Document:

EX-10.1 SECURITIES PURCHASE AGREEMENT

 

Exhibit 10.1

SECURITIES PURCHASE AGREEMENT

     This SECURITIES PURCHASE AGREEMENT dated as of February ___, 2007 (this “Agreement”) by and
among Cruisestock, Inc., a Texas corporation (the “Company”), and each of the purchasers of Series
A Convertible Preferred Stock and Series A and B Warrants of the Company whose names are set forth
on Exhibit A attached hereto (each, a “Purchaser” and collectively, the “Purchasers”).

Recitals:

     A. The Company has entered into a merger agreement (the “Merger Agreement”) with the
shareholders of Brookside Technology Partners, Inc., a Texas corporation (“Brookside”), pursuant to
which Brookside will merge with and into a wholly-owned subsidiary of the Company and the
shareholders of Brookside will receive shares of common stock of the Company.

     B. It is a condition to the closing of the Merger Agreement that the Company raise one million
five hundred thousand ($1,500,000) of equity through the sale of the Series A Preferred Stock
contemplated by this Agreement.

     In consideration of the foregoing recitals and for good and other valuable consideration
hereinafter set forth, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto, intending to be legally bound, hereby agree as follows:

ARTICLE I

PURCHASE AND SALE OF SECURITIES

     1. Purchase and Sale of Series A Convertible Preferred Stock and Series A and B
Warrants.

          a. Upon the following terms and conditions, the Company shall issue and sell to the
Purchasers, and the Purchasers shall purchase from the Company, Series A Convertible Preferred
Stock, par value $.001 per share (the “Series A Preferred Stock”), having an aggregate stated value
up to One Million Five Hundred Thousand Dollars ($1,500,000) and the rights set forth in the
Certificate of Designations, Limitations and Preferences attached hereto as Exhibit B (the
“Series A Financing”). The Company shall issue to each Purchaser the number of shares of Series A
Preferred Stock and the number of Series A Warrants and Series B Warrants (as defined in subsection
(b) below) set forth in Exhibit A. The Company and the Purchasers are executing and
delivering this Agreement in accordance with and in reliance upon the exemption from securities
registration afforded by Section 2(b)(2) of the U.S. Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder (the “Securities Act”), including Regulation D
(“Regulation D”), and/or upon such other exemption from the registration requirements of the
Securities Act as may be available with respect to any or all of the investments to be made
hereunder.

          b. Upon the following terms and conditions, the Purchasers shall be issued: (i) Series A
Warrants, in substantially the form attached hereto as Exhibit C (the “Series A

 

 

Warrants”), to purchase a number of shares of Common Stock equal to fifty percent (50%) of the
number of Conversion Shares issuable upon conversion of such Purchaser’s Series A Preferred Stock
at an exercise price per share equal to the Warrant Price (as defined in the Series A Warrants) and
a term of three (3) years following the Initial Exercise Date (as defined in the Series A
Warrants); and (ii) Series B Warrants, in substantially the form attached hereto as Exhibit
D (the “Series B Warrants”), to purchase a number of shares of Common Stock equal to fifty
percent (50%) of the number of Conversion Shares issuable upon conversion of such Purchaser’s
Series A Preferred Stock at an exercise price per share equal to the Warrant Price (as defined in
the Series B Warrants) and a term of five (5) years following the Initial Exercise Date (as defined
in the Series B Warrants).

     2. Purchase Price and Closing.

          a. Subject to the terms and conditions hereof, the Company agrees to issue and sell to the
Purchasers and, in consideration of and in express reliance upon the representations, warranties,
covenants, terms and conditions of this Agreement, the Purchasers, severally but not jointly, agree
to purchase the Series A Preferred Stock, Series A Warrants and Series B Warrants for an aggregate
purchase price of up to One Million Five Hundred Thousand Dollars ($1,500,000) (the “Purchase
Price”).

          b. The Series A Preferred Stock, Series A Warrants and Series B Warrants shall be sold and
funded in a closing (the “Closing”) which shall take place on or before February ___, 2007 (the
“Closing Date”). The Closing shall take place the office of counsel for the Company as set forth
herein, at 10:00 a.m., eastern time; provided, however, that all of the conditions set forth in
Article IV hereof and applicable to the Closing shall have been fulfilled or waived in
accordance herewith.

          c. Subject to the terms and conditions of this Agreement, at the Closing, the Company shall
deliver or cause to be delivered to each Purchaser (x) its Series A Preferred Stock and (y) its
Series A Warrants and Series B Warrants. At the Closing, each Purchaser shall deliver its Purchase
Price by wire transfer of immediately available funds to an account designated by the Company. The
Series A Warrants and Series B Warrants are referred to collectively as the “Warrants.” The number
of shares of Common Stock issuable to each Purchaser upon exercise of the Warrants are referred to
herein collectively as the “Warrant Shares.” Any shares of Common Stock issuable upon conversion of
the Series A Preferred Stock are herein referred to as the “Conversion Shares.” The Series A
Preferred Stock, Warrants and Warrant Shares are sometimes collectively referred to herein as the
“Securities.”

ARTICLE II

REPRESENTATIONS AND WARRANTIES

     1. Representations and Warranties of the Company. The Company hereby represents and
warrants to the Purchasers, as of the date hereof and the Closing Date (except as set forth on the
Schedule of Exceptions attached hereto with each numbered Schedule corresponding to the section
number herein), as follows:

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          a. Organization, Good Standing and Power. The Company is a corporation duly incorporated,
validly existing and in good standing under the laws of the State of Texas and has the requisite
corporate power to own, lease and operate its properties and assets and to conduct its business as
it is now being conducted. The Company is duly qualified as a foreign corporation to do business
and is in good standing in every jurisdiction in which the nature of the business conducted or
property owned by it makes such qualification necessary except for any jurisdiction(s) (alone or in
the aggregate) in which the failure to be so qualified will not have a Material Adverse Effect. For
the purposes of this Agreement, “Material Adverse Effect” means any material adverse effect on the
business, operations, properties, prospects, or financial condition of the Company and/or any
condition, circumstance, or situation that would prohibit or otherwise materially interfere with
the ability of the Company to perform any of its obligations under this Agreement in any material
respect.

          b. Authorization; Enforcement. The Company has the requisite corporate power and authority to
enter into and perform this Agreement, the Warrants, and the Investor Rights Agreement dated as of
the date hereof, substantially in the form of Exhibit E attached hereto (the “Investor
Rights Agreement”) (collectively, the “Transaction Documents”) and to issue and sell the Securities
in accordance with the terms hereof. The execution, delivery and performance of the Transaction
Documents by the Company and the consummation by it of the transactions contemplated thereby have
been duly and validly authorized by all necessary corporate action, and no further consent or
authorization of the Company, its Board of Directors or stockholders is required. When executed and
delivered by the Company, each of the Transaction Documents shall constitute a valid and binding
obligation of the Company enforceable against the Company in accordance with its terms, except as
such enforceability may be limited by applicable bankruptcy, reorganization, moratorium,
liquidation, conservatorship, receivership or similar laws relating to, or affecting generally the
enforcement of, creditor’s rights and remedies or by other equitable principles of general
application.

          c. Capitalization. The authorized capital stock and the issued and outstanding shares of
capital stock of the Company as of the Closing Date is set forth on Schedule 1(c) hereto.
All of the outstanding shares of the Common Stock and any other outstanding security of the Company
have been duly and validly authorized. Except as set forth in this Agreement, the Commission
Documents (as defined in Article II Section 1(e) below) or as set forth on Schedule
1(c) hereto, no shares of Common Stock or any other security of the Company are entitled to
preemptive rights or registration rights and there are no outstanding options, warrants, scrip,
rights to subscribe to, call or commitments of any character whatsoever relating to, or securities
or rights convertible into, any shares of capital stock of the Company. Furthermore, except as set
forth in this Agreement and as set forth on Schedule 1(c) hereto, there are no contracts,
commitments, understandings, or arrangements by which the Company is or may become bound to issue
additional shares of the capital stock of the Company or options, securities or rights convertible
into shares of capital stock of the Company. Except for customary transfer restrictions contained
in agreements entered into by the Company in order to sell restricted securities or as provided on
Schedule 1(c) hereto, the Company is not a party to or bound by any agreement or
understanding granting registration or anti-dilution rights to any person with respect to any of
its equity or debt securities. Except as set forth on Schedule 1(c), the Company is not a
party to, and it has no knowledge of, any agreement or understanding restricting the voting or
transfer of any shares of the capital stock of the Company.

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          d. Subsidiaries. Schedule 1(d) hereto sets forth each Subsidiary of the Company and
shows the percentage of each person’s ownership of the outstanding stock or other interests of such
Subsidiary. For the purposes of this Agreement, “Subsidiary” shall mean any corporation or other
entity of which at least a majority of the securities or other ownership interest having ordinary
voting power (absolutely or contingently) for the election of directors or other persons performing
similar functions are at the time owned directly or indirectly by the Company and/or any of its
other Subsidiaries.

          e. Securities Filings. The Common Stock of the Company is currently reported on the OTC
Bulletin Board and is registered pursuant to the Securities Exchange Act of 1933, as amended (the
“Exchange Act”), and the Company has filed all reports, schedules, forms, statements and other
documents required to be filed by it with the Commission pursuant to the reporting requirements of
the Exchange Act (all of the foregoing, including filings incorporated by reference therein, being
referred to herein as the “Commission Documents”). Any Form 10-QSB and Form 10-KSB filings made by
the Company do not contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary in order to make the statements therein, in light of the
circumstances under which they were made, not misleading.

          f. No Material Adverse Change. Except as otherwise set forth in Schedule 1(f) hereto,
since November 30, 2006, the Company has not experienced or suffered any Material Adverse Effect;
provided, however, the Company has made distributions of its assets to its officers and directors
in contemplation of the transactions described herein and, as of the Closing Date, will have no
assets.

          g. Indebtedness. Schedule 1(g) hereto sets forth, as of the date hereof, all
outstanding secured and unsecured Indebtedness of the Company, or Indebtedness for which the
Company has commitments. For the purposes of this Agreement, “Indebtedness” shall mean (a) any
liabilities for borrowed money or amounts owed in excess of $10,000, (b) all guaranties,
endorsements and other contingent obligations in respect of Indebtedness of others, whether or not
the same are or should be reflected in the Company’s balance sheet (or the notes thereto), (c) the
present value of any lease payments in excess of $10,000 due under leases required to be
capitalized in accordance with GAAP, and (d) any accrued fees, expenses, and liabilities. The
Company is not in default with respect to any Indebtedness. The Purchasers acknowledge that the
Company will remain liable for payment of obligations expressly set forth on Schedule 1(g),
in the amounts set forth on Schedule 1(g), and that the Company will discharge such
obligations or otherwise make provision for payment thereof.

          h. Actions Pending. There is no action, suit, claim, investigation, arbitration, alternate
dispute resolution proceeding or other proceeding pending or, to the knowledge of the Company,
threatened against or involving the Company or any of its respective properties or assets. There
are no outstanding orders, judgments, injunctions, awards or decrees of any court, arbitrator or
governmental or regulatory body against the Company or any officers or directors of the Company in
their capacities as such.

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          i. Compliance with Law. The business of the Company has been and is presently being conducted
in accordance with all applicable federal, state and local governmental laws, rules, regulations
and ordinances.

          j. Taxes. Except as set forth in Schedule 1(j), the Company has accurately prepared
and filed all federal, state and other tax returns required by law to be filed by it, has paid or
made provisions for the payment of all taxes shown to be due and all additional assessments, and
adequate provisions have been and are reflected in the financial statements of the Company for all
current taxes and other charges to which the Company is subject and which are not currently due and
payable. None of the federal income tax returns of the Company or any Subsidiary have been audited
by the Internal Revenue Service. The Company has no knowledge of any additional assessments,
adjustments or contingent tax liability (whether federal or state) of any nature whatsoever,
whether pending or threatened against the Company for any period, nor of any basis for any such
assessment, adjustment or contingency.

          k. Disclosure. Neither this Agreement or the Schedules hereto nor any other documents,
certificates or instruments furnished by or on behalf of the Company in connection with the
transactions contemplated by this Agreement contain any untrue statement of a material fact or omit
to state a material fact necessary in order to make the statements made herein or therein, in light
of the circumstances under which they were made herein or therein, not misleading.

          l. Employees. Neither the Company nor any Subsidiary has any collective bargaining
arrangements or agreements covering any of its employees. The Company has no employment contract,
agreement regarding proprietary information, non-competition agreement, non-solicitation agreement,
confidentiality agreement, or any other similar contract or restrictive covenant, relating to the
right of any officer, employee or consultant to be employed or engaged by the Company.

          m. Public Utility Holding Company Act and Investment Company Act Status. The Company is not a
“holding company” or a “public utility company” as such terms are defined in the Public Utility
Holding Company Act of 1935, as amended. The Company is not, and as a result of and immediately
upon the Closing will not be, an “investment company” or a company “controlled” by an “investment
company,” within the meaning of the Investment Company Act of 1940, as amended.

          n. ERISA. No liability to the Pension Benefit Guaranty Corporation has been incurred with
respect to any Plan by the Company which has not been satisfied by the Company. As used in this
section, the term “Plan” shall mean an “employee pension benefit plan” (as defined in Section 3 of
ERISA) which is or has been established or maintained, or to which contributions are or have been
made, by the Company or any Subsidiary or by any trade or business, whether or not incorporated,
which, together with the Company or any Subsidiary, is under common control, as described in
Section 2(b)14(b) or (c) of the Code.

          o. Securities Act of 1933. Based in material part upon the representations herein of the
Purchasers, the Company has complied and will comply with all applicable federal and state
securities laws in connection with the offer, issuance and sale of the

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Securities hereunder. Neither the Company nor anyone acting on its behalf, directly or
indirectly, has or will sell, offer to sell or solicit offers to buy any of the Securities or
similar securities to, or solicit offers with respect thereto from, or enter into any negotiations
relating thereto with, any person, or has taken or will take any action so as to bring the issuance
and sale of any of the Securities under the registration provisions of the Securities Act and
applicable state securities laws, and neither the Company nor any of its affiliates, nor any person
acting on its or their behalf, has engaged in any form of general solicitation or general
advertising (within the meaning of Regulation D under the Securities Act) in connection with the
offer or sale of any of the Securities.

          p. No Integrated Offering. Neither the Company, nor any of its affiliates, nor any person
acting on its or their behalf, has directly or indirectly made any offers or sales of any security
or solicited any offers to buy any security under circumstances that would cause the offering of
the Securities pursuant to this Agreement to be integrated with prior offerings by the Company for
purposes of the Securities Act, which would prevent the Company from selling the Securities
pursuant to Regulation D and Rule 506 thereof under the Securities Act, or any applicable
exchange-related stockholder approval provisions, nor will the Company or any of its affiliates or
subsidiaries take any action or steps that would cause the offering of the Securities to be
integrated with other offerings. The Company does not have any registration statement pending
before the Commission or currently under the Commission’s review.

          q. Issuance of Securities. The Securities to be issued at the Closing have been duly
authorized by all necessary corporate action and, when paid for or issued in accordance with the
terms hereof, the Securities shall be validly issued and outstanding, free and clear of all liens,
encumbrances and rights of refusal of any kind. When the Conversion Shares and Warrant Shares are
issued and paid for in accordance with the terms of this Agreement and as set forth in the
Warrants, such shares will be duly authorized by all necessary corporate action and validly issued
and outstanding, fully paid and nonassessable, free and clear of all liens, encumbrances and rights
of refusal of any kind and the holders shall be entitled to all rights accorded to a holder of
Common Stock.

          r. No Conflicts. The execution, delivery and performance of the Transaction Documents by the
Company, and the consummation by the Company of the transactions contemplated hereby and thereby,
and the issuance of the Securities as contemplated hereby, do not and will not (i) violate or
conflict with any provision of the Company’s Articles of Incorporation (the “Articles”) or Bylaws
(the “Bylaws”), each as amended to date, or any Subsidiary’s comparable charter documents; (ii)
conflict with, or constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of termination, amendment, acceleration
or cancellation of, any agreement, mortgage, deed of trust, indenture, note, bond, license, lease
agreement, instrument or obligation to which the Company or any of its Subsidiaries is a party or
by which the Company or any of its Subsidiaries’ respective properties or assets are bound; or
(iii) result in a violation of any federal, state, local or foreign statute, rule, regulation,
order, judgment or decree (including federal and state securities laws and regulations) applicable
to the Company or any of its Subsidiaries or by which any property or asset of the Company or any
of its Subsidiaries are bound or affected, except, in all cases, for such conflicts, defaults,
terminations, amendments, acceleration, cancellations and violations as would not, individually or
in the aggregate, have a Material

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Adverse Effect (other than violations pursuant to clauses (i) or (iii) (with respect to
federal and state securities laws)). Neither the Company nor any of its Subsidiaries is required
under federal, state, foreign or local law, rule or regulation to obtain any consent, authorization
or order of, or make any filing or registration with, any court or governmental agency in order for
it to execute, deliver or perform any of its obligations under the Transaction Documents or issue
and sell the Securities in accordance with the terms hereof (other than any filings, consents and
approvals which may be required to be made by the Company under applicable state and federal
securities laws, rules or regulations or any registration provisions provided in the Investor
Rights Agreement).

          s. Actions Pending. There is no action, suit, claim, investigation, arbitration, alternate
dispute resolution proceeding or other proceeding pending or, to the knowledge of the Company,
threatened against the Company which questions the validity of this Agreement or any of the other
Transaction Documents or any of the transactions contemplated hereby or thereby or any action taken
or to be taken pursuant hereto or thereto.

          t. Independent Nature of Purchasers. The Company acknowledges that the obligations of each
Purchaser under the Transaction Documents are several and not joint with the obligations of any
other Purchaser and that no Purchaser shall be responsible in any way for the performance of the
obligations of any other Purchaser under the Transaction Documents. The Company acknowledges that
the decision of each Purchaser to purchase Securities pursuant to this Agreement has been made by
such Purchaser independently of any other purchase and independently of any information, materials,
statements or opinions as to the business, affairs, operations, assets, properties, liabilities,
results of operations, condition (financial or otherwise) or prospects of the Company or of its
Subsidiaries which may have made or given by any other Purchaser or by any agent or employee of any
other Purchaser and no Purchaser or any of its agents or employees shall have any liability to any
Purchaser (or any other person) relating to or arising from any such information, materials,
statements or opinions. The Company acknowledges that nothing contained herein, or in any
Transaction Document, and no action taken by any Purchaser pursuant hereto or thereto, shall be
deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other
kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as
a group with respect to such obligations or the transactions contemplated by the Transaction
Documents.

     2. Representations and Warranties of the Purchasers. Each of the Purchasers, hereby
represents and warrants to the Company with respect solely to itself and not with respect to any
other Purchaser as follows as of the date hereof and as of the Closing Date:

          a. Organization and Standing of the Purchasers. If the Purchaser is an entity, such Purchaser
is a corporation, limited liability company or partnership duly incorporated or organized, validly
existing and in good standing under the laws of the jurisdiction of its incorporation or
organization.

          b. Authorization and Power. Each Purchaser has the requisite power and authority to enter into
and perform the Transaction Documents and to purchase or otherwise acquire the Securities being
issued to it hereunder. The execution, delivery and performance of the Transaction Documents by
each Purchaser and the consummation by it of the transactions

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contemplated hereby have been duly authorized by all necessary corporate or partnership
action, and no further consent or authorization of such Purchaser, as applicable, or its Board of
Directors, stockholders, or partners, as the case may be, is required. When executed and delivered
by the Purchasers, the other Transaction Documents shall constitute valid and binding obligations
of each Purchaser enforceable against such Purchaser in accordance with their terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation, conservatorship, receivership or similar laws relating to, or affecting generally the
enforcement of, creditor’s rights and remedies or by other equitable principles of general
application.

          c. No Conflict. The execution, delivery and performance of the Transaction Documents by the
Purchaser and the consummation by the Purchaser of the transactions contemplated thereby and hereby
do not and will not (i) violate any provision of the Purchaser’s charter or organizational
documents; (ii) conflict with, or constitute a default (or an event which with notice or lapse of
time or both would become a default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, mortgage, deed of trust, indenture, note, bond,
license, lease agreement, instrument or obligation to which the Purchaser is a party or by which
the Purchaser’s respective properties or assets are bound; or (iii) result in a violation of any
federal, state, local or foreign statute, rule, regulation, order, judgment or decree (including
federal and state securities laws and regulations) applicable to the Purchaser by which any
property or asset of the Purchaser is bound or affected, except, in all cases, other than
violations pursuant to clauses (i) or (iii) (with respect to federal and state securities laws)
above, for such conflicts, defaults, terminations, amendments, acceleration, cancellations and
violations as would not, individually or in the aggregate, materially and adversely affect the
Purchaser’s ability to perform its obligations under the Transaction Documents.

          d. Acquisition for Investment. Each of the Purchasers is acquiring the Securities solely for
its own account and not with a view to or for sale in connection with distribution. None of the
Purchasers has a present intention to sell any of the Securities, or a present arrangement (whether
or not legally binding) or intention to effect any distribution of any of the Securities to or
through any person or entity; provided, however, that by making the representations herein, such
Purchaser does not agree to hold the Securities for any minimum or other specific term and reserves
the right to dispose of the Securities at any time in accordance with federal and state securities
laws applicable to such disposition. Each Purchaser acknowledges that it (i) has such knowledge and
experience in financial and business matters such that Purchaser is capable of evaluating the
merits and risks of Purchaser’s investment in the Company; (ii) is able to bear the financial risks
associated with an investment in the Securities; and (iii) has been given full access to such
records of the Company and the Subsidiaries and to the officers of the Company and the Subsidiaries
as it has deemed necessary or appropriate to conduct its due diligence investigation.

          e. Rule 144. The Purchaser acknowledges that the shares of the Common Stock subscribed for
hereby have not been registered under the Securities Act of 1933, as amended (the “Act”), or any
applicable state securities laws in reliance upon exemption provisions of the Act and such other
laws; and accordingly, no Federal or state agency has made any recommendation or endorsement as to,
or otherwise passed on the merits of, purchasing the shares. The Purchaser further acknowledges
that there will be no public market for the shares and that it will not be

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possible to readily liquidate his or her investment. Because the Common Stock has not been
registered under the Act or state law, the Purchaser must bear the economic risks of investment for
an indefinite period of time and each Purchaser understands that the Securities must be held
indefinitely unless such Securities are registered under the Securities Act or an exemption from
registration is available. Each Purchaser acknowledges that such person is familiar with Rule 144
of the rules and regulations of the Commission, as amended, promulgated pursuant to the Securities
Act (“Rule 144”), and that such Purchaser has been advised that Rule 144 permits resales only under
certain circumstances. Each Purchaser understands that, to the extent that Rule 144 is not
available, such Purchaser will be unable to sell any Securities without either registration under
the Securities Act or the existence of another exemption from such registration requirement.

          f. Independent Inquiry. The Purchaser has been given (i) access to all books and records,
legal documents and other material information of the Company; (ii) access to all material
contracts and documents of the Company relating to the sale of the shares and the Company’s
business; and (iii) an opportunity to ask questions of and receive answers from the executive
officers of the Company, regarding the information in (i) and (ii) above. The Purchaser has made
such investigation and examination of the affairs of the Company and has obtained such information
relating thereto as he or she deems necessary to verify the accuracy of the information furnished
to him or her. The Purchaser has received no representation or warranty from any person regarding
the Company or its business or prospects, or the shares or the underlying securities; and the
Purchaser acknowledges that the ability of the Company to achieve its business objective is
uncertain. The Purchaser understands that the Company currently does not have any operations.

          g. General. Each Purchaser understands that the Securities are being offered and sold in
reliance on a transactional exemption from the registration requirements of federal and state
securities laws and the Company is relying upon the truth and accuracy of the representations,
warranties, agreements, acknowledgments and understandings of such Purchaser set forth herein in
order to determine the applicability of such exemptions and the suitability of such Purchaser to
acquire the Securities. The information provided to the Company by the Purchaser, including the
information provided in such Purchaser’s Investor Questionnaire, is true and accurate and contains
no material misstatements. Each Purchaser understands that no United States federal or state agency
or any government or governmental agency has passed upon or made any recommendation or endorsement
of the Securities. Commencing on the date that the Purchasers were initially contacted regarding an
investment in the Securities, none of the Purchasers has engaged in any short sale of the Common
Stock and will not engage in any short sale of the Common Stock prior to the consummation of the
transactions contemplated by this Agreement.

          h. No General Solicitation. Each Purchaser acknowledges that the Securities were not offered
to such Purchaser, as applicable, by means of any form of general or public solicitation or general
advertising, or publicly disseminated advertisements or sales literature, including (i) any
advertisement, article, notice or other communication published in any newspaper, magazine, or
similar media, or broadcast over television or radio; or (ii) any seminar or meeting to which such
Purchaser, as applicable, was invited by any of the foregoing means of communications. Each
Purchaser in making the decision to purchase the Securities, has

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relied upon independent investigation made by it and has not relied on any information or
representations made by third parties.

          i. Accredited Investor. Each Purchaser is an “accredited investor” (as defined in Rule 501 of
Regulation D), and such Purchaser has such experience in business and financial matters that it is
capable of evaluating the merits and risks of an investment in the Securities. Such Purchaser is
not required to be registered as a broker-dealer under Section 15 of the Exchange Act and such
Purchaser is not a broker-dealer. Each Purchaser acknowledges that an investment in the Securities
is speculative and involves a high degree of risk. Each investor will complete the Investor
Questionnaire set forth in Exhibit F attached hereto.

          j. Sophistication. The Purchaser has sufficient knowledge and experience in business and
financial matters to evaluate the merits and risks of an investment in the Company and is able to
bear the economic risks inherent in this investment and has the ability, at the present time, to
afford a complete loss of the undersigned’s entire investment in the Company. The Purchaser’s
overall commitment to investments which are not readily marketable is not disproportionate to his
or her net worth in light of his or her business or investments, and the Purchaser’s investment in
the Company will not cause such overall commitment to be disproportionate. The Purchaser has
adequate means of providing for his or her current financial needs and possible personal
contingencies and has no need for liquidity in this investment.

          k. Certain Fees. Except for investment banking fees payable to Midtown Partners & Co., LLC,
the Purchasers have not employed any broker or finder or incurred any liability for any brokerage
or investment banking fees, commissions, finders’ structuring fees, financial advisory fees or
other similar fees in connection with the Transaction Documents.

          l. Independent Investment. No Purchaser, as applicable, has agreed to act with any other
Purchaser or third parties for the purpose of acquiring, holding, voting or disposing of the
Securities purchased hereunder for purposes of Section 13(d) under the Exchange Act, and each
Purchaser is acting independently with respect to its investment in the Securities.

          m. Regulation M. Each Purchaser has complied and will comply with Regulation M promulgated
under the Exchange Act with respect to the transactions contemplated by this Agreement.

ARTICLE III

COVENANTS

     The Company covenants with each Purchaser as to each provision in this Article III as
follows, which covenants are for the benefit of each Purchaser and their respective permitted
assignees.

     1. Securities Compliance. The Company shall notify the Commission in accordance with
its rules and regulations of the transactions contemplated by any of the Transaction Documents and
shall take all other necessary action and proceedings as may be

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required and permitted by applicable law, rule and regulation, for the legal and valid
issuance of the Securities to the Purchasers or their respective subsequent holders.

     2. Listing; Filings. The Company will take all action necessary to continue the
listing or trading of its Common Stock on the OTC Bulletin Board or other exchange or market on
which the Common Stock is trading. If required, the Company will promptly file the “Listing
Application” for, or in connection with, the issuance and delivery of the Conversion Shares and the
Warrant Shares. Subject to the terms of the Transaction Documents, the Company further covenants
that it will take such further action as the Purchasers may reasonably request, all to the extent
required from time to time to enable the Purchasers to sell the Securities or shares of Common
Stock without registration under the Securities Act within and subject to the limitations provided
by Rule 144 promulgated under the Securities Act.

     3. Inspection Rights. Provided same would not be in violation of Regulation FD, the
Company shall permit, during normal business hours and upon reasonable request and reasonable
notice, each Purchaser, or any employees, agents or representatives thereof, for purposes
reasonably related to such Purchaser’s interests as a stockholder, to examine the publicly
available, non-confidential records and books of account of, and visit and inspect the properties,
assets, operations and business of the Company and any Subsidiary, and to discuss the publicly
available, non-confidential affairs, finances and accounts of the Company and any Subsidiary with
any of its officers, consultants, directors, and key employees.

     4. Compliance with Laws. The Company shall comply, and cause each Subsidiary to
comply, with all applicable laws, rules, regulations and orders, noncompliance with which would be
reasonably likely to have a Material Adverse Effect.

     5. Keeping of Records and Books of Account. The Company shall keep and cause each
Subsidiary to keep adequate records and books of account, in which complete entries will be made in
accordance with GAAP consistently applied, reflecting all financial transactions of the Company and
its Subsidiaries, and in which, for each fiscal year, all proper reserves for depreciation,
depletion, obsolescence, amortization, taxes, bad debts and other purposes in connection with its
business shall be made.

     6. Other Agreements. The Company shall not enter into any agreement which, by its
terms, would restrict or impair the Company’s or any Subsidiary’s right or ability to perform under
this Article III.

     7. Use of Proceeds. The net proceeds from the sale of the Securities hereunder shall
be used by the Company for working capital and general corporate purposes, including, but not
limited to, growth and capital initiatives, investor and public relations, consulting fees,
transaction related fees and payment of fees due Midtown Partners & Co., LLC.

     8. Reporting Status. For a period of not less than two (2) years after the Closing,
(a) the Company shall timely file all reports required to be filed with the Commission pursuant to
the Exchange Act, and the Company shall not terminate its status as an issuer required to file
reports under the Exchange Act even if the Exchange Act or the rules and regulations thereunder
would permit such termination, and (b) the Company shall retain an investor relations firm,

11

 

selected by the Company, which systematically prepares and distributes information to
potential investors about developments in the Company’s business as part of an active investor
relations program.

     9. Blue Sky Laws. Promptly as reasonably practicable after the Closing, the Company
shall (a) to the extent necessary, publish in a nationally recognized manual of securities to
secure a “manual exemption” for compliance with state securities for laws for the secondary trading
of the Common Stock of the Company (the “Manual Securities Exemption”), and (b) to the extent
necessary, take reasonable measures to comply with state securities laws of [Rhode Island, South
Carolina, and Maryland] for the secondary trading of the Common Stock of the Company, if such
states are not covered by the Manual Securities Exemption.

     10. OMITTED

     11. Transfer Taxes. All applicable sales taxes, documentary transfer taxes, recording
and filing fees, and other costs (but not including, without limitation, any attorney’s fees
incurred by the Company or income, capital gains, intangible or similar taxes) that may be due or
payable as a result of the conveyance or deliver of the Securities to be conveyed and transferred
or other transactions contemplated hereby, whether levied on the Company or the Purchasers shall be
paid by the Company.

ARTICLE IV

CONDITIONS

     1. Conditions Precedent to the Obligation of the Company to Close and to Sell the
Securities. The obligation hereunder of the Company to close and issue the Securities to the
Purchasers at the Closing is subject to the satisfaction or waiver, at or before the Closing of the
conditions set forth below. These conditions are for the Company’s sole benefit and may be waived
by the Company at any time in its sole discretion.

          a. Minimum Funding. The Company shall have received acceptable subscriptions from the
Purchasers to subscribe for and purchase shares of Series A Preferred Stock having an aggregate
stated value of One Million Five Hundred Thousand and No/100 Dollars ($1,500,000).

          b. Accuracy of the Representations and Warranties. The representations and warranties of each
Purchaser shall be true and correct in all material respects as of the date when made and as of the
Closing Date as though made at that time, except for representations and warranties that are
expressly made as of a particular date, which shall be true and correct in all material respects as
of such date.

          c. Performance by the Purchasers. Each Purchaser shall have performed, satisfied and complied
in all material respects with all covenants, agreements and conditions required by this Agreement
to be performed, satisfied or complied with by the Purchaser at or prior to the Closing Date.

12

 

          d. No Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction
shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of
competent jurisdiction which prohibits the consummation of any of the transactions contemplated by
this Agreement.

          e. Permits, Consents. All authorizations, approvals, permits, consents, waivers, and
clearances of any third party, governmental authority, state insurance regulatory agency, or other
regulatory body of the United States or of any state that are required in connection with the
transactions contemplated by this Agreement shall have been obtained and effective as of the
Closing.

          f. Delivery of Purchase Price. The Purchase Price for the Securities shall have been delivered
to the Company on the Closing Date.

          g. Delivery of Transaction Documents. The Transaction Documents shall have been duly executed
and delivered to the Company by the Purchasers.

     2. Conditions Precedent to the Obligation of the Purchasers to Close and to Acquire the
Securities. The obligation hereunder of the Purchasers to purchase or acquire the Securities
and consummate the transactions contemplated by this Agreement is subject to the satisfaction or
waiver, at or before the Closing, of each of the conditions set forth below. These conditions are
for the Purchasers’ sole benefit and may be waived by the Purchasers at any time, in their sole
discretion.

          a. Accuracy of the Company’s Representations and Warranties. Each of the representations and
warranties of the Company in this Agreement and the other Transaction Documents shall be true and
correct in all material respects as of the Closing Date, except for representations and warranties
that speak as of a particular date, which shall be true and correct in all material respects as of
such date.

          b. Performance by the Company. The Company shall have performed, satisfied and complied in all
material respects with all covenants, agreements and conditions required by this Agreement to be
performed, satisfied or complied with by the Company at or prior to the Closing Date.

          c. No Suspension, Etc. Trading in the Common Stock shall not have been suspended by the
Commission or the OTC Bulletin Board.

          d. No Injunction. No statute, rule, regulation, executive order, decree, ruling or injunction
shall have been enacted, entered, promulgated or endorsed by any court or governmental authority of
competent jurisdiction which prohibits the consummation of any of the transactions contemplated by
this Agreement.

          e. Permits, Consents. All authorizations, approvals, permits, consents, waivers, and
clearances of any third party, governmental authority, state insurance regulatory agency, or other
regulatory body of the United States or of any state that are required in connection with the
transactions contemplated by this Agreement shall have been obtained and effective as of the
Closing.

13

 

          f. No Proceedings or Litigation. No action, suit or proceeding before any arbitrator or any
governmental authority shall have been commenced, and no investigation by any governmental
authority shall have been threatened, against the Company or any Subsidiary, or any of the
officers, directors or affiliates of the Company or any Subsidiary seeking to restrain, prevent or
change the transactions contemplated by this Agreement and Transaction Documents, or seeking
damages in connection with such transactions.

          g. Preferred Stock and Warrants. At or prior to the Closing, the Company shall have delivered
to the Purchasers the Series A Preferred Stock (in such denominations as each Purchaser has
subscribed) and the Series A and Series B Warrants (in such denominations as each Purchaser has
subscribed).

          h. Secretary’s Certificate. The Company shall have delivered to the Purchasers a secretary’s
certificate, dated as of the Closing Date, as to (i) the resolutions adopted by the Board of
Directors approving the transactions contemplated hereby; (ii) the Articles; (iii) the Bylaws, each
as in effect at the Closing; and (iv) the authority and incumbency of the officers of the Company
executing the Transaction Documents and any other documents required to be executed or delivered in
connection therewith.

          i. Officer’s Certificate. On the Closing Date, the Company shall have delivered to the
Purchasers a certificate signed by an executive officer on behalf of the Company, dated as of the
Closing Date, confirming the accuracy of the Company’s representations, which confirmation shall be
based on the knowledge of the executive officer.

          j. Investor Rights Agreement. As of the Closing Date, the Company shall have executed and
delivered the Investor Rights Agreement to each Purchaser.

          k. Material Adverse Effect. No Material Adverse Effect shall have occurred.

ARTICLE V

CERTIFICATE LEGEND

     1. Legend. Each certificate representing the Securities shall be stamped or otherwise
imprinted with a legend substantially in the following form (in addition to any legend required by
applicable state securities or “blue sky” laws):

THE SECURITIES REPRESENTED BY THIS CERTIFICATE (THE “SECURITIES”) HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR
ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF
UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES
LAWS OR THE COMPANY SHALL HAVE RECEIVED AN OPINION OF COUNSEL THAT REGISTRATION OF
SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE
STATE SECURITIES LAWS IS NOT REQUIRED.

14

 

The Company agrees to issue or reissue certificates representing any of the Conversion Shares and
the Warrant Shares, without the legend set forth above if, at such time, prior to making any
transfer of any such Conversion Shares or Warrant Shares, such holder thereof shall give written
notice to the Company describing the manner and terms of such transfer and removal as the Company
may reasonably request. Such proposed transfer and removal will not be effected until: (a) either
(i) the Company has received an opinion of counsel reasonably satisfactory to the Company, to the
effect that the registration of the Conversion Shares or Warrant Shares under the Securities Act is
not required in connection with such proposed transfer, or (ii) the Company has received other
evidence reasonably satisfactory to the Company that such registration and qualification under the
Securities Act and state securities laws are not required; and (b) either (i) the Company has
received an opinion of counsel reasonably satisfactory to the Company, to the effect that
registration or qualification under the securities or “blue sky” laws of any state is not required
in connection with such proposed disposition or (ii) compliance with applicable state securities or
“blue sky” laws has been effected. In the case of any proposed transfer under this section, the
Company will use reasonable efforts to comply with any such applicable state securities or “blue
sky” laws, but shall in no event be required, (x) to qualify to do business in any state where it
is not then qualified, (y) to take any action that would subject it to tax or to the general
service of process in any state where it is not then subject, or (z) to comply with state
securities or “blue sky” laws of any state for which registration by coordination is unavailable to
the Company. The restrictions on transfer contained in this section shall be in addition to, and
not by way of limitation of, any other restrictions on transfer contained in any other section of
this Agreement.

ARTICLE VI

INDEMNIFICATION

     1. General Indemnity. The Company agrees to indemnify, defend and hold harmless the
Purchasers (and their respective directors, officers, affiliates, agents, successors and assigns)
from and against any and all losses, liabilities, deficiencies, costs, damages and expenses
(including, without limitation, reasonable attorneys’ fees, charges and disbursements) incurred by
the Purchasers as a result of any inaccuracy in or breach of the representations, warranties or
covenants made by the Company herein. Each Purchaser, severally but not jointly, agrees to
indemnify and hold harmless the Company and its directors, officers, affiliates, agents, successors
and assigns from and against any and all losses, liabilities, deficiencies, costs, damages and
expenses (including, without limitation, reasonable attorneys’ fees, charges and disbursements)
incurred by the Company as result of any inaccuracy in or breach of the representations, warranties
or covenants made by such Purchaser herein.

     2. Indemnification Procedure. Any party entitled to indemnification under this
Article VI (an “indemnified party”) will give written notice to the indemnifying party of
any matter giving rise to a claim for indemnification; provided, that the failure of any party
entitled to indemnification hereunder to give notice as provided herein shall not relieve the
indemnifying party of its obligations under this Article VI except to the extent that the
indemnifying party is actually prejudiced by such failure to give notice. In case any such action,
proceeding or claim is brought against an indemnified party in respect of which indemnification is
sought hereunder, the indemnifying party shall be entitled to participate in and, unless in the
reasonable judgment

15

 

of the indemnifying party a conflict of interest between it and the indemnified party exists
with respect to such action, proceeding or claim (in which case the indemnifying party shall be
responsible for the reasonable fees and expenses of one separate counsel for the indemnified
parties), to assume the defense thereof with counsel reasonably satisfactory to the indemnified
party. In the event that the indemnifying party advises an indemnified party that it will contest
such a claim for indemnification hereunder, or fails, within thirty (30) days of receipt of any
indemnification notice to notify, in writing, such person of its election to defend, settle or
compromise, at its sole cost and expense, any action, proceeding or claim (or discontinues its
defense at any time after it commences such defense), then the indemnified party may, at its
option, defend, settle or otherwise compromise or pay such action or claim. In any event, unless
and until the indemnifying party elects in writing to assume and does so assume the defense of any
such claim, proceeding or action, the indemnified party’s costs and expenses arising out of the
defense, settlement or compromise of any such action, claim or proceeding shall be losses subject
to indemnification hereunder. The indemnified party shall cooperate fully with the indemnifying
party in connection with any negotiation or defense of any such action or claim by the indemnifying
party and shall furnish to the indemnifying party all information reasonably available to the
indemnified party which relates to such action or claim. The indemnifying party shall keep the
indemnified party fully apprised at all times as to the status of the defense or any settlement
negotiations with respect thereto. If the indemnifying party elects to defend any such action or
claim, then the indemnified party shall be entitled to participate in such defense with counsel of
its choice at its sole cost and expense. The indemnifying party shall not be liable for any
settlement of any action, claim or proceeding effected without its prior written consent.
Notwithstanding anything in this Article VI to the contrary, the indemnifying party shall
not, without the indemnified party’s prior written consent, settle or compromise any claim or
consent to entry of any judgment in respect thereof which imposes any future obligation on the
indemnified party or which does not include, as an unconditional term thereof, the giving by the
claimant or the plaintiff to the indemnified party of a release from all liability in respect of
such claim. The indemnification obligations to defend the indemnified party required by this
Article VI shall be made by periodic payments of the amount thereof during the course of
investigation or defense, as and when bills are received or expense, loss, damage or liability is
incurred, so long as the indemnified party shall refund such moneys if it is ultimately determined
by a court of competent jurisdiction that such party was not entitled to indemnification. The
indemnity agreements contained herein shall be in addition to (a) any cause of action or similar
rights of the indemnified party against the indemnifying party or others, and (b) any liabilities
the indemnifying party may be subject to pursuant to the law. No indemnifying party will be liable
to the indemnified party under this Agreement to the extent, but only to the extent that a loss,
claim, damage or liability is attributable to the indemnified party’s breach of any of the
representations, warranties or covenants made by such party in this Agreement or in the other
Transaction Documents.

ARTICLE VII

MISCELLANEOUS

     1. TO RESIDENTS OF FLORIDA: THE INTEREST OFFERED HEREIN HAVE NOT BEEN REGISTERED
WITH THE FLORIDA DIVISION OF SECURITIES. PURSUANT TO FLORIDA STATUTES, SECTION 517.061(11) (A) (5),
INVESTORS MAY ELECT, WITHIN THREE

16

 

(3) BUSINESS DAYS AFTER DELIVERY OF THEIR SUBSCRIPTION AGREEMENT AND THE PURCHASE PRICE FOR
THE INTEREST, TO WITHDRAW THEIR SUBSCRIPTION AND RECEIVE A FULL REFUND (WITHOUT INTEREST) OF SUCH
PURCHASE PRICE. THIS WITHDRAWAL WILL BE WITHOUT ANY FURTHER LIABILITY TO ANY PERSON. TO ACCOMPLISH
SUCH WITHDRAWAL, AN INVESTOR SHOULD SEND A LETTER INDICATING THE INTENTION TO WITHDRAW, POSTMARKED
PRIOR TO THE END OF THE THIRD BUSINESS DAY AFTER DELIVERY OF FUNDS TO THE PARTNERSHIP, RETURN
RECEIPT REQUESTED, TO ANTIGUA BAY YACHT CLUB INVESTORS, LTD., C/O ATLANTIC AMERICAN CAPITAL
ADVISORS, LLC, 101 EAST KENNEDY BOULEVARD, SUITE 3300, TAMPA, FL 33602. ANY ORAL REQUESTS FOR
RESCISSION SHOULD BE ACCOMPANIED BY A REQUEST FOR WRITTEN CONFIRMATION THAT THE ORAL REQUEST WAS
RECEIVED ON A TIMELY BASIS.

     2. Fees and Expenses. Each party shall pay the fees and expenses of its advisors,
counsel, accountants and other experts, if any, and all other expenses, incurred by such party
incident to the negotiation, preparation, execution, delivery and performance of this Agreement;
provided, however, that the Company shall pay all actual attorneys’ fees and expenses (including
disbursements and out-of-pocket expenses) incurred by the Purchasers in connection with the
preparation, negotiation, execution and delivery of the Transaction Documents and the transactions
contemplated thereunder, which payment shall be made at Closing and shall not exceed $25,000, (plus
disbursements and out-of-pocket expenses).

     3. Governing Law; Consent to Jurisdiction; Venue. This Agreement shall be governed by
and construed in accordance with the internal laws of the State of Florida, without giving effect
to any of the conflicts of law principles which would result in the application of the substantive
law of another jurisdiction. This Agreement shall not be interpreted or construed with any
presumption against the party causing this Agreement to be drafted. The parties agree that venue
for any dispute arising under this Agreement will lie exclusively in the state or federal courts
located in Hillsborough County, Florida, and the parties irrevocably waive any right to raise forum
non conveniens or any other argument that Florida is not the proper venue. The parties irrevocably
consent to personal jurisdiction in the state and federal courts of the state of Florida. Each
party hereto consent to process being served in any such suit, action or proceeding by mailing a
copy thereof 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 in this section shall affect or limit any right to serve process in any other
manner permitted by law. The parties hereto hereby agree that the prevailing party in any suit,
action or proceeding arising out of or relating to the Securities, this Agreement or the other
Transaction Documents, shall be entitled to reimbursement for reasonable legal fees from the
non-prevailing party. The parties hereby waive all rights to a trial by jury.

     4. Entire Agreement; Amendment. This Agreement and the Transaction Documents contain
the entire understanding and agreement of the parties with respect to the matters covered hereby
and they supersede all prior understandings and agreements with respect to said subject matter, all
of which are merged herein. No provision of this Agreement may be waived or amended other than by a
written instrument signed by the Company and the Purchasers holding at least a majority of the
outstanding shares of Series A Preferred Stock then held by the Purchasers.

17

 

     5. Notices. All notices and other communications given or made pursuant to this
Agreement shall be in writing and shall be deemed effectively given: (a) upon personal delivery to
the party to be notified; (b) when sent by confirmed electronic mail or facsimile if sent during
normal business hours of the recipient, and if not so confirmed, then on the next business day; (c)
five (5) days after having been sent by registered or certified mail, return receipt requested,
postage prepaid; or (d) one (1) business day after deposit with a nationally recognized overnight
courier, specifying next day delivery, with written verification of receipt. All communications
shall be sent to the respective parties at their address as set forth on the signature page or
Exhibit A hereto, or to such address or facsimile number as subsequently modified by
written notice given in accordance with this section.

     All notices to the Company shall be sent to:

Cruisestock, Inc.

Gregg E. Jacklin, Esquire

Anslow & Jacklin, LLP

195 Route 9 South, Suite 204

Manalapan, NJ 07726

(Fax): (732) 577-1188

If to any Purchaser: At the address of such Purchaser set forth on Exhibit A to this
Agreement.

Any party hereto may from time to time change its address for notices by giving written notice of
such changed address to the other parties hereto.

     6. Waivers. No waiver by any party of any default with respect to any provision,
condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future
or a waiver of any other provision, condition or requirement hereof, nor shall any delay or
omission of any party to exercise any right hereunder in any manner impair the exercise of any such
right accruing to it thereafter.

     7. Headings. The article, section and subsection headings in this Agreement are for
convenience only and shall not constitute a part of this Agreement for any other purpose and shall
not be deemed to limit or affect any of the provisions hereof.

     8. Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the parties and their successors and assigns. After the Closing, the assignment by a
party to this Agreement of any rights hereunder shall not affect the obligations of such party
under this Agreement.

     9. No Third Party Beneficiaries. This Agreement is intended for the benefit of the
parties hereto and their respective permitted successors and assigns and is not for the benefit of,
nor may any provision hereof be enforced by, any other person.

     10. Survival. The representations and warranties shall survive the execution and
delivery hereof and the Closing.

18

 

     11. Counterparts. This Agreement may be executed in any number of counterparts, all of
which taken together shall constitute one and the same instrument and shall become effective when
counterparts have been signed by each party and delivered to the other parties hereto, it being
understood that all parties need not sign the same counterpart.

     12. Severability. The provisions of this Agreement are severable and, in the event
that any court of competent jurisdiction shall determine that any one or more of the provisions or
part of the provisions contained in this Agreement shall, for any reason, be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not
affect any other provision or part of a provision of this Agreement and this Agreement shall be
reformed and construed as if such invalid or illegal or unenforceable provision, or part of such
provision, had never been contained herein, so that such provisions would be valid, legal and
enforceable to the maximum extent possible.

[Remainder of this page intentionally left blank; Signature page follows]

19

 

[Signature page to Securities Purchase Agreement]

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

	 	 	 	 	 
	Cruisestock, Inc.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	 

	 	Name: Ruth Shipley	 	 
	 
	 	 	 	 
	 

	 	Title: President	 	 
	 
	 	 	 	 
	PURCHASER OF SERIES A PREFERRED STOCK	 	 
	 
	 	 	 	 
	If an Individual Investor:	 	 
	 
	 	 	 	 
	Sign:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Print Name:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	If an Entity Investor:
	 	 	 	 
	 
	 	 	 	 
	Print Name of Entity:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Sign:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Print Your Name:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 

	 	 

20

 

Exhibit A

Purchasers

21

 

Exhibit B

Certificate of Designations, Limitations and Preferences

22

 

Exhibit C

Form of Series A Warrant

23

 

Exhibit D

Form of Series D Warrant

24

 

Exhibit E

Form of Investors Rights Agreement

25

 

Exhibit F

Investor Questionnaire

26

 

Schedule 1(c)

Capital Stock of Cruisestock, Inc.

100,000,000 common shares $.001 par value authorized

100,000,000 preferred shares $.001 par value authorized

Upon completion of the transactions contemplated herein the capital of the Company shall be as follows:

11,500,000 Common Shares Outstanding

1,575,000 Series A Preferred Shares Outstanding

27

 

Schedule 1(d)

Subsidiaries

NONE

28

 

Schedule 1(f)

Material Adverse Effects

NONE

29

 

Schedule 1(g)

Indebtness

NONE

30

 

Schedule 1(j)

Taxes

NONE

31EX-10.2 INVESTORS RIGHTS AGREEMENT

 

Exhibit 10.2

INVESTOR RIGHTS AGREEMENT

     This INVESTOR RIGHTS AGREEMENT (this “AGREEMENT”) is entered into as of February ___, 2007, by
and among Cruisestock, Inc., a Texas corporation (the “COMPANY”), and each of the persons
identified as Series A investors on Exhibit A attached to this Agreement (the “SECURITY HOLDERS”).

RECITALS:

     A. Each Security Holders has executed and delivered to the Company a Securities Purchase and
Share Exchange Agreement dated as of even date herewith (the “PURCHASE AGREEMENT”) to purchase
Series A Convertible Preferred Stock, Series A Warrants and Series B Warrants. The Series A
Convertible Preferred Stock, Series A Warrants, and Series B Warrants are collectively referred to
as the “SECURITIES.”

     B. To induce the Security Holders to acquire the Securities, the Company hereby agrees that
this Agreement shall govern the rights of the Security Holders and the Company.

     In consideration of the foregoing recitals and for good and other valuable consideration
hereinafter set forth, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto, intending to be legally bound, hereby agree as follows:

1. DEFINITIONS. For purposes of this Agreement:

     “AFFILIATE” means with respect to any individual, corporation, partnership, association,
trust, or any other entity (in each case, a “PERSON”), any Person that, directly or indirectly,
Controls, is Controlled by, or is under common Control with such Person, including, without
limitation, any general partner, executive officer, or director of such Person or any holder of ten
percent or more of the outstanding equity or voting power of such Person.

     “CERTIFICATE OF DESIGNATIONS” means the Company’s Certificate of Designations, Preferences and
Rights of the Series A Convertible Preferred Stock.

     “CLOSING” means the closing of the sale of Company Securities to the Security Holders.

     “COMMON STOCK” means shares of the Company’s common stock.

     “CONTROL” means the possession, directly or indirectly, of power to direct or cause the
direction of management or policies (whether through ownership of voting securities, by agreement
or otherwise).

     “EXCHANGE ACT” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder.

     “EXEMPT SECURITIES” means (i) shares of Common Stock issued or deemed issued to employees or
directors of, or consultants to, the Company or any of its subsidiaries for services rendered
pursuant to a plan, agreement, or arrangement approved by the Board of

 

 

Directors of the Company; (ii) the issuance of securities pursuant to the conversion or exercise of
convertible or exercisable securities outstanding on the date hereof; (iii) shares of Common Stock
issued in connection with any stock split or stock dividend of the Company; (iv) the issuance of
shares of Common Stock of the Company in connection with a bona fide joint venture or business
acquisition of or by the Company approved by the Board of Directors, whether by merger,
consolidation, sale of assets, sale or exchange of stock, or otherwise; (v) the issuance of Series
A Preferred Stock, Series A Warrants and Series B Warrants (including penalty warrants issued
pursuant to Section 2.1 below) in connection with the Offering, and the issuance of Common
Stock upon conversion or exercise of the Series A Preferred Stock, Series A Warrants or Series B
Warrants, (including penalty warrants issued pursuant to Section 2.1 below); (vi) warrants
issued to Midtown Partners & Co., LLC, as placement agent in connection with the Offering, and
shares of Common Stock issued in connection with the exercise thereof; (vii) the Qualified
Financing (as defined in the Certificate of Designations); and (viii) in the event less that than
[1,500,000] shares of Series A Preferred Stock are issued at the Closing, that number of shares of
Series A Preferred Stock equal to [1,500,000], minus the number of shares of Series A Preferred
Stock issued at the Closing.

     “GAAP” means generally accepted accounting principles.

     “HOLDER” means any Series A Investor owning or having the right to acquire Registerable
Securities or any assignee thereof.

     “IMMEDIATE FAMILY MEMBER” means a child, stepchild, grandchild, parent, stepparent,
grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law,
brother-in-law, or sister-in-law, including adoptive relationships, of a person referred to herein.

     “NEW SECURITIES” means equity securities of the Company, whether now authorized or not, or
rights, options, or warrants to purchase such equity securities, or securities of any type
whatsoever that are, or may become, convertible into or exchangeable into or exercisable for such
equity securities; provided, however, that New Securities shall not include the Exempt Securities.

     “OFFERING” means the Company’s offering of up to [1,500,000] shares of Series A Preferred
Stock, at a price of $1.00 for each share of Series A Preferred Stock.

     “PREFERRED STOCK” means shares of the Company’s preferred stock.

     “REGISTER,” “REGISTERED,” and “REGISTRATION” refer to a registration effected by preparing and
filing a registration statement or similar document in compliance with the Securities Act, and the
declaration or ordering of effectiveness of such registration statement or document.

     “REGISTERABLE SECURITIES THEN OUTSTANDING” means the number of shares determined by adding the
number of shares of Common Stock outstanding that are, and the number of shares of Common Stock
issuable pursuant to then exercisable or convertible securities that are, Registerable Securities
(as defined below in Section 2(a)(i)).

2

 

     “SEC” means the United States Securities and Exchange Commission.

     “SEC RULE 144” means Rule 144 promulgated by the SEC under the Securities Act.

     “SEC RULE 144(E)” means Rule 144(e) promulgated by the SEC under the Securities Act.

     “SECURITIES ACT” means the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.

     “SERIES A PREFERRED STOCK” means shares of the Company’s Series A Convertible Preferred Stock,
$1.00 stated value.

     “SERIES A WARRANTS” means the Series A Warrants to the Security Holders in connection with the
Offering.

     “SERIES B WARRANTS” means the Series B Warrants to the Security Holders in connection with the
Offering.

     “SHARES” means shares of capital stock of the Company at any time outstanding, including
shares of Preferred Stock and shares of Common Stock issued or issuable upon exercise or
conversion, as applicable, of stock options, warrants, or other convertible securities of the
Company, in each case, now owned or subsequently acquired by any stockholder, or such stockholder’s
successors or assigns.

     “SUBSIDIARY” means any entity of which securities or other ownership interests having voting
power to elect a majority of the board of directors or other Persons performing similar functions
or otherwise granting the holder Control are directly or indirectly beneficially owned by the
Company, including without limitation, Company.

2. REGISTRATION RIGHTS. The Company covenants and agrees as follows

     a. REGISTRATION RIGHTS UPON COMPLETION OF CLOSING; ADDITIONAL WARRANTS.

          i. The Company hereby agrees to file, at its sole cost and expense, a registration statement
on Form SB-2 (or an alternative available form if the Reporting Company is not eligible to file a
Form SB-2) (the “REGISTRATION STATEMENT”) with the SEC no later than sixty (60) days after the date
of the Closing, registering the following securities issued by the Company: (i) all shares of
Common Stock issued or issuable upon conversion of the Series A Preferred Stock; (ii) all shares of
Common Stock issued or issuable upon exercise of the Series A Warrants; (iii) all shares of Common
Stock issued or issuable upon exercise of the Series B Warrants; (iv) all shares of Common Stock
issued or issuable pursuant to Section 3(a) below; and (v) all shares of Common Stock
issued or issuable upon exercise of penalty warrants, if any, issued pursuant to Section
2(a)(ii) below (collectively, the “REGISTERABLE SECURITIES”). The Company hereby agrees to use
its commercially reasonable efforts to have the Registration Statement declared effective by the
SEC within one hundred fifty (150) days after the date of the Closing; provided, however, that if
the Company receives a review by, and

3

 

comments from, the SEC, then the registration effective date may be extended by an additional
thirty (30) days without penalties accruing pursuant to Section 2(a)(ii) below.

          ii. If the Company does not file the Registration Statement within sixty (60) days after the
date of the Closing (the “FILING DEADLINE”), then, in lieu of monetary damages or specific
performance, the Company shall immediately issue to the each Series A Investor an additional Series
A Warrant exercisable for the number of shares of Common Stock equal to 1.5% of the sum of (i) the
number of shares of Common Stock issuable upon conversion of the Series A Preferred Stock held by
each such Series A Investor, and (ii) the number of shares of Common Stock issuable upon exercise
of the Series A Warrants held by each such Series A Investor. In addition, for each subsequent
thirty (30) day period after the Filing Deadline that the Registration Statement is not filed,
then, in lieu of monetary damages or specific performance, the Company shall issue to each Series A
Investor an additional Series A Warrant exercisable for the number of shares of Common Stock equal
to 1.5% of the sum of (i) the number of shares of Common Stock issuable upon conversion of the
Series A Preferred Stock held by each such Series A Investor, and (ii) the number of shares of
Common Stock issuable upon exercise of the Series A Warrants held by each such Series A Investor;
provided, however, that in no event shall the aggregate number of shares of Common Stock issuable
upon exercise of the Series A Warrants issued pursuant to this Section 2(a)(ii) exceed nine
percent (9.0%) of the Common Stock issuable upon conversion of the Series A Preferred Stock and
upon exercise of the Series A Warrants originally issued on the date of this Agreement. The penalty
warrants issuable under this subparagraph (b) shall be subject to equitable adjustment whenever
there shall occur a stock dividend, stock split, combination, reclassification, or other similar
event affecting the common shares issuable upon conversion of the Series A Preferred Stock and
exercise of the Series A Warrants.

          iii. If the Company’s Registration Statement is not declared effective by the SEC within one
hundred fifty (150) days after the date of the Closing (or one hundred eighty (180) days if
extended, as provided in Section 2(a)(i) above), then, in lieu of monetary damages or
specific performance, the Company shall immediately issue to each Series A Investor an additional
Series A Warrant exercisable for the number of shares of Common Stock equal to 1.5% of the sum of
(i) the number of shares of Common Stock issuable upon conversion of the Series A Preferred Stock
into Common Stock held by each such Series A Investor, and (ii) the number of shares of Common
Stock issuable upon exercise of the Series A Warrants held by each such Series A Investor (the
“EFFECTIVE DATE DEADLINE”). In addition, for each subsequent thirty (30) day period after the
Effective Date Deadline that the Registration Statement is not declared effective by the SEC, then,
in lieu of monetary damages or specific performance, the Company shall issue to each Series A
Investor an additional Series A Warrant exercisable for the number of shares of Common Stock equal
to 1.5% of the sum of (i) the number of shares of Common Stock issuable upon conversion of the
Series A Preferred Stock held by each such Series A Investor, and (ii) the number of shares of
Common Stock issuable upon exercise of the Series A Warrants held by each such Series A Investor;
provided, however, that in no event shall the aggregate number of shares of Common Stock issuable
upon exercise of the Series A Warrants issued pursuant to this Section 2.1(c) exceed nine
percent (9.0%) of the Common Stock issuable upon conversion of the Series A Preferred Stock and
upon exercise of the Series A Warrants originally issued on the date of this Agreement. Issuances
under this subparagraph (c) are in addition to any issuance that may occur under subparagraph (b)
above.

4

 

The penalty warrants issuable under this subparagraph (c) shall be subject to equitable
adjustment whenever there shall occur a stock dividend, stock split, combination, reclassification,
or other similar event affecting the common shares issuable upon conversion of the Series A
Preferred Stock and exercise of the Series A Warrants. The penalty warrants issuable under
subparagraph (b) above and under this subparagraph (c) shall be the sole and exclusive remedy for
failure to file the Registration Statement or to have the Registration Statement declared
effective.

     b. OBLIGATIONS OF THE COMPANY. Whenever required under this Section 2 to effect the
registration of any Registerable Securities, the Company shall use its commercially reasonable
efforts to:

          i. prepare and file with the SEC a registration statement with respect to such Registerable
Securities and use its commercially reasonable efforts to cause such registration statement to
become effective, and keep such registration statement effective until the earlier of (A) the first
anniversary of the Closing and (B) the date all Holders of Registerable Securities can sell such
Registerable Securities without restriction within a 180-day period;

          ii. prepare and file with the SEC such amendments and supplements to such registration
statement and the prospectus used in connection with such registration statement as may be
necessary to comply with the provisions of the Securities Act with respect to the disposition of
all securities covered by such registration statement;

          iii. furnish to the Security Holders such numbers of copies of a prospectus, including a
preliminary prospectus, in conformity with the requirements of the Securities Act, and such other
documents as they may reasonably request to facilitate the disposition of Registerable Securities
owned by them; and

          iv. use its commercially reasonable efforts to register and qualify the securities covered by
such registration statement under such other securities or Blue Sky laws of of up to ten states
designated in writing by the majority of the Security Holders within ten days after the Closing;
provided, however, that the Company shall not be required in connection therewith or as a condition
thereto to qualify to do business or to file a general consent to service of process in any such
states or jurisdictions, unless the Company is already subject to service in such jurisdiction and
except as may be required by the Securities Act.

     c. FURNISH INFORMATION. It shall be a condition precedent to the obligations of the Company to
take any action pursuant to this Section 2 with respect to the Registerable Securities of a
Holder that such Holder shall furnish to the Company such information regarding itself, the
Registerable Securities held by it, and the intended method of disposition of such securities as
shall be reasonably required to effect the registration of such Holder’s Registerable Securities.

     d. DELAY OF REGISTRATION. No Holder shall have any right to obtain or seek an injunction
restraining or otherwise delaying any registration pursuant to this Agreement as the result of any
controversy that might arise with respect to the interpretation or implementation of this
Section 2.

5

 

     e. REPORTS UNDER EXCHANGE ACT. With a view to making available to the Security Holders the
benefits of SEC Rule 144 promulgated under the Securities Act and any other rule or regulation of
the SEC that may at any time permit a Holder to sell securities of the Company to the public
without registration, the Company agrees to use its commercially reasonable efforts to:

          i. make and keep public information available, as those terms are understood and defined in
SEC Rule 144, at all times after the effective date of the first registration statement filed by
the Company for the offering of its securities to the general public;

          ii. file with the SEC in a timely manner all reports and other documents required of the
Company under the Securities Act and the Exchange Act; and

          iii. furnish to any Holder, so long as the Security Holder owns any Registerable Securities,
forthwith upon request (i) a written statement by the Company that it has complied with the
reporting requirements of SEC Rule 144, the Securities Act and the Exchange Act (at any time after
it has become subject to such reporting requirements); (ii) a copy of the most recent annual or
quarterly report of the Company and such other reports and documents so filed by the Company; and
(iii) such other information as may be reasonably requested in availing any Holder of any rule or
regulation of the SEC that permits the selling of any such securities without registration or
pursuant to such form.

     f. ASSIGNMENT OF REGISTRATION RIGHTS. The rights to cause the Company to register Registerable
Securities pursuant to this Section 2 may be assigned (but only with all related
obligations) by a Holder to a transferee or assignee of such securities, provided that:

          i. the Company is, within a reasonable time after such transfer, furnished with written notice
of the name and address of such transferee or assignee and the securities with respect to which
such registration rights are being assigned; and

          ii. such transferee or assignee agrees in writing to be bound by and subject to the terms and
conditions of this Agreement.

     g. NO TRADING IN COMMON STOCK UNTIL CERTIFICATE RECEIVED. Each Security Holder hereby agrees
that, unless the Security Holder has taken possession of the stock certificate for Common Stock, it
or its Affiliates will not:

          i. lend, offer, pledge, sell, contract to sell, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant to purchase, or
otherwise transfer or indirectly dispose of Common Stock not yet received, or

          ii. enter into any swap or other arrangement that transfers to another, in whole or in part,
any of the economic consequences of ownership for Common Stock not yet received.

     h. OBLIGATIONS OF THE SECURITY HOLDERS.

6

 

          i. Each Security Holder agrees that, upon receipt of any notice from the Company of the
happening of any event requiring the preparation of a supplement or amendment to a prospectus
relating to Registrable Securities so that, as thereafter delivered to the Security Holders, such
prospectus shall not contain an untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein not misleading, each
Security Holder will forthwith discontinue disposition of Registrable Securities pursuant to the
registration statement contemplated by this Section 2 until its receipt of copies of the
supplemented or amended prospectus from the Company, such prospectus to be forwarded promptly to
the Security Holder by the Company, and, if so directed by the Company, each Security Holder shall
deliver to the Company all copies, other than permanent file copies then in such Security Holder’s
possession, of the prospectus covering such Registrable Securities current at the time of receipt
of such notice.

          ii. As a condition to the inclusion of its Registrable Securities, each Security Holder shall
furnish to the Company such information regarding such Security Holder and the distribution
proposed by such Security Holder as the Company may reasonably request in writing or as shall be
required in connection with any registration, qualification or compliance referred to in this
Article V.

          iii. Each Security Holder hereby covenants with the Company not to make any sale of the
Registrable Securities without effectively causing the prospectus delivery requirements under the
Act and any state securities laws to be satisfied and agrees not to make any sale of the
Registrable Securities in jurisdictions other than those designated pursuant to Section
2(b).

          iv. Each Security Holder acknowledges and agrees that the Registrable Securities sold pursuant
to the Registration Statement described in this Section are not transferable on the books of the
Company unless the stock certificate submitted to the transfer agent evidencing such Registrable
Securities is accompanied by a certificate reasonably satisfactory to the Company to the effect
that (i) the Registrable Securities have been sold in accordance with such Registration Statement
and (ii) the requirement of delivering a current prospectus has been satisfied.

          v. Each Security Holder agrees not to take any action with respect to any distribution deemed
to be made pursuant to such Registration Statement which would constitute a violation of Regulation
M under the Exchange Act or any other applicable rule, regulation or law.

          vi. At the end of the period during which the Company is obligated to keep the Registration
Statement current and effective as described above, the Security Holders of Registrable Securities
included in the Registration Statement shall discontinue sales of shares pursuant to such
Registration Statement upon receipt of notice from the Company of its intention to remove from
registration the shares covered by such Registration Statement which remain unsold, and such
Security Holders shall notify the Company of the number of shares registered which remain unsold
immediately upon receipt of such notice from the Company.

7

 

          vii. Each Security Holder shall suspend, upon request of the Company, any disposition of
Registrable Securities pursuant to the Registration Statement and prospectus contemplated by this
Section 2 during (i) any period not to exceed two 90-day periods within any one 12-month period the
Company requires in connection with a primary underwritten offering of equity securities and (ii)
any period not to exceed two 90-day periods within any one 12-month period, when the Company
determines in good faith that offers and sales pursuant thereto should not be made by reason of the
presence of material undisclosed circumstances or developments with respect to which the disclosure
that would be required in such a prospectus is premature, would have an adverse effect on the
Company or is otherwise inadvisable.

          viii. All selling expenses relating to the sale of securities registered by or on behalf of
Security Holders shall be borne by such Security Holders, including all underwriting discounts and
selling commissions applicable to the sale of Registrable Securities and all fees and expenses of
legal counsel for any Security Holder.

          ix. Each Security Holder agrees to hold the Company and its directors, officers, employees,
controlling persons and agents and their respective heirs, representatives, successors and assigns
harmless and to indemnify them against all liabilities, costs and expenses incurred by any of them
as a result of (i) any misrepresentation made by the Security Holder contained in this Agreement,
(ii) any sale or distribution by the Security Holder in violation of the Act or any applicable
state securities or “blue sky” laws or (iii) any untrue statement of a material fact made by the
Security Holder to the Company, including the information regarding the Security Holder contained
in the registration statement.

     3. SERIES A INVESTORS’ RIGHT OF FIRST OFFER; MOST FAVORED NATIONS EXCHANGE.

     a. RIGHT OF FIRST OFFER. Subject to the terms and conditions specified in this Section
3(a) and applicable securities laws, if the Company proposes to offer or sell any New
Securities within twelve (12) months after the Closing, the Company shall first make an offering of
such New Securities to each Series A Investor in accordance with the following provisions of this
Section 3 (the “RIGHT OF FIRST OFFER”). A Series A Investor shall be entitled to apportion
the right of first offer hereby granted to it among itself and its partners, members, and
Affiliates in such proportions as it deems appropriate subject to any applicable securities laws
limitations and subject to such Persons who acquire New Securities becoming a party to this
Agreement.

          i. The Company shall deliver a notice in accordance with the provisions of Section
6(e) hereof (the “OFFER NOTICE”) to each of the Security Holders stating (i) its bona fide
intention to offer such New Securities; (ii) the number of such New Securities to be offered; and
(iii) the price and terms, if any, upon which it proposes to offer such New Securities.

          ii. By written notification received by the Company, within ten (10) calendar days after
mailing of the Offer Notice, each of the Security Holders may elect to purchase or obtain, at the
price and on the terms specified in the Offer Notice, up to that portion of such New Securities
that equals the proportion that the number of shares of Common Stock issued and held, or issuable
upon conversion of the Series A Preferred Stock (and any other securities

8

 

convertible into, or otherwise exercisable or exchangeable for, shares of Common Stock) then
held, by such Series A Investor bears to the total number of shares of Common Stock of the Company
issued and held, or issuable upon conversion of the Series A Preferred Stock then held, by all of
the Security Holders. The Company promptly shall inform in writing each Series A Investor that
elects to purchase all the shares available to it (each, a “FULLY EXERCISING INVESTOR”) of any
other Series A Investor’s failure to do likewise. During the ten (10) day period commencing after
receipt of such information, each Fully Exercising Investor shall be entitled to obtain that
portion of the New Securities for which Security Holders were entitled to subscribe but for which
the Security Holders did not subscribe that is equal to the proportion that the number of shares of
Common Stock issued and held, or issuable upon conversion of Series A Preferred Stock then held, by
such Fully Exercising Investor bears to the total number of shares of Common Stock issued and held,
or issuable upon conversion of the Series A Preferred Stock then held, by all Fully Exercising
Investors who wish to purchase such unsubscribed shares.

          iii. If all New Securities referred to in the Offer Notice are not elected to be purchased or
obtained as provided in Section 3(a)(ii) hereof, the Company may, during the ninety (90)
day period following the expiration of the period provided in Section 3(a)(ii) hereof,
offer the remaining unsubscribed portion of such New Securities (collectively, the “REFUSED
SECURITIES”) to any Person(s) at a price not less than, and upon terms no more favorable to the
offeree than, those specified in the Offer Notice. If the Company does not enter into an agreement
for the sale of the New Securities within such period, or if such agreement is not consummated
within thirty (30) days of the execution thereof, the right provided hereunder shall be deemed to
be revived and such New Securities shall not be offered unless first reoffered to the Security
Holders in accordance with this Section 3(a)

     b. EXPIRATION OF RIGHT OF FIRST OFFER. The Right of First Offer provided to each Series A
Investor under this Section 3 shall expire, with respect to any shares of Common Stock
issued or issuable upon conversion of the Series A Preferred Stock (and any other securities
convertible into, or otherwise exercisable or exchangeable for, shares of Common Stock), when such
shares are sold into the public market pursuant to an effective Registration Statement, such that
the Right of First Offer provided hereunder to each Series A Investor shall not be transferable to
any purchaser for value who acquires the shares on the public market.

4. MISCELLANEOUS.

     a. TRANSFERS, SUCCESSORS, AND ASSIGNS; JOINDER. The terms and conditions of this Agreement
shall inure to the benefit of and be binding upon the respective successors and assigns of the
parties. Nothing in this Agreement, express or implied, is intended to confer upon any party other
than the parties hereto or their respective successors and assigns any rights, remedies,
obligations, or liabilities under or by reason of this Agreement, except as expressly provided in
this Agreement.

     b. GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the
General Corporation Law of the State of Florida as to matters within the scope thereof, and as to
all other matters shall be governed by and construed in accordance with the internal laws of the
State of Florida, without regard to its principles of conflicts of laws.

9

 

     c. COUNTERPARTS. This Agreement may be executed in any number of counterparts with the same
effect as if all parties hereto had signed the same document, and all counterparts shall be
construed together and shall constitute one instrument. This Agreement may be executed by any party
by delivery of a facsimile signature, which signature shall have the same force as an original
signature. A facsimile or photocopied signature shall be deemed to be the functional equivalent of
an original for all purposes.

     d. HEADINGS. The headings and subheadings in this Agreement are included for convenience and
identification only and are in no way intended to describe, interpret, define, or limit the scope,
extent, or intent of this Agreement or any provision hereof.

     e. NOTICES. All notices and other communications given or made pursuant to this Agreement
shall be in writing and shall be deemed effectively given: (a) upon personal delivery to the party
to be notified; (b) when sent by confirmed electronic mail or facsimile if sent during normal
business hours of the recipient, and if not so confirmed, then on the next business day; (c) five
(5) days after having been sent by registered or certified mail, return receipt requested, postage
prepaid; or (d) one (1) business day after deposit with a nationally recognized overnight courier,
specifying next day delivery, with written verification of receipt. All communications shall be
sent to the respective parties at their address as set forth on the signature page or Exhibit “A”
hereto, or to such address or facsimile number as subsequently modified by written notice given in
accordance with this Section 6(e). All notices to the Company shall be sent to:

Cruisestock, Inc.

                                                            

(Fax): (                    )                     

     f. COSTS OF ENFORCEMENT. If any party to this Agreement seeks to enforce its rights under this
Agreement by legal proceedings, the non-prevailing party shall pay all costs and expenses incurred
by the prevailing party, including, without limitation, all reasonable attorneys’ fees.

     g. AMENDMENTS AND WAIVERS. Any term of this Agreement may be amended and the observance of any
term of this Agreement may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the Company and the holders of a
majority of the Series A Preferred Stock then outstanding. Any amendment or waiver effected in
accordance with this paragraph shall be binding upon each holder of any Series A Preferred Stock or
Registrable Securities then outstanding, each future holder of all such Series A Preferred Stock or
Registrable Securities, and the Company. The Company shall give prompt written notice of any
amendment or termination hereof or waiver hereunder to any party hereto that did not consent in
writing to such amendment, termination or waiver. Any amendment, termination, or waiver effected in
accordance with this Section 6(g) shall be binding on all parties hereto, even if they do
not execute such consent. No waivers of or exceptions to any term, condition, or provision of this
Agreement, in any one or more instances, shall be deemed to be, or construed as, a further or
continuing waiver of any such term, condition, or provision.

10

 

     h. SEVERABILITY. The invalidity or unenforceability of any provision hereof shall in no way
affect the validity or enforceability of any other provision.

     i. AGGREGATION OF STOCK. All shares of Registrable Securities held or acquired by Affiliates
shall be aggregated together for the purpose of determining the availability of any rights under
this Agreement.

     j. ADDITIONAL INVESTORS. Notwithstanding anything to the contrary contained herein, if the
Company issues additional shares of the Company’s Series A Preferred Stock after the date hereof,
any purchaser of such shares shall become a party to this Agreement by executing and delivering an
additional counterpart signature page to this Agreement and, thereafter, shall be deemed an
“Investor” for all purposes hereunder.

     k. DELAYS OR OMISSIONS. No delay or omission to exercise any right, power, or remedy accruing
to any party under this Agreement, upon any breach or default of any other party under this
Agreement, shall impair any such right, power or remedy of such non-breaching or non-defaulting
party, nor shall it be construed to be a waiver of any such breach or default, or an acquiescence
therein, or of any similar breach or default thereafter occurring; nor shall any waiver of any
single breach or default be deemed a waiver of any other breach or default theretofore or
thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part
of any party of any breach or default under this Agreement, or any waiver on the part of any party
of any provisions or conditions of this Agreement, must be in writing and shall be effective only
to the extent specifically set forth in such writing. All remedies, either under this Agreement or
by law or otherwise afforded to any party, shall be cumulative and not alternative.

[Remainder of this page intentionally left blank; signatures to follow]

11

 

[Signature page to Investor Rights Agreement]

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

	 	 	 	 	 
	Cruisestock, Inc.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	 

	 	Name:                   
                      
            	 	 
	 
	 	 	 	 
	 

	 	Title:                   
                         
            	 	 
	 
	 	 	 	 
	PURCHASER OF SERIES A PREFERRED STOCK	 	 
	 
	 	 	 	 
	If an Individual Investor:	 	 
	 
	 	 	 	 
	Sign:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Print Name:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	If an Entity Investor:
	 	 	 	 
	 
	 	 	 	 
	Print Name of Entity:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Sign:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Print Your Name:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 

	 	 

12

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