could reasonably be expected to have,
after reasonable investigation and due diligence. 
 (r) No Default. Neither the Company nor any Subsidiary is in default in the
performance or observance of any material obligation, covenant or condition contained in any indenture, mortgage, deed of trust or other instrument or agreement (each a “Contract”) to which it is a party or by which it
or its property may be bound. 
 (s) Taxes. 
 (i) All Tax Returns (as defined below) required to have been filed by or with respect to the Company or any Subsidiary (including any
extensions) have been filed. All such Tax Returns are true, complete and correct in all material respects. All Taxes (as defined below) due and payable by the Company or any Subsidiary, whether or not shown on any Tax Return, or claimed to be due by
any Taxing Authority (as defined below), have been paid or accrued on the balance sheet included in the Company’s latest filing with the Commission. 
 (ii) Neither the Company nor any Subsidiary has any material liability for Taxes outstanding other than as reflected in the balance sheet included in the Company’s latest filing with the Commission or incurred
subsequent to the date of such filing in the ordinary course of business. The unpaid Taxes of the Company and the Subsidiaries (i) did not, as of the most recent fiscal month end, exceed by any material amount the reserve for liability for
income tax (other than the reserve for deferred taxes established to reflect timing differences between book and tax income) set forth on the face of the balance sheet included in the Company’s latest filing with the Commission, and
(ii) will not exceed by any material amount that reserve as adjusted for operations and transactions through the First Closing Date. 
 (iii) Neither the Company nor any Subsidiary is a party to any agreement extending the time within which to file any Tax Return. No claim has ever been made by a Taxing Authority of any jurisdiction in which the
Company or any Subsidiary does not file Tax Returns that the Company or such Subsidiary is or may be subject to taxation by that jurisdiction. 
  

 12 

 (iv) The Company and each Subsidiary has withheld and paid all Taxes required to have
been withheld and paid in connection with amounts paid or owing to any employee, creditor or independent contractor. 
 (v)
There has been no action by any Taxing Authority in connection with assessing additional Taxes against, or in respect of, the Company or any Subsidiary for any past period. There is no dispute or claim concerning any Tax liability of the Company or
any Subsidiary either (i) claimed, raised or, to the Knowledge of the Company, threatened by any Taxing Authority or (ii) of which the Company is otherwise aware. There are no liens for Taxes upon the assets and properties of the Company
or any Subsidiary other than liens for Taxes not yet due. None of the Tax Returns of the Company or any Subsidiary have been audited or examined by Taxing Authorities, and none of the Tax Returns of the Company or any Subsidiary currently are the
subject of audit or examination. The Company has made available to the Purchaser complete and correct copies of all federal, state, local and foreign income Tax Returns filed by, and all Tax examination reports and statements of deficiencies
assessed against or agreed to by, the Company and the Subsidiaries since the fiscal year ended December 31, 1998. 
 (vi)
There are no outstanding agreements or waivers extending the statutory period of limitation applicable to any Tax Returns required to be filed by, or which include or are treated as including, the Company or any Subsidiary or with respect to any Tax
assessment or deficiency affecting the Company or any Subsidiary. 
 (vii) The Company has not received any written ruling
related to Taxes or entered into any agreement with a Taxing Authority relating to Taxes. 
 (viii) Neither the Company nor
any Subsidiary has any liability for the Taxes of any person or entity other than the Company or such Subsidiary (i) under Section 1.1502-6 of the Treasury regulations (or any similar provision of state, local or foreign Legal
Requirements), (ii) as a transferee or successor, (iii) by contract or (iv) otherwise. 
 (ix) Neither the
Company nor any Subsidiary (i) has agreed to make or is required to make any adjustment under Section 481 of the Internal Revenue Code by reason of a change in accounting method and (ii) is a “consenting corporation” within
the meaning of Section 341(f)(1) of the Internal Revenue Code. 
 (x) Neither the Company nor any Subsidiary is a party
to or bound by any obligations under any tax sharing, tax allocation, tax indemnity or similar agreement or arrangement. 
 (xi) Neither the Company nor any Subsidiary is involved in, subject to, or a party to any joint venture, partnership, contract or other arrangement that is treated as a partnership for federal, state, local or foreign Tax purposes.

 (xii) The Company was not included nor is includible, in the Tax Return of any other entity. 
  

 13 

 As used in this Agreement, a “Tax Return” means any return, report,
information return, schedule, certificate, statement or other document (including any related or supporting information) filed or required to be filed with, or, where none is required to be filed with a Taxing Authority, the statement or other
document issued by, a Taxing Authority in connection with any Tax; “Tax” means any and all taxes, charges, fees, levies or other assessments, including, without limitation, income, gross, receipts, excise, real or
personal property, sales, withholding, social security, retirement, unemployment, occupation, use, service, service use, license, net worth, payroll, franchise, transfer and recording taxes, fees and charges, imposed by Taxing Authority, whether
computed on a separate, consolidated, unitary, combined or any other basis; and such term includes any interest whether paid or received, fines, penalties or additional amounts attributable to, or imposed upon, or with respect to, any such taxes,
charges, fees, levies or other assessments; and “Taxing Authority” means any governmental agency, board, bureau, body, department or authority of any United States federal, state or local jurisdiction or any foreign
jurisdiction, having or purporting to exercise jurisdiction with respect to any Tax. 
 (t) Certain Prohibited Activities. Neither the
Company, any Subsidiary nor, to the Knowledge of the Company, any of their respective directors, officers or other employees has (i) used any Company or Subsidiary funds for any unlawful contribution, endorsement, gift, entertainment or other
unlawful expense relating to any political activity, (ii) made any direct or indirect unlawful payment of Company or Subsidiary funds to any foreign or domestic government official or employee, (iii) violated or is in violation of any
provision of the Foreign Corrupt Practices Act of 1977, as amended (“FCPA”), or (iv) made any bribe, rebate, payoff, influence payment, kickback or other similar payment to any person; provided, however, that the
Company, in connection with its acquisition of Latin Node, Inc., has initiated an investigation to determine if certain payments made to consultants used by Latin Node, Inc. were made in violation of the FCPA, and all material facts known by the
Company with respect to such investigation have been disclosed in the Commission Filings. 
 (u) Certain Fees. Except for a fee
payable to SGC by the Company pursuant to Section 8, no brokerage or finder’s fees or commissions are or will be payable by the Company or any Subsidiary to any broker, financial advisor or consultant, finder, placement agent, investment
banker, bank or other Person with respect to the transactions contemplated by this Agreement, and neither the Company nor any Subsidiary has taken any action that would cause Purchaser to be liable for any such fees or commissions. The Company
agrees that Purchaser shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of any Person for fees of the type contemplated by this Section with the transactions contemplated by this Agreement.

 (v) Employee Benefits. 
 (i) The Company does not have, and has not at any time since December 31, 1998 had, Plans (as defined below). 
 As used in this Agreement, “Plan” means (i) each of the “employee benefit plans” (as such term is defined in Section 3(3) of the Employee Retirement Income Security Act of 1974
(“ERISA”)), of which any of the Company or any member of the same controlled group of businesses as the Company within the meaning of Section 4001(a)(14) of ERISA (an “ERISA
Affiliate”) is or ever was a 

  

 14 

 
sponsor or participating employer or as to which the Company or any of its ERISA Affiliates makes contributions or is required to make contributions, and
(ii) any similar employment, severance or other arrangement or policy of any of the Company or any of its ERISA Affiliates (whether written or oral) providing for health, life, vision or dental insurance coverage (including self-insured
arrangements), workers’ compensation, disability benefits, supplemental unemployment benefits, vacation benefits or retirement benefits, fringe benefits, or for profit sharing, deferred compensation, bonuses, stock options, stock appreciation
or other forms of incentive compensation or post-retirement insurance, compensation or benefits. 
 (w) Private Offering. Subject to
the accuracy of the Purchaser’s representations and warranties set forth in Section 2 hereof, (i) the offer, sale and issuance of the Series B Preferred Stock and the Warrants, (ii) the issuance of Common Stock pursuant to the
conversion and/or exercise of such securities into shares of Common Stock, each as contemplated by the Primary Documents, are exempt from the registration requirements of the Securities Act. The Company agrees that neither the Company nor anyone
acting on its behalf will offer any of the Series B Preferred Stock, the Warrants or any similar securities for issuance or sale, or solicit any offer to acquire any of the same from anyone so as to render the issuance and sale of such securities
subject to the registration requirements of the Securities Act. The Company has not offered or sold the Series B Preferred Stock or the Warrants by any form of general solicitation or general advertising, as such terms are used in Rule 502(c) under
the Securities Act. 
 (x) Disclosure. The Company confirms that neither it nor any other Person acting on its behalf has provided
Purchaser or its agents or counsel with any information that constitutes or might constitute material, nonpublic information. The Company understands and confirms that Purchaser will rely on the foregoing representations in effecting transactions in
securities of the Company. All disclosure provided to Purchaser regarding the Company, its business and the transactions contemplated hereby, including the schedules to this Agreement, furnished by or on behalf of the Company with respect to the
representations and warranties made herein are true and correct with respect to such representations and warranties and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the
statements made therein, in light of the circumstances under which they were made, not misleading. The Company acknowledges and agrees that Purchaser has not made any representations or warranties with respect to the transactions contemplated hereby
other than those specifically set forth in Section 2 hereof. 
 4. CERTAIN COVENANTS, ACKNOWLEDGMENTS AND RESTRICTIONS

 (a) Transfer Restrictions. The Purchaser acknowledges that (i) neither the Series B Preferred Stock, the Warrants nor the
Common Stock issuable upon conversion of the Series B Preferred Stock or upon exercise of the Warrants have been registered under the Securities Act, and such securities may not be transferred unless (A) subsequently registered thereunder or
(B) they are transferred pursuant to an exemption from such registration, and (ii) any sale of the Series B Preferred Stock, the Warrants or the Common Stock issuable upon conversion, exercise or exchange thereof (collectively, the
“Securities”) made in reliance upon Rule 144 under the Securities Act (“Rule 144”) may be made only in accordance with the terms of said Rule 144. The Purchaser understands that, 

  

 15 

 
although Rule 144 is not exclusive, the Commission has expressed its opinion that persons proposing to sell restricted securities received in a private
offering other than in a registered offering or pursuant to Rule 144 will have a substantial burden of proof in establishing that an exemption from registration is available for such offers or sales and that such persons and the brokers who
participate in the transactions do so at their own risk. The provisions of Section 4(a) and 4(b) hereof, together with the rights of the Purchaser under this Agreement and the other Primary Documents, shall be binding upon any assignee of the
Purchaser as well as any subsequent transferee of the Series B Preferred Stock and the Warrants. 
 (b) Restrictive Legend. The
Purchaser acknowledges and agrees that, until such time as the Securities shall have been registered under the Securities Act or the Purchaser demonstrates to the reasonable satisfaction of the Company and its counsel that such registration shall no
longer be required, such Securities may be subject to a stop-transfer order placed against the transfer of such Securities, and such Securities shall bear a restrictive legend in substantially the following form: 
 THESE SECURITIES (INCLUDING ANY UNDERLYING SECURITIES) HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEY MAY NOT BE SOLD,
OFFERED FOR SALE, PLEDGED, HYPOTHECATED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER SAID ACT OR AN OPINION OF COUNSEL OR OTHER EVIDENCE REASONABLY SATISFACTORY TO THE COMPANY THAT SUCH
REGISTRATION SHALL NO LONGER BE REQUIRED. 
 (c) Filings. The Company undertakes and agrees that it will make all required filings in
connection with the sale of the Securities to the Purchaser as required by federal and state laws and regulations, or by any domestic securities exchange or trading market, and if applicable, the filing of a notice on Form D (at such time and in
such manner as required by the rules and regulations of the Commission), and to provide copies thereof to the Purchaser promptly after such filing or filings. With a view to making available to the holders of the Securities the benefits of Rule 144
and any other rule or regulation of the Commission that may at any time permit such holder to sell securities of the Company to the public without registration or pursuant to a registration on Form S-3 or Form SB-2, the Company shall (a) at all
times make and keep public information available, as those terms are understood and defined in Rule 144, (b) file on a timely basis with the Commission all information that the Commission may require under either of Section 13 or
Section 15(d) of the Exchange Act and, so long as it is required to file such information, take all actions that may be required as a condition to the availability of Rule 144 (or any successor exemptive rule hereafter in effect) with respect
to the Common Stock; and (d) furnish to any holder of the Securities forthwith upon request (i) a written statement by the Company as to its compliance with the reporting requirements of Rule 144, (ii) a copy of the most recent annual
or quarterly report of the Company as filed with the Commission, and (iii) any other reports and documents that a holder of the Securities may reasonably request in order to avail itself of any rule or regulation of the Commission allowing such
holder to sell any such Securities without registration. 
  

 16 

 (d) Reservation of Common Stock. The Company will at all times have authorized and reserved for
the purpose of issuance a sufficient number of shares of Common Stock to provide for the issuance of Common Stock upon conversion of the Series B Preferred Stock and the exercise of the Warrants (the “Conversion
Shares”). 
 (e) Return of Certificates on Conversion and Warrants on Exercise. 
 (i) Upon any conversion by the Purchaser of less than all of the Series B Preferred Stock pursuant to the terms of the Series B
Certificate of Designation, the Company shall issue and deliver to the Purchaser, within seven business days of the date of conversion, a new certificate or certificates for, as applicable, the total number of shares of the Series B Preferred Stock,
which the Purchaser has not yet elected to convert (with the number of and denomination of such new certificate(s) designated by the Purchaser). 
 (ii) Upon any partial exercise by the Purchaser or its assignees of the Warrants, the Company shall issue and deliver to the Purchaser or applicable assignee, within seven business days of the date on which the
Warrants is exercised, new Warrants representing the number of adjusted shares of Common Stock covered thereby, in accordance with the terms thereof. 
 (f) Replacement Certificates and Warrants. 
 (i) The certificate(s) representing the
shares of the Series B Preferred Stock held by the Purchaser shall be exchangeable, at the option of the Purchaser at any time and from time to time at the office of Company, for certificates with different denominations representing, as applicable,
an equal aggregate number of shares of the Series B Preferred Stock as requested by the Purchaser upon surrendering the same. No service charge will be made for such registration or transfer or exchange. 
 (ii) The Warrants will be exchangeable, at the option of the Purchaser or its assignees, at any time and from time to time at the office
of the Company, for other Warrants of different denominations entitling the holder thereof to purchase in the aggregate the same number of shares of Common Stock as are purchasable under such Warrants. No service charge will be made for such
transfer or exchange. 
 (g) Securities Laws Disclosure; Publicity. The Company shall, by the fourth trading day following the First
Closing Date, issue a press release and file a Current Report on Form 8-K reasonably acceptable to Purchaser disclosing all material terms of the transactions contemplated hereby. The Company and Purchaser shall consult with each other in issuing
any press releases with respect to the transactions contemplated hereby. Notwithstanding the foregoing, other than in any registration statement filed pursuant to the Registration Rights Agreement and filings related thereto, the Company shall not
publicly disclose the name of Purchaser, or include the name of Purchaser in any filing with the Commission or any regulatory agency or principal trading market, without the prior written consent of Purchaser, except to the extent such disclosure is
required by law or market regulations, in which case the Company shall provide Purchaser with prior notice of such disclosure. 
  

 17 

 5. ADDITIONAL AGREEMENTS 
 (a) Use of Proceeds. The Company shall use the proceeds from the sale of the Series B Preferred Stock: (i) to reimburse the Purchaser its
expenses as set forth in Section 8 hereof, (ii) to develop and/or acquire data centers in Latin America, and make other strategic acquisitions, in accordance with the Company’s business plan approved by the Company’s Board of
Directors, and (iii) for general working capital purposes. 
 (b) [Intentionally Omitted]. 
 (c) Listing of Common Stock. The Company shall use its best efforts to: (i) file, not later than September 30, 2008, a listing
application for the American Stock Exchange (“AMEX”); and (ii) commence trading on AMEX not later than December 31, 2008. SGC shall use commercially reasonable best efforts to facilitate the Company’s
undertakings pursuant to clauses (i) and (ii) above). 
 (d) Form 10-K. The Company shall use its best efforts to timely
file its Form 10-K for the fiscal year ended December 31, 2007. 
 (e) Waiver of “Full Ratchet” Anti-Dilution
Provisions. From and after the date hereof, Purchaser agrees to waive the benefit of any “full ratchet” anti-dilution provisions applicable to shares of Series A Preferred Stock and/or Series B Preferred Stock held by Purchaser.

 (f) Executive Incentive Plan. As soon as reasonably practicable following the execution and delivery of this Agreement by the
parties hereto, the Company shall adopt the 2008 Executive Incentive Plan attached hereto as Exhibit D. 
 (g) Registration
Requirement. On or before the First Closing Date, (i) Purchaser and the Company shall execute and deliver a registration rights agreement in the form attached hereto as Exhibit E (the “Registration Rights
Agreement”) and (ii) the Company and Purchaser shall (and Purchaser shall cause SGC to) execute and deliver an amendment to existing registration rights agreements between Purchaser, SGC and the Company in the form attached
hereto as Exhibit F. 
 (h) Sale of South Pacific Assets. From and after the date of this Agreement until the Maturity Date (as such
term is defined in the Bridge Note), the Company shall undertake its best efforts to sell its business, operations and/or other assets in the South Pacific (the “South Pacific Assets”) in one or more transactions on
commercially reasonable terms. 
 (i) Termination of Brokerage Arrangements. At or prior to the execution and delivery of this
Agreement by the parties hereto, the Company and SGC shall commit to terminate any brokerage agreements subjecting the Company to pay SGC any brokerage or capital raising fees, including without limitation, that certain engagement letter between SGC
and the Company dated August 30, 2007; provided, however, that such termination obligation shall not apply to (i) any brokerage, advisory or other fees payable to SGC pursuant to Section 8 or (ii) the existing agreement between
the Company and SGC with respect to the sale of the South Pacific Assets. 
  

 18 

 (j) Notice of Appointment. The Company shall provide prompt written notice to Purchaser of
the effective appointment of Pizarro as Chief Executive Officer of the Company. 
 (k) Voting Rights. For as long as the Purchaser
Parties collectively hold capital stock in the Company or any successor thereto representing at least fifty percent (50%) or more of the combined voting power of the Company’s (or any successor’s) outstanding capital stock, the
Company shall not (and shall not cause or permit any of its material subsidiaries to), by amendment, merger, consolidation or otherwise, without first obtaining the approval of the holders of at least a majority of the shares of capital stock in the
Company held by the Purchaser Parties: (i) create any new class or series of capital stock (or securities convertible into or exercisable therefor) (1) having a preference over the Common Stock as to the payment of dividends or the
distribution of assets upon the occurrence of a Liquidation Event (as defined in the Series B Certificate of Designation) or (2) that are otherwise superior to the Common Stock (“Senior Securities”);
(ii) alter or change the rights, preferences or privileges of any Senior Securities so as to adversely affect the Common Stock; (iii) enter into a contract for the sale of a material portion of its assets or equity effected by a merger,
consolidation or similar transaction; (iv) amend its certificate of incorporation or bylaws; (v) change the nature of its business or invest any corporate funds in a business entity or venture that is not directly related to its principal
line of business; (vi) except as noted below, issue equity securities or securities convertible into or exercisable therefor (collectively, “Company Securities”) other than pursuant to stock option or other equity
plans then in effect; (vii) effect dividends or distributions on or redemptions of Company Securities; (viii); establish, materially expand or amend any stock option or other equity plan; (ix) expand the number of directors on the
Company’s Board or Directors; (x) make capital expenditures in excess of a $15,000,000 in any 12-month period; (xi) enter into any credit facility or issue debt in excess of $15,000,000; and (xii) enter into or modify any
affiliated or related party transaction. Notwithstanding the foregoing, the approval of the Purchaser Parties shall not be required for all issuances of Company Securities for which the Company has received bona fide commitments on or before
December 31, 2008, pursuant to Section 1(d) of this Agreement, (A) to the extent such Company Securities are issued at or above $3.97 per share (taking into account all Company Securities issued in connection with such issuance) and
(B) provided such Company Securities are not superior in designations, rights or preferences to the Series B Preferred Stock. 
 (l)
Required Consents. The Company shall use its best efforts to obtain the consents described on Schedule 5(l) (the “Required Consents”). 
 6. CONDITIONS TO THE COMPANY’S OBLIGATIONS 
 The Purchaser understands that the Company’s obligation to issue the Series B Preferred Stock and the Warrants to the Purchaser or its assignees pursuant to this Agreement is conditioned upon satisfaction of the
following, unless waived in writing by the Company: 
 (a) Conditions Applicable to the Issuance of Series B Preferred Stock and Warrants
Pursuant to Sections 1(a) and 1(b). 
  

 19 

 (i) The accuracy on the date of this Agreement of the representations and warranties of
the Purchaser contained in this Agreement in all material respects; 
 (ii) The performance by the Purchaser on or before the
date of this Agreement of all covenants and agreements of the Purchaser set forth in Section 5 of this Agreement required to be performed in all material respects on or before the date of this Agreement; and 
 (iii) The receipt of good funds as of each Closing Date. 
 (b) Conditions Applicable to the Issuance of Series B Preferred Stock Pursuant to Section 1(d). 
 (i) The performance by the Purchaser on or before such Closing Date of all covenants and agreements of the Purchaser required to be performed in all material respects on or before such Closing Date; and 
 (ii) The receipt of good funds as of each Closing Date. 
 7. CONDITIONS TO THE PURCHASER’S OBLIGATION TO PURCHASE THE SHARES AND THE WARRANTS 
 The Company
understands that the Purchaser’s obligation to purchase the Series B Preferred Stock and the Warrants pursuant to this Agreement is conditioned upon satisfaction of the following, unless waived in writing by the Purchaser: 
 (a) Conditions Applicable to the Purchase of Series B Preferred Stock and Warrants Pursuant to Sections 1(a) and 1(b). 
 (i) The accuracy on the date of this Agreement of the representations and warranties of the Company contained in this Agreement in all
material respects; 
 (ii) The performance by the Company on or before the date of this Agreement of all covenants and
agreements of the Purchaser set forth in Section 5 of this Agreement required to be performed in all material respects on or before the date of this Agreement; 
 (iii) The Company shall have executed and delivered to the Purchaser or its assignees (i) the shares of Series B Preferred Stock with
respect to each Closing Date and (ii) all of the Warrants on the First Closing Date; 
 (iv) Pizarro shall then hold the
position of Chief Executive Officer of the Company; and 
 (v) The consent of ANZ Finance American Samoa, Inc. and Amerika
Samoa Bank Inc., in form and substance reasonably satisfactory to the Purchaser, shall have been obtained. 
  

 20 

 (b) Conditions Applicable to the Purchase of Series B Preferred Stock Pursuant to
Section 1(d). 
 (i) The performance by the Company on or before such Closing Date of all covenants and agreements of
the Company required to be performed in all material respects on or before such Closing Date; 
 (ii) The Company shall have
executed and delivered to the Purchaser or its assignees (i) the shares of Series B Preferred Stock with respect to each Closing Date; and 
 (iii) Pizarro shall then hold the position of Chief Executive Officer of the Company. 
 8. FEES AND
EXPENSES 
 (a) The Company shall bear its own costs, including attorney’s fees, incurred in the negotiation of this Agreement and
consummating of the transactions contemplated herein and the corporate proceedings of the Company in contemplation hereof and thereof. At the First Closing, the Company shall (i) reimburse the Purchaser for all of the Purchaser’s
reasonable out-of-pocket expenses incurred in connection with the negotiation or performance of this Agreement, including without limitation reasonable fees and disbursements of counsel to the Purchaser and (ii) pay SGC an advisory fee of
$250,000. 
 (b) Upon the execution and delivery of this Agreement, Purchaser shall pay SGC an advisory fee of $1,500,000. 
 9. SURVIVAL 
 The agreements,
covenants, representations and warranties of the Company and the Purchaser shall survive the execution and delivery of this Agreement and the delivery of the Securities hereunder for a period of two years from the date of the Final Closing Date,
except that: 
 (a) the Company’s representations and warranties regarding Taxes contained in Section 3(s) of this Agreement shall
survive as long as the Company remains statutorily liable for any obligation referenced in Section 3(s), and 
 (b) the Company’s
representations and warranties contained in Section 3(c) shall survive until the Purchaser and any of its affiliates are no longer holders of any of the Securities purchased hereunder. 
 10. INDEMNIFICATION 
 (a) Subject to
Section 10(b), each of the Company and the Purchaser (each in such capacity under this Section, the “Indemnifying Party”) agrees to indemnify the other party and each officer, director, employee, agent, partner,
stockholder, member and affiliate of such other party (collectively, the “Indemnified Parties”) for, and hold each Indemnified Party harmless from and 

  

 21 

 
against: (i) any and all damages, losses, claims, diminution in value and other liabilities of any and every kind, including, without limitation,
judgments and costs of settlement, and (ii) any and all reasonable out-of-pocket costs and expenses of any and every kind, including, without limitation, reasonable fees and disbursements of counsel for such Indemnified Parties (all of which
expenses periodically shall be reimbursed as incurred), in each case, arising out of or suffered or incurred in connection with any of the following, whether or not involving a third party claim: (A) any misrepresentation or any breach of any
warranty made by the Indemnifying Party herein or in any of the other Primary Documents, (B) any breach or non-fulfillment of any covenant or agreement made by the Indemnifying Party herein or in any of the other Primary Documents, or
(C) any claim relating to or arising out of a violation of applicable federal or state securities laws by the Indemnifying Party in connection with the sale or issuance of the Series B Preferred Stock or the Warrants by the Indemnifying Party
to the Indemnified Party (collectively, the “Indemnified Liabilities”). To the extent that the foregoing undertaking by the Indemnifying Party may be unenforceable for any reason, the Indemnifying Party shall make the
maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law. 
 (b)
Notwithstanding Section 10(a), no indemnification shall be payable in respect of any Indemnified Liability (i) where the claiming Indemnified Party prior to the First Closing Date had actual knowledge of or notice from information set
forth in the schedules hereto of facts that would clearly evidence the existence or basis of such Indemnified Liability or (ii) where such Indemnified Party entered into a settlement of an Indemnified Liability without the prior written consent
of the applicable Indemnifying Party and such Indemnifying Party has not unreasonably withheld such written consent. 
 11. NOTICES 

 Any notice required or permitted hereunder shall be given in writing (unless otherwise specified herein) and shall be effective upon personal delivery, via
facsimile (upon receipt of confirmation of error-free transmission and mailing a copy of such confirmation, postage prepaid by certified mail, return receipt requested) or two business days following deposit of such notice with an internationally
recognized courier service, with postage prepaid and addressed to each of the other parties thereunto entitled at the following addresses, or at such other addresses as a party may designate by five days advance written notice to each of the other
parties hereto. 
  

							
	Company:	 		  	eLandia International Inc.
		 		  	1500 Cordova Road, Suite 312
		 		  	Ft. Lauderdale, Florida 33316
		 		  	Attention: Chief Executive Officer
		 		  	Telephone:	  	954-728-9090
		 		  	Facsimile:	  	954-728-9080

  

 22 

							
			
	with a copy to:	 		  	Carlton Fields P.A.
		 		  	4000 International Place
		 		  	100 SE 2nd Street
		 		  	Miami, FL 33131
		 		  	Attention: Seth P. Joseph
		 		  	Telephone:	  	305-530-0050
		 		  	Facsimile:	  	305-530-0055
			
	Purchaser:	 		  	Stanford International Bank Ltd.
		 		  	No. 11 Pavilion Drive
		 		  	St. John’s, Antigua
		 		  	West Indies
		 		  	Attention: James M. Davis, Chief Financial Officer
		 		  	Telephone:	  	901-680-5260
		 		  	Facsimile:	  	901-680-5265
			
	with a copy to:	 		  	Stanford Financial Group
		 		  	5050 Westheimer Road
		 		  	Houston, Texas 77056
		 		  	Attention: Mauricio Alvarado, Esq.
		 		  	Telephone	  	713-964-5145
		 		  	Facsimile:	  	713-964-5245

 12. GOVERNING LAW; JURISDICTION; WAIVER OF JURY TRIAL 
 All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in
accordance with the internal laws of the State of Florida, without regard to the principles of conflicts of law thereof. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in Miami-Dade
County, Florida for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Primary Documents), and hereby
irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or inconvenient venue for such
proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence
of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in
any way any right to serve process in any manner permitted by law. The parties hereby waive all rights to a trial by jury. If either party shall commence an action or proceeding to enforce any provisions of this Agreement, then the prevailing party
in such action or proceeding shall be reimbursed by the other party for its attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding. 
  

 23 

 13. MISCELLANEOUS 
 (a) Entire Agreement. This Agreement supersedes all prior agreements and understandings among the parties hereto with respect to the subject matter hereof. This Agreement, together with the other Primary
Documents, including any certificate, schedule, exhibit or other document delivered pursuant to their terms, constitutes the entire agreement among the parties hereto with respect to the subject matters hereof and thereof, and supersedes all prior
agreements and understandings, whether written or oral, among the parties with respect to such subject matters. 
 (b) Amendments.
This Agreement may not be amended except by an instrument in writing signed by the party to be charged with enforcement. 
 (c)
Waiver. No waiver of any provision of this Agreement shall be deemed a waiver of any other provisions or shall a waiver of the performance of a provision in one or more instances be deemed a waiver of future performance thereof. 

(d) Construction. This Agreement and each of the Primary Documents have been entered into freely by each of the parties, following consultation
with their respective counsel, and shall be interpreted fairly in accordance with its respective terms, without any construction in favor of or against either party. 
 (e) Binding Effect of Agreement. This Agreement, and any and all rights, duties and obligations hereunder, shall not be assigned, transferred, delegated or sublicensed by the Purchaser to any Person other than
an Affiliate of Purchaser or any of the Persons set forth on Schedule A without the prior written consent of the Company. Any attempt by the Purchaser without such permission to assign, transfer, delegate or sublicense any rights, duties or
obligations that arise under this Agreement shall be void. Subject to the foregoing and except as otherwise provided herein. This Agreement shall inure to the benefit of, and be binding upon the successors and assigns of each of the parties
hereto, including any assignees of the Purchaser as well as any transferees of the Series B Preferred Stock and the Warrants. 
 (f)
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 or the validity or
unenforceability of this Agreement in any other jurisdiction. 
 (g) Attorneys’ Fees. If any action should arise between the
parties hereto to enforce or interpret the provisions of this Agreement, the prevailing party in such action shall be reimbursed for all reasonable expenses incurred in connection with such action, including reasonable attorneys’ fees.

 (h) Headings. The headings of this Agreement are for convenience of reference only and shall not form part of, or affect the
interpretation of this Agreement. 
 (i) Counterparts. This Agreement may be executed in two or more counterparts, all of which when
taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In
the event that any signature is delivered 

  

 24 

 
by facsimile transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed)
with the same force and effect as if such facsimile signature page were an original thereof. 
 (j) Remedies. In addition to being
entitled to exercise all rights provided herein or granted by law, including recovery of damages, Purchaser and the Company will be entitled to specific performance under the Primary Documents. The parties agree that monetary damages may not be
adequate compensation for any loss incurred by reason of any breach of obligations described in the foregoing sentence and hereby agrees to waive in any action for specific performance of any such obligation the defense that a remedy at law would be
adequate. 
 [Signatures Begin on Following Page] 
  

 25 

 IN WITNESS WHEREOF, this Agreement has been duly executed by each of the undersigned as of the
date first written above. 
  

			
	ELANDIA INTERNATIONAL INC.
		
	By:	 	 /s/ David L. Levine

	Name:	 	David L. Levine
	Title:	 	Chairman of the Board
	
	STANFORD INTERNATIONAL BANK LTD.
		
	By:	 	 /s/ James M. Davis

		 	James M. Davis
		 	Chief Financial Officer

  

 26

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