Document:

LOAN
      AGREEMENT, by and between DCI USA, Inc., a Delaware corporation (the
“Borrower”),
      and
      Russull Brothers, Inc. (the “Lender”).

     

    WHEREAS,
      during the course of the fourth calendar quarter of 2007 the Lender has assumed
      and promised to repay certain debts incurred by the Borrower to third parties
      on
      the Borrower’s behalf and, in addition, the Lender has on several occasions
      advanced cash to the Borrower; and

     

    WHEREAS,
      the aggregate amount of the Borrower’s afore mentioned debts which have been
      assumed by the Lender and the cash advanced by the Lender to the Borrower was
      $1,335,761 on December 31, 2007 (the “Principal
      Outstanding Amount”);
      and

     

    WHEREAS,
      the Lender and the Borrower wish to provide for repayment of the Principal
      Outstanding Amount, and for payment of annual interest on the outstanding
      portion thereof.

     

    NOW,
      THEREFORE, subject to the terms and conditions of this Loan Agreement and for
      good and valuable consideration, the adequacy and receipt of which are
      acknowledged, the parties hereto hereby agree as follows:

     

    1. The
      Borrower hereby agrees to pay the Principal Outstanding Amount to the Lender,
      upon demand at any time or in installments from time to time, and to pay
      interest to the Lender, annually at an annual rate of 6%, on any portion of
      the
      Principal Outstanding Amount which is outstanding on the last business day
      of
      December, until the entire Principal Outstanding Amount hereunder and any
      accrued and unpaid interest is paid in full. 

     

    2. Interest
      shall be calculated on the last business day of December, at the rate of 6%
      on
      the basis of the portion of the Principal Outstanding Amount outstanding on
      such
      date, and may be accrued and added to the Principal Outstanding Amount or paid,
      at the election of the Borrower, no later than the 10th
      business
      day of January. 

     

    3. Payments
      of the Principal Outstanding Amount and any interest accrued hereunder may
      be
      made by wire transfer, to an account designated in writing by the Lender, or
      by
      personal check delivered to the Lender at the address appearing next to Lender’s
      signature below, by certified mail, return receipt requested.

     

    4. Each
      of
      the parties to this Loan Agreement acknowledges and agrees that it has had
      an
      opportunity to consult with an attorney before signing this Loan Agreement,
      and
      it does not feel that it is being coerced to sign this Loan Agreement or that
      its signing would for any reason not be voluntary.

     

    5. This
      Loan
      Agreement shall be governed, construed and enforced in accordance with the
      laws
      of the State of New York, without giving effect to principles of conflicts
      of
      law. The parties hereby irrevocably consent to the in personam jurisdiction
      and
      venue of the courts of the State of New York and of any federal court located
      in
      such State in connection with any action or proceeding arising out of or
      relating to this Loan Agreement. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, and intending to be legally bound hereby, the parties hereto
      have executed the foregoing Loan Agreement this 20 day of April,
      2008.

    

      
        	
                DCI
                  USA, INC.

              	
                RUSSULL
                  BROTHERS, INC.

              
	 	 	 	 	 
	
                /s/
                  Jonathan Rigbi

              	 	
                /s/
                  Ofer Arbib

              	 
	
                Name:

              	
                Jonathan
                  Rigbi

              	
                Name:
                  Ofer Arbib

              
	
                Title:

              	
                Chief
                  Financial Officer

              	
                Title:
                  President

              
	 	 	 	 	 
	 	 	 	
                Lender’s
                  Address:

              
	 	 	 	 	 
	 	 	 	
                c/o
                  Pearl Cohen Zedek Latzer

              
	 	 	 	
                1500
                  Broadway, New York, NY
                  10036STOCK
      PURCHASE AGREEMENT

     

    This
      Stock Purchase Agreement (“Agreement”)
      for
      the purchase of shares of common stock of Neah Power Systems, Inc., a Nevada
      corporation (“Company”),
      is
      entered into as of April 24, 2008, between Company and Summit Trading Limited
      (“Purchaser”).

     

    ARTICLE
      I.

    DEFINITIONS

     

    1.1 Definitions. In
      addition to the terms defined elsewhere in this Agreement, for all purposes
      of
      this Agreement, the following terms have the meanings set forth in this Section
      1.1:

     

    “Affiliate”
means
      any Person that, directly or indirectly through one or more intermediaries,
      controls or is controlled by or is under common control with a Person as such
      terms are used in and construed under Rule 405 under the Securities Act. With
      respect to a Purchaser, any investment fund or managed account that is managed
      on a discretionary basis by the same investment manager as the Purchaser will
      be
      deemed to be an Affiliate of the Purchaser.

     

    “Closing”
means
      the closing of the purchase and sale of the Shares pursuant to Section 2.1,
      immediately after all of the Transaction Documents have been executed and
      delivered by the applicable parties thereto, and all conditions precedent to
      (i)
      the Purchasers’ obligations to pay the Subscription Amount and (ii) the
      Company’s obligations to deliver the Shares, have been satisfied or
      waived.

     

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

     

    “Liens”
means
      a
      lien, charge, security interest, encumbrance, right of first refusal, preemptive
      right or other restriction.

     

    “Person”
means
      an individual or corporation, partnership, trust, incorporated or unincorporated
      association, joint venture, limited liability company, joint stock company,
      government (or an agency or subdivision thereof) or other entity of any
      kind.

     

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

     

    “Shares”
means
      10,000,000 shares of common stock of the Company, par value $.001 per share,
      deliverable to the Purchaser pursuant to this Agreement.

     

    “Subscription
      Amount”
means
      $100,000.00, the aggregate amount payable for Shares purchased hereunder at
      a
      price of $0.01 per Share.

     

    "Transaction
      Documents"
      means
      this Agreement and all other agreements and documents necessary to consummate
      the transactions contemplated hereby.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      II.

    PURCHASE
      AND SALE

     

    2.1 Purchase
      and Sale. Upon the terms and subject to the conditions set forth herein,
      concurrent with the execution and delivery of this Agreement by the parties
      hereto and receipt by the Company of the Subscription Amount, the Company agrees
      to sell, and the Purchaser agrees to purchase, the Shares. 

     

    2.2 Payment.
      The Subscription Amount shall be payable at Closing, by wire transfer of
      immediately available funds. 

     

    2.3 Closing.
      Upon satisfaction of the covenants and conditions set forth in Sections 2.2
      and
      2.4, the Closing shall occur immediately.

     

    2.4 Deliveries.
      

     

    (a) At
      or
      prior to the Closing, the Purchaser shall deliver or cause to be delivered
      to
      the Company the following:

     

    (i) this
      Agreement duly executed by the Purchaser; and

     

    (ii) the
      Subscription Amount by wire transfer to the account as specified in writing
      by
      the Company.

    

    (b) At
      or
      prior to the Closing, the Company shall deliver or cause to be delivered to
      the
      Purchaser the following:

     

    (i) this
      Agreement duly executed by the Company; and

     

    (ii) original
      share certificates representing the Shares.

     

    2.5 Closing
      Conditions. 

     

    (a) The
      obligations of the Company hereunder in connection with the Closing are subject
      to the following conditions being met:

     

    (i) the
      accuracy in all material respects as of the Closing of the representations
      and
      warranties of the Purchaser contained herein; 

     

    (ii) all
      obligations, covenants and agreements of the Purchaser required to be performed
      at or prior to the Closing shall have been performed;
      and

     

    (iii) the
      delivery by the Purchaser of the items set forth in Section 2.4(a) of this
      Agreement.

     

    (b) The
      obligations of the Purchaser hereunder in connection with the Closing are
      subject to the following conditions being met:

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (i) the
      accuracy in all material respects as of the Closing of the representations
      and
      warranties of the Company contained herein;

     

    (ii) all
      obligations, covenants and agreements of the Company
      required
      to be performed at or prior to the Closing shall have been
      performed;

     

    (iii) the
      delivery by the Company of the items set forth in Section 2.4(b) of this
      Agreement; and

     

    (iv) The
      appointment of at least three new independent directors reasonably acceptable
      to
      Purchaser.

    

    2.6 Anti-Dilution
      Protection. If at any time within six (6) months after the Closing
      Date, the Company issues, sells, converts, or is deemed to have issued, sold
      or
      converted, any shares of common stock or any debt or equity securities
      convertible into shares of common stock, including without limitation collateral
      or fee shares pursuant to existing loan agreement (each, “Additional
      Shares”), at a price less than $0.01 per share of common stock, as adjusted
      for stock splits, reverse stock splits, conversions, additional issuances,
      or
      similar events (each, a “Subsequent Issuance”), the Company shall issue
      to Purchaser such additional number of shares of common stock, as of the close
      of business on the date of such Subsequent Issuance, so that the effective
      price
      per Share (including such additional number of shares of common stock) paid
      by
      the Purchaser shall equal the lowest price at which any of the Additional Shares
      are issued in such Subsequent Issuance. In the event there are insufficient
      shares of Common Stock authorized by the Company to comply with the provisions
      of this Section 2.6, the Company shall issue shares of preferred stock
      convertible into common stock in compliance with this provision, and use
      commercially reasonable best efforts to increase the number of authorized shares
      of common stock of the Company as soon as practicable.

     

    2.7 Registration
      Rights. Purchaser shall have standard piggyback registration rights, pari
      passu with each purchaser in any Subsequent Issuance. 

     

    ARTICLE
      III.

    REPRESENTATIONS
      AND WARRANTIES

     

    Except
      as expressly set forth in this Article III, neither the Company nor the
      Purchaser make any representations or warranties whatsoever regarding the
      Company, the Shares or any other matter.

     

    3.1 Representations
      and Warranties of the Company. 

     

    The
      Company hereby makes the following representations and warranties to the
      Purchaser:

     

    (a) Organization;
      Authority.
      The
      Company is a corporation duly organized and validly existing under the laws
      of
      the State of Nevada, with full right, power and authority to enter into and
      to
      consummate the transactions contemplated by this Agreement and otherwise to
      carry out Company’s obligations hereunder. The execution and delivery of this
      Agreement and performance by the Company of the transactions contemplated by
      this Agreement have been duly authorized by all necessary action on the part
      of
      the Company. Each Transaction Document to which Company is a party has been
      duly
      executed by the Company, and when delivered by the Company in accordance with
      the terms hereof, will constitute the valid and legally binding obligation
      of
      the Company, enforceable against Company in accordance with its terms, except
      (i) as limited by general equitable principles and applicable bankruptcy,
      insolvency, reorganization, moratorium and other laws of general application
      affecting enforcement of creditors’ rights generally, (ii) as limited by laws
      relating to the availability of specific performance, injunctive relief or
      other
      equitable remedies and (iii) insofar as indemnification and contribution
      provisions may be limited by applicable law.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (b) Ownership
      of the Shares.
      The
      Shares are duly authorized, validly issued, non-assessable, and free and clear
      of all Liens, encumbrances, restrictions and claims of every kind, other than
      restrictions on transfer as provided in Section 3.2(c), and, upon delivery
      of
      and payment for such Shares as herein provided, the Purchaser will acquire
      good
      and valid title thereto, free and clear of all Liens, encumbrances, restrictions
      and claims of every kind, except for such restrictions on transfer.

     

    3.2 Representations
      and Warranties of the Purchaser. The Purchaser hereby represents and
      warrants to the Company:

     

    (a) Organization;
      Authority.
      The
      Purchaser is an entity duly organized, validly existing and in good standing
      under the laws of the jurisdiction of its organization with full right, power
      and authority to enter into and to consummate the transactions contemplated
      by
      this Agreement and otherwise to carry out its obligations hereunder and
      thereunder. The execution and delivery of this Agreement and performance by
      the
      Purchaser of the transactions contemplated by this Agreement have been duly
      authorized by all necessary action on the part of the Purchaser. Each
      Transaction Document to which it is a party has been duly executed by the
      Purchaser, and when delivered by the Purchaser in accordance with the terms
      hereof, will constitute the valid and legally binding obligation of the
      Purchaser, enforceable against it in accordance with its terms, except (i)
      as
      limited by general equitable principles and applicable bankruptcy, insolvency,
      reorganization, moratorium and other laws of general application affecting
      enforcement of creditors’ rights generally, (ii) as limited by laws relating to
      the availability of specific performance, injunctive relief or other equitable
      remedies and (iii) insofar as indemnification and contribution provisions may
      be
      limited by applicable law.

     

    (b) Own
      Account.
      The
      Purchaser is acquiring the Shares as principal for its own account and not
      with
      a view to or for distributing or reselling such Shares or any part thereof
      in
      violation of the Securities Act or any applicable state securities law, has
      no
      intention of distributing any of such Shares in violation of the Securities
      Act
      or any applicable state Shares law and has no direct or indirect arrangement
      or
      understandings with any other persons to distribute or regarding the
      distribution of such Shares in violation of the Securities Act or any applicable
      state Shares law. The Purchaser is acquiring the Shares hereunder in the
      ordinary course of its business.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    (c) Restricted
      Shares.
      The
      Purchaser understands and acknowledges that: (i) the Shares it is purchasing
      may
      be characterized as “restricted securities” under state and federal securities
      laws inasmuch as they are being acquired from the Company and that under such
      laws and applicable regulations such Shares may be resold without registration
      under the Securities Act only in certain limited circumstances, (iii) the Shares
      may be subject to restrictions on transfer under the Securities Act and the
      rules and regulations promulgated thereunder, applicable state securities laws
      and regulations, and the rules of any self regulatory organization to which
      the
      Company or its securities may be subject, and (iv) the Purchaser may be required
      to hold the Shares indefinitely.

     

    (d) Purchaser
      Status.
      At the
      time the Purchaser was offered the Shares, it was, and at the date hereof it
      is
      either: (i) an “accredited investor” as defined in Rule 501(a)(1), (a)(2),
      (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a “qualified
      institutional buyer” as defined in Rule 144A(a) under the Securities Act.

     

    (e) Experience
      of The Purchaser.
      The
      Purchaser alone or together with its representatives, has such knowledge,
      sophistication and experience in business and financial matters so as to be
      capable of evaluating the merits and risks of the prospective investment in
      the
      Shares, and has so evaluated the merits and risks of such investment. The
      Purchaser is able to bear the economic risk of an investment in the Shares
      and,
      at the present time, is able to afford a complete loss of such
      investment.

     

    (f) Access
      to Information.
      Purchaser is currently a significant shareholder in the Company and acknowledges
      that it is fully familiar with the Company, has reviewed its public reports
      filed with the Securities and Exchange Commission and has been afforded:
      (i) the opportunity to ask such questions as it has deemed necessary of,
      and to receive answers from, representatives of the Company concerning the
      terms
      and conditions of Shares and the merits and risks of investing in the Shares;
      (ii) access to information about the Company and its subsidiaries and their
      respective financial condition, results of operations, business, properties,
      management and prospects sufficient to enable it to evaluate its investment;
      and
      (iii) the opportunity to obtain such additional information that the
      Company possesses or can acquire without unreasonable effort or expense that
      is
      necessary to make an informed investment decision with respect to an investment
      in the Shares. The Purchaser is aware that the Company is still a development
      stage entity, is not operating profitably and will not do so in the near term
      and will require significant additional capital in order to continue its
      operations as currently in effect. 

     

    ARTICLE
      IV.

    MISCELLANEOUS

     

    4.1 Fees
      and Expenses. Each party shall pay the fees and expenses of its advisers,
      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. The Purchaser shall pay all Transfer Agent fees,
      stamp taxes and other taxes and duties levied in connection with the delivery
      of
      any Shares to the Purchaser.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    4.2 Separate
      Counsel. Each party understands and agrees that Dreier Stein Kahan Browne
      Woods George LLP (“Company Counsel”) has not represented Purchaser or provided
      any legal advice in connection with the preparation or negotiation of this
      Agreement, or the purchase and sale of the Shares. Each party acknowledges
      that
      Purchaser has not relied on any information or advice furnished by or on behalf
      of Company Counsel, and represent that Purchaser has consulted with its own
      legal counsel and such tax and investment advisors as the party, in the party’s
      sole discretion, has deemed necessary or appropriate in connection with this
      Agreement.

     

    4.3 Amendments;
      Waivers. No provision of this Agreement may be waived or amended except in a
      written instrument signed, in the case of an amendment, by the Company and
      the
      Purchaser, or, in the case of a waiver, by the party against whom enforcement
      of
      any such waived provision is sought. No waiver 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 subsequent default 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.

     

    4.4 Headings.
      The headings herein are for convenience only, do not constitute a part of this
      Agreement and shall not be deemed to limit or affect any of the provisions
      hereof.

     

    4.5 Successors
      and Assigns. This Agreement shall be binding upon and inure to the benefit
      of the parties and their successors and permitted assigns. 

     

    4.6 No
      Third-Party Beneficiaries. This Agreement is intended for the benefit of the
      parties hereto and their respective successors and permitted assigns and is
      not
      for the benefit of, nor may any provision hereof be enforced by, any other
      Person, except as otherwise set forth in Section 4.14.

     

    4.7 Governing
      Law; Jurisdiction. All questions concerning the construction, validity,
      enforcement and interpretation of the Transaction Documents shall be governed
      by
      and construed and enforced in accordance with the internal laws of the State
      of
      Nevada, without regard to the principles of conflicts of law thereof. Any claim,
      dispute, or controversy (any or all of which shall hereinafter be referred
      to as
      the "Dispute" or the "Disputes") shall arise between the parties
      hereto with respect to the making, construction, terms, or interpretation of
      this Agreement or any breach thereof, or the rights or obligations of any party
      hereto or thereto, the Dispute shall, in lieu of court action, be submitted
      to
      mandatory, binding arbitration upon written demand of either party (the
      "Notice of Arbitration") before a single arbitrator in Santa Monica,
      California. The arbitration shall be conducted by a retired judge arbitrator
      selected by JAMS and shall be held in accordance with the JAMS rules. If either
      party shall commence an action or proceeding to enforce any provisions of this
      Agreement, then the arbitrator shall allocate all of the costs and expenses
      of
      such Dispute including but not limited to the fees and expenses of the
      arbitrator, all attorneys’ fees and expenses and all other costs and expenses
      incurred with the investigation, preparation and prosecution of such arbitration
      between the parties based upon the arbitrator's judgment as to the merits or
      the
      respective positions of the parties in the Dispute.

     

    4.8 Survival.
      The representations and warranties contained herein shall survive the Closing
      and the delivery of the Shares.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    4.9 Execution.
      This Agreement may be executed in two or more counterparts, all of which when
      taken together shall be considered one and the same agreement and shall become
      effective when counterparts have been signed by each party and delivered to
      the
      other party, it being understood that both parties need not sign the same
      counterpart. In the event that any signature is delivered by facsimile
      transmission or by e-mail delivery of a “.pdf” format data file, such electronic
      signature shall create a valid and binding obligation of the party executing
      (or
      on whose behalf such signature is executed) with the same force and effect
      as if
      such facsimile or “.pdf” signature page were an original thereof.

     

    4.10 Severability.
      If any term, provision, covenant or restriction of this Agreement is held by
      a
      court of competent jurisdiction to be invalid, illegal, void or unenforceable,
      the remainder of the terms, provisions, covenants and restrictions set forth
      herein shall remain in full force and effect and shall in no way be affected,
      impaired or invalidated, and the parties hereto shall use their commercially
      reasonable efforts to find and employ an alternative means to achieve the same
      or substantially the same result as that contemplated by such term, provision,
      covenant or restriction. It is hereby stipulated and declared to be the
      intention of the parties that they would have executed the remaining terms,
      provisions, covenants and restrictions without including any of such that may
      be
      hereafter declared invalid, illegal, void or unenforceable.

     

    4.11 Remedies.
      In addition to being entitled to exercise all rights provided herein or granted
      by law, including recovery of damages, the Purchaser and the Company will be
      entitled to specific performance under this Agreement. The parties agree that
      monetary damages may not be adequate compensation for any loss incurred by
      reason of any breach of obligations contained in this Agreement and hereby
      agrees to waive and not to assert in any action for specific performance of
      any
      such obligation the defense that a remedy at law would be adequate. In no event
      shall either party’s monetary damages arising from any breach of this Agreement
      exceed the Subscription Amount.

     

    4.12 Saturdays,
      Sundays, Holidays, etc. If
      the
      last or appointed day for the taking of any action or the expiration of any
      right required or granted herein shall not be a Business Day, then such action
      may be taken or such right may be exercised on the next succeeding Business
      Day.

     

    4.13 Construction.
      The parties agree that each of them and/or their respective counsel has reviewed
      and had an opportunity to revise the Transaction Documents and, therefore,
      the
      normal rule of construction to the effect that any ambiguities are to be
      resolved against the drafting party shall not be employed in the interpretation
      of the Transaction Documents or any amendments hereto.

     

    4.14 Release.
      Each party hereby fully and completely releases and discharges the other party,
      Charles Arnold, Richard Fixaris and Company Counsel from any and all claims,
      causes of action, rights and actions of any kind or nature whatsoever, either
      at
      law or in equity, including without limitation all claims of negligence, breach
      of contract, or breach of fiduciary duty, and all claims in any way arising
      out
      of or relating to the Company; provided, however, that neither party waives
      any
      right to seek contribution from any party in the event that any person brings
      any claim or action against such party.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    4.15 Non-Disparagement.
      During the term of this Agreement, and at all times thereafter, the parties
      agree that they will not disparage each other, Charles Arnold, Richard Fixaris
      or Company Counsel in any fashion.

     

    4.16 Entire
      Agreement. This Agreement, together with the exhibits and schedules thereto,
      contain the entire understanding of the parties with respect to the subject
      matter hereof and supersede all prior agreements and understandings, oral or
      written, with respect to such matters, which the parties acknowledge have been
      merged into such documents, exhibits and schedules.

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Shares Purchase Agreement
      to be duly executed by their respective authorized signatories as of the date
      first indicated above.

     

    

    
      	
              Company:

               

              NEAH
                POWER SYSTEMS. INC.

               

              By:

              
                

              

              Chris
                D’Couto

              President
                & CEO

               

               

              By:

              
                
 

              Director

            	 
	 	
              Purchaser:

               

              SUMMIT
                TRADING LIMITED

               

              By:

              
                

              

              Name:

              Title:

            

    

    

    
      
        
        

      

      
        8

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