Document:

Allora Minerals, Inc.: Exhibit 10.2 - Prepared by TNT Filings Inc.

Exhibit 10.2 

SECURITIES PURCHASE AGREEMENT 

          This
SECURITIES PURCHASE AGREEMENT, dated as of June 30, 2009 (this
“Agreement”) is entered into by and among Allora Minerals, Inc., a
Nevada corporation (the “Corporation”), EPOD Solar Inc., a corporation
formed pursuant to the laws of British Columbia, Canada (“EPOD”), and the
persons listed on Schedule I hereto (each, a “Purchaser” and,
collectively, the “Purchasers”).

          WHEREAS,
the Corporation and EPOD have entered into a Stock and Asset Purchase Agreement,
of even date herewith (the “Purchase Agreement”), pursuant to which the
Corporation has agreed to purchase all or substantially all of the assets, and
certain shares of the capital stock and liabilities, of certain subsidiaries of
EPOD as of the date of closing set forth therein (the “Asset
Purchase”);

          WHEREAS,
the Corporation has been approved for the quotation of shares of its common
stock, $0.001 par value per share (the “Common Stock”), on the OTC
Bulletin Board (“OTCBB”);

          WHEREAS,
as partial consideration for assets of EPOD being purchased pursuant to the
Purchase Agreement and in connection with the Asset Purchase, the Corporation
has agreed to become a party to this Agreement;

          WHEREAS,
at the Closing (as defined below), EPOD wishes to issue and sell to the
Purchasers (i) secured convertible debentures, substantially in the form of
Exhibit A hereto, in the aggregate original principal amount of up to
$2,000,000.00 (the “Debentures”), which shall be convertible into shares
of authorized but unissued Common Stock, no par value per share, of EPOD (the
“EPOD Shares”) or shares of Common Stock, and (ii) warrants to purchase
EPOD Shares or shares of Common Stock, substantially in the form of Exhibit
B hereto (the “Warrants”), in each case accordance with the terms
hereof;

          WHEREAS,
pursuant to the Purchase Agreement, as of the date of closing of the Asset
Purchase, the Corporation has agreed to assume the Debentures and Warrants and
EPOD’s rights and obligations thereunder, and to issue shares of Common Stock,
in lieu of EPOD Shares, upon conversion and/or exercise thereof; and 

          WHEREAS,
the Purchasers wish to purchase the Debentures and Warrants (together, the
“Purchase Securities”) on the terms and subject to the conditions set
forth in this Agreement. 

          NOW,
THEREFORE, in consideration of the premises and the mutual covenants contained
in this Agreement, the parties agree as follows: 

ARTICLE I 

THE PURCHASE SECURITIES 

          SECTION
1.01 Issuance, Sale and Delivery of the Purchase Securities. EPOD agrees
to issue and sell to the Purchasers at the Initial Closing (as defined below),
and the Purchasers hereby agree to purchase from EPOD at the Initial Closing, the
aggregate original principal amount, number and type, as applicable, of Purchase
Securities set forth opposite the name of such Purchaser on Schedule I,
at the aggregate purchase price set forth opposite the Purchaser’s name on
Schedule I. Except where otherwise specifically noted, all references to
“dollars” or “$” in this Agreement are to U.S. dollars. 

- 2 - 

          SECTION
1.02 Closing. The initial closing of the purchase of the Purchase
Securities issued by EPOD shall take place at the offices of Burns &
Levinson LLP, at 10:00 a.m., Eastern time, on the date of this Agreement,
remotely via the exchange of documents and signatures, at 10:00 a.m., or at such
other time and place as EPOD and the Purchasers mutually agree upon, orally or
in writing (the “Initial Closing”, and such date and time being called
the “Initial Closing Date”). In the event there is more than one
closing for the purchase and sale of the Purchase Securities, the term “Closing”
shall apply to each such closing, and the term “Closing Date” shall apply to the
date of each such Closing, unless otherwise specified.

          SECTION
1.03 Delivery of Purchase Securities and Payment of Purchase Price. At
the Initial Closing, EPOD shall deliver to the Purchasers a Debenture payable to
each Purchaser in the aggregate principal amount set forth opposite such
Purchaser’s name on Schedule I hereto and Warrants to purchase the number
of shares of Common Stock or EPOD Shares, as applicable, set forth opposite the
Purchaser’s name on Schedule I hereto, in each case against payment of
the principal amount of the Debenture by the Purchaser via written instructions
to Burns & Levinson LLP, as “Escrow Agent” pursuant to that certain Escrow
Agreement, dated as of May 29, 2009, by and among EPOD, the Purchaser and Burns
& Levinson LLP (the “Escrow Agreement”), to release such amount to EPOD (net
of adjustments pursuant to Sections 9.01 and 9.04 hereof). The Escrow Agent
shall then remit such amount to EPOD pursuant to written instructions received
from EPOD pursuant to the Escrow Agreement. At any subsequent Closing pursuant
to Section 1.07, the Corporation shall deliver to the Purchasers a Debenture
payable to each Purchaser and a Warrant in the manner, and upon the conditions,
set forth in this Section 1.03; provided, that the principal amount of any
Debenture issued to any Purchaser at such Closing shall be paid by certified or
bank check payable to the Corporation or by wire transfer of immediately
available funds to a bank account designated by the Corporation (in each case,
such amounts not to be paid or made payable to the Escrow Agent).

          SECTION
1.04 Priority of Debentures; Grant of Security.

                    (a)      As
collateral security for the prompt and complete payment and performance when due
(whether at the stated maturity, by acceleration or otherwise) of the
obligations evidenced by the Debentures, and to secure the obligations evidenced
by the Debentures, EPOD and Mr. Michael Matvieshen, respectively, grant to the
Purchasers, as of the Initial Closing Date, a security interest as follows: 

                                   (i)      the
Debentures shall be secured by a lien on certain assets of Epod Solar (Wales)
Limited (Company Registration Number 04645882) (“EPOD UK”), EPOD’s
wholly-owned subsidiary, pursuant to (A) a debenture, and (B) a guaranty and
indemnity, in each case dated as of the date hereof between EPOD UK and the
Purchasers in the form attached as Exhibit C hereto (collectively, the
“Security Agreements”); and

- 3 - 

                                   (ii)     
  the Debentures shall be secured by an amount equal to 15,000,000 EPOD Shares
  owned by 531682 BC Ltd. and Guardian Universal Capital SA as of the date hereof,
  and 58,000 shares of Common Stock held by each of Baneberry Capital Corp. and
  Joel Cohen as of the date hereof which, following the date of closing of the
  Asset Purchase, will equate to an amount equal to 524,000 shares of Common Stock
  (collectively, the “Pledged Shares”), subject to adjustment,
  pursuant to Share Pledge Agreements and Non-Recourse Guaranties, in each case
  dated as of the date hereof, entered into between the Purchasers, on the one
  hand, and each of 531682 BC Ltd., Guardian Universal Capital SA, Baneberry Capital
  Corp. and Mr. Cohen, on the other hand, in substantially the form attached as
  Exhibit D hereto (the “Share Pledge Agreements”).

                              All
of the foregoing are herein collectively called the “Collateral”. 

          Notwithstanding
anything in the Transaction Documents (as defined below) to the contrary, the
Collateral shall be the only collateral security for the prompt and complete
payment and performance of the Debentures. The Collateral security granted
pursuant to this Section 1.04(a) shall be immediately released with respect to
the Collateral upon the prompt and complete full payment and performance
(whether by conversion or otherwise) of each Debenture pursuant to the terms of
this Agreement or the remaining Transaction Documents. For purposes hereof, the
term “Transaction Documents” shall mean this Agreement, the Debentures,
the Warrants, the Security Agreements, the Share Pledge Agreements and the
Registration Rights Agreement (as defined in Section 5.07) . 

          As
of the date of closing of the Asset Purchase, the Collateral, the security
interest granted hereunder, and the Security Agreements and the Share Pledge
Agreements, shall be assumed by the Corporation pursuant to the Purchase
Agreement. 

          SECTION
1.05 The Debentures.

                    (a)     
Optional Conversion. For a period of twenty-four (24) months following
the Initial Closing Date, a Purchaser, by delivery of written notice to EPOD or
the Corporation, as applicable, may elect to convert the outstanding principal
amount and accrued interest on such Purchaser’s Debentures, as follows: 

                                   (i)     
The outstanding principal amount and accrued interest on the Debentures issued
to a Purchaser at the Initial Closing shall be convertible, at the option of
such Purchaser, for a period beginning as of the Initial Closing Date and ending
on the date of closing of the Asset Purchase, into shares of Common Stock or
EPOD Shares. 

                                   (ii)      The
outstanding principal amount and accrued interest on any Debentures issued to a
Purchaser in a subsequent Closing pursuant to Section 1.07 or convertible after
the closing of the Asset Purchase shall be convertible by such Purchaser solely
into shares of Common Stock. 

                                    (iii)     
In the event that the closing of the Asset Purchase does not take place for any
reason, the outstanding principal amount and accrued interest on the Debentures
issued to a Purchaser at the Initial Closing shall be convertible by such
Purchaser solely into EPOD Shares. 

- 4 - 

          (b)      Conversion
  Price. The Debentures shall be convertible at a price per share equal to
  the lesser of (i) in the case of a conversion into either shares of Common Stock
  or EPOD Shares, $11.60, or (ii) with respect solely to conversion into shares
  of Common Stock, (A) if, at the time of delivery of such written notice to the
  Corporation, there are quotations available in the public markets with respect
  to shares of Common Stock, the closing price for the shares on the first Business
  Day (as defined in the Debentures) such shares are trading, less a twenty percent
  (20%) discount, or (B) the “Volume Weighted Average Price” (as defined
  in the Debentures) for the shares of Common Stock on the OTCBB, measured during
  the ten (10) Business Day (as defined in the Debentures) period ending on the
  date the registration statement on Form S-1 (as required to be filed by the
  Corporation pursuant to the Registration Rights Agreement) is declared effective
  by the Securities and Exchange Commission (the “SEC”) (for
  illustrative purposes only, in the event that such registration statement is
  declared effective on June 30, 2009, the Volume Weighted Average Price for purposes
  of this Section 1.05(b)(ii)(B) shall be measured for the 10 Business Days beginning
  as of June 17 and ending on June 30). Such initial conversion price shall be
  subject to adjustment as provided in the Debentures; provided, that the Purchasers
  acknowledge and agree that the adjustment described in Section 1.05(b)(ii)(B)
  shall be a one time adjustment, which adjustment shall govern any and all subsequent
  adjustments (to the extent that such amount is less than $11.60) . 

          (c)     
Assumption. As of the date of closing of the Asset Purchase, the
Debentures, and EPOD’s obligations thereunder, shall be assumed by the
Corporation pursuant to the Purchase Agreement. 

          SECTION
1.06 Warrants.

          (a)     
Share Coverage. At the Initial Closing, EPOD shall issue Warrants to the
Purchasers to purchase up to One Hundred Seventy-Two Thousand Four Hundred
Fourteen (172,414) shares of Common Stock or EPOD Shares, as applicable. The
Warrants issued at any Closing to a Purchaser shall be issued such that the
number of shares of Common Stock subject to each Warrant shall be equal to the
number of shares of Common Stock into which the aggregate principal amount of
all Debentures issued to such Purchaser at such Closing is convertible. At any
subsequent Closing pursuant to Section 1.07, the Corporation shall issue
Warrants to each Purchaser in the amount set forth in the preceding sentence.
The term of any Warrant issued hereunder shall be for a period of five (5) years
following the applicable Closing Date.

          (b)      Exercise.
During the term of the Warrants as set forth in Section 1.06(a) the Purchaser
may, upon delivery of written exercise notice to the Corporation or EPOD, as
applicable, elect to exercise such Purchaser’s Warrants, as follows: 

                                   (i)      The
Warrants issued to a Purchaser at the Initial Closing shall be exercisable, at
the election of such Purchaser, for a period beginning on the Initial Closing
Date and ending on the date of closing of the Asset Purchase, into shares of
Common Stock or EPOD Shares.

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                                   (ii)      Any
Warrants issued to a Purchaser in a subsequent Closing pursuant to Section 1.07
or convertible after the closing of the Asset Purchase shall be exercisable by
such Purchaser solely for shares of Common Stock. 

                                   (iii)     
In the event that the closing of the Asset Purchase does not take place for any
reason, the Warrants issued to a Purchaser at the Initial Closing shall be
exercisable by such Purchaser solely for EPOD Shares.

          (c)     
Exercise Price. The Warrants shall be exercisable by the Purchasers at an
exercise price per share equal to the lesser of (i) in the case of either shares
of Common Stock or EPOD Shares, $14.00 , or (ii) with respect solely to shares
of Common Stock, if, at the time of delivery of notice of exercise by the
Purchaser to the Corporation, there are quotations available in the public
markets with respect to shares of Common Stock, the closing price for the shares
on the first Business Day such shares are trading, less a twenty percent (20%)
discount. Such initial conversion price shall be subject to adjustment as
provided in the Warrants.

          (d)     
Assumption. As of the date of closing of the Asset Purchase, the
Warrants, and EPOD’s obligations thereunder, shall be assumed by the Corporation
pursuant to the Purchase Agreement. 

          SECTION
1.07 Additional Investment. The Purchasers shall have the right, but not
the obligation, to make an additional investment in the Corporation of up to
$3,000,000.00 (the “Additional Investment”) at any time following the
date of closing of the Asset Purchase. Any such Additional Investment shall be
in the form of additional Debentures and Warrants with the same terms as those
issued at the Initial Closing, and shall be further subject to the terms and
conditions hereof, and in the amounts set forth on Schedule I hereto,
which shall be revised as of the date of closing of any such Additional
Investment to reflect same. The Purchasers’ right to elect to make an Additional
Investment hereunder shall continue for a period of not more than thirty (30)
days from the first date following the date of closing of the Asset Purchase
that shares of Common Stock are trading on the OTCBB, after which time the right
shall be forfeited. In the event that the Purchasers do not elect to make an
Additional Investment on or before expiration of such 30 day period, the number
of the Pledged Shares described in Section 1.04 (a)(ii), above shall be reduced
by fifty percent (50%).

ARTICLE II 

REPRESENTATIONS AND WARRANTIES OF THE CORPORATION 

          The
Corporation hereby represents and warrants to each Purchaser that, except as
disclosed in the Securities Filings (as defined in Section 2.09), as applicable,
which exceptions shall be deemed to be part of the representations and
warranties made hereunder, the following representations are true and complete
as of the Closing Date, except as otherwise indicated.

          SECTION
2.01 Organization, Qualifications and Corporate Power.

          (a)      The
Corporation is a corporation duly organized, validly existing and in good
standing under the laws of the State of Nevada and has all requisite corporate
power and authority to carry on its business as presently conducted and
as proposed to be conducted. The Corporation is duly qualified to transact
business and is in good standing in each jurisdiction in which the nature of the
business transacted by it or the character of the properties owned or leased by
it requires such licensing or qualification, except where such failure to so
qualify would not have a material adverse effect. The Corporation has the
corporate power and authority to own and hold its properties and to carry on its
business as now conducted and as proposed to be conducted. 

- 6 - 

          (b)      The
Corporation has no subsidiaries. The Corporation does not (i) own of record or
beneficially, directly or indirectly, (A) any shares of capital stock or
securities convertible into capital stock of any other corporation, or (B) any
participating interest in any partnership, joint venture or other non-corporate
business enterprise, or (ii) control, directly or indirectly, any other
entity.

          SECTION
2.02 Capitalization.

          (a)      The
authorized capital of the Corporation consists, immediately prior to the
Closing, of 75,000,000 shares of Common Stock, 2,849,000 shares of which are
issued and outstanding immediately prior to the Initial Closing. All of the
outstanding shares of Common Stock have been duly authorized, are fully paid and
nonassessable and were issued in compliance with all applicable federal and
state securities laws. The Corporation holds no treasury stock and no shares of
Common Stock in its treasury.

          (b)     
The rights, privileges and preferences of the Common Stock are as stated in the
Corporation’s Articles of Incorporation (the “Certificate”) and as
provided by the general corporation law of the jurisdiction of the Corporation’s
incorporation, and are described in the Securities Filings.

          (c)     
Schedule 2.02(c) contains a list of stockholders of the Corporation, and
shares held by each of them, immediately prior to the Closing. There has been no
change in the capitalization of the Corporation since the Corporation filed its
Form 10-Q for the period ending February 28, 2009. Other than the Debentures and
Warrants to be issued in connection with this Agreement, there are no
outstanding options, warrants, rights (including conversion or preemptive rights
and rights of first refusal, participation rights or similar rights) or
agreements, orally or in writing, to purchase or acquire from the Corporation
any shares of Common Stock, or any securities convertible into or exchangeable
for shares of Common Stock. 

          (d)     
None of the Corporation’s stock purchase agreements or stock option documents
contain a provision for acceleration of vesting (or lapse of a repurchase right)
or other changes in the vesting provisions or other terms of such agreement or
understanding upon the occurrence of any event or combination of events. The
Corporation has never adjusted or amended the exercise price of any stock
options previously awarded, whether through amendment, cancellation, replacement
grant, repricing, or any other means. Except as set forth in the Certificate,
the Corporation has no obligation (contingent or otherwise) to purchase or
redeem any of its capital stock. The issuance of the Purchase Securities,
Corporation Conversion Shares and the Corporation Warrant Shares (each as
defined in Section 2.04) will not result in a right of any holder of the Corporation’s securities to adjust the
exercise, conversion, exchange or reset price under any such securities. 

- 7 - 

          SECTION
2.03 Subsidiaries. The Corporation does not currently own or control,
directly or indirectly, any interest in any other corporation, partnership,
trust, joint venture, limited liability company, association, or other business
entity. The Corporation is not a participant in any joint venture, partnership
or similar arrangement. 

          SECTION
2.04 Authorization. All corporate action required to be taken by the
Corporation’s Board of Directors and stockholders in order to authorize the
Corporation to enter into this Agreement, and to issue (a) the shares of Common
Stock issuable upon conversion of the Debentures (the “Corporation Conversion
Shares”), and (b) the shares of Common Stock issuable upon exercise of the
Warrants (the “Corporation Warrant Shares”), has been taken or will be
taken prior to the Closing Date, and no further action is required by the
Corporation, its Board of Directors or stockholders in connection therewith. All
action on the part of the officers of the Corporation necessary for the
execution and delivery of this Agreement and the performance of all obligations
of the Corporation hereunder to be performed as of the Closing has been taken or
will be taken prior to the Closing. The Transaction Documents to which the
Corporation is a party or will become a party by virtue of the closing of the
Asset Purchase, when executed and delivered by the Corporation, shall constitute
valid and legally binding obligations (to the extent set forth therein) of the
Corporation, enforceable against the Corporation in accordance with its terms
except (i) as limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance, or other laws of general application relating
to or affecting the enforcement of creditors’ rights generally, or (ii) as
limited by laws relating to the availability of specific performance, injunctive
relief, or other equitable remedies. 

          SECTION
2.05 Valid Issuance of Conversion Shares and Warrant Shares. The
Corporation Conversion Shares and the Corporation Warrant Shares have been duly
reserved for issuance, and upon issuance in accordance with the terms of the
Certificate and the applicable Transaction Documents to which the Corporation is
a party or will become a party by virtue of the closing of the Asset Purchase,
will be validly issued, fully paid and nonassessable and free of restrictions on
transfer other than restrictions on transfer under the Transaction Documents,
applicable federal and state securities laws and liens or encumbrances created
by or imposed by the Purchasers. Based in part upon the representations of the
Purchasers in Article IV of this Agreement (and subject to Section 2.0.6
below) the Corporation Conversion Shares and the Corporation Warrant Shares will
be issued in compliance with all applicable federal and state securities laws.

          SECTION
2.06 Governmental Consents and Filings. Assuming the accuracy of the
representations made by the Purchasers in Article IV of this Agreement,
and except as required pursuant to the Registration Rights Agreement, no
consent, approval, order or authorization of, or registration, qualification,
designation, declaration or filing with, any federal, state or local
governmental authority is required on the part of the Corporation in connection
with the consummation of the transactions contemplated by this Agreement, except
for filings pursuant to Regulation D of the Securities Act of 1933, as amended
(the “Securities Act”), the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
and applicable state securities laws, which have been made or will be made in
accordance with the respective requirements thereof.

- 8 - 

          
SECTION 2.07 Compliance with Other Instruments. The Corporation is not in
violation or default (a) of any provisions of the Certificate or its Bylaws, (b)
of any instrument, judgment, order, writ or decree, (c) under any note,
indenture or mortgage, or (d) under any lease, agreement, contract or purchase
order to which it is a party or by which it is bound, or (e) of any
provision of federal or state statute, rule or regulation applicable to the
Corporation, the violation of which would have a material adverse effect. The
execution, delivery and performance of the Transaction Documents to which the
Corporation is a party or will become a party by virtue of the closing of the
Asset Purchase, and the consummation of the transactions contemplated hereby and
thereby will not result in any such violation or be in conflict with or
constitute, with or without the passage of time and giving of notice, either (i)
a material default under the terms of any such provision, instrument, judgment,
order, writ, decree, contract or agreement, or (ii) an event which results in
the creation of any material lien, charge or encumbrance upon, or gives any
third party rights in, any assets of the Corporation or the suspension,
revocation, forfeiture, or nonrenewal of any material permit or License
applicable to the Corporation. 

          SECTION
2.08 Rights of Registration and Voting Rights. Except for the
registration of the Corporation Conversion Shares and the Corporation Warrant
Shares as contemplated in Section 7.03, the Corporation is not required to
register under the Securities Act any of its currently outstanding securities or
any securities issuable upon exercise or conversion of its currently outstanding
securities, nor will the Corporation grant any such rights until at least six
(6) months from the date of effectiveness of the registration statement covering
the Corporation Conversion Shares and the Corporation Warrant Shares described
in Section 7.03 subject to the terms and conditions set forth in the
Registration Rights Agreement. To the Corporation’s knowledge, no stockholder of
the Corporation has entered into any agreements with respect to the voting of
capital shares of the Corporation.

          SECTION
2.09 Financial Statements; Securities Filings.

          (a)     
The Corporation has filed all reports, statements, schedules, prospectuses, and
other documents required to be filed by the Corporation with the SEC in
accordance with the Exchange Act (collectively, as amended and/or supplemented
to date, the “Securities Filings”). At the time they were filed, the
Securities Filings did 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 the light of the circumstances under
which they were made, not misleading, and complied in all material respects with
the requirements of the Exchange Act. A true and complete copy of all Securities
Filings is available for review by the Purchasers at www.sec.gov. 

          (b)     
The financial statements contained in the Securities Filings (the
“Financial Statements”) (i) have been prepared in all material
respects in accordance with the published rules and regulations of the SEC and
generally accepted accounting principles in the United States (“GAAP”)
applied on a consistent basis throughout the periods involved, except (A) to the extent disclosed therein or required by changes in GAAP, (B)
with respect to Securities Filings filed prior to the date of this Agreement, as
may be indicated in the notes thereto, and (C) in the case of the unaudited
financial statements, as permitted by the rules and regulations of the SEC, and
(ii) fairly present in all material respects the consolidated financial position
of the Corporation and its subsidiaries as of the respective dates thereof and
the consolidated results of operations and cash flows of the Corporation for the
periods indicated (subject, in the case of unaudited consolidated financial
statements for interim periods, to adjustments necessary to present fairly such
results of operations and cash flows), except that any pro forma financial
statements contained in such consolidated financial statements are not
necessarily indicative of the consolidated financial position of the Corporation
and its subsidiaries as of the respective dates thereof and the consolidated
results of operations and cash flows for the periods indicated.

- 9 - 

          (c)      The
Corporation is in material compliance with all provisions of the Sarbanes-Oxley
Act of 2002 which are applicable to it as of the Closing Date. The Corporation
maintains a system of internal accounting controls sufficient to provide
reasonable assurance that (i) transactions are executed in accordance with
management’s general or specific authorizations, (ii) transactions are recorded
as necessary to permit preparation of financial statements in conformity with
GAAP and to maintain asset accountability, (iii) access to assets is permitted
only in accordance with management’s general or specific authorization, and (iv)
the recorded accountability for assets is compared with the existing assets at
reasonable intervals and appropriate action is taken with respect to any
differences.

          (d)      The
Corporation has established disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Corporation and designed
such disclosure controls and procedures to ensure that information required to
be disclosed by the Corporation in the Securities Filings is recorded,
processed, summarized and reported, within the time periods specified in the
SEC’s rules and forms. The Corporation’s certifying officers have evaluated the
effectiveness of the Corporation’s disclosure controls and procedures as of the
end of the period covered by the Corporation’s most recently filed periodic
report under the Exchange Act (such date, the “Evaluation Date”). The
Corporation presented in its most recently filed periodic report under the
Exchange Act the conclusions of the certifying officers about the effectiveness
of the disclosure controls and procedures based on their evaluations as of the
Evaluation Date. Since the Evaluation Date, there have been no changes in the
Corporation’s internal control over financial reporting (as such term is defined
in the Exchange Act) that has materially affected, or is reasonably likely to
materially affect, the Corporation’s internal control over financial reporting.

          SECTION
2.10 Corporate Documents. The Certificate and the Bylaws of the
Corporation are in the form previously provided to counsel to the Purchasers.
The copy of the minute books of the Corporation previously provided to counsel
to the Purchasers contains minutes of all meetings of directors and stockholders
and all actions by written consent without a meeting by the directors and
stockholders since the date of incorporation and accurately reflects in all
material respects all actions by the directors (and any committee of directors)
and stockholders with respect to all transactions referred to in such minutes.

- 10 - 

          SECTION
2.11 Real Property Holding Corporation; Tax Returns. The Corporation is
not now and has never been a “United States real property holding corporation”
as defined in the Code and any applicable regulations promulgated thereunder.
There are no federal, state, county, local or foreign taxes due and payable by
the Corporation which have not been timely paid. There are no accrued and unpaid
federal, state, country, local or foreign taxes of the Corporation which are
due, whether or not assessed or disputed. There have been no examinations or
audits of any tax returns or reports by any applicable federal, state, local or
foreign governmental agency. The Corporation has duly and timely filed all
federal, state, county, local and foreign tax returns required to have been
filed by it and there are in effect no waivers of applicable statutes of
limitations with respect to taxes for any year.

          SECTION
2.12 Certain Fees. No brokerage or finder’s fees or commissions are or
will be payable by the Corporation to any broker, financial advisor or
consultant, finder, placement agent, investment banker, bank or other person
with respect to the transactions contemplated by the Transaction Documents or
the Asset Purchase.

          SECTION
2.13 Listing and Maintenance Requirements. The Common Stock is registered
pursuant to Section 12(g) of the Exchange Act, and the Corporation has taken no
action designed to, or which to its knowledge is likely to have the effect of,
terminating the registration of the Common Stock under the Exchange Act nor has
the Corporation received any notification that the Commission is contemplating
terminating such registration. The Corporation has not, in the eight (8) months
preceding the date hereof, received notice from the OTCBB to the effect that the
Corporation is not in compliance with the listing or maintenance requirements of
the OTCBB. The Corporation is, and has no reason to believe that it will not in
the foreseeable future continue to be, in compliance with all such listing and
maintenance requirements. 

          SECTION
2.14 Disclosure. Except with respect to the material terms and conditions
of the transactions contemplated by the Transaction Documents, and except with
respect to the materials provided from time to time to the Purchasers and their
counsel in connection with their performance of due diligence hereunder, the
Corporation confirms that neither it nor any other Person acting on its behalf
has provided any of the Purchasers or their agents or counsel with any
information that it believes constitutes or might constitute material,
non-public information. The Corporation understands and confirms that the
Purchasers will rely on the foregoing representation in effecting transactions
in securities of the Corporation. All of the disclosure furnished by or on
behalf of the Corporation to the Purchasers regarding the Corporation, its
business and the transactions contemplated hereby, including the Securities
Filings, is true and correct and does not contain, as of the date of such
disclosure, any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements made therein, in light
of the circumstances under which they were made, not misleading. The Corporation
acknowledges and agrees that no Purchaser makes or has made any representations
or warranties with respect to the transactions contemplated hereby other than
those specifically set forth in Article IV hereof. 

          SECTION
2.15 No Integrated Offering. Neither the Corporation, 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 issuance of the Corporation Conversion Shares
or Corporation Warrant Shares pursuant to the terms herein to be integrated with
prior offerings by the Corporation for purposes of (i) the Securities Act which
would require the registration of any such securities under the Securities Act,
or (ii) any applicable shareholder approval provisions of the OTCBB. 

- 11 - 

          SECTION
2.16 Litigation. There is no claim, action, suit, proceeding,
arbitration, complaint, charge or investigation pending or to the Corporation’s
knowledge, currently threatened against the Corporation or, to the best of the
Corporation’s knowledge, threatened against any officer or director of the
Corporation, that (a) questions the validity of this Agreement or the right of
the Corporation to enter into it, or to consummate the transactions contemplated
hereby, or could have or reasonably be expected to have, either individually or
in the aggregate, a material adverse effect upon the Corporation’s business.
Neither the Corporation nor, to the best of the Corporation’s knowledge, any of
its officers or directors, is a party or is named as subject to the provisions
of any order, writ, injunction, judgment or decree of any court or government
agency or instrumentality (in the case of officers or directors, such as would
affect the Corporation). There is no action, suit, proceeding or investigation
by the Corporation pending or which the Corporation intends to initiate. The
foregoing includes, without limitation, actions, suits, proceedings or
investigations pending or threatened in writing (or any basis therefore known to
the Corporation) involving the prior employment of any of the Corporation’s
employees, their services provided in connection with the Corporation’s
business, or any information or techniques allegedly proprietary to any of their
former employers, or their obligations under any agreements with prior
employers. 

          SECTION
2.17 Agreements; Actions. 

          (a)     
Except for the Transaction Documents to which the Corporation is a party or will
become a party by virtue of the Asset Purchase, there are no material
agreements, understandings, instruments, contracts or proposed transactions to
which the Corporation is a party or by which it is bound. 

          (b)      The
Corporation has not (i) declared or paid any dividends, or authorized or made
any distribution upon or with respect to any class or series of its capital
stock, (ii) incurred any indebtedness for money borrowed or incurred any other
liabilities, (iii) made any loans or advances to any person, other than ordinary
advances for travel expenses, or (iv) sold, exchanged or otherwise disposed of
any of its assets or rights, other than the sale of its inventory in the
ordinary course of business. For the purposes of this Section 2.17(b), all
indebtedness, liabilities, agreements, understandings, instruments, contracts
and proposed transactions involving the same person (including persons the
Corporation has reason to believe are affiliated with each other) shall be
aggregated for the purpose of meeting the individual minimum dollar amounts of
such subsection. 

          (c)     
the Corporation is not a guarantor or indemnitor of any indebtedness of any
other person. 

          (d)      No
event, liability, fact, circumstance, occurrence or development has occurred or
exists or is reasonably expected to occur or exist with respect to the
Corporation or its business, properties, operations, assets or financial condition, that has
not been disclosed to the Purchasers on the schedules. 

- 12 - 

          SECTION
2.18 Certain Transactions.

          (a)     
Other than (i) standard employee benefits generally made available to all
employees, (ii) standard director and officer indemnification agreements
approved by the Corporation’s Board of Directors, and (iii) the purchase of
shares of the Corporation’s capital stock and the issuance of options to
purchase shares of Common Stock pursuant to any stock plan, in each instance
approved in the written minutes of the Board of Directors of the Corporation,
there are no agreements, understandings or proposed transactions between the
Corporation and any of its officers, directors or consultants, or any affiliate
thereof. 

          (b)      The
Corporation is not indebted, directly or indirectly, to any of its directors,
officers or employees or to their respective spouses or children or to any
affiliate of any of the foregoing, other than in connection with expenses or
advances of expenses incurred in the ordinary course of business or employee
relocation expenses and for other customary employee benefits made generally
available to all employees. None of the Corporation’s directors, officers or
employees, or any members of their immediate families, or any affiliate of the
foregoing (i) are, directly or indirectly, indebted to the Corporation, or (ii)
to the Corporation’s knowledge, have any direct or indirect ownership interest
in any firm or corporation with which the Corporation is affiliated or with
which the Corporation has a business relationship, or any firm or corporation
which competes with the Corporation except that directors, officers or employees
or stockholders of the Corporation may own stock in (but not exceeding two
percent (2%) of the outstanding capital stock of) publicly traded companies that
may compete with the Corporation. None of the Corporation’s directors or any
members of their immediate families or any affiliate of any of the foregoing
are, directly or indirectly, interested in any contract with the Corporation.
None of the directors or officers, or any members of their immediate families,
has any material commercial, industrial, banking, consulting, legal, accounting,
charitable or familial relationship with any of the Corporation’s customers,
suppliers, service providers, joint venture partners, licensees and competitors.

          SECTION
2.19 Absence of Liens. The property and assets that the Corporation owns
are free and clear of all mortgages, deeds of trust, liens, loans and
encumbrances, except for statutory liens for the payment of current taxes that
are not yet delinquent and encumbrances and liens that arise in the ordinary
course of business and do not materially impair the Corporation’s ownership or
use of such property or assets. With respect to the property and assets it
leases, the Corporation is in compliance with such leases and, to its knowledge,
holds a valid leasehold interest free of any liens, claims or encumbrances other
than those of the lessors of such property or assets. 

          SECTION
2.20 Changes. Since the date of the most recent audited Financial
Statements, there has not been: 

          (a)      any
material change in the assets, liabilities, financial condition or cash basis
operating results of the Corporation, except changes in the ordinary course of
business that have not caused, in the aggregate, a material adverse effect; 

- 13 - 

          (b)     
any damage, destruction or loss, whether or not covered by insurance, that would
have a material adverse effect; 

          (c)      any
waiver or compromise by the Corporation of a valuable right or of a material
debt owed to it; 

          (d)      any
satisfaction or discharge of any lien, claim, or encumbrance or payment of any
obligation by the Corporation, except in the ordinary course of business and the
satisfaction or discharge of which would not have a material adverse effect;

          (e)     
any material change to a material contract or agreement by which the Corporation
or any of its assets is bound or subject; 

          (f)      any
material change in any compensation arrangement or agreement with any employee,
officer, director or stockholder; 

          (g)     
any resignation or termination of employment of any officer or director of the
Corporation;

          (h)      except
for liens for taxes not yet due or payable and liens that arise in the ordinary
course of business which do not materially impair the Corporation’s ownership or
use of such property or assets, any mortgage, pledge, transfer of a security
interest in, or lien, created by the Corporation, with respect to any of its
material properties or assets; 

          (i)      any
loans or guarantees made by the Corporation to or for the benefit of its
employees, officers or directors, or any members of their immediate families,
other than travel advances and other advances made in the ordinary course of its
business; 

          (j)      any
declaration, setting aside or payment or other distribution in respect of any of
the Corporation’s capital stock, or any direct or indirect redemption, purchase,
or other acquisition of any of such stock by the Corporation; 

          (k)     
any sale, assignment or transfer of any intellectual property that could
reasonably be expected to result in a material adverse effect; 

          (l)     
receipt of notice that there has been a loss of, or material order cancellation
by, any major customer of the Corporation; 

          (m)     
to the Corporation knowledge, any other event or condition of any character,
other than events affecting the economy or the Corporation’s industry generally,
that could reasonably be expected to result in a material adverse effect; or

          (n)     
any arrangement or commitment by the Corporation to do any of the things
described in this Section 2.20. 

ARTICLE III 

REPRESENTATIONS AND WARRANTIES OF EPOD 

- 14 - 

          EPOD
hereby represents and warrants to each Purchaser that, except as set forth on
the Disclosure Schedule attached as Schedule III to this Agreement (the
“EPOD Disclosure Schedule”), which exceptions shall be deemed to be part of the
representations and warranties made hereunder, the following representations are
true and complete as of the Closing Date, except as otherwise indicated. The
EPOD Disclosure Schedule shall be arranged in sections corresponding to the
numbered and lettered sections and subsections contained in this Article
III, and the disclosures in any section or subsection of the EPOD Disclosure
Schedule shall qualify other sections and subsections in this Article III
only to the extent it is readily apparent from a reading of the disclosure that
such disclosure is applicable to such other sections and subsections.

          SECTION
3.01 Organization, Good Standing, Corporate Power and Qualification. EPOD
is a corporation duly organized, validly existing and in good standing under the
laws of the province of British Columbia, Canada and has all requisite corporate
power and authority to carry on its business as presently conducted and as
proposed to be conducted. The Company is duly qualified to transact business and
is in good standing in each jurisdiction in which the failure to so qualify
would have a material adverse effect. 

          SECTION
3.02 Capitalization. The authorized capital of EPOD consists, immediately
prior to the Initial Closing, of: 

          (a)      An
  unlimited number of EPOD Shares, 161,428,570 shares of which are issued and
  outstanding immediately prior to the Initial Closing. All of the outstanding
  EPOD Shares have been duly authorized, are fully paid and nonassessable and
  were issued in compliance with all applicable federal and provincial securities
  laws. EPOD holds no treasury stock and no EPOD Shares in its treasury. EPOD
  has no authorized shares of preferred stock.

          The
rights, privileges and preferences of the EPOD Shares are as stated in the
organizational documents of EPOD and as provided by the general corporation law
of the jurisdiction of EPOD’s incorporation.

          (c)      Immediately
prior to the Initial Closing, no EPOD Shares have been issued pursuant to
restricted stock purchase agreements and options to purchase 1,910,236 EPOD
Shares have been granted and are currently outstanding.

          (d)     
Section 3.02(d) of the EPOD Disclosure Schedule sets forth the
capitalization of EPOD immediately following the Initial Closing, including the
number of: (i) issued and outstanding shares of Common Stock, including with
respect to restricted Common Stock, vesting schedule and repurchase price; (ii)
issued stock options, including vesting schedule and exercise price; (iii) stock
options not yet issued but reserved for issuance; (iv) warrants or stock
purchase rights, if any; and (v) outstanding debentures convertible into EPOD
Shares. Except for (A) the conversion privileges of the Debentures to be issued
in connection with this Agreement, (B) the securities and rights described in
Section 3.02(d) of the EPOD Disclosure Schedule, (C) the Warrants to be
issued in connection with this Agreement, and (D) the Financial Advisor Warrants
to be issued under this Agreement, there are no outstanding options, warrants,
rights (including conversion or preemptive rights and rights of first refusal,
participation rights or similar rights) or agreements, orally or in writing, to
purchase or acquire from EPOD any EPOD Shares, or any securities convertible into
or exchangeable for EPOD Shares.

- 15 - 

          (e)      None
of EPOD’s stock purchase agreements or stock option documents contain a
provision for acceleration of vesting (or lapse of a repurchase right) or other
changes in the vesting provisions or other terms of such agreement or
understanding upon the occurrence of any event or combination of events. EPOD
has never adjusted or amended the exercise price of any stock options previously
awarded, whether through amendment, cancellation, replacement grant, repricing,
or any other means. Except as set forth in its organizational documents, EPOD
has no obligation (contingent or otherwise) to purchase or redeem any of its
capital stock. The issuance of the Purchase Securities, the EPOD Conversion
Shares or the EPOD Warrant Shares will not result in a right of any holder of
EPOD’s securities to adjust the exercise, conversion, exchange or reset price
under any such securities. 

          SECTION
3.03 Subsidiaries. Except for the subsidiaries listed on Section
3.03 of the EPOD Disclosure Schedule, EPOD does not currently own or
control, directly or indirectly, any interest in any other corporation,
partnership, trust, joint venture, limited liability company, association, or
other business entity. EPOD is not a participant in any joint venture,
partnership or similar arrangement. 

          SECTION
3.04 Authorization. All corporate action required to be taken by EPOD’s
Board of Directors and stockholders in order to authorize EPOD to enter into
this Agreement and the Purchase Agreement, and to issue (a) the Debentures and
the EPOD Shares issuable upon conversion of the Debentures (the “EPOD
Conversion Shares”), and (b) the Warrants and the EPOD Shares issuable upon
exercise of the Warrants (the “EPOD Warrant Shares”), has been taken or
will be taken prior to the Initial Closing Date, and no further action is
required by EPOD, its Board of Directors or stockholders in connection
therewith. All action on the part of the officers of EPOD necessary for the
execution and delivery of this Agreement and the Purchase Agreement, the
performance of all obligations of EPOD hereunder and thereunder to be performed
as of the Initial Closing or the closing of the Purchase Agreement, as
applicable, and, with respect to the issuance and delivery of the Debentures and
Warrants, has been taken or will be taken prior to the Initial Closing. The
Transaction Documents to which EPOD is a party, when executed and delivered by
EPOD, shall constitute valid and legally binding obligations of EPOD,
enforceable against EPOD in accordance with its terms except (i) as limited by
applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance, or other laws of general application relating to or affecting the
enforcement of creditors’ rights generally, or (ii) as limited by laws relating
to the availability of specific performance, injunctive relief, or other
equitable remedies. 

          SECTION
3.05 Valid Issuance of Debentures and Warrants. The Debentures and
Warrants, when issued, sold and delivered in accordance with the terms of the
applicable Transaction Documents to which EPOD is a party, will be validly
issued, fully paid and nonassessable and free of restrictions on transfer other
than restrictions on transfer under the Transaction Documents, applicable state
and federal securities laws and liens or encumbrances created by or imposed by
the Purchasers. Assuming the accuracy of the representations of the Purchasers
in Article IV of this Agreement (and subject to the filings described in
Section 3.06 below), the Debentures and the Warrants will be issued in
compliance with all applicable federal and state securities laws. The EPOD
Conversion Shares and the EPOD Warrant Shares have been duly reserved for
issuance, and upon issuance in accordance with the terms of EPOD’s
organizational documents and the applicable Transaction Documents to which EPOD
is a party, will be validly issued, fully paid and nonassessable and free of
restrictions on transfer other than restrictions on transfer under the
Transaction Documents, applicable federal and provincial securities laws and
liens or encumbrances created by or imposed by the Purchasers. Based in part
upon the representations of the Purchasers in Article IV of this
Agreement (and subject to Section 3.06 below) the EPOD Conversion Shares and the
EPOD Warrant Shares will be issued in compliance with all applicable federal and
provincial securities laws. 

- 16 - 

          SECTION
3.06 Governmental Consents and Filings. Assuming the accuracy of the
representations made by the Purchasers in Article IV of this Agreement,
no consent, approval, order or authorization of, or registration, qualification,
designation, declaration or filing with, any federal, state or local
governmental authority is required on the part of EPOD in connection with the
consummation of the transactions contemplated by this Agreement, except for
filings pursuant to applicable federal and provincial securities laws, which
have been made or will be made in accordance with the respective requirements
thereof.

          SECTION
3.07 Litigation. There is no claim, action, suit, proceeding,
arbitration, complaint, charge or investigation pending or to EPOD’s knowledge,
currently threatened against EPOD or, to the best of EPOD’s knowledge,
threatened against any officer or director of EPOD, that (a) questions the
validity of this Agreement or the right of EPOD to enter into it, or to
consummate the transactions contemplated hereby, or could have or reasonably be
expected to have, either individually or in the aggregate, a material adverse
effect upon EPOD’s business. Neither EPOD nor, to the best of EPOD’s knowledge,
any of its officers or directors, is a party or is named as subject to the
provisions of any order, writ, injunction, judgment or decree of any court or
government agency or instrumentality (in the case of officers or directors, such
as would affect EPOD) There is no action, suit, proceeding or investigation by
EPOD pending or which EPOD intends to initiate. The foregoing includes, without
limitation, actions, suits, proceedings or investigations pending or threatened
in writing (or any basis therefore known to EPOD) involving the prior employment
of any of EPOD’s employees, their services provided in connection with EPOD’s
business, or any information or techniques allegedly proprietary to any of their
former employers, or their obligations under any agreements with prior
employers. 

          SECTION
  3.08 Intellectual Property. EPOD owns or possesses or can acquire on
  commercially reasonable terms sufficient legal rights to all “EPOD Intellectual
  Property” (as defined below), without any known conflict with, or infringement
  of, the rights of others. To EPOD’s knowledge, no product or service marketed
  or sold (or proposed to be marketed or sold) by EPOD violates or will violate
  any license or infringes or will infringe upon any intellectual property rights
  of any other party. Other than with respect to commercially available software
  products under standard end-user object code license agreements, there are no
  outstanding options, licenses, agreements, claims, encumbrances or shared ownership
  interests of any kind relating to the EPOD Intellectual Property, nor is EPOD
  bound by or a party to any options, licenses or agreements of any kind with
  respect to the patents, trademarks, service marks, trade names, copyrights,
  trade secrets, licenses, information, proprietary rights and processes of any other person. EPOD has not been sued or charged as a defendant
in any claim, suit, action, or proceeding which involves a claim of infringement
of any intellectual property of any third party and which has not been finally
terminated prior to the date hereof, nor does EPOD have any knowledge of any
such charge or claim or any infringement liability with respect to, or
infringement or violation by, EPOD of any intellectual property of any third
party. EPOD has not received any communications alleging that EPOD has violated
or, by conducting its business, would violate any of the patents, trademarks,
service marks, tradenames, copyrights, trade secrets, mask works or other
proprietary rights or processes of any other person. EPOD has obtained and
possesses valid licenses to use all of the software programs present on the
computers and other software-enabled electronic devices that it owns or leases
or that it has otherwise provided to its employees for their use in connection
with EPOD’s business. To EPOD’s knowledge, it will not require the use of any
inventions of any of its employees or consultants (or persons it currently
intends to hire) made prior to their employment by EPOD. Each employee and
consultant has assigned to EPOD all intellectual property rights he or she owns
that are related to EPOD’s business as now conducted and as presently proposed
to be conducted. Section 3.08 of the EPOD Disclosure Schedule lists all
EPOD Intellectual Property. To the knowledge of EPOD, there is no existing
infringement by another person of any of the EPOD Intellectual Property. EPOD
has not embedded any open source, copyright or community source code in any of
its products generally available or in development, including but not limited to
any libraries or code licensed under any General Public License, Lesser General
Public License or similar license arrangement. For purposes of this Section
3.08, EPOD shall be deemed to have knowledge of a patent right if EPOD has
actual knowledge of the patent right or would be found to be on notice of such
patent right as determined by reference to United States patent laws.

- 17 - 

          For
purposes hereof, “EPOD Intellectual Property” shall mean all patents,
patent applications, trademarks, trademark applications, service marks,
tradenames, copyrights, trade secrets, licenses, domain names, mask works,
information and proprietary rights and processes as are necessary to the conduct
of EPOD’s business as now conducted and as presently proposed to be conducted.

          SECTION
3.09 Compliance with Other Instruments. Except as set forth on Section
3.09 of the EPOD Disclosure Schedule, EPOD is not in violation or default
(a) of any provisions of its organizational documents, (b) of any instrument,
judgment, order, writ or decree, (c) under any note, indenture or mortgage, or
(d) under any lease, agreement, contract or purchase order to which it is a
party or by which it is bound, or (e) of any provision of federal or
provincial statute, rule or regulation applicable to EPOD, the violation of
which would have a material adverse effect. The execution, delivery and
performance of the Transaction Documents to which EPOD is a party as well as the
Purchase Agreement, and the consummation of the transactions contemplated hereby
and thereby will not result in any such violation or be in conflict with or
constitute, with or without the passage of time and giving of notice, either (i)
a material default under the terms of any such provision, instrument, judgment,
order, writ, decree, contract or agreement, or (ii) an event which results in
the creation of any material lien, charge or encumbrance upon, or gives any
third party rights in any assets of EPOD or the suspension, revocation,
forfeiture, or nonrenewal of any material permit or License applicable to EPOD.

- 18 - 

          SECTION
3.10 Agreements; Actions. 

          (a)     
Except for the Transaction Documents to which EPOD is a party and except as set
forth on Section 3.10 of the EPOD Disclosure Schedule, there are no
agreements, understandings, instruments, contracts or proposed transactions to
which EPOD is a party or by which it is bound that involve (i) obligations
(contingent or otherwise) of, or payments to, EPOD in excess of $10,000, (ii)
the license of any patent, copyright, trademark, trade secret or other
proprietary right to or from EPOD, (iii) the grant of rights to manufacture,
produce, assemble, license, market, or sell its products to any other person
that limit EPOD’s exclusive right to develop, manufacture, assemble, distribute,
market or sell its products, or (iv) indemnification by EPOD with respect to
infringements of proprietary rights. 

          (b)     
Except as set forth on Section 3.10 of the EPOD Disclosure Schedule, EPOD
has not (i) declared or paid any dividends, or authorized or made any
distribution upon or with respect to any class or series of its capital stock,
(ii) incurred any indebtedness for money borrowed or incurred any other
liabilities individually in excess of $10,000 or in excess of $25,000 in the
aggregate, (iii) made any loans or advances to any person, other than ordinary
advances for travel expenses, or (iv) sold, exchanged or otherwise disposed of
any of its assets or rights, other than the sale of its inventory in the
ordinary course of business. For the purposes of this Section 3.10(b), all
indebtedness, liabilities, agreements, understandings, instruments, contracts
and proposed transactions involving the same person (including persons EPOD has
reason to believe are affiliated with each other) shall be aggregated for the
purpose of meeting the individual minimum dollar amounts of such subsection.

          (c)     
Except as set forth on Section 3.10 of the EPOD Disclosure Schedule, EPOD
is not a guarantor or indemnitor of any indebtedness of any other person. 

          (d)     
Except for the Purchase Agreement, no event, liability, fact, circumstance,
occurrence or development has occurred or exists or is reasonably expected to
occur or exist with respect to EPOD or its subsidiaries or their respective
business, properties, operations, assets or financial condition, that would be
required to be disclosed by EPOD under applicable securities laws if EPOD were
an SEC reporting company at the time this representation is made or deemed made
that has not been disclosed to the Purchasers. 

          SECTION
3.11 Certain Transactions.

          (a)      Other
than (i) standard employee benefits generally made available to all employees,
(ii) standard director and officer indemnification agreements approved by EPOD’s
Board of Directors, and (iii) the purchase of shares of EPOD’s capital stock and
the issuance of options to purchase EPOD Shares pursuant to the EPOD Stock Plan,
in each instance approved in the written minutes of the Board of Directors of
EPOD, there are no agreements, understandings or proposed transactions between
EPOD and any of its officers, directors or consultants, or any affiliate
thereof. 

          (b)     
Except for the unsecured debentures listed on Section 3.02(d) of the EPOD
Disclosure Schedule, and except as set forth on Section 3.11 of the EPOD
Disclosure Schedule, EPOD is not indebted, directly or indirectly, to any of its
directors, officers or employees or to their respective spouses or children or to any affiliate of any
of the foregoing, other than in connection with expenses or advances of expenses
incurred in the ordinary course of business or employee relocation expenses and
for other customary employee benefits made generally available to all employees.
None of EPOD’s directors, officers or employees, or any members of their
immediate families, or any affiliate of the foregoing (i) are, directly or
indirectly, indebted to EPOD, or (ii) to EPOD’s knowledge, have any direct or
indirect ownership interest in any firm or corporation with which EPOD is
affiliated or with which EPOD has a business relationship, or any firm or
corporation which competes with EPOD except that directors, officers or
employees or stockholders of EPOD may own stock in (but not exceeding two
percent (2%) of the outstanding capital stock of) publicly traded companies that
may compete with EPOD. None of EPOD’s directors or any members of their
immediate families or any affiliate of any of the foregoing are, directly or
indirectly, interested in any contract with EPOD. None of the directors or
officers, or any members of their immediate families, has any material
commercial, industrial, banking, consulting, legal, accounting, charitable or
familial relationship with any of EPOD’s customers, suppliers, service
providers, joint venture partners, licensees and competitors. 

- 19 - 

          SECTION
3.12 Rights of Registration and Voting Rights. EPOD is not required to
register under the Securities Act any of its currently outstanding securities or
any securities issuable upon exercise or conversion of its currently outstanding
securities, nor will EPOD grant any such rights until the effectiveness of the
registration statement contemplated by the Registration Rights Agreement. To
EPOD’s knowledge, no stockholder of EPOD has entered into any agreements with
respect to the voting of capital shares of EPOD. 

          SECTION
3.13 Absence of Liens.

          (a)     
Except as set forth in Section 3.13 of the EPOD Disclosure Schedule and
except for the security interests granted pursuant to this Agreement, the
property and assets that EPOD owns are free and clear of all mortgages, deeds of
trust, liens, loans and encumbrances, except for statutory liens for the payment
of current taxes that are not yet delinquent and encumbrances and liens that
arise in the ordinary course of business and do not materially impair EPOD’s
ownership or use of such property or assets. With respect to the property and
assets it leases, EPOD is in compliance with such leases and, to its knowledge,
holds a valid leasehold interest free of any liens, claims or encumbrances other
than those of the lessors of such property or assets. 

          (b)      This
Agreement, the Security Agreements and the Share Pledge Agreements create a
valid, enforceable security interest in the Collateral, subject only to the
mortgages, pledges, security interests, liens, charges, claims, restrictions and
other encumbrances (including without limitation, easements and licenses) set
forth in Section 3.13 of the EPOD Disclosure Schedule, securing payment
of the Debentures. Upon the filing of the Uniform Commercial Code financing
statements, and any documents required to be filed pursuant to applicable
foreign law, and the recordation of this Agreement (or a short form hereof) in
the offices set forth in Section 3.13 of the EPOD Disclosure Schedule,
all security interests which may be perfected by filing shall have been duly
perfected. Except for the filings and recordings referred to in the preceding
sentence, no action is necessary to create, perfect or protect such security
interest.

- 20 - 

Without limiting the generality of the foregoing, except for
such filings and recordings, no consent of any third parties and no
authorization, approval or other action by, and no notice to or filing with any
federal, provincial, state, municipal or other governmental department,
commission, board, bureau, agency or instrumentality, domestic or foreign, is
required for (i) the creation or perfection of the security interest in the
Collateral, or (ii) the enforcement of a Purchaser’s rights with respect
thereto. As of the Closing Date, no Indebtedness (as defined in Section 3.27) or
other claim against EPOD is senior to the Debentures in right of payment,
whether with respect to interest or upon liquidation or dissolution, or
otherwise, other than Indebtedness secured by purchase money security interests
(which is senior only as to underlying assets covered thereby) and capital lease
obligations (which is senior only as to the property covered thereby).

          SECTION
3.14 Financial Statements. EPOD has delivered to each Purchaser its
consolidated unaudited financial statements as of December 31, 2008 and for the
fiscal year then ended (the “EPOD Financial Statements”). The EPOD
Financial Statements have been prepared in accordance with generally accepted
accounting principles in Canada applied on a consistent basis throughout the
periods indicated, except that the unaudited EPOD Financial Statements may not
contain all footnotes required by generally accepted accounting principles in
Canada. The EPOD Financial Statements fairly present in all material respects
the financial condition and operating results of EPOD as of the dates, and for
the periods, indicated therein, subject in the case of the unaudited Financial
Statements to normal year-end audit adjustments and footnote disclosures. Except
as set forth in the EPOD Financial Statements or on Section 3.14 of the
EPOD Disclosure Schedule, EPOD has no liabilities or obligations, contingent or
otherwise, other than (i) liabilities incurred in the ordinary course of
business subsequent to December 31, 2008, (ii) obligations under contracts and
commitments incurred in the ordinary course of business, and (iii) liabilities
and obligations of a type or nature not required under generally accepted
accounting principles in Canada to be reflected in the EPOD Financial
Statements, which, in all such cases, individually and in the aggregate would
not have a material adverse effect. EPOD maintains and will continue to maintain
a standard system of accounting established and administered in accordance with
generally accepted accounting principles in Canada. 

          SECTION
3.15 Changes. Since the date of the most recent Financial Statements, and
except as set forth on Section 3.15 of the EPOD Disclosure Schedule,
there has not been: 

          (a)      any
material change in the assets, liabilities, financial condition or cash basis
operating results of EPOD, except changes in the ordinary course of business
that have not caused, in the aggregate, a material adverse effect; 

          (b)     
any damage, destruction or loss, whether or not covered by insurance, that would
have a material adverse effect; 

          (c)     
any waiver or compromise by EPOD of a valuable right or of a material debt owed
to it; 

- 21 - 

          (d)     
any satisfaction or discharge of any lien, claim, or encumbrance or payment of
any obligation by EPOD, except in the ordinary course of business and the
satisfaction or discharge of which would not have a material adverse effect;

          (e)     
any material change to a material contract or agreement by which EPOD or any of
its assets is bound or subject; 

          (f)      any
material change in any compensation arrangement or agreement with any employee,
officer, director or stockholder; 

          (g)     
any resignation of any officer, director or employee of EPOD following a
disagreement or other dispute with EPOD, or termination of employment of any
officer, director or employee of EPOD for cause;

          (h)      except
the security interests granted in connection with this Agreement and for liens
for taxes not yet due or payable and liens that arise in the ordinary course of
business which do not materially impair EPOD’s ownership or use of such property
or assets, any mortgage, pledge, transfer of a security interest in, or lien,
created by EPOD, with respect to any of its material properties or assets; 

          (i)     
any loans or guarantees made by EPOD to or for the benefit of its employees,
officers or directors, or any members of their immediate families, other than
travel advances and other advances made in the ordinary course of its business;

          (j)      any
declaration, setting aside or payment or other distribution in respect of any of
EPOD’s capital stock, or any direct or indirect redemption, purchase, or other
acquisition of any of such stock by EPOD; 

          (k)      any
sale, assignment or transfer of any EPOD Intellectual Property that could
reasonably be expected to result in a material adverse effect; 

          (l)     
receipt of notice that there has been a loss of, or material order cancellation
by, any major customer of EPOD; 

          (m)      to
EPOD’s knowledge, any other event or condition of any character, other than
events affecting the economy or EPOD’s industry generally, that
could reasonably be expected to result in a material adverse effect; or 

          (n)     
any arrangement or commitment by EPOD to do any of the things described in this
Section 3.15. 

          SECTION
3.16 Employee Matters. EPOD does not have in effect any employment
agreements, consulting agreements, deferred compensation, pension or retirement
agreements or arrangements, bonus, severance, incentive or profit-sharing plans
or arrangements, or labor or collective bargaining agreements, written or oral.
None of the officers or other key employees of EPOD presently intends to
terminate his or her employment. EPOD is in compliance in all material respects
with all applicable laws and regulations relating to labor, employment, fair employment practices, terms and conditions of employment, and
wages and hours. Except as listed on Section 3.16 of the EPOD Disclosure
Schedule, upon termination of the employment of any employees, EPOD will not be
obligated to provide advance notice of termination of employment or be liable to
any such employees for so-called “severance pay” or retiree health benefits.
EPOD is in material compliance with the terms of all such plans, and programs,
and each such plan, program or agreement is in compliance with all of the
requirements and provisions of applicable law, and is terminable in the
discretion of EPOD without liability to EPOD upon or following such
termination.

- 22 - 

          SECTION
  3.17 Tax Returns and Payments. There are no federal, state, provincial,
  county, local or foreign taxes due and payable by EPOD which have not been timely
  paid. There are no accrued and unpaid federal, state, provincial, country, local
  or foreign taxes of EPOD which are due, whether or not assessed or disputed.
  There have been no examinations or audits of any tax returns or reports by any
  applicable federal, state, provincial, local or foreign governmental agency.
  EPOD has duly and timely filed all federal, state, provincial, county, local
  and foreign tax returns required to have been filed by it and there are in effect
  no waivers of applicable statutes of limitations with respect to taxes for any
  year. 

          SECTION
3.18 Insurance. There are currently no claims pending against EPOD under
any insurance policies currently in effect and covering the property, business
or employees of EPOD, and all premiums due and payable with respect to the
policies maintained by EPOD have been paid to date. To EPOD’s knowledge, there
is no threatened termination of any such policies or arrangements. EPOD is
insured by insurers of recognized financial responsibility against such losses
and risks and in such amounts as are prudent and customary in the businesses in
which EPOD is engaged. Section 3.18 of the EPOD Disclosure Schedule sets
forth the names and policies of EPOD’s insurers. Neither EPOD nor any subsidiary
has any reason to believe that it will not be able to renew its existing
insurance coverage as and when such coverage expires or to obtain similar
coverage from similar insurers as may be necessary to continue its business
without a significant increase in cost.

          SECTION
3.19 Confidential Information Agreements. Each current and former
employee, consultant and officer of EPOD has executed an agreement with EPOD
regarding confidentiality and proprietary information substantially in the form
or forms delivered to the counsel for the Purchasers (the “Confidential
Information Agreements”). No current or former key employee has excluded
works or inventions from his or her assignment of inventions pursuant to such
key employee’s Confidential Information Agreement. EPOD is not aware that any of
its key employees is in violation thereof. 

          SECTION
3.20 Permits. EPOD and each of its subsidiaries has all franchises,
permits, Licenses and any similar authority necessary for the conduct of its
business, the lack of which could reasonably be expected to have a material
adverse effect. EPOD is not in default in any material respect under any of such
franchises, permits, Licenses or other similar authority. 

          SECTION
3.21 Corporate Documents. The organizational documents of EPOD are in the
form previously provided to counsel to the Purchasers. The copy of the minute
books of EPOD previously provided to counsel to the Purchasers contains minutes
of all meetings of directors and stockholders and all actions by written consent
without a meeting by the directors and stockholders since the date of incorporation and accurately
reflects in all material respects all actions by the directors (and any
committee of directors) and stockholders with respect to all transactions
referred to in such minutes. 

- 23 - 

          SECTION
3.22 Environmental and Safety Laws. Except as could not reasonably be
expected to have a material adverse effect (a) EPOD is and has been in
compliance with all “Environmental Laws” (as defined below); (b) there has been
no release or threatened release of any pollutant, contaminant or toxic or
hazardous material, substance or waste, or petroleum or any fraction thereof,
(each a “Hazardous Substance”) on, upon, into or from any site currently
or heretofore owned, leased or otherwise used by EPOD; (c) there have been no
Hazardous Substances generated by EPOD that have been disposed of or come to
rest at any site that has been included in any published federal, state,
provincial or local “superfund” site list or any other similar list of hazardous
or toxic waste sites published by any governmental authority; and (d) there are
no underground storage tanks located on, no polychlorinated biphenyls
(“PCBs”) or PCB-containing equipment used or stored on, and no hazardous
waste as defined by the Resource Conservation and Recovery Act, as amended (or
similar foreign statute), stored on, any site owned or operated by EPOD, except
for the storage of hazardous waste in compliance with Environmental Laws. EPOD
has previously made available to the Purchasers true and complete copies of all
material environmental records, reports, notifications, certificates of need,
permits, pending permit applications, correspondence, engineering studies, and
environmental studies or assessments.

          For
purposes of this Section 3.22, “Environmental Laws” means any law,
regulation, or other applicable requirement relating to (a) releases or
threatened release of Hazardous Substance; (b) pollution or protection of
employee health or safety, public health or the environment; or (c) the
manufacture, handling, transport, use, treatment, storage, or disposal of
Hazardous Substances. 

          SECTION
3.23 Certain Fees. Except for the fees paid to the Financial Advisors (as
defined in Section 9.04), which is described in Section 9.04 and will be paid by
EPOD at the Initial Closing, no brokerage or finder’s fees or commissions are or
will be payable by EPOD to any broker, financial advisor or consultant, finder,
placement agent, investment banker, bank or other person with respect to the
transactions contemplated by the Transaction Documents.

          SECTION
3.24 Private Placement. No registration under the Securities Act is
required for the offer and sale of the Purchase Securities by EPOD to the
Purchasers as contemplated hereby. The issuance and sale of the Purchase
Securities hereunder does not contravene the rules and regulations of any
Canadian or United States federal, state or provincial securities laws.

          SECTION
3.25 Investment Corporation. EPOD is not, and is not an affiliate of and,
immediately after receipt of payment for the Purchase Securities will not be or
be an affiliate of, an “investment company” within the meaning of the Investment
Company Act of 1940, as amended. EPOD shall conduct its business in a manner so
that it will not become an “investment company” subject to registration under
the Investment Company Act of 1940, as amended. 

- 24 - 

          SECTION
3.26 Disclosure. Except with respect to the material terms and conditions
of the transactions contemplated by the Transaction Documents, and except with
respect to the materials provided from time to time to the Purchasers and their
counsel in connection with their performance of due diligence hereunder, EPOD
confirms that neither it nor any other Person acting on its behalf has provided
any of the Purchasers or their agents or counsel with any information that it
believes constitutes or might constitute material, non-public information. EPOD
understands and confirms that the Purchasers will rely on the foregoing
representation in effecting transactions in securities of EPOD. All of the
disclosure furnished by or on behalf of EPOD to the Purchasers regarding EPOD,
its business and the transactions contemplated hereby, including the EPOD
Disclosure Schedule, is true and correct and does not contain, as of the date of
such disclosure, any untrue statement of a material fact or omit to state any
material fact necessary in order to make the statements made therein, in light
of the circumstances under which they were made, not misleading. 

          SECTION
3.27 Solvency. Based on the consolidated financial condition of EPOD as
of the Initial Closing Date, after giving effect to the receipt by EPOD of the
proceeds from the sale of the Purchase Securities hereunder: (i) the fair
saleable value of EPOD’s assets exceeds the amount that will be required to be
paid on or in respect of EPOD’s existing debts and other liabilities (including
known contingent liabilities) as they mature, (ii) EPOD’s assets do not
constitute unreasonably small capital to carry on its business as now conducted
and as proposed to be conducted including its capital needs taking into account
the particular capital requirements of the business conducted by EPOD, and
projected capital requirements and capital availability thereof, and (iii) the
current cash flow of EPOD, together with the proceeds EPOD would receive were it
to liquidate all of its assets, after taking into account all anticipated uses
of the cash, would be sufficient to pay all amounts on or in respect of its
liabilities when such amounts are required to be paid. EPOD does not intend to
incur debts beyond its ability to pay such debts as they mature (taking into
account the timing and amounts of cash to be payable on or in respect of its
debt). EPOD has no knowledge of any facts or circumstances which lead it to
believe that it will file for reorganization or liquidation under the bankruptcy
or reorganization laws of any jurisdiction within one year from the Closing
Date. Section 3.27 of the EPOD Disclosure Schedule sets forth as of the
date hereof all outstanding secured and unsecured Indebtedness (as defined
below) of EPOD or any subsidiary, or for which EPOD or any subsidiary has
commitments. Neither EPOD nor any subsidiary is in default with respect to the
material terms of any Indebtedness.

          For
the purposes of this Section 3.27, “Indebtedness” means (x) any
liabilities for borrowed money or amounts owed in excess of $10,000 (other than
trade accounts payable incurred in the ordinary course of business), (y) all
guaranties, endorsements and other contingent obligations in respect of
indebtedness of others, whether or not the same are or should be reflected in
EPOD’s balance sheet (or the notes thereto), except guaranties by endorsement of
negotiable instruments for deposit or collection or similar transactions in the
ordinary course of business, and (z) the present value of any lease payments in
excess of $10,000 due under leases required to be capitalized in accordance with
generally accepted accounting policies in Canada.

          SECTION
3.28 No General Solicitation. Neither EPOD nor any person acting on
behalf of EPOD has offered or sold any of the Purchase Securities by any form of
general solicitation or general advertising. Assuming the accuracy of the
representations made by the Purchasers in Article IV of this Agreement,
EPOD has offered the Purchase Securities for sale only to “accredited investors”
within the meaning of Rule 501 under the Securities Act. 

- 25 - 

ARTICLE IV 

REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS 

          Each
Purchaser, severally and not jointly, hereby represents and warrants to the
Corporation and EPOD that the following representations and warranties are true
and complete as of the Closing Date. 

          SECTION
4.01 General Representations. Each Purchaser, severally and not jointly,
hereby represents and warrants to the Corporation and EPOD that:

          (a)     
he has sufficient knowledge and experience in investing in companies similar to
EPOD in terms of EPOD’s stage of development so as to be able to evaluate the
risks and merits of its investment in the Corporation and it is able financially
to bear the risks thereof; and the Purchaser’s financial condition is such that
it is able to bear the risk of holding the Purchase Securities for an indefinite
period of time and can bear the loss of its entire investment in EPOD. 

          (b)      he
has had an opportunity to discuss EPOD’s business, management and financial
affairs with EPOD’s management and EPOD’s management has made available to the
Purchaser any and all written information which he has requested and has
answered to the Purchaser’s satisfaction all inquiries made by the Purchaser and
with respect to individual or other tax and other economic considerations
involved in this investment, and the Purchaser acknowledges that any documents
pertaining to this investment of which he has been made aware have been made
available for inspection by the Purchaser and the Purchaser’s attorney,
accountant and/or other advisor(s); 

          (c)     
the Purchase Securities being purchased by him are being acquired for his own
account for the purpose of investment and not with a view to or for sale in
connection with any distribution thereof; 

          (d)     
the purchase of the Purchase Securities has not been made through or as a result
of, and the issue and sale of the Purchase Securities is not being accompanied
by, an advertisement in printed media of general and regular paid circulation,
on radio, television or telecommunications, including electronic display, and no
prospectus, registration statement or offering memorandum within the meaning of
applicable laws has been delivered to the Purchaser in connection with the
purchase and sale of the Purchase Securities; 

          (e)     
the EPOD Conversion Shares, the EPOD Warrant Shares and, until such time as they
are registered for resale pursuant to the terms of the Registration Rights
Agreement, the Corporation Conversion Shares and the Corporation Warrant Shares
(i) have not been registered under the Securities Act by reason of their
issuance in a transaction exempt from the registration requirements of the
Securities Act pursuant to Section 4(2) thereof or Rule 505 or 506 promulgated
under the Securities Act, (ii) constitute “restricted securities” under the Securities Act, (iii) must be held indefinitely unless a
subsequent disposition thereof is registered or otherwise in compliance under
the Securities Act and/or applicable state securities laws or is exempt from
such registration, (iv) that EPOD and the Corporation, as applicable, will make
a notation on its transfer books to such effect, and (v) that if an exemption
from registration or qualification therefor is available, it may be conditioned
on various requirements including, but not limited to, the time and manner of
sale, the holding period therefor, and on requirements relating to EPOD and the
Corporation which are outside of the Purchaser’s control, and which EPOD (and
the Corporation, until such time as it is required to file the Initial
Registration Statement (as defined under the Registration Rights Agreement) is
under no obligation and may not be able to satisfy; 

- 26 - 

          (f)      he
understands that each certificate evidencing Purchase Securities shall bear a
legend or legends as may be required under applicable Canadian securities laws,
as well as a legend substantially similar to the following: 

                                   (i)      “THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “ACT”), OR ANY STATE SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR
SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN
EFFECT WITH RESPECT TO THE SECURITIES UNDER THE ACT OR AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED OR UNLESS
SOLD PURSUANT TO RULE 144 PROMULGATED UNDER THE ACT. ANY SUCH TRANSFER MAY ALSO
BE SUBJECT TO APPLICABLE STATE SECURITIES LAWS.” 

                                   (ii)      Any
legend set forth in, or required by, the Transaction Documents. 

                                   (iii)      Any
legend required by the securities laws of any state to the extent such laws are
applicable to the Debentures, the Warrants and the securities represented by the
certificate so legended. 

          (g)      all
corporate, personal or other action on the part of the Purchaser necessary for
the authorization, execution and delivery of this Agreement and the other
Transaction Documents and Purchase Agreement and for the performance of all
obligations of the Purchaser hereunder and thereunder has been taken. This
Agreement has been, and the other Transaction Documents will be, duly executed
and delivered by the Purchaser and will constitute valid and legally binding
obligations of the Purchaser, enforceable in accordance with their respective
terms, subject to applicable bankruptcy, insolvency, reorganization and
moratorium laws and other laws of general application affecting enforcement of
creditors’ rights generally; and 

          (h)      he
has no obligation with respect to any brokerage or finder’s fees or commissions
to any broker, financial advisor or consultant, finder, placement agent,
investment banker, bank or other person, or with respect to any claims made by
or on behalf of other persons for such fees, that may be due in connection with
the transactions contemplated by the Transaction Documents. 

- 27 - 

          SECTION
4.02 Accredited Investor Status. The Purchaser is an “accredited
investor” within the definition set forth in Rule 501(a) under the Securities
Act and within the definition set forth in National Instrument 45-106 of the
Canadian Securities Administrators.

          SECTION
4.03 Residence. If the Purchaser is an individual, then the Purchaser
resides in the state or province identified in the address of the Purchaser set
forth on Schedule I; if the Purchaser is a partnership, corporation,
limited liability company or other entity, then the office or offices of the
Purchaser in which its principal place of business is identified in the address
or addresses of the Purchaser set forth on Schedule I. 

          SECTION
4.04 Sole Representations. Except as expressly set forth in this
Article IV, the Purchasers makes no other representation or warranty with
respect to the transactions contemplated by the Transaction Documents to which
either of them is a party. 

ARTICLE V 

CONDITIONS TO THE OBLIGATIONS OF THE PURCHASERS 

          The
obligation of each of the Purchasers to purchase and pay for the Purchase
Securities being purchased at the Initial Closing, and of any Purchase
Securities issued at a subsequent Closing hereunder, is, at its option, subject
to the satisfaction, on or before such Closing, of the conditions set forth in
this Article V below, unless otherwise waived by the Purchasers: 

          SECTION
5.01 Representations and Warranties. The representations and warranties
of the Corporation and EPOD contained in Article II and III,
respectively, shall be true and correct in all material respects as of such
Closing, except that any such representations and warranties shall be true and
correct in all respects where such representation and warranty is qualified with
respect to materiality. 

          SECTION
5.02 Performance. The Corporation and EPOD, as applicable shall have
performed and complied with all agreements contained herein required to be
performed or complied with by it prior to or at such Closing. 

          SECTION
5.03 Compliance Certificate. The Chief Executive Officer or the President
of the Corporation and EPOD, as applicable, shall deliver to the Purchasers at
such Closing a certificate certifying that the conditions specified in
Sections 5.01 and 5.02 have been fulfilled. 

          SECTION
5.04 Proceedings. All corporate and other proceedings to be taken by the
Corporation and EPOD, as applicable, in connection with the transactions
contemplated hereby and all documents incident thereto shall be reasonably
satisfactory in form and substance to the Purchasers and their counsel in their
sole discretion, and the Purchasers and their counsel shall have received all
such counterpart originals or certified or other copies of such documents as
they reasonably may request. 

          SECTION
5.05 Supporting Documents. The Purchasers and their counsel shall have
received copies of the following documents: 

- 28 - 

          (a)      (i)
the Certificate, certified as of a recent date by the Secretary of State of the
State of Nevada, and (ii) a certificate of said Secretary dated as of a recent
date as to the due incorporation and good standing of the Corporation. 

          (b)      (i)
notice of Articles and Articles of Incorporation of EPOD, and (ii) a Certificate
of Good Standing as of a recent date by the Registrar of Companies (British
Columbia).

          (c)      a
certificate of the Secretary or an Assistant Secretary of the Corporation dated
as of such Closing and certifying: (i) that attached thereto are true and
complete copies of the Certificate and By-laws of the Corporation as in effect
on the date of such certification; (ii) that attached thereto is a true and
complete copy of all resolutions adopted by the Board of Directors or the
stockholders of the Corporation authorizing the execution, delivery and
performance of the Transaction Documents, the issuance, sale and delivery of the
Purchase Securities and the reservation, issuance and delivery of the
Corporation Conversion Shares and the Corporation Warrant Shares, and that all
such resolutions are in full force and effect and are all the resolutions
adopted in connection with the transactions contemplated by the Transaction
Documents; (iii) to the incumbency and specimen signature of each officer of the
Corporation executing any of the Transaction Documents, and any certificate or
instrument furnished pursuant hereto or thereto, and a certification by another
officer of the Corporation as to the incumbency and signature of the officer
signing the certificate referred to in this clause (c);

          (d)     
a certificate of the Secretary or an Assistant Secretary (or equivalent officer)
of EPOD dated as of such Closing and certifying: (i) that attached thereto are
true and complete copies of the Articles of Organization and By-laws (or similar
organizational documents) of EPOD as in effect on the date of such
certification; (ii) that attached thereto is a true and complete copy of all
resolutions adopted by the Board of Directors or the stockholders of EPOD
authorizing the execution, delivery and performance of the Transaction
Documents, the issuance, sale and delivery of the Purchase Securities and the
reservation, issuance and delivery of the EPOD Conversion Shares and the EPOD
Warrant Shares, and that all such resolutions are in full force and effect and
are all the resolutions adopted in connection with the transactions contemplated
by the Transaction Documents; (iii) to the incumbency and specimen signature of
each officer of EPOD executing any of the Transaction Documents, and any
certificate or instrument furnished pursuant hereto or thereto, and a
certification by another officer of EPOD as to the incumbency and signature of
the officer signing the certificate referred to in this clause (d); and 

          (e)     
such additional supporting documents and other information with respect to the
operations and affairs of the Corporation (and EPOD, as applicable) as the
Purchasers or their counsel reasonably may request. 

          SECTION
5.05 Security Agreements. The Security Agreements shall have been
executed and delivered by EPOD UK and the Purchasers. 

          SECTION
5.06 Registration Rights Agreement. The Registration Rights Agreement, in
substantially the form attached hereto as Exhibit E (the “Registration
Rights Agreement”), shall have been executed and delivered by the
Corporation and the Purchasers.

- 29 - 

          SECTION
5.07 Share Pledge Agreements. The Share Pledge Agreements shall have been
executed by Mike Matvieshen and the Purchasers. 

          SECTION
5.08 Non-Recourse Guaranty. Michael Matvieshen and the Purchasers shall
have executed a Non-Recourse Guaranty with respect to the shares pledged
pursuant to the Share Pledge Agreements. 

          SECTION
5.09 Lock-Up Agreement. EPOD and the applicable stockholders of the
Corporation shall have executed a Lock-Up Agreement with respect to a total of
1,469,000 shares of Common Stock held by such stockholders and the 2,651,000
shares of Common Stock being issued by the Corporation to EPOD pursuant to the
Purchase Agreement.

          SECTION
5.10 Preemptive Rights. All stockholders of EPOD having any preemptive,
first refusal or other rights with respect to the issuance of the Purchase
Securities, the EPOD Conversion Shares or the EPOD Warrant Shares shall have
irrevocably waived the same in writing. 

ARTICLE VI 

CONDITIONS TO THE OBLIGATIONS OF EPOD AND THE CORPORATION

          The
obligations of EPOD and the Corporation, respectively, hereunder at the Initial
Closing, and at a subsequent Closing hereunder, are subject to the satisfaction,
on or before such Closing, of the conditions set forth in this Article VI
below, unless otherwise waived by EPOD and the Corporation: 

          SECTION
6.01 Representations and Warranties. The representations and warranties
of the Purchasers contained in Article IV shall be true and correct in
all material respects as of such Closing, except that any such representations
and warranties shall be true and correct in all respects where such
representation and warranty is qualified with respect to materiality. 

          SECTION
6.02 Payment of Purchase Price. Each Purchaser shall have delivered to
EPOD payment of the aggregate purchase price of the Purchase Securities to be
purchased by such Purchaser at such Closing as set forth in Article I.

          SECTION
6.03 Transaction Documents. At or prior to such Closing, the Purchasers
shall have executed and delivered a counterpart signature page to this Agreement
and each of the remaining Transaction Documents to which he is a party. In
addition to the foregoing, the Purchasers shall have delivered at or prior to
such Closing a duly completed and executed Certificate of Accredited Investor
attached as Schedule IV hereto.

          SECTION
6.04 Proceedings and Documents. All corporate and other proceedings in
connection with the transactions contemplated at such Closing and all documents
incident thereto shall be reasonably satisfactory in form and substance to the
Corporation and the Corporation’s counsel, and to EPOD and EPOD’s counsel, as
applicable, and they shall have received all such counterpart original and
certified or other copies of such documents as they may reasonably request.

- 30 - 

ARTICLE VII 

COVENANTS OF THE CORPORATION AND EPOD 

          The
Corporation and EPOD hereby covenant and agree with the Purchasers that: 

          SECTION
7.01 Restrictive Agreements Prohibited. Neither the Corporation, EPOD,
nor any of their respective subsidiaries shall become a party to any agreement
which by its terms restricts the Corporation’s or EPOD’s performance (for so
long as EPOD is obligated to so perform) of any of the Transaction
Documents.

          SECTION
7.02 Use of Proceeds. EPOD shall use the proceeds from the sale of the
Purchase Securities solely for working capital, solar park construction, payment
of the expenses indicated in Sections 9.01 and 9.04 herein, and other general
corporate purposes, unless otherwise unanimously resolved by the Board of
Directors of EPOD; provided, however that no proceeds shall be used for payments
to any officers, directors or affiliates of EPOD (except for the one-time
payment to Michael Matvieshen in order to provide for the purchase price of the
shares of common stock of the Corporation held by former stockholders of the
Corporation). The Corporation shall use the proceeds, if any, from the issuance
of the Corporation Warrant Shares upon exercise by the Purchasers solely for
working capital and other general corporate purposes, including the construction
of solar parks, unless otherwise unanimously resolved by the Board of Directors
of the Corporation; provided, however that no proceeds shall be used for
payments to any officers, directors or affiliates of the Corporation (except for
the one-time payment to Michael Matvieshen in order to provide for the purchase
price of the shares of common stock of the Corporation held by former
stockholders of the Corporation). 

          SECTION
7.03 Registration of Corporation Conversion Shares and Corporation
Warrant Shares. The Corporation shall use its reasonable best efforts to file
with the SEC, within thirty (30) days of the closing date of the Asset Purchase,
a registration statement on Form S-1 covering the Corporation Conversion Shares
and the Corporation Warrant Shares and permitting the Purchasers to offer and
sell, on a delayed or continuous basis pursuant to Rule 415 of the Securities
Act, the Corporation Conversion Shares and the Corporation Warrant Shares,
subject to the terms and conditions set forth in the Registration Rights
Agreement.

          SECTION
7.04 Furnishing of Information; Public Information. Until the time that
no Purchaser owns any Purchase Securities, Corporation Conversion Shares or
Corporation Warrant Shares, the Corporation covenants to maintain the
registration of the Common Stock under Section 12(g) of the Exchange Act and to
timely file (or obtain extensions in respect thereof and file within the
applicable grace period) all reports required to be filed by the Corporation
after the date hereof pursuant to the Exchange Act even if the Corporation is
not then subject to the reporting requirements of the Exchange Act. As long as
any Purchaser owns Purchase Securities, Corporation Conversion Shares or
Corporation Warrant Shares, if the Corporation is not required to file reports
pursuant to the Exchange Act, it will prepare and furnish to the Purchasers and
make publicly available in accordance with Rule 144(c) such information as is
required for the Purchasers to sell the Purchase Securities, Corporation
Conversion Shares or Corporation Warrant Shares including without limitation,
under Rule 144. The Corporation further covenants that it will take such further
action as any holder of Purchase Securities may reasonably request, to the extent required from time to time to
enable such Person to sell the Purchase Securities, Corporation Conversion
Shares or Corporation Warrant Shares without registration under the Securities
Act, including without limitation, within the requirements of the exemption
provided by Rule 144.

- 31 - 

          At
any time during the period commencing from the six (6) month anniversary of the
date hereof and ending at such time that all of the Securities may be sold
without the requirement for the Corporation to be in compliance with Rule
144(c)(1) of the Securities Action (“Rule 144”) and otherwise without
restriction or limitation pursuant to Rule 144, if the Corporation shall fail
for any reason to satisfy the current public information requirement under Rule
144(c) (a “Public Information Failure”) then, in addition to such
Purchaser’s other available remedies, the Corporation shall pay to a Purchaser,
in cash, as partial liquidated damages and not as a penalty, by reason of any
such delay in or reduction of its ability to sell the Purchase Securities,
Corporation Conversion Shares or Corporation Warrant Shares, an amount in cash
equal to two percent (2.0%) of the aggregate purchase price of such Purchaser’s
Debentures on the day of a Public Information Failure and on every thirtieth
(30th) day (pro rated for periods totaling less than thirty days)
thereafter until the earlier of (a) the date such Public Information Failure is
cured and (b) such time that such public information is no longer required for
the Purchasers to transfer the Corporation Conversion Shares or the Corporation
Warrant Shares pursuant to Rule 144. The payments to which a Purchaser shall be
entitled pursuant to this Section 7.04 are referred to herein as “Public
Information Failure Payments.” Public Information Failure Payments
shall be paid on the earlier of (i) the last day of the calendar month during
which such Public Information Failure Payments are incurred, and (ii) the
third (3rd) Business Day (as defined in the Debentures) after the
event or failure giving rise to the Public Information Failure Payments
is cured. In the event the Corporation fails to make Public Information
Failure Payments in a timely manner, such Public Information Failure
Payments shall bear interest at the rate of 1.5% per month (prorated for
partial months) until paid in full. Nothing herein shall limit such Purchaser’s
right to pursue actual damages for the Public Information Failure, and such
Purchaser shall have the right to pursue all remedies available to it at law or
in equity including, without limitation, a decree of specific performance and/or
injunctive relief. 

          SECTION
7.05 Integration. The Corporation shall not sell, offer for sale or
solicit offers to buy or otherwise negotiate in respect of any “security” (as
defined in Section 2 of the Securities Act) that would be integrated with the
offer or sale of any Purchase Securities issued pursuant to Section 1.07 hereof
in a manner that would require the registration under the Securities Act of the
sale of any Purchase Securities issued pursuant to Section 1.07 hereof. 

          SECTION
7.06 Conversion and Exercise Procedures. Each of the form of Notice of
Exercise included in the Warrants and the form of Notice of Conversion included
in the Debentures set forth the totality of the procedures required of
the Purchasers in order to exercise the Warrants or to convert the Debentures.
No additional legal opinion, other information or instructions shall be required
of the Purchasers to exercise their Warrants or convert their Debentures. EPOD
(for so long as it is so obligated) and the Corporation, as applicable, shall
honor exercises of the Warrants and conversions of the Debentures and shall
deliver the EPOD Shares or the shares of Common Stock, as applicable, issuable
upon exercise or conversion thereof, respectively, in accordance with the respective terms,
conditions and time periods set forth in the Transaction Documents. 

- 32 - 

          SECTION
7.07 Securities Laws Disclosure; Publicity. The Corporation shall issue a
Current Report on Form 8-K and press release disclosing the material terms of
the transactions contemplated hereby, and including the Transaction Documents as
exhibits thereto, within the time limitations prescribed in the Form 8-K rules.
From and after the issuance of such press release, the Corporation shall have
publicly disclosed all material, non-public information delivered to any of the
Purchasers by the Corporation or any of its subsidiaries, or any of their
respective officers, directors, employees or agents in connection with the
transactions contemplated by the Transaction Documents. The Corporation and each
Purchaser shall consult with each other in issuing any other press releases with
respect to the transactions contemplated hereby, and neither the Corporation nor
any Purchaser shall issue any such press release, nor otherwise make any such
public statement without the prior consent of the Corporation, with respect to
any press release of any Purchaser, or without the prior consent of each
Purchaser, with respect to any press release of the Corporation, which consent
shall not unreasonably be withheld or delayed, except if such disclosure is
required by law, in which case the disclosing party shall promptly provide the
other party with prior notice of such public statement or communication.
Notwithstanding the foregoing, the Corporation shall not publicly disclose the
name of any Purchaser, or include the name of any Purchaser in any filing with
the SEC or any regulatory agency, without the prior written consent of such
Purchaser, except: (a) as required by federal securities law in connection with
(i) any registration statement contemplated by the Registration Rights
Agreement, and (ii) the filing of final Transaction Documents (including
signature pages thereto) with the SEC, and (b) to the extent such disclosure is
required by applicable law or regulation, in which case the Corporation shall
provide the Purchasers with prior notice of such disclosure permitted under this
clause (b). 

          SECTION
7.08 Reservation and Listing of Securities. 

          (a)                Each
of EPOD (for so long as it remains so obligated pursuant to the applicable terms
and conditions of the Transaction Documents) and the Corporation shall maintain
a reserve from their respective duly authorized shares of common stock for
issuance to the Purchasers pursuant to the Transaction Documents in such amount
as may then be required for the purpose of effecting the conversion of the
Debentures and the exercise of the Warrants and otherwise complying with the
terms of the Transaction Documents (such number of shares of common stock, the
“Required Minimum”). 

          (b)               
If, on any date, the number of authorized but unissued (and otherwise
unreserved) shares of common stock of EPOD (for so long as it remains so
obligated pursuant to the applicable terms and conditions of the Transaction
Documents) or the Corporation is less than the Required Minimum on such date,
then the Board of Directors of EPOD or the Corporation, as necessary, shall use
commercially reasonable efforts to amend their respective organizational
documents to increase their number of authorized but unissued shares of common
stock to at least the Required Minimum at such time, as soon as possible and in
any event not later than the 75th day after such date. 

- 33 - 

          (c)                The
Corporation shall, if applicable: (i) in the time and manner required by the
principal trading market, prepare and file with such trading market an
additional shares listing application covering a number of shares of Common
Stock at least equal to the Required Minimum on the date of such application,
(ii) take all steps necessary to cause such shares of Common Stock to be
approved for listing or quotation on such trading market or the OTCBB as soon as
possible thereafter, (iii) provide to the Purchasers evidence of such listing or
quotation, and (iv) maintain the listing or quotation of such Common Stock on
any date at least equal to the Required Minimum on such date on such trading
market or the OTCBB, as and to the extent applicable. 

          SECTION
7.09 Participation in Future Financing.

          (a)      From
the date of closing of the Asset Purchase until the date that is the twelve
month anniversary thereof, upon any issuance by the Corporation or any of its
subsidiaries of Common Stock or Common Stock equivalents or any indebtedness
convertible into Common Stock in a bona fide third party financing transaction
for the purpose of raising capital (a “Subsequent Financing”), each
Purchaser shall have the right to participate up to an amount of the Subsequent
Financing equal to 100% of the Subsequent Financing (the “Participation
Maximum”) on the same terms, conditions and price provided for in such
Subsequent Financing. 

          (b)      At
least five (5) Business Days prior to the closing of the Subsequent Financing,
the Corporation shall deliver to each Purchaser a written notice of its
intention to effect a Subsequent Financing (“Pre-Notice”), which Pre-Notice
shall ask such Purchaser if it wants to review the details of such financing
(such additional notice, a “Subsequent Financing Notice”). Upon the
request of a Purchaser, and only upon a request by such Purchaser, for a
Subsequent Financing Notice, the Corporation shall promptly, but no later than
one (1) Business Day after such request, deliver a Subsequent Financing Notice
to such Purchaser. The Subsequent Financing Notice shall describe in reasonable
detail the proposed terms of such Subsequent Financing, the amount of proceeds
intended to be raised thereunder and the person or persons through or with whom
such Subsequent Financing is proposed to be effected and shall include a term
sheet or similar document relating thereto as an attachment.

          (c)     
Any Purchaser desiring to participate in such Subsequent Financing must provide
written notice to the Corporation by not later than 5:30 p.m. (New York City
time) on the fifth (5th) Business Day after all of the Purchasers have received
the Pre-Notice that the Purchaser is willing to participate in the Subsequent
Financing, the amount of the Purchaser’s participation, and representing and
warranting that the Purchaser has such funds ready, willing, and available for
investment on the terms set forth in the Subsequent Financing Notice. If the
Corporation receives no such notice from a Purchaser as of such fifth (5th)
Business Day, such Purchaser shall be deemed to have notified the Corporation
that it does not elect to participate.

          (d)      If
by 5:30 p.m. (New York City time) on the fifth (5th) Business Day after all of
the Purchasers have received the Pre-Notice, notifications by the Purchasers of
their willingness to participate in the Subsequent Financing (or to cause their
designees to participate) is, in the aggregate, less than the total amount of
the Subsequent Financing, then the Corporation may effect the remaining portion
of such Subsequent Financing on the terms and with the Persons set forth in the
Subsequent Financing Notice.

- 34 - 

          (e)     
The Corporation must provide the Purchasers with a second Subsequent Financing
Notice, and the Purchasers will again have the right of participation set forth
above in this Section 7.09, if the Subsequent Financing subject to the initial
Subsequent Financing Notice is not consummated for any reason on the terms set
forth in such Subsequent Financing Notice within thirty (30) Business Days after
the date of the initial Subsequent Financing Notice.

          Notwithstanding
the foregoing, this Section 7.09 shall not apply in respect of a public offering
of Common Stock. 

ARTICLE VIII 

INDEMNIFICATION 

          SECTION
8.01 Indemnification of Purchasers. Subject to the provisions of this
Section 8.01, the Corporation and EPOD, severally and not jointly, shall
indemnify and hold each Purchaser and its directors, officers, shareholders,
members, partners, employees and agents (and any other persons with a
functionally equivalent role of a person holding such titles notwithstanding a
lack of such title or any other title), each person who controls such Purchaser
(within the meaning of Section 15 of the Securities Act and Section 20 of the
Exchange Act), and the directors, officers, shareholders, agents, members,
partners or employees (and any other persons with a functionally equivalent role
of a person holding such titles notwithstanding a lack of such title or any
other title) of such controlling persons (each, a “Purchaser Party”)
harmless from any and all losses, liabilities, obligations, claims,
contingencies, damages, costs and expenses, including all judgments, amounts
paid in settlements, court costs and reasonable attorneys’ fees and costs of
investigation that any such Purchaser Party may suffer or incur as a result of
or relating to (a) any breach of any of the representations, warranties,
covenants or agreements made by the Corporation or EPOD in this Agreement or in
the other Transaction Documents, or (b) any action instituted against a
Purchaser in any capacity, or any of them or their respective Affiliates, by any
stockholder of the Corporation or EPOD who is not an affiliate of such
Purchaser, with respect to any of the transactions contemplated by the
Transaction Documents (unless such action is based upon a breach of such
Purchaser’s representations, warranties or covenants under the Transaction
Documents or any agreements or understandings such Purchaser may have with any
such stockholder or any violations by such Purchaser of state or federal
securities laws or any conduct by such Purchaser which constitutes fraud, gross
negligence, willful misconduct or malfeasance). If any action shall be brought
against any Purchaser Party in respect of which indemnity may be sought pursuant
to this Agreement, such Purchaser Party shall promptly notify the Corporation
and EPOD in writing, and the Corporation and EPOD shall have the right to assume
the defense thereof with counsel of its own choosing reasonably acceptable to
the Purchaser Party. Any Purchaser Party shall have the right to employ separate
counsel in any such action and participate in the defense thereof, but the fees
and expenses of such counsel shall be at the expense of such Purchaser Party
except to the extent that (i) the employment thereof has been specifically
authorized by the Corporation or EPOD in writing, (ii) the Corporation and EPOD
have failed after a reasonable period of time to assume such defense and to
employ counsel, or (iii) in such action there is, in the reasonable opinion of
counsel, a material conflict on any material issue between the position of the
Corporation or EPOD and the position of such Purchaser Party, in which case the
Corporation and EPOD shall be responsible for the reasonable fees and expenses of no more
than one such separate counsel. Neither the Corporation nor EPOD will be liable
to any Purchaser Party under this Agreement (x) for any settlement by a
Purchaser Party effected without the Corporation’s or EPOD’s prior written
consent, which shall not be unreasonably withheld or delayed, or (y) to the
extent, but only to the extent that a loss, claim, damage or liability is
attributable to any Purchaser Party’s breach of any of the representations,
warranties, covenants or agreements made by such Purchaser Party in this
Agreement or in the other Transaction Documents. 

- 35 - 

ARTICLE IX 

MISCELLANEOUS 

          SECTION
9.01 Expenses. At the Initial Closing, EPOD has agreed to reimburse the
Purchasers for their legal fees and expenses in an amount not to exceed, in the
aggregate, $20,000.00 plus reasonable out-of-pocket expenses. Accordingly, in
lieu of the foregoing payments, the aggregate amount that the Purchasers are
required to pay for the Purchase Securities at the Initial Closing shall be
reduced by such legal fees and expenses. In addition, at the Initial Closing,
Epod and the Purchasers shall instruct the Escrow Agent to pay to Burns &
Levinson LLP, out of the offering proceeds, all of its legal fees and
disbursements accrued through the Initial Closing Date. Except as expressly set
forth to the contrary in the Transaction Documents, 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.

          SECTION
9.02 Survival of Agreements. Unless otherwise set forth in this
Agreement, the representations and warranties of the Corporation, EPOD and the
Purchasers contained in or made pursuant to this Agreement shall survive the
execution and delivery of this Agreement and the Initial Closing and shall in no
way be affected by any investigation or knowledge of the subject matter thereof
made by or on behalf of the Purchasers, EPOD or the Corporation.

          SECTION
9.03 Termination. This Agreement may be terminated by any Purchaser, as
to such Purchaser’s obligations hereunder only and without any effect whatsoever
on the obligations among the Corporation, EPOD and the other Purchasers, by
written notice to the other parties, if the Closing has not been consummated on
or before July 1, 2009; provided, however, that such termination
will not affect the right of any party to sue for any breach by the other party
(or parties). 

          SECTION
9.04 Financial Advisory Fee. The Purchasers understand that, in
connection with the issue and sale of the Purchase Securities pursuant to this
Agreement, CCI Financial Group Inc. (“CCI”) and Baneberry Capital Corp.
(“Baneberry”) (each, a “Financial Advisor” and, collectively, the
“Financial Advisors”) will receive from EPOD at the Initial Closing a
financial advisory fee, in cash, equal, in the aggregate, to 10% of the gross
proceeds to EPOD from the sale of the Purchase Securities hereunder. In
addition, EPOD will issue to each Financial Advisor Warrants (collectively, the
“Financial Advisor Warrants”), in the case of CCI, equal to 1% of the
Purchase Securities sold to the Purchasers hereunder and, in the case of
Baneberry, equal to 8% of the Purchase Securities sold to the Purchasers
hereunder. Each Financial Advisor Warrant will entitle the Financial Advisor to
acquire EPOD Shares or shares of Common Stock, as applicable, at the same price and upon the
same terms and conditions as the Warrants issued to the Purchasers; provided,
that the Corporation shall not be required to register any Financial Advisor
Warrant pursuant to the Registration Rights Agreement. 

- 36 - 

          SECTION
9.05 No Finder’s Fees. Each party represents that it neither is nor will
be obligated for any finder’s fee or commission in connection with this
transaction, except for the payments to the Financial Advisors described in
Section 9.04. The Purchasers, jointly and severally, agree to indemnify and to
hold harmless the Corporation and EPOD from any liability for any commission or
compensation in the nature of a finder’s or broker’s fee arising out of this
transaction (and the costs and expenses of defending against such liability or
asserted liability)for which the Purchasers or any of their respective officers,
employees, or representatives is responsible. The Corporation agrees to
indemnify and hold harmless the Purchasers from any liability for any commission
or compensation in the nature of a finder’s or broker’s fee arising out of this
transaction (and the costs and expenses of defending against such liability or
asserted liability), including the payments to the Financial Advisors, for which
the Corporation or any of its officers, employees or representatives is
responsible. EPOD agrees to indemnify and hold harmless the Purchasers from any
liability for any commission or compensation in the nature of a finder’s or
broker’s fee to any person (and the costs and expenses of defending against such
liability or asserted liability), including the payments to the Financial
Advisors, for which EPOD or any of its officers, employees or representatives is
responsible.

          SECTION
9.06 Parties in Interest. All representations, covenants and agreements
contained in this Agreement by or on behalf of any of the parties hereto shall
bind and inure to the benefit of the respective successors and assigns of the
parties hereto whether so expressed or not. Neither EPOD nor the Corporation may
assign their respective rights and obligations under this Agreement without the
prior written consent of each Purchaser (other than by merger). Any Purchaser
may assign any or all of its rights under this Agreement to any person to whom
such Purchaser assigns or transfers any Purchase Securities; provided that such
transferee agrees in writing to be bound, with respect to the transferred
Purchase Securities, by the provisions of the Transaction Documents that apply
to the Purchasers; provided, further that one or more applicable exemptions
under the Securities Act, and any applicable state securities laws, permit such
assignment or transfer without the necessity of registration pursuant thereto.
Without limiting the generality of the foregoing, all representations, covenants
and agreements benefiting the Purchasers shall inure to the benefit of any and
all subsequent holders from time to time of the Purchase Securities, and the
shares of Common Stock or the EPOD Shares, as applicable, issuable upon exercise
or conversion thereof.

          SECTION
9.07 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 Business Day delivery,
with written verification of receipt. All communications shall be sent to the
respective parties at their address as set forth in the preamble to this Agreement or on Schedule I hereto,
or to such email address, facsimile number or address as subsequently modified
by written notice given in accordance with this Section 8.05. If notice is given
to the Corporation, a copy shall also be given to Burns & Levinson LLP, 125
Summer Street, Boston, MA 02110, Attention: Andrew J. Merken, Esq. If notice is
given to a Purchaser, a copy shall also be given to Ellenoff Grossman &
Schole LLP, 150 East 42nd Street, 11th Floor, New York, New York 10017,
Attention: Stuart Neuhauser, Esq. 

- 37 - 

          SECTION
9.08 Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware, without giving effect to the
principles of conflicts of law thereof.

          SECTION
9.09 Entire Agreement. This Agreement and the other Transaction
Documents, including the schedules and exhibits hereto and thereto, constitute
the sole and entire agreement 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.

          SECTION
9.10 Counterparts. This Agreement may be executed in two or more
counterparts (including by facsimile or as an attachment to an electronic mail
message in “pdf” or similar format), each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument.

          SECTION
9.11 Amendments. This Agreement may not be amended or modified, nor may
any provision hereof be waived, except by a written instrument signed by the
parties. 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. 

          SECTION
9.12 Severability. If any provision of this Agreement shall be declared
void or unenforceable by any judicial or administrative authority, the validity
of any other provision and of the entire Agreement shall not be affected
thereby. 

          SECTION
9.13 Titles and Subtitles. The titles and subtitles used in this
Agreement are for convenience only and are not to be considered in construing or
interpreting any term or provision of this Agreement. 

          SECTION
9.14 Waiver. 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. 

          SECTION
9.15 Replacement of Purchase Securities. If any certificate or instrument
evidencing any Purchase Securities is mutilated, lost, stolen or destroyed, the
Corporation or EPOD, as applicable, shall issue or cause to be issued in
exchange and substitution for and upon cancellation thereof (in the case of
mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt of evidence
reasonably satisfactory to the Corporation or EPOD, as applicable, of such loss,
theft or destruction. The applicant for a new certificate or instrument under
such circumstances shall also pay any reasonable third-party costs (including
customary indemnity) associated with the issuance of such replacement Purchase
Securities. 

- 38 - 

          SECTION
9.16 Remedies. In addition to being entitled to exercise all rights
provided herein or granted by law, including recovery of damages, each of the
Purchasers and the Corporation will be entitled to specific performance under
the Transaction Documents. The parties agree that monetary damages may not be
adequate compensation for any loss incurred by reason of any breach of
obligations contained in the Transaction Documents and hereby agree 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.

          SECTION
9.17 Payment Set Aside. To the extent that the Corporation or EPOD, as
applicable, makes a payment or payments to any Purchaser pursuant to any
Transaction Document or a Purchaser enforces or exercises its rights thereunder,
and such payment or payments or the proceeds of such enforcement or exercise or
any part thereof are subsequently invalidated, declared to be fraudulent or
preferential, set aside, recovered from, disgorged by or are required to be
refunded, repaid or otherwise restored to the Corporation or EPOD, as
applicable, or any trustee or receiver of either of them or any other person
under any law (including, without limitation, any bankruptcy law, state,
provincial or federal law, common law or equitable cause of action), then to the
extent of any such restoration the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and effect
as if such payment had not been made or such enforcement or setoff had not
occurred. 

          SECTION
9.18 Independent Nature of Purchasers’ Obligations and Rights. Except to
the extent set forth therein, the obligations of each Purchaser under any
Transaction Document are several and not joint with the obligations of any other
Purchaser, and no Purchaser shall be responsible in any way for the performance
or non-performance of the obligations of any other Purchaser under any
Transaction Document. Nothing contained herein or in any other Transaction
Document, and no action taken by any Purchaser pursuant 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. Each Purchaser shall be
entitled to independently protect and enforce its rights, including, without
limitation, the rights arising out of this Agreement or out of the other
Transaction Documents, and it shall not be necessary for any other Purchaser to
be joined as an additional party in any proceeding for such purpose. 

          SECTION
9.19 Liquidated Damages. The obligation of EPOD and the Corporation to
pay any partial liquidated damages or other amounts owing under the Transaction
Documents is a continuing obligation of EPOD for so long as it remains so
obligated pursuant to the applicable terms and conditions of the Transaction
Documents, and of the Corporation, and shall not terminate until all unpaid
partial liquidated damages and other amounts have been paid, notwithstanding the fact that the instrument or security
pursuant to which such partial liquidated damages or other amounts are due and
payable shall have been canceled. 

- 39 - 

          SECTION
9.20 WAIVER OF JURY TRIAL. IN ANY ACTION, SUIT, OR PROCEEDING
IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES
EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE
LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES
FOREVER TRIAL BY JURY. 

          SECTION
9.21 No Commitment for Additional Financing. EPOD and the Corporation
acknowledge and agree that no Purchaser has made any representation,
undertaking, commitment or agreement to provide or assist EPOD or the
Corporation in obtaining any financing, investment or other assistance, other
than the purchase of the Purchase Securities at the Initial Closing as set forth
herein and subject to the conditions set forth herein. In addition, EPOD and the
Corporation acknowledge and agree that (i) no statements, whether written or
oral, made by any Purchaser or its representatives on or after the date of this
Agreement shall create an obligation, commitment or agreement to provide or
assist EPOD or the Corporation in obtaining any financing or investment, (ii)
neither EPOD nor the Corporation shall rely on any such statement by any
Purchaser or its representatives, and (iii) an obligation, commitment or
agreement to provide or assist EPOD or the Corporation in obtaining any
financing or investment may only be created by a written agreement, signed by
such Purchaser and EPOD or the Corporation, as applicable, setting forth the
terms and conditions of such financing or investment and stating that the
parties intend for such writing to be a binding obligation or agreement. Each
Purchaser shall have the right, in it sole and absolute discretion, to refuse or
decline to participate in any other financing of or investment in EPOD or the
Corporation, as applicable, including the Additional Investment, and shall have
no obligation to assist or cooperate with EPOD or the Corporation in obtaining
any financing, investment or other assistance. 

[Remainder of Page Intentionally Left Blank] 

          IN
WITNESS WHEREOF, the parties have executed this Securities Purchase
Agreement as of the day and year first above written.

	 	EPOD: 
	 	 
	 	EPOD SOLAR INC. 
	 	 
	 	  	  
	 	By: 	/s/ Michael Matvieshen 
	 	Name: 	Michael Matvieshen 
	 	Title: 	Chief Executive Officer 
	 	 	 
	 	CORPORATION:
  
	 	 
	 	ALLORA MINERALS, INC.
    
	 	 
	 	  	  
	 	By: 	/s/ Michael Matvieshen 
	 	Name: 	Michael Matvieshen 
	 	Title: 	President and Chief Executive
      Officer 
	 	 	 
	 	PURCHASERS:
  
	 	 
	 	  	  
	 	/s/ Chandra Pemmasani 
	 	Dr. Chandra Pemmasani
    

LIMITED JOINDER SOLELY FOR THE PURPOSES SET FORTH BELOW:

          The undersigned
  hereby execute the foregoing Securities Purchase Agreement solely with respect
  to their respective obligations set forth in Section 1.04. 

	  	531682 BC Ltd. 
	  	  
	  	/s/
      Michael Matvieshen 
	  	By:  Michael Matvieshen 
	  	Its: 
	  	  
	  	Guardian Universal Capital SA 
	  	  
	  	  
	  	/s/
      Michael Matvieshen 
	  	By:  Michael Matvieshen 
	  	Its: 
	  	  
	  	  
	 	Baneberry Capital Corp. 
	  	  
	  	  
	  	/s/
      Jack Schwebel 
	  	By:  Jack Schwebel 
	  	Its: 
	  	  
	  	  
	  	/s/
      Joel Cohen 
	  	Joel Cohen 

SCHEDULE 2.02(C) 

List of Corporation Shareholders 

SCHEDULE I 

Schedule of Purchasers 

	Name and Address of Purchaser
      

	Aggregate Principal 
Amount of
      Initial 
Closing 
Debentures 
($)

	Maximum Number of 
Initial
      Closing Warrant 
Shares 

	Dr. Chandra Pemmasani 
8 Fieldstream Court
      
Lutherville, MD 21093 
	2,000,000.00 

	172,414 

	TOTALS: 	2,000,000.00 	172,414 

SCHEDULE II 

[Omitted.]

SCHEDULE III 

EPOD Disclosure Schedule

SCHEDULE IV 

Certificate of Accredited Investor (U.S.) 

SCHEDULE V 

Certificate of Accredited Investor (Canada) 

EXHIBIT A 

[Form of Secured Convertible Debenture] 

EXHIBIT B 

[Form of Common Stock Purchase Warrant] 

EXHIBIT C 

[Form of Security Agreements] 

EXHIBIT D 

[Form of Share Pledge Agreements] 

EXHIBIT E 

[Form of Registration Rights Agreement]Allora Minerals, Inc.: Exhibit 10.3 - Prepared by TNT Filings Inc.

Exhibit 10.3 

REGISTRATION RIGHTS AGREEMENT 

          This
Registration Rights Agreement (this “Agreement”), dated as of June 30,
2009, by and between Allora Minerals, Inc., a Nevada corporation (the
“Company”), and each buyer identified on the Schedule of Buyers attached
hereto (collectively, the “Buyers” and each individually, the
“Buyer”). 

WHEREAS: 

         
A.      As of the date hereof, the Company has entered
into that certain Asset Purchase Agreement (the “Asset Purchase
Agreement”), pursuant to which the Company has agreed to purchase at the
closing thereunder, all or substantially all of the assets, and certain shares
of the capital stock and liabilities of, certain subsidiaries of EPOD Solar,
Inc. (“EPOD”); 

         
B.      In connection with the Securities Purchase
Agreement by and among EPOD and the parties hereto dated as of June 30, 2009
(the “Purchase Agreement”), EPOD agreed, upon the terms and subject to
the conditions contained therein, to issue and sell to the Buyer the following
securities: 

         
(i)               
Senior Secured Convertible Debentures (the “Debentures”), as described in
the Purchase Agreement; and 

         
(ii)               
Common Stock Purchase Warrants in the amount described in the Purchase Agreement
(the “Warrants”). 

         
C.      Pursuant to the Asset Purchase Agreement, the
Company has agreed to assume EPOD’s obligations under the Purchase Agreement,
the Debentures, the Warrants, and in the remaining Transaction Documents (as
defined in the Purchase Agreement) upon the closing of the Asset Purchase
Agreement; 

         
D.      Prior or subsequent to the closing of the Asset
Purchase Agreement, the Debentures are convertible into shares of the Company’s
common stock, par value $0.001 per share (the “Common Stock”), upon the
terms and subject to the limitations and conditions set forth in the Debentures,
and each of the Warrants is exercisable into shares of common stock of the
Company, upon the terms and conditions and subject to the limitations and
conditions set forth in the Warrants, all subject to the terms and conditions of
the Purchase Agreement; and 

         
E.      To induce the Buyer to execute and deliver the
Purchase Agreement, the Company agreed to provide certain registration rights
under the 1933 Act (as defined below), and applicable state securities laws.

         
NOW, THEREFORE, In consideration of the premises and the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company and the
Buyers hereby agree as follows: 

         
1. DEFINITIONS. 

         
Capitalized terms used herein and not otherwise defined herein shall have the
respective meanings set forth in the Purchase Agreement. As used in this
Agreement, the following terms shall have the following meanings: 

          
“1933 Act” means the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder, or any similar successor statute. 

          
“1934 Act” means the Securities Exchange Act of 1934, as amended, and the
rules and regulations promulgated thereunder, or any similar successor statute.

         
“Additional Registration Statement” shall have the meaning
ascribed to it in Section 3(b) below. 

         
“Additional Registration Effectiveness Deadline” shall have the
meaning ascribed to it in Section 3(b) below. 

         
“Additional Registration Filing Deadline” shall have the
meaning ascribed to it in Section 3(b) below. 

         
“Business Day” shall have the meaning ascribed to it in the
Debentures. 

         
“Buyer” means the purchaser of Debentures and Warrants pursuant
to the Purchase Agreement specified on the signature page hereof, and any
transferee or assignee who agrees to become bound by the provisions of this
Agreement in accordance with Section 10 hereof. 

         
“Commission” means the Securities and Exchange Commission. 

         
“Cutback Shares” means any of the Target Registration Amount of
Registrable Securities not included in any of the Registration Statements
previously declared effective hereunder as a result of a limitation on the
maximum number of shares of Common Stock of the Company permitted to be
registered by the Staff pursuant to Rule 415. 

         
“Debentures” shall have the meaning set forth in the recitals. 

         
“Debenture Shares” means the shares of Common Stock issuable
upon conversion of the Debentures. 

         
“Effective Date” shall mean the date that the initial
Registration Statement is first declared effective by the Commission. 

         
“Effectiveness Period” means, as to any Registration Statement
required to be filed pursuant to this Agreement, the period commencing on the
Effective Date of such Registration Statement and ending on the earliest to
occur of (a) the second (2nd) anniversary of such Effective Date (provided that, if the Registrable Securities are not
eligible for resale under Rule 144 without volume or other limitations as of
such second (2nd) anniversary, such period shall be extended for up
to three (3) additional years until the Registrable Securities become eligible
for resale under Rule 144 without volume or other limitations), (b) such time as
all of the Registrable Securities covered by such Registration Statement have
been publicly sold by the holders of the Registrable Securities included
therein, or (iii) such time as all of the Registrable Securities covered by such
Registration Statement may be sold by the Buyers pursuant to Rule 144 as
determined by counsel to the Company pursuant to a written opinion letter to
such effect, addressed and acceptable to the Company's transfer agent and the
affected Buyers. 

2

         
“Effectiveness Deadline” shall mean, with respect to the
Initial Registration Statement, shall mean the sixtieth (60th)
calendar day after the date of closing of the Asset Purchase (as defined in the
Purchase Agreement) and, with respect to any Additional Registration Statements
which may be required pursuant to Section 3(b), the Additional Registration
Effectiveness Deadline; provided, however, that in the event the Company is
notified by the Commission that one or more of the above Registration Statements
will not be reviewed or is no longer subject to further review and comments, the
Effectiveness Deadline as to such Registration Statement shall be the fifth
Business Day (as defined in the Debentures) following the date on which the
Company is so notified if such date precedes the dates otherwise required
above.

         
“Exclusion Period” shall have the meaning set forth in Section
3(p) below. 

         
“Filing Deadline” shall mean the Initial Registration Filing
Deadline, or any applicable Additional Registration Filing Deadline. 

         
“FINRA” shall mean the Financial Industry Regulatory Authority
(f/k/a the National Association of Securities Dealers, Inc.). 

         
“Initial Registration Filing Deadline” shall mean, with respect
to the Initial Registration Statement required hereunder, not more than thirty
(30) days following the date of closing of the Asset Purchase (as defined in the
Purchase Agreement). 

         
“Initial Registration Minimum” means a number of Registrable
Securities equal to the lesser of (i) the total number of Registrable
Securities, and (ii) the maximum number which would enable the Company to
conduct such offering in accordance with the provisions of Rule 415 as advised
by the Staff in a written comment letter or otherwise (which number shall be no
less than thirty percent (30%) of the number of issued and outstanding shares of
Common Stock that are held by non-affiliates of the Company on the day
immediately prior to the filing date of the Initial Registration Statement,
unless the Staff expressly requires otherwise). 

         
“Initial Registration Statement” shall have the meaning set
forth in Section 2(a) below. 

          
“Prospectus” means the prospectus included in a Registration Statement
(including, without limitation, a prospectus that includes any information
previously omitted from a prospectus filed as part of an effective registration
statement in reliance upon Rule 430A promulgated by the Commission pursuant to
the Securities Act), as amended or supplemented by any prospectus supplement, with respect to the terms of the offering of any
portion of the Registrable Securities covered by a Registration Statement, and
all other amendments and supplements to the Prospectus, including post-effective
amendments, and all material incorporated by reference or deemed to be
incorporated by reference in such Prospectus. 

3

         
“Purchase Securities” shall have the meaning ascribed to it in
the Purchase Agreement. 

         
“Register,” “Registered,” and “Registration” refer to a
registration effected by preparing and filing a Registration Statement or
Registration Statements in compliance with the 1933 Act and pursuant to Rule
415, and the declaration or ordering of effectiveness of such Registration
Statement by the Commission. 

         
“Registrable Securities,” for a given Registration Statement,
means (a) or issuable upon exercise of or otherwise pursuant to the Warrants,
(b) all Debenture Shares issued or issuable upon conversion of or otherwise
pursuant to the Debentures, (c) any shares of capital stock issued or issuable
as a dividend on or in exchange for or otherwise with respect to any of the
foregoing, (d) any additional shares of Common Stock issuable in connection with
any anti-dilution provisions in the Warrants or the Debentures (in each case,
without giving effect to any limitations on exercise set forth in the Warrants
or the Debentures), and (e) any other shares of Common Stock issued pursuant to
the terms of the Purchase Agreement, the Warrants, the Debentures, this
Registration Rights Agreement or any other Transaction Document (as defined in
the Purchase Agreement), and (f) any securities issued or issuable upon any
stock split, dividend or other distribution, recapitalization or similar event
with respect to the foregoing. 

         
“Registration Failure” shall have the meaning set forth in
Section 4 below. 

         
“Registration Failure Liquidated Damages” shall have the
meaning set forth in Section 4 below. 

         
“Registration Statement(s) means a registration statement(s) of
the Company under the 1933 Act. 

         
“Registration Trigger Date” shall have the meaning set forth in
Section 3(b) below. 

         
“Rule 415” means Rule 415 promulgated by the Commission
pursuant to the 1933 Act, as such Rule may be amended or interpreted from time
to time, or any similar rule or regulation hereafter adopted by the Commission
having substantially the same purpose and effect as such Rule.

          “Rule
415 Eligible” shall have the meaning set forth in Section 2(a) below.
“Rule 424” means Rule 424 promulgated by the Commission pursuant to the
1933 Act, as such Rule may be amended or interpreted from time to time, or any
similar rule or regulation hereafter adopted by the Commission having
substantially the same purpose and effect as such Rule. 

         
“SEC Guidance” means (i) the Securities Act, and (ii) any
publicly-available written or oral guidance, comments, requirements or requests
of the Staff. 

4

         
“SEC Share Reduction” shall have the meaning ascribed to it in
Section 2(a) below. 

         
“Staff” means the staff of the Commission. 

         
“Target Registration Amount” shall have the meaning set forth
in Section 2(a) below. 

         
“Target Registration Shortfall” shall have the meaning set
forth in Section 2(a) below. 

         
“Target Registration Shortfall Amount” shall have the meaning
set forth in Section 2(a) below. 

         
“Warrants” shall have the meaning set forth in the recitals.

         
“Warrant Shares” means the shares of Common Stock issuable upon
exercise of the Warrants. 

         
2. REGISTRATION. 

              
a. MANDATORY REGISTRATION. Following the closing of the Asset
Purchase, the Company shall prepare, and, on or prior to the Initial
Registration Filing Deadline, file with the Commission a Registration Statement
on Form S-1 (or, if Form S-1 is not then available, on such form of Registration
Statement as is then available to effect a registration of the Registrable
Securities, subject to the consent of the Buyer, which consent will not be
unreasonably withheld) (the “Initial Registration Statement”) covering
the resale of all or the maximum portion of the Registrable Securities as
permitted by SEC Guidance. The Company shall thereafter use its best efforts to
cause the Initial Registration Statement to become effective as soon as possible
after such filing, but in any event no later than the Effectiveness Deadline,
and shall keep the Initial Registration Statement current and effective pursuant
to Rule 415 at all times during the Effectiveness Period. The Initial
Registration Statement (including any amendments or supplements thereto and
Prospectuses contained therein) shall not, at the time of filing thereof,
contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein, or necessary to make the statements therein not
misleading.

          The
Initial Registration Statement, to the extent allowable under the 1933 Act
(including Rule 416 promulgated thereunder), shall state that such Initial
Registration Statement also covers such indeterminate number of additional
shares of Common Stock as may become issuable upon exercise of or otherwise
pursuant to the Warrants, or upon conversion or otherwise pursuant to the
Debentures, to prevent dilution resulting from stock splits, stock dividends or
similar transactions and shall contain (unless otherwise directed by at least a
three-fourths (3/4) majority in interest of the Buyers) substantially the
“Plan of Distribution” attached hereto as Annex A. 

              
The number of shares of Common Stock initially included in such Initial
Registration Statement shall be no less than one hundred and fifty percent
(150%) of the aggregate number of Warrant Shares and Debenture Shares that are
then issuable upon exercise or conversion of or otherwise pursuant to the
Warrants and the Debentures, without regard to any limitation on the Buyer’s
ability to exercise the Warrants or Debentures (collectively, the “Target
Registration Amount”). Notwithstanding the foregoing, if the Company is
advised by the Staff, in a written comment letter or otherwise, that it is not
eligible to conduct the offering of the Registrable Securities under Rule 415
because of the number of shares sought to be included in the Initial Registration Statement (or any other Registration Statement
required to be filed by the Company pursuant hereto) then, subject to any
applicable Registration Failure Liquidated Damages (as defined herein), the
Company may reduce (an “SEC Share Reduction”) the number of shares
covered by the Initial Registration Statement to the maximum number which would
enable the Company to conduct such offering in accordance with the provisions of
Rule 415 (“Rule 415 Eligible”); provided however, that the Company shall
use diligent efforts to advocate with the Commission for the registration of all
of the Registrable Securities in accordance with the SEC Guidance, including
without limitation, SEC Compliance and Disclosure Interpretations, No. 214.02
(Jan. 26, 2009). In the event the Company reduces unilaterally the number of
shares covered by such Registration Statement to a number less than the Initial
Registration Minimum, the Company will be obligated to pay Registration Failure
Liquidated Damages (as defined below) to the Buyer. In the event of an SEC Share
Reduction, the number of Registrable Securities registered shall be cut back pro
rata (based upon the relative number of Warrants and Debentures held by each
Buyer). In the event that, due to an SEC Share Reduction or otherwise, any
Registration Statement filed hereunder shall (when combined with any previous
Registration Statements that are current and effective) register a number of
shares of Common Stock which is less than the Target Registration Amount (a
“Target Registration Shortfall”) then the unregistered portion of the
Target Registration Amount (the “Target Registration Shortfall Amount”)
shall be included in the next Additional Registration Statement (in accordance
with Section 3(b) below).

5

              
The Company shall telephonically request effectiveness of a Registration
Statement as of 5:00 pm New York City Time on a Business Day. The Company shall
immediately notify the Buyer via facsimile or by e-mail of the effectiveness of
a Registration Statement on the same Business Day that the Company
telephonically confirms effectiveness with the Commission, which shall be the
date requested for effectiveness of such Registration Statement. The Company
shall, as early as practicable on the Business Day after the effective date of
such Registration Statement, file a final Prospectus with the Commission, if
required by Rule 424. The Company acknowledges that the number of shares
initially included in each Registration Statement represents a good faith
estimate of the maximum number of shares issuable upon exercise of or otherwise
pursuant to the Warrants and Debentures and shall be amended if not sufficient.
Each Registration Statement (and each amendment or supplement thereto, and each
request for acceleration of effectiveness thereof) shall be provided to (and
subject to the approval of) the Buyer and its counsel prior to its filing or
other submission.

         
b. PIGGY-BACK REGISTRATIONS. If at any time prior to the
expiration of the Effectiveness Period (as hereinafter defined) the Company
shall determine to file with the Commission a Registration Statement relating to
an offering for its own account or the account of others under the 1933 Act of
any of its equity securities (other than on Form S-4 or Form S-8 or their then
equivalents relating to equity securities to be issued solely in connection with
any acquisition of any entity or business or equity securities issuable in
connection with stock option or other employee benefit plans), the Company shall
send to Buyer written notice of such determination and, if within fifteen (15)
days after the delivery date of such notice, the Buyer shall so request in
writing, the Company shall include in such Registration Statement all or any
part of the Registrable Securities which are not then registered for resale
pursuant to a current and effective Registration Statement, and which the Buyer
requests to be registered except that, if (i) inclusion of such shares would
result in the offering not being Rule 415 Eligible, or (ii) in connection with
any underwritten public offering for the account of the Company, the managing
underwriter(s) thereof shall impose a limitation on the number of shares of
Common Stock which may be included in the Registration Statement because, in
such underwriter(s)’ judgment, marketing or other factors dictate such
limitation is necessary to facilitate public distribution, then the Company
shall be obligated to include in such Registration Statement only such limited
portion of the Registrable Securities with respect to which the Buyer has
requested inclusion hereunder (i) as would enable the offering to be Rule 415
Eligible, or (ii) as the underwriter shall permit; 

6

         
PROVIDED, HOWEVER, that the Company shall not exclude any
Registrable Securities unless the Company has first excluded all other
outstanding securities, the holders of which are not entitled by contract to
inclusion of such securities in such Registration Statement or are not entitled
to pro rata inclusion with the Registrable Securities; and 

         
PROVIDED, FURTHER, HOWEVER, that, after giving effect to the
immediately preceding proviso, any exclusion of Registrable Securities shall be
made pro rata with holders of securities entitled to inclusion of their
securities in such Registration Statement by reason of demand registration
rights. No right to registration of Registrable Securities under this Section
2(b) shall be construed to limit any registration required under Section 2(a)
hereof. If an offering in connection with which the Buyer is entitled to
registration under this Section 2(b) is an underwritten offering, then the Buyer
shall, unless otherwise agreed by the Company, offer and sell such Registrable
Securities in an underwritten offering using the same underwriter or
underwriters and, subject to the provisions of this Agreement, on the same terms
and conditions as other shares of Common Stock included in such underwritten
offering. Notwithstanding anything to the contrary set forth herein, the
registration rights of the Buyer pursuant to this Section 2(b) shall only be
available in the event the Company fails to timely file, obtain effectiveness or
maintain effectiveness of any Registration Statement to be filed pursuant to
Section 2(a) in accordance with the terms of this Agreement and shall terminate
and be of no further force and effect once the Company satisfies its obligations
under this Agreement. 

         
3. OBLIGATIONS OF THE COMPANY. In connection with the
registration of the Registrable Securities, the Company shall have the following
obligations: 

              
a. The Company shall prepare promptly, and file with the Commission as soon as
practicable after the date of the closing under the Purchase Agreement (the
“Closing Date”) (but no later than the Filing Deadline), Registration
Statements with respect to the number of Registrable Securities provided in
Section 2(a), and thereafter use its best efforts to cause each such
Registration Statement relating to Registrable Securities to become effective as
soon as possible after such filing, but in any event shall cause each such
Registration Statement relating to Registrable Securities to become effective no
later than the Effectiveness Deadline, and shall keep the Registration Statement
current and effective pursuant to Rule 415 at all times during the Effectiveness
Period. The Registration Statement (including any amendments or supplements
thereto and Prospectuses contained therein) shall not, at the time of filing
thereof, contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein, or necessary to make the statements
therein not misleading. 

7

              
b. The Company shall (i) prepare and file with the Commission such amendments
(including post-effective amendments) and supplements to each Registration
Statements and the Prospectus used in connection with the Registration
Statements as may be necessary to keep the Registration Statements current and
effective at all times during the Effectiveness Period, and, during such period,
comply with the provisions of the 1933 Act with respect to the disposition of
all Registrable Securities of the Company covered by the Registration Statements
until the earlier of such time as all of such Registrable Securities have been
disposed of in accordance with the intended methods of disposition by the seller
or sellers thereof as set forth in the Registration Statements and the end of
the Effectiveness Period, (ii) cause the related Prospectus to be amended or
supplemented by any required Prospectus supplement (subject to the terms of this
Agreement), and, as so supplemented or amended, to be filed pursuant to Rule
424, (iii) respond as promptly as reasonably possible to any comments received
from the Commission with respect to a Registration Statement or any amendment
thereto and provide as promptly as reasonably possible to the Buyer true and
complete copies of all correspondence from and to the Commission relating to a
Registration Statement (provided that, the Company may excise any information
contained therein which would constitute material non-public information as to a
Buyer which has not executed a confidentiality agreement with respect thereto
with the Company), and (iv) comply in all material respects with the applicable
provisions of the 1933 Act and the 1934 Act with respect to the disposition of
all Registrable Securities covered by a Registration Statement during the
applicable period in accordance (subject to the terms of this Agreement) with
the intended methods of disposition by the Buyer thereof set forth in such
Registration Statement as so amended or in such Prospectus as so supplemented.

              
In the event of a Target Registration Shortfall (the date of each of which is
referred to as a “Registration Trigger Date”), or in the event that on
any Business Day (as defined in the Debenture) (each such Business Day is also
referred to as a “Registration Trigger Date”) the number of shares
available under a Registration Statement filed pursuant to this Agreement is
otherwise insufficient to cover all of the Registrable Securities issued or
issuable upon exercise of or otherwise pursuant to the Warrants (based on the
Exercise Price then in effect, as defined in the Warrants) or the conversion of
the Debentures (based on the Conversion Price then in effect, as defined in the
Debentures), and otherwise issuable pursuant to the Transaction Documents, in
each case without giving effect to any limitations on the Buyer’s ability to
exercise the Warrants or the Debentures, or otherwise receive shares of Common
Stock pursuant to the Transaction Documents, the Company shall amend the
Registration Statement, or file a new Registration Statement (on the short form
available therefore, if applicable), or both (each, an “Additional
Registration Statement”), as soon as practicable so as to cover at least
150% of the total number of Registrable Securities so issued or issuable (based
on the Exercise Prices of the Warrants and the Conversion Price of the
Debentures, and such other relevant factors on which the Company reasonably
elects to rely, and without giving effect to any limitations on exercise
contained in the Warrants or limitations on conversion of the Debentures, or
limitations on conversion or exercise or other payment of shares contained in
the Purchase Agreement) as of the Registration Trigger Date (subject to an SEC
Share Reduction, if applicable). The Company shall prepare and file each
Additional Registration Statement as soon as practicable following any
Registration Trigger Date, but not later than the date that is sixty (60) days
following the applicable Registration Trigger Date (the “Additional
Registration Filing Deadline”); provided that, if Cutback Shares are
required to be included in the Additional Registration Statement, the
“Additional Registration Filing Deadline” shall mean the later of (i) the date that is sixty (60) days
after the date substantially all (as such term is then interpreted by the
Commission) of the Registrable Securities registered under the immediately
preceding Registration Statement are sold, and (ii) the date that is six (6)
months following the date of effectiveness of the most recently effective
Registration Statement or Additional Registration Statement filed hereunder. The
Company shall use its best efforts to cause such amendment and/or new
Registration Statement to become effective as soon as practicable following the
filing thereof, but in any event the Company shall cause such amendment and/or
new Registration Statement to become effective within one hundred eighty (180)
days of the Registration Trigger Date (the “Additional Registration
Effectiveness Deadline”) or as promptly as practicable in the event the
Company is required to increase its authorized shares.

8

              
c. The Company shall furnish to the Buyer and its legal counsel, promptly after
the same is prepared and publicly distributed, filed with the Commission, or
received by the Company, one copy of each Registration Statement and any
amendment thereto, each preliminary prospectus, Prospectus and each amendment or
supplement thereto, and, in the case of the Registration Statement referred to
in Section 2(a), each letter written by or on behalf of the Company to the
Commission or the Staff, and each item of correspondence from the Commission or
the Staff, in each case relating to such Registration Statement (other than any
portion of any thereof which contains information for which the Company has
sought confidential treatment), and (ii) such number of copies of a Prospectus,
including a preliminary prospectus, and all amendments and supplements thereto,
and such other documents, as the Buyer may reasonably request in order to
facilitate the disposition of the Registrable Securities owned by the Buyer. The
Company will immediately notify the Buyer in writing of the effectiveness of
each Registration Statement or any post-effective amendment thereto. The Company
will promptly respond to any and all comments received from the Commission or
the Staff, with a view towards causing each Registration Statement, or any
amendment thereto, to be declared effective by the Commission as soon as
reasonably practicable and shall file an acceleration request as soon as
practicable, but no later than five (5) business days following the resolution
or clearance of all Commission comments or, if applicable, following
notification by the Commission that any such Registration Statement or any
amendment thereto will not be subject to review. 

              
d. Prior to any resale of Registrable Securities by a Buyer, the Company shall
use reasonable efforts to (i) register and qualify the Registrable Securities
covered by the Registration Statements under such other securities or "blue sky"
laws of such jurisdictions in the United States as the Buyer shall reasonably
request, (ii) prepare and file in those jurisdictions such amendments (including
post-effective amendments) and supplements to such registrations and
qualifications as may be necessary to maintain the effectiveness thereof during
the Effectiveness Period, (iii) take such other actions as may be necessary to
maintain such registrations and qualifications in effect at all times during the
Effectiveness Period, and (iv) take all other actions reasonably necessary or
advisable to qualify the Registrable Securities for sale in such jurisdictions.

              
e. The Company shall notify the Buyer as promptly as reasonably practicable
after becoming aware of the following events: state a 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, in light of the circumstances under
which they were made, not misleading; and (vi) of the occurrence or existence of
any pending corporate development with respect to the Company that the Company believes may be material and that, in the determination of the
Company, makes it not in the best interest of the Company to allow continued
availability of a Registration Statement or Prospectus; provided that, any and
all of such information shall remain confidential to each Holder until such
information otherwise becomes public, unless disclosure by a Holder is required
by law; provided, further, that notwithstanding each Holder’s agreement to keep
such information confidential, each such Holder makes no acknowledgement that
any such information is material, non-public information. For not more than ten
(10) consecutive calendar days (or a total of not more than twenty (20) days in
any twelve (12) month period), the Company may delay the disclosure of material
non-public information concerning the Company (as well as prospectus or
Registration Statement updating) the disclosure of which at the time is not, in
the good faith opinion of the Company, in the best interests of the Company (an
“Allowed Delay”); provided, however, that the Company shall promptly (i)
notify the Buyer in writing of the existence of (but in no event, without the
prior written consent of the Buyer, shall the Company disclose to the Buyer any
of the facts or circumstances regarding) material non-public information giving
rise to an Allowed Delay, and (ii) advise the Buyer in writing to cease all
sales under such Registration Statement until the end of the Allowed Delay;
provided, that the above actions are consistent with the requirements of the
1933 Act and/or 1934 Act or other applicable law. The Company shall use its best
efforts to ensure the use of the Prospectus may be resumed as promptly as
practicable. Upon expiration of the Allowed Delay, the Company shall again be
bound by the provisions of this Section 3(e) with respect to the information
giving rise thereto. Nothing herein relieves the obligations set forth in the
Debentures or the Warrants relative to Registration Failure Liquidated
Damages or payments of the Default Amount pursuant to Events of
Default.

9

              
f. The Company shall use its best efforts to prevent the issuance of any stop
order or other suspension of effectiveness of any Registration Statement and, if
such an order is issued, to obtain the withdrawal of such order at the earliest
possible moment and to notify the Buyer who holds Registrable Securities being
sold (or, in the event of an underwritten offering, the managing underwriters)
of the issuance of such order and the resolution thereof. 

              
g. The Company shall permit a single firm of counsel designated by the Buyer to
review such Registration Statement and all amendments and supplements thereto
(as well as all requests for acceleration or effectiveness thereof), at the
Company’s cost, not to exceed $2,000, a reasonable period of time prior to their
filing with the Commission (such period to be not less than five (5) business
days but not more than ten (10) business days) and not file any document in a
form to which such counsel reasonably objects and will not request acceleration
of such Registration Statement without prior notice to such counsel.

              
h. The Company shall hold in confidence and not make any disclosure of
information concerning the Buyer provided to the Company unless (i) disclosure
of such information is necessary to comply with federal or state securities
laws, (ii) the disclosure of such information is necessary to avoid or correct a
misstatement or omission in any Registration Statement, (iii) the release of
such information is ordered pursuant to a subpoena or other order from a court
or governmental body of competent jurisdiction, or (iv) such information has
been made generally available to the public other than by disclosure in
violation of this or any other agreement. The Company agrees that it shall, upon
learning that disclosure of such information concerning the Buyer is sought in
or by a court or governmental body of competent jurisdiction or through other
means, give prompt notice to the Buyer prior to making such disclosure, and allow the Buyer,
at its expense, to undertake appropriate action to prevent disclosure of, or to
obtain a protective order for, such information. 

10

              
i. If the Company becomes eligible for listing on a national securities
exchange, the Company shall use its best efforts to (i) cause all the
Registrable Securities covered by the Registration Statement to be listed on
each national securities exchange on which securities of the same class or
series issued by the Company are then listed, if any, if the listing of such
Registrable Securities is then permitted under the rules of such exchange, or
(ii) to the extent the securities of the same class or series are not then
listed on a national securities exchange, secure the designation and quotation
of all the Registrable Securities covered by the Registration Statement on the
Nasdaq Global Select Market or, if not eligible for the or the Nasdaq Global
Select Market on the Nasdaq Global Market or, if not eligible for the Nasdaq
Global Market, on the OTC Bulletin Board and, without limiting the generality of
the foregoing, to arrange for at least two market makers to register with FINRA
as such with respect to such Registrable Securities.

              
j. The Company shall appoint a transfer agent and registrar, which may be a
single entity, for the Registrable Securities not later than the Effective Date
of the Initial Registration Statement. 

              
k. The Company shall cooperate with the Buyer who holds Registrable Securities
being offered and the managing underwriter or underwriters, if any, to
facilitate the timely preparation and delivery of certificates (not bearing any
restrictive legends) representing Registrable Securities to be offered pursuant
to such Registration Statement and enable such certificates to be in such
denominations or amounts, as the case may be, as the managing underwriter or
underwriters, if any, or the Buyer may reasonably request and registered in such
names as the managing underwriter or underwriters, if any, or the Buyer may
request, and, within five (5) business days after a Registration Statement which
includes Registrable Securities is ordered effective by the Commission, the
Company shall deliver, and shall cause legal counsel selected by the Company to
deliver, to the transfer agent for the Registrable Securities (with copies to
the Buyer) an appropriate instruction and an opinion of such counsel in the form
required by the transfer agent in order to issue the Registrable Securities free
of restrictive legends. 

              
l. At the request of the holders of a three-fourths (3/4) majority-in-interest
of the Registrable Securities, the Company shall prepare and file with the
Commission such amendments (including post-effective amendments) and supplements
to a Registration Statement and any Prospectus used in connection with the
Registration Statement as may be reasonably necessary in order to change the
plan of distribution set forth in such Registration Statement; provided, that if
such change is not legally necessary in order for the Buyers to timely sell
their Registrable Securities, the Company shall not be required to effect such
amendments if they will impose any additional requirements, including costs, on
the Company. 

              
m. The Company shall take all other reasonable actions necessary to expedite and
facilitate disposition by the Buyer of Registrable Securities pursuant to a
Registration Statement. 

               n.
The Company shall comply with all applicable laws related to a Registration
Statement and offering and sale of securities and all applicable rules and
regulations of governmental authorities in connection therewith (including without
limitation the 1933 Act and the 1934 Act and the rules and regulations
promulgated by the Commission).

11

                o.
Further Registration Statements. Except for a Registration Statement
filed on behalf of the Buyer pursuant to Section 2 or Section 3 of this
Agreement, and except for an underwritten public offering, the Company shall not
file any registration statements or amend (in such a manner as to increase the
number of shares registered) any already filed registration statement with the
Commission or with state regulatory authorities without the consent of the Buyer
until the expiration of the “Exclusion Period”, which shall be defined as
the earlier of (i) the date that the Registration Statement shall have been
current and available for use in connection with the resale of the Registrable
Securities for a period of 180 days, or (ii) until all Debenture Shares and
Warrant Shares have been resold or transferred by the Buyers pursuant to the
Registration Statement or are eligible for immediate unrestricted resale
pursuant to Rule 144, without volume limitations. The Exclusion Period will be
tolled during the pendency of an Event of Default as defined in the Debenture or
an Event of Default as defined in the Warrants.

               p.
FINRA Rule 2710 Filing; Broker Compensation. The Company shall effect a
filing with respect to the public offering contemplated by the Registration
Statement (an “Issuer Filing”) with FINRA pursuant to FINRA Rule 2710
within one Business Day of the date that the Registration Statement is first
filed with the Commission and pay the filing fee required by such Issuer Filing.
The Company shall use commercially reasonable efforts to pursue the Issuer
Filing until FINRA issues a letter confirming that it does not object to the
terms of the offering contemplated by the Registration Statement.

               q.
No Piggyback Registrations. Neither the Company nor any of its security
holders (other than the Buyers in such capacity pursuant hereto) may include
securities of the Company in a Registration Statement (including but not limited
to any Registration Statement under Section 2(a) hereof or any amendment or
supplement thereto under Section 3(b) hereof) other than the Registrable
Securities, and the Company shall not during the Effectiveness Period enter into
any agreement providing any such right to any of its security holders. In
addition, the Company shall not offer any securities for its own account or the
account of others in any Registration Statement under Section 2(a) hereof or any
amendment or supplement thereto under Section 3(b) hereof without the consent of
the holders of three-fourths (3/4) of the Registrable Securities.

         
4. REGISTRATION FAILURE. If:

                    (i)
in the aggregate among all Buyers on a pro-rata basis based on their purchase of
the Purchase Securities pursuant to the Purchase Agreement, the Initial
Registration Statement registering for resale all of the Initial Registration
Minimum (except as the result of a SEC Share Reduction) is not filed by the
Initial Registration Filing Deadline or is not declared effective by the
Commission by the Effectiveness Deadline; or

                    (ii)
the Company files the Initial Registration Statement without affording the
Buyers the opportunity to review and comment on the same as required by Section
3(g) herein; or

12

                    (iii)
the Company fails to file with the Commission a request for acceleration of a
Registration Statement in accordance with Rule 461 promulgated by the Commission
pursuant to the 1933 Act, within five Business Days of the date that the Company
is notified (orally or in writing, whichever is earlier) by the Commission that
such Registration Statement will not be reviewed or will not be subject to
further review; or

                    (iv)
prior to the effective date of a Registration Statement, the Company fails to
file a pre-effective amendment and otherwise provide a commercially reasonable
written response to any comments made by the Commission in respect of such
Registration Statement within 15 Business Days after the receipt of comments by
or notice from the Commission that such amendment is required in order for such
Registration Statement to be declared effective; or

                    (v)
after the effective date of a Registration Statement, such Registration
Statement ceases for any reason to remain continuously effective as to all
Registrable Securities included in such Registration Statement, or the Buyers
are otherwise not permitted to utilize the Prospectus therein to resell such
Registrable Securities, for more than 10 consecutive calendar days or more than
an aggregate of 15 calendar days (which need not be consecutive calendar days)
during any 12-month period (or an aggregate of 25 calendar days if the Company
is negotiating a merger, consolidation, acquisition or sale of all or
substantially all of its assets or a similar or other material transaction and,
in the written opinion of counsel to the Company, the Registration Statement
would be required to be amended to include information concerning such pending
transaction(s) or the parties thereto which information is not available or may
not be publicly disclosed at the time); 

                    (vi)
the Initial Registration Statement and any Additional Registration Statement
required to be filed hereunder is not filed by the applicable Filing Deadline or
it is not declared effective by the applicable Effectiveness Deadline; or(vii)
the Company shall fail for any reason to satisfy the current public information
requirement under Rule 144 as to the applicable Registrable Securities;

                    (any
such failure or breach being referred to as a “Registration Failure”, and
for purposes of clause (i), (ii) or (vii), the date on which such
Registration Failure occurs, and for purpose of clause (iii) the date on which
such five Business Day period is exceeded, and for purpose of clause (iv) the
date which such 10 Business Day period is exceeded, and for purpose of clause
(v) the date on which such 10 consecutive or 15 aggregate calendar day period,
as applicable, is exceeded being referred to as a “Registration Failure
Date”);then, in addition to any other rights the Buyers may have hereunder
or under applicable law, (A) with respect to clause (i), above, the Interest
Rate (as defined in the Debentures) payable on the Debentures shall
(retroactively to the date the Interest (as defined in the Debentures) began to
accrue under the Debentures) increase from 11% to 13% until such time as
the Initial Registration Statement is filed or declared effective by the
Commission, as applicable, and as of such date the Interest Rate will reset to
11%, (B) with respect to clause (vii), the Company shall pay to a Buyer, in
cash, as partial liquidated damages and not as a penalty, by reason of any such
delay in or reduction of Buyer’s ability to sell the Registrable Securities, an
amount in cash equal to two percent (2.0%) of the aggregate purchase price of
such Buyer’s Debentures pursuant to the Purchase Agreement on the day of such
failure and on every thirtieth (30th) day (pro rated for periods
totaling less than thirty days) thereafter until the earlier of (x) the date
such failure is cured and (y) such time that such public information is no
longer required for the Buyers to transfer the Registrable Securities pursuant
to Rule 144, and (C) with respect to any other clause of this Section 4, on each
such Registration Failure Date and on each monthly anniversary of each such
Registration Failure Date (if the applicable Registration Failure shall not have
been cured by such date) until the applicable Registration Failure is cured, the
Company shall pay to each Buyer an amount (“Registration Failure Liquidated
Damages”) in cash, as liquidated damages and not as a penalty, equal to 2%
of the aggregate purchase price paid by such Buyer pursuant to the Purchase
Agreement for any unconverted Debentures. The parties agree that the Company
shall not be liable for liquidated damages under this Section 4 with respect to
any Warrants, Debentures, Debenture Shares or Warrant Shares in the event that
such Warrants are exercisable in a Cashless Exercise (as defined therein) and
such Debentures are convertible for shares of Common Stock, and the underlying
Warrant Shares or Debenture Shares are eligible for sale under Rule 144 (without
volume or other ) following such Cashless Exercise or conversion. 

13

                    (vii)
Notwithstanding (i) to (vi) above, the Company shall not be liable for
Registration Failure Liquidated Damages if (1) the Company makes all filings as
and when required by this Agreement, (2) the Company responds to any comments
from the SEC regarding a Registration Statement within ten (10) Business Days of
the date of receipt of such comments, and (3) the Company uses its best efforts
to have the subject Registration Statement declared effective for the number of
shares required hereunder as quickly as reasonably possible. Registration
Failure Liquidated Damages shall be due and payable by the fifth
(5th) day of the calendar month in which they accrue. If the Company
fails to pay any liquidated damages pursuant to this Section in full within five
(5) days after the date payable, the Company will pay interest thereon at a rate
of 18% per annum (or such lesser maximum amount that is permitted to be paid by
applicable law) to the Buyer, accruing daily from the date such liquidated
damages are due until such amounts, plus all such interest thereon, are paid in
full. The liquidated damages pursuant to the terms hereof shall apply on a daily
pro rata basis for any portion of a month prior to the cure of a Registration
Failure. 

         
5. OBLIGATIONS OF THE BUYER. In connection with the
registration of the Registrable Securities, the Buyer shall have the following
obligations: 

              
a. It shall be a condition precedent to the obligations of the Company to
complete the registration pursuant to this Agreement with respect to the
Registrable Securities of the Buyer that the Buyer shall furnish to the Company
such information regarding itself, the Registrable Securities held by it and the
intended method of disposition of the Registrable Securities held by it as shall
be reasonably required to effect the registration of such Registrable Securities
and shall execute such documents in connection with such registration as the
Company may reasonably request. 

              
b. The Buyer, by the Buyer’s acceptance of the Registrable Securities, agrees to
cooperate with the Company as reasonably requested by the Company in connection
with the preparation and filing of the Registration Statements hereunder, unless
the Buyer has notified the Company in writing of the Buyer’s election to exclude
all of the Buyer’s Registrable Securities from the Registration Statements. 

              
c. In the event of an underwritten offering pursuant to Section 2(b) in which
any Registrable Securities are to be included, the Buyer agrees to enter into
and perform the Buyer’s obligations under an underwriting agreement, in usual
and customary form, including, without limitation, customary indemnification and contribution
obligations, with the managing underwriter of such offering and take such other
actions as are reasonably required in order to expedite or facilitate the
disposition of the Registrable Securities, unless the Buyer has notified the
Company in writing of the Buyer’s election to exclude all of the Buyer’s
Registrable Securities from such Registration Statement. 

14

              
d. The Buyer agrees that, upon receipt of any notice from the Company of the
happening of any event of the kind described in Section 3(e) or 3(f), the Buyer
will immediately discontinue disposition of Registrable Securities pursuant to
the Registration Statement covering such Registrable Securities until the
Buyer’s receipt of the copies of the supplemented or amended Prospectus
contemplated by Section 3(e) or 3(f) and, if so directed by the Company, the
Buyer shall deliver to the Company (at the expense of the Company) or destroy
(and deliver to the Company a certificate of destruction) all copies in the
Buyer’s possession, of the Prospectus covering such Registrable Securities
current at the time of receipt of such notice. 

              
e. No Buyer may participate in any underwritten registration hereunder unless
the Buyer (i) agrees to sell the Buyer’s Registrable Securities on the basis
provided in any underwriting arrangements in usual and customary form entered
into by the Company, (ii) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents reasonably
required under the terms of such underwriting arrangements, and (iii) agrees to
pay its pro rata share of all underwriting discounts and commissions.

              
f. Each Buyer agrees to furnish to the Company a completed questionnaire in the
form attached to this Agreement as Annex B (a “Selling Shareholder
Questionnaire”) by the end of the fifth (5th) Business Day following the
date on which such Buyer receives draft materials in accordance with this
Section.

         
6. EXPENSES OF REGISTRATION. All fees and expenses
incident to the performance of or compliance with, this Agreement by the Company
shall be borne by the Company whether or not any Registrable Securities are sold
pursuant to a Registration Statement. The fees and expenses referred to in the
foregoing sentence shall include, without limitation, (i) all registration and
filing fees (including, without limitation, fees and expenses of the Company’s
counsel and independent registered public accountants) (A) with respect to
filings made with the Commission, (B) with respect to filings required to be
made with any trading market on which the Common Stock is then listed for
trading, (C) in compliance with applicable state securities or Blue Sky laws
reasonably agreed to by the Company in writing (including, without limitation,
fees and disbursements of counsel for the Company in connection with Blue Sky
qualifications or exemptions of the Registrable Securities) and (D) if not
previously paid by the Company in connection with an Issuer Filing, with respect
to any filing that may be required to be made by any broker through which a
Buyer intends to make sales of Registrable Securities with FINRA pursuant to
FINRA Rule 5110, so long as the broker is receiving no more than a customary
brokerage commission in connection with such sale, (ii) printing expenses
(including, without limitation, expenses of printing certificates for
Registrable Securities), (iii) messenger, telephone and delivery expenses, (iv)
fees and disbursements of counsel for the Company, (v) Securities Act liability
insurance, if the Company so desires such insurance, and (vi) fees and expenses
of all other Persons retained by the Company in connection with the consummation
of the transactions contemplated by this Agreement.

15

In addition, the Company shall be responsible for all of its
internal expenses incurred in connection with the consummation of the
transactions contemplated by this Agreement (including, without limitation, all
salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any annual audit and the fees and expenses
incurred in connection with the listing of the Registrable Securities on any
securities exchange as required hereunder. In addition, the Company shall pay
all fees of counsel incurred by the Buyer in connection with the registration of
the Registrable Securities pursuant to this Agreement. In no event shall the
Company be responsible for any broker or similar commissions of the Buyer or,
except to the extent provided for in the Transaction Documents, any legal fees
or other costs of the Buyer. 

         
7. INDEMNIFICATION. In the event any Registrable Securities are
included in a Registration Statement under this Agreement: 

              
a. To the extent permitted by law, the Company shall indemnify, hold harmless
and defend (i) the Buyer, (ii) the directors, officers, partners, managers,
members, employees, agents and each person who controls any Buyer within the
meaning of the 1933 Act or the 1934 Act, if any, (iii) any underwriter (as
defined in the 1933 Act) for the Buyer in connection with an underwritten
offering pursuant to Section 2(b) hereof, and (iv) the directors, officers,
partners, employees and each person who controls any such underwriter within the
meaning of the 1933 Act or the 1934 Act, if any (each, an "Indemnified
Person"), against any joint or several losses, claims, damages, liabilities
or expenses (collectively, together with actions, proceedings or inquiries by
any regulatory or self-regulatory organization, whether commenced or threatened,
in respect thereof, "Claims") to which any of them may become subject
insofar as such Claims arise out of or are based upon: (i) any untrue statement
or alleged untrue statement of any material fact contained in such Registration
Statement, or Prospectus contained therein, or any amendment or supplement
thereto, or arise out of or are based upon the omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make
the statements therein (in the case of any Prospectus, in light of the
circumstances under which they were made) not misleading, or (ii) any violation
or alleged violation by the Company of the 1933 Act, the 1934 Act or any state
securities law, or any rule or regulation thereunder, in connection with the
performance of any of its obligations under this Agreement, and will reimburse
each Indemnified Person for all legal and other expenses reasonably incurred by
it in connection with investigating or defending against such loss, claim,
damage, liability, cost, expense or action (the matters in the foregoing clauses
(i) and (ii) being, collectively, “Violations”). The Company shall
reimburse the Indemnified Person, promptly as such expenses are incurred and are
due and payable, for any reasonable legal fees or other reasonable expenses
incurred by them in connection with investigating or defending any such Claim
within ten (10) Business Days of written notice thereof. Notwithstanding
anything to the contrary contained herein, the indemnification agreement
contained in this Section 7(a): (A) shall not apply to a Claim arising out of or
based upon a Violation which occurs in reliance upon and in conformity with
information furnished in writing to the Company by any Indemnified Person or
underwriter for such Indemnified Person expressly for use in connection with the
preparation of such Registration Statement, or Prospectus contained therein, or
any amendment or supplement thereto; (ii) shall not apply to amounts paid in
settlement of any Claim if such settlement is effected without the prior written
consent of the Company, which consent shall not be unreasonably withheld; and
(iii) with respect to any preliminary prospectus, shall not inure to the benefit
of any Indemnified Person if the untrue statement or omission of material fact
contained in the preliminary prospectus was corrected on a timely basis in the Prospectus, as then amended or
supplemented, such corrected Prospectus was timely made available by the Company
pursuant to Section 3(c) hereof, and the Indemnified Person was promptly advised
in writing not to use the incorrect Prospectus prior to the use giving rise to a
Violation and such Indemnified Person, notwithstanding such advice, used it.
Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of the Indemnified Person and shall survive
the transfer of the Registrable Securities by the Buyer pursuant to Section
10.

16

              
b. Promptly after receipt by an Indemnified Person under this Section 7 of
notice of the commencement of any action (including any governmental action),
such Indemnified Person shall, if Claim in respect thereof is to be made against
any the Company under this Section 7, deliver to the Company a written notice of
the commencement thereof, and the Company shall have the right to participate
in, and, to the extent the Company so desires, to assume control of the defense
thereof with counsel mutually satisfactory to the Company and the Indemnified
Person, as the case may be.

         
PROVIDED, HOWEVER, that an Indemnified Person shall have the
right to retain its own counsel with the fees and expenses to be paid by the
Company if, in the reasonable opinion of counsel retained by the Company, the
representation by such counsel of the Indemnified Person and the Company would
be inappropriate due to actual or potential differing interests between such
Indemnified Person and any other party represented by such counsel in such
proceeding. The Company shall pay for only one separate legal counsel for the
Indemnified Persons, and such legal counsel shall be selected by Buyer and shall
be reasonably acceptable to the Company, if the Buyer is entitled to
indemnification hereunder. The failure to deliver written notice to the Company
within a reasonable time of the commencement of any such action shall not
relieve the Company of any liability to the Indemnified Person under this
Section 7, except to the extent that the Company is actually prejudiced in its
ability to defend such action. The indemnification required by this Section 7
shall be made by periodic payments of the amount thereof during the course of
the investigation or defense, as such expense, loss, damage or liability is
incurred and is due and payable. 

              
c. To the extent permitted by law, but in an aggregate amount not to exceed the
Buyer’s purchase price for the Registrable Securities, the Buyer will indemnify,
hold harmless and defend (i) the Company, and (ii) the directors, officers,
partners, managers, members, employees, or agents of the Company, if any (each,
a “Company Indemnified Person”), against any joint or several losses,
claims, damages, liabilities or expenses (collectively, together with actions,
proceedings or inquiries by any regulatory or self-regulatory organization,
whether commenced or threatened, in respect thereof, “Claims”) to which
any of them may become subject insofar as such Claims arise out of or are based
upon a Claim arising out of or based upon any violation or alleged violation by
the Company of the 1933 Act, the 1934 Act, any other law, including, without
limitation, any state securities law, or any rule or regulation thereunder
relating to the offer or sale of the Registrable Securities, which occurs due to
the inclusion by the Company in a Registration Statement, or a Prospectus
contained therein, or any amendment or supplement thereto, of false or
misleading information about the Buyer, where such information was furnished in
writing to the Company by the Buyer for the purpose of inclusion in such
Registration Statement. 

         
8. CONTRIBUTION. To the extent any indemnification by the
Company is prohibited or limited by law, the Company agrees to make the maximum
contribution with respect to any amounts for which it would otherwise be liable under Section 7
to the fullest extent permitted by law, in such proportion as is appropriate to
reflect the relative fault of the indemnifying person and the Indemnified Person
in connection with the actions, statements or omissions that resulted in such
Claims as well as any other relevant equitable considerations. The relative
fault of the indemnifying person and the Indemnified Person shall be determined
by reference to, among other things, whether any action in question, including
any untrue or alleged untrue statement of a material fact or omission or alleged
omission of a material fact, has been taken or made by, or relates to
information supplied by, such indemnifying person or indemnified person, and the
parties’ relative intent, knowledge, access to information and opportunity to
correct or prevent such action, statement or omission. 

17

         
9. REPORTS UNDER THE 1934 ACT. With a view to making available
to the Buyer the benefits of Rule 144 promulgated under the 1933 Act or any
other similar rule or regulation of the Commission that may at any time permit
the Buyer to sell securities of the Company to the public without registration
("Rule 144"), the Company agrees to: 

              
a. make and keep public information available, as those terms are understood and
defined in Rule 144; 

              
b. file with the Commission in a timely manner all reports and other documents
required of the Company under the 1933 Act and the 1934 Act, so long as the
Company remains subject to such requirements and the filing of such reports and
other documents is required for the applicable provisions of Rule 144; and 

              
c. furnish to the Buyer so long as the Buyer owns Registrable Securities,
promptly upon written request, (i) a written statement by the Company that it
has complied with the reporting requirements of Rule 144, the 1933 Act and the
1934 Act, (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 to permit the Buyers to
sell such securities pursuant to Rule 144 without registration. 

         
10. ASSIGNMENT OF REGISTRATION RIGHTS. The rights under this
Agreement shall be automatically assignable by the Buyers to any transferee of
all or any portion of Registrable Securities if: (a) the Buyer agrees in writing
with the transferee or assignee to assign such rights, and a copy of such
agreement is furnished to the Company within a reasonable time after such
assignment, (b) the Company is, within a reasonable time after such transfer or
assignment, furnished with written notice of (i) the name and address of such
transferee or assignee, and (ii) the Registrable Securities with respect to
which such registration rights are being transferred or assigned, (c) following
such transfer or assignment, the further disposition of such Registrable
Securities by the transferee or assignee is restricted under the 1933 Act and
applicable state securities laws, (d) at or before the time the Company receives
the written notice contemplated by clause (b) of this sentence, the transferee
or assignee agrees in writing with the Company to be bound by all of the
provisions contained herein, and (e) such transfer shall have been made in
accordance with the applicable requirements of the Purchase Agreement. In the
event that the Buyer transfers all or any portion of its Registrable Securities
pursuant to this Section, the Company shall have at least ten (10) Business Days
to file any amendments or supplements necessary to keep the Registration Statement current and effective pursuant to Rule
415, and the commencement date of any Event of Default under the Debenture or
the Warrants caused thereby will be extended by ten (10) Business Days.
 

18

         
11. AMENDMENT OF REGISTRATION RIGHTS. Provisions of this
Agreement may be amended and the observance thereof may be waived (either
generally or in a particular instance and either retroactively or
prospectively), only with written consent of the Company, and Buyers who hold
three-fourths (3/4) of the then outstanding Registrable Securities. Any
amendment or waiver effected in accordance with this Section 11 shall be binding
upon the Buyer and the Company. 

         
12. MISCELLANEOUS.

              
a. A person or entity is deemed to be a holder of Registrable Securities
whenever such person or entity owns of record such Registrable Securities. If
the Company receives conflicting instructions, notices or elections from two or
more persons or entities with respect to the same Registrable Securities, the
Company shall act upon the basis of instructions, notice or election received
from the registered owner of such Registrable Securities. 

              
b. Any notices required or permitted to be given under the terms hereof shall be
sent by certified or registered mail (return receipt requested) or delivered
personally or by courier (including a recognized overnight delivery service) or
by facsimile and shall be effective five days after being placed in the mail, if
mailed by regular United States mail, or upon receipt, if delivered personally
or by courier (including a recognized overnight delivery service) or by
facsimile, in each case addressed to a party. The addresses for such
communications shall be: 

If to the Company: To the address set
forth immediately below such 
Company’s name on the signature pages hereto.

With copy to: 

Andrew J. Merken 
Burns &
Levinson LLP 
125 Summer Street 
Boston, Ma. 02110 
Telephone:
617-345-3740 
Fax: 617-345-3299

          If
to a Buyer: To the address set forth immediately below such Buyer's name on the
signature pages hereto. 

With copy to: 

Stuart Neuhauser, Esq. 
Ellenoff
Grossman & Schole LLP 
150 East 42nd Street, 11th Floor 

New York, New York 10017 
Telephone:
212-370-1300 
Fax: 212-370-7889 

19

Each party shall provide notice to the other party of any
change in address. 

              
c. Failure of any party to exercise any right or remedy under this Agreement or
otherwise, or delay by a party in exercising such right or remedy, shall not
operate as a waiver thereof. 

              
d. All questions concerning the construction, validity, enforcement and
interpretation of this Agreement shall be determined in accordance with the
provisions of the Purchase Agreement.

              
e. Subject to the requirements of Section 10 hereof, this Agreement shall inure
to the benefit of and be binding upon the successors and assigns of each of the
parties hereto. 

              
f. The headings in this Agreement are for convenience of reference only and
shall not limit or otherwise affect the meaning hereof. 

              
g. This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original but all of which shall constitute one and the same
agreement. This Agreement, once executed by a party, may be delivered to the
other party hereto by facsimile transmission of a copy of this Agreement bearing
the signature of the party so delivering this Agreement. 

              
h. Each party shall do and perform, or cause to be done and performed, all such
further acts and things, and shall execute and deliver all such other
agreements, certificates, instruments and documents, as the other party may
reasonably request in order to carry out the intent and accomplish the purposes
of this Agreement and the consummation of the transactions contemplated hereby.

              
i. Except as otherwise provided herein, all consents and other determinations to
be made by the Buyer pursuant to this Agreement shall be made by Buyers holding
three-fourths (3/4) of the Registrable Securities, determined as if the all of
the Warrants and Debentures then outstanding have been converted or exercised
into for Registrable Securities. 

              
j. The Company acknowledges that a breach by it of its obligations hereunder
could cause irreparable harm to the Buyer by vitiating the intent and purpose of
the transactions contemplated hereby. Accordingly, the Company acknowledges that
the remedy at law for breach of its obligations hereunder could be inadequate
and agrees, in the event of a breach or threatened breach by the Company of any
of the provisions hereunder, that the Buyer could be entitled, in addition to
all other available remedies in law or in equity, to seek an injunction or
injunctions to prevent or cure breaches of the provisions of this Agreement and
to seek to enforce specifically the terms and provisions hereof, without the
necessity of showing economic loss and without any bond or other security being
required. 

20

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

              
l. In the event that any provision of this Agreement is invalid or unenforceable
under any applicable statute or rule of law, then such provision shall be deemed
inoperative to the extent that it may conflict therewith and shall be deemed
modified to conform with such statute or rule of law. Any provision hereof which
may prove invalid or unenforceable under any law shall not affect the validity
or enforceability of any other provision hereof. 

              
m. The initial number of Registrable Securities included in any Registration
Statement and each increase to the number of Registrable Securities included
therein shall be allocated pro rata among the Buyers based on the number of
Registrable Securities held by the Buyer at the time of such establishment or
increase, as the case may be. In the event a Buyer shall sell or otherwise
transfer any of such holder's Registrable Securities, each transferee shall be
allocated a pro rata portion of the number of Registrable Securities included in
a Registration Statement for such transferor. Any shares of Common Stock
included in a Registration Statement and which remain allocated to any person or
entity which does not hold any Registrable Securities shall be allocated to the
remaining Buyers, pro rata based on the number of shares of Registrable
Securities then held by the Buyers. For the avoidance of doubt, the number of
Registrable Securities held by a Buyer shall be determined as if all the
Warrants hen outstanding and held by a Buyer were converted into or exercised
for Registrable Securities, without regard to any limitation on the Buyer's
ability to exercise the Warrants or convert the Debentures. 

               n.
There shall be no oral modifications or amendments to this Agreement. This
Agreement may be modified or amended only in writing.

[INTENTIONALLY LEFT BLANK] 

21

         
IN WITNESS WHEREOF, the undersigned Buyer and the Company have
caused this Registration Rights Agreement to be duly executed as of the date
first set forth above. 

	COMPANY: 	BUYER: 
	 
    	  
	ALLORA MINERALS, INC. 	  
	 
    	  
	 
    	  
	 
    	  
	By: /s/ Michael
      Matvieshen                                
    	/s/ Chandra
      Pemmasani                                      
    
	Michael Matvieshen, President and Chief 	Dr. Chandra Pemmasani 
	Executive Officer 	  
	 
    	  
	ADDRESS: 	ADDRESS: 
	 
    	  
	5 – 215 Neave Road 	8 Fieldstream Court 
	Kelowna, British Columbia, Canada 	Lutherville, MD 21093 
	V1V 2L9 	Phone: 
	Phone: 	Fax: 
	Fax: 	  

22

SCHEDULE OF BUYERS

	  	 	  	 	Legal Representative’s 
	  	 	Address and 	 	Address and 
	Buyer 	 	Facsimile Number 	 	Facsimile Number 
	  	 	  	 	  
	Dr. Chandra Pemmasani 	 	8 Fieldstream Court 	 	Stuart Neuhauser, Esq. 
	  	 	Lutherville, MD 21093 	 	Attorney at Law 
	  	 	Phone: 	 	Ellenoff Grossman & Schole LLP
	  	 	Fax: 	 	150 East 42nd Street, 11th Floor 
	  	 	  	 	New York, New York 10017 
	  	 	  	 	Phone: 212.370.1300 
	  	 	  	 	Fax: 212.370.7889 

23

Annex A 

Plan of Distribution 

Each Selling Stockholder (the “Selling Stockholders”) of the
common stock and any of their pledgees, assignees and successors-in-interest
may, from time to time, sell any or all of their shares of common stock on the
OTC Bulletin Board or any other stock exchange, market or trading facility on
which the shares are traded or in private transactions. These sales may be at
fixed or negotiated prices. A Selling Stockholder may use any one or more of the
following methods when selling shares: 

          •
ordinary brokerage transactions and transactions in which the broker dealer
solicits purchasers; 

          • block
trades in which the broker dealer will attempt to sell the shares as agent but
may position and resell a portion of the block as principal to facilitate the
transaction; 

          •
purchases by a broker dealer as principal and resale by the broker dealer for
its account; 

          • an
exchange distribution in accordance with the rules of the applicable exchange;

          •
privately negotiated transactions; 

          •
settlement of short sales entered into after the effective date of the
registration statement of which this prospectus is a part; 

          • broker
dealers may agree with the Selling Stockholders to sell a specified number of
such shares at a stipulated price per share; 

          •
through the writing or settlement of options or other hedging transactions,
whether through an options exchange or otherwise; 

          • a
combination of any such methods of sale; or • any other method permitted
pursuant to applicable law. 

          The
Selling Stockholders may also sell shares under Rule 144 under the Securities
Act of 1933, as amended (the “Securities Act”), if available, rather than under
this prospectus. 

Broker dealers engaged by the Selling Stockholders may arrange
for other broker dealers to participate in sales. Broker dealers may receive
commissions or discounts from the Selling Stockholders (or, if any broker dealer
acts as agent for the purchaser of shares, from the purchaser) in amounts to be
negotiated, but, except as set forth in a supplement to this Prospectus, in the
case of an agency transaction not in excess of a customary brokerage commission
in compliance with FINRA Rule 2440; and in the case of a principal transaction a
markup or markdown in compliance with FINRA IM-2440.

          In
connection with the sale of the common stock or interests therein, the Selling
Stockholders may enter into hedging transactions with broker-dealers or other
financial institutions, which may in turn engage in short sales of the common
stock in the course of hedging the positions they assume. The Selling
Stockholders may also sell shares of the common stock short and deliver these
securities to close out their short positions, or loan or pledge the common
stock to broker-dealers that in turn may sell these securities. The Selling
Stockholders may also enter into option or other transactions with
broker-dealers or other financial institutions or the creation of one or more derivative securities which require the delivery to such
broker-dealer or other financial institution of shares offered by this
prospectus, which shares such broker-dealer or other financial institution may
resell pursuant to this prospectus (as supplemented or amended to reflect such
transaction).

24

          The
Selling Stockholders and any broker-dealers or agents that are involved in
selling the shares may be deemed to be “underwriters” within the meaning of the
Securities Act in connection with such sales. In such event, any commissions
received by such broker-dealers or agents and any profit on the resale of the
shares purchased by them may be deemed to be underwriting commissions or
discounts under the Securities Act. Each Selling Stockholder has informed the
Company that it does not have any written or oral agreement or understanding,
directly or indirectly, with any person to distribute the Common Stock. In no
event shall any broker-dealer receive fees, commissions and markups which, in
the aggregate, would exceed eight percent (8%). 

          The
Company is required to pay certain fees and expenses incurred by the Company
incident to the registration of the shares. The Company has agreed to indemnify
the Selling Stockholders against certain losses, claims, damages and
liabilities, including liabilities under the Securities Act.

          Because
Selling Stockholders may be deemed to be “underwriters” within the meaning of
the Securities Act, they will be subject to the prospectus delivery requirements
of the Securities Act including Rule 172 thereunder. In addition, any securities
covered by this prospectus which qualify for sale pursuant to Rule 144 under the
Securities Act may be sold under Rule 144 rather than under this prospectus.
There is no underwriter or coordinating broker acting in connection with the
proposed sale of the resale shares by the Selling Stockholders. 

          We
agreed to keep this prospectus effective until the earlier of (i) the date on
which the shares may be resold by the Selling Stockholders without registration
and without regard to any volume limitations by reason of Rule 144 under the
Securities Act or any other rule of similar effect or (ii) all of the shares
have been sold pursuant to this prospectus or Rule 144 under the Securities Act
or any other rule of similar effect. The resale shares will be sold only through
registered or licensed brokers or dealers if required under applicable state
securities laws. In addition, in certain states, the resale shares may not be
sold unless they have been registered or qualified for sale in the applicable
state or an exemption from the registration or qualification requirement is
available and is complied with. 

          Under
applicable rules and regulations under the Exchange Act, any person engaged in
the distribution of the resale shares may not simultaneously engage in market
making activities with respect to the common stock for the applicable restricted
period, as defined in Regulation M, prior to the commencement of the
distribution. In addition, the Selling Stockholders will be subject to
applicable provisions of the Exchange Act and the rules and regulations
thereunder, including Regulation M, which may limit the timing of purchases and
sales of shares of the common stock by the Selling Stockholders or any other
person. We will make copies of this prospectus available to the Selling
Stockholders and have informed them of the need to deliver a copy of this
prospectus to each purchaser at or prior to the time of the sale (including by
compliance with Rule 172 under the Securities Act). 

25

Annex B 

ALLORA MINERALS, INC. 

Selling Securityholder Notice and Questionnaire 

The undersigned beneficial owner of common stock (the
“Registrable Securities”) of ALLORA MINERALS, INC., a Nevada corporation
(the “Company”), understands that the Company has filed or intends to file with
the Securities and Exchange Commission (the “Commission”) a registration
statement (the “Registration Statement”) for the registration and resale under
Rule 415 of the Securities Act of 1933, as amended (the “Securities Act”), of
the Registrable Securities, in accordance with the terms of the Registration
Rights Agreement (the “Registration Rights Agreement”) to which this document is
annexed. A copy of the Registration Rights Agreement is available from the
Company upon request at the address set forth below. All capitalized terms not
otherwise defined herein shall have the meanings ascribed thereto in the
Registration Rights Agreement. 

          Certain
legal consequences arise from being named as a selling securityholder in the
Registration Statement and the related prospectus. Accordingly, holders and
beneficial owners of Registrable Securities are advised to consult their own
securities law counsel regarding the consequences of being named or not being
named as a selling securityholder in the Registration Statement and the related
prospectus. 

NOTICE 

The undersigned beneficial owner (the “Selling Securityholder”)
of Registrable Securities hereby elects to include the Registrable Securities
owned by it in the Registration Statement. 

The undersigned hereby provides the following information to
the Company and represents and warrants that such information is accurate: 

1.      Name. 

         
(a)           Full Legal Name
of Selling Securityholder 

         
(b)           Full Legal Name
of Registered Holder (if not the same as (a) above) through which Registrable
Securities are held: 

         
(c)           Full Legal Name
of Natural Control Person (which means a natural person who directly or
indirectly alone or with others has power to vote or dispose of the securities
covered by this Questionnaire): 

26

2. Address for Notices to Selling Securityholder: 

Telephone: 

Fax: 

Contact Person: 

3. Broker-Dealer Status: 

         
(a)           Are you a
broker-dealer? 

         
Yes [ ]    No [ ]

         
(b)           If “yes” to
Section 3(a), did you receive your Registrable Securities as compensation for
investment banking services to the Company? 

         
Yes [ ]    No [ ]

         
Note:      If “no” to Section 3(b), the Commission’s
staff has indicated that you should be identified as an underwriter in the
Registration Statement. 

         
(c)           Are you an
affiliate of a broker-dealer? 

         
Yes [ ]    No [ ]

         
(d)           If you are an
affiliate of a broker-dealer, do you certify that you purchased the Registrable
Securities in the ordinary course of business, and at the time of the purchase
of the Registrable Securities to be resold, you had no agreements or
understandings, directly or indirectly, with any person to distribute the
Registrable Securities? 

         
Yes [ ]    No [ ]

          Note: If
“no” to Section 3(d), the Commission’s staff has indicated that you should be
identified as an underwriter in the Registration Statement. 

4. Beneficial Ownership of Securities of the Company Owned by
the Selling Securityholder. Except as set forth below in this Item 4, the
undersigned is not the beneficial or registered owner of any securities of the
Company other than the securities issuable pursuant to the Purchase Agreement:

         
(a)           Type and Amount
of other securities beneficially owned by the Selling Securityholder: 

_______________________________________________ 

27

_______________________________________________ 

5. Relationships with the Company: 

Except as set forth below, neither the undersigned nor any of
its affiliates, officers, directors or principal equity holders (owners of 5% of
more of the equity securities of the undersigned) has held any position or
office or has had any other material relationship with the Company (or its
predecessors or affiliates) during the past three years. 

          State
any exceptions here:

_____________________________________________

_____________________________________________

The undersigned agrees to promptly notify the Company of any
inaccuracies or changes in the information provided herein that may occur
subsequent to the date hereof at any time while the Registration Statement
remains effective. 

By signing below, the undersigned consents to the disclosure of
the information contained herein in its answers to Items 1 through 5 and the
inclusion of such information in the Registration Statement and the related
prospectus and any amendments or supplements thereto. The undersigned
understands that such information will be relied upon by the Company in
connection with the preparation or amendment of the Registration Statement and
the related prospectus. 

IN WITNESS WHEREOF the undersigned, by authority duly given,
has caused this Notice and Questionnaire to be executed and delivered either in
person or by its duly authorized agent. 

Date:                    
Beneficial Owner:

                              By:

                                       
Name:
___________________
                                       
Title    ____________________

PLEASE FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND
QUESTIONNAIRE, AND RETURN THE ORIGINAL BY OVERNIGHT MAIL, TO: 

[_________________________________________________________

28

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