CENTERSPAN COMMUNICATIONS CORP
EX-10.2
<DOCUMENT>
<TYPE>EX-10.2
<SEQUENCE>3
<FILENAME>j1063_ex10d2.htm
<DESCRIPTION>EX-10.2
<TEXT>
<html>

<head>
<title>Prepared by MerrillDirect</title>

</head>

<body>

<div>

<dir>
<p align=right><b><font size=2>Exhibit 10.2</font></b></p>
</dir>

<p align=center><b><font size=2>UNIT
PURCHASE AGREEMENT</font></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This UNIT PURCHASE AGREEMENT (this
&quot;Agreement&quot;) is made as of June&nbsp;__, 2001, by and between
CENTERSPAN COMMUNICATIONS CORPORATION, an Oregon corporation (the
&quot;Company&quot;), and ____________________, a _____________ (the &quot;Investor&quot;).</font></p>

<p align=center><b><font size=2>RECITAL</font></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On the terms and subject to the
conditions set forth herein, the Company desires to sell to the Investor, and
the Investor desires to purchase from the Company, Units of the Company, each
Unit consisting of one share of the Company's Common Stock (&quot;Common
Stock&quot;), and a warrant to purchase one share of Common Stock.</font></p>

<p align=center><b><font size=2>AGREEMENT</font></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; NOW, THEREFORE, in consideration of
the premises, mutual covenants and agreements contained herein, and for other
good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto hereby agree as follows:</font></p>

<p><a name="_Toc354229207"></a><a name="_Toc354231230"></a><a name="_Toc354315207"></a><a name="_Toc354366402"></a><a name="_Toc354831442"></a><a name="_Toc354831533"></a><a name="_Toc354919747"></a><a name="_Toc354919829"></a><a name="_Toc354991703"></a><a name="_Toc354991785"></a><a name="_Toc355086710"></a><a name="_Toc355703342"></a><a name="_Toc356133586"></a><a name="_Toc356651438"></a><a name="_Toc397684437"></a><a name="_Toc397687290"></a><a name="_Toc397825071"></a><a name="_Toc397951700"></a><a name="_Toc397951759"></a><a name="_Toc398019649"></a><a name="_Toc398095082"></a><a name="_Toc398787939"></a><a name="_Toc398970952"></a><a name="_Toc398974312"></a><a name="_Toc450472950"></a><a name="_Toc450566743"></a><a name="_Toc450802386"></a><a name="_Toc453585531"></a><a name="_Toc453590258"></a><a name="_Toc454188314"></a><a name="_Toc454194606"></a><a name="_Toc454204516"></a><a name="_Toc455228511"></a><a name="_Toc455229451"></a><a name="_Toc455242590"></a><a name="_Toc455313315"></a><a name="_Toc459009166"></a><a name="_Toc459014094"></a><a name="_Toc459014145"></a><a name="_Toc459022721"></a><a name="_Toc459448902"></a><a name="_Toc460319424"></a><a name="_Toc516640758"><b><font size=2>Section
1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase and Sale of </font></b></a><b><font size=2>Units</font></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subject to the terms and conditions
of this Agreement, the Investor agrees to purchase, and the Company agrees to
sell and issue to the Investor, at the Closing (as defined below), ____________
Units at a price of $11.21 per Unit, for an aggregate purchase price of
$__________.</font></p>

<p><a name="_Toc354229208"></a><a name="_Toc354231231"></a><a name="_Toc354315208"></a><a name="_Toc354366403"></a><a name="_Toc354831443"></a><a name="_Toc354831534"></a><a name="_Toc354919748"></a><a name="_Toc354919830"></a><a name="_Toc354991704"></a><a name="_Toc354991786"></a><a name="_Toc355086711"></a><a name="_Toc355703343"></a><a name="_Toc356133587"></a><a name="_Toc356651439"></a><a name="_Toc397684438"></a><a name="_Toc397687291"></a><a name="_Toc397825072"></a><a name="_Toc397951701"></a><a name="_Toc397951760"></a><a name="_Toc398019650"></a><a name="_Toc398095083"></a><a name="_Toc398787940"></a><a name="_Toc398970953"></a><a name="_Toc398974313"></a><a name="_Toc450472951"></a><a name="_Toc450566744"></a><a name="_Toc450802387"></a><a name="_Toc453585532"></a><a name="_Toc453590259"></a><a name="_Toc454188315"></a><a name="_Toc454194607"></a><a name="_Toc454204517"></a><a name="_Toc455228512"></a><a name="_Toc455229452"></a><a name="_Toc455242591"></a><a name="_Toc455313316"></a><a name="_Toc459009167"></a><a name="_Toc459014095"></a><a name="_Toc459014146"></a><a name="_Toc459022722"></a><a name="_Toc459448903"></a><a name="_Toc460319425"></a><a name="_Toc415394591"></a><a name="_Toc415463903"></a><a name="_Toc415483350"></a><a name="_Toc431723553"></a><a name="_Toc431723635"></a><a name="_Toc432489151"></a><a name="_Toc432574209"></a><a name="_Toc432579418"></a><a name="_Toc433599674"></a><a name="_Toc434029117"></a><a name="_Toc434208948"></a><a name="_Toc434303375"></a><a name="_Toc434320578"></a><a name="_Toc434375683"></a><a name="_Toc515103141"></a><a name="_Toc516558627"></a><a name="_Toc516640759"><b><font size=2>Section 2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Closing</font></b></a></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The purchase and sale of the Units
shall take place at the offices of Perkins Coie LLP, 1211 S.W. Fifth Avenue,
Portland, Oregon, at 10:00&nbsp;a.m., on _________, 2001 (which time and place
are designated as the &quot;Closing&quot;; the date of the Closing is referred
to herein as the &quot;Closing Date&quot;).&nbsp;
</font><font size=2>At
the Closing, the Company shall deliver to the Investor a certificate
representing the aggregate shares of Common Stock included in the Units the
Investor is purchasing and a Warrant, in substantially the form of Exhibit A
attached hereto (the &quot;Warrant&quot;), exercisable for the aggregate number
of shares of Common Stock issuable upon exercise of the warrants included in
the Units the Investor is purchasing, in each case against delivery to the
Company by the Investor of a wire transfer of immediately available funds in
the amount of the aggregate purchase price for such Units payable to the
Company's order.</font></p>

<p><a name="_Toc354229209"></a><a name="_Toc354231232"></a><a name="_Toc354315209"></a><a name="_Toc354366404"></a><a name="_Toc354831444"></a><a name="_Toc354831535"></a><a name="_Toc354919749"></a><a name="_Toc354919831"></a><a name="_Toc354991705"></a><a name="_Toc354991787"></a><a name="_Toc355086712"></a><a name="_Toc355703344"></a><a name="_Toc356133588"></a><a name="_Toc356651440"></a><a name="_Toc397684439"></a><a name="_Toc397687292"></a><a name="_Toc397825073"></a><a name="_Toc397951702"></a><a name="_Toc397951761"></a><a name="_Toc398019651"></a><a name="_Toc398095084"></a><a name="_Toc398787941"></a><a name="_Toc398970954"></a><a name="_Toc398974314"></a><a name="_Toc450472952"></a><a name="_Toc450566745"></a><a name="_Toc450802388"></a><a name="_Toc453585533"></a><a name="_Toc453590260"></a><a name="_Toc454188316"></a><a name="_Toc454194608"></a><a name="_Toc454204518"></a><a name="_Toc455228513"></a><a name="_Toc455229453"></a><a name="_Toc455242592"></a><a name="_Toc455313317"></a><a name="_Toc459009168"></a><a name="_Toc459014096"></a><a name="_Toc459014147"></a><a name="_Toc459022723"></a><a name="_Toc459448904"></a><a name="_Toc460319426"></a><a name="_Toc516640760"><b><font size=2>Section
3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Representations and Warranties
of the Company</font></b></a></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company hereby represents and
warrants to the Investor that, except as set forth on a Schedule of Exceptions
attached hereto as Schedule A:</font></p>

<dir>
<p><a name="_Toc354229210"></a><a name="_Toc354231233"></a><a name="_Toc354315210"></a><a name="_Toc354366405"></a><a name="_Toc354831445"></a><a name="_Toc354831536"></a><a name="_Toc354919750"></a><a name="_Toc354919832"></a><a name="_Toc354991706"></a><a name="_Toc354991788"></a><a name="_Toc355086713"></a><a name="_Toc355703345"></a><a name="_Toc356133589"></a><a name="_Toc356651441"></a><a name="_Toc397684440"></a><a name="_Toc397687293"></a><a name="_Toc397825074"></a><a name="_Toc397951703"></a><a name="_Toc397951762"></a><a name="_Toc398019652"></a><a name="_Toc398095085"></a><a name="_Toc398787942"></a><a name="_Toc398970955"></a><a name="_Toc398974315"></a><a name="_Toc450472953"></a><a name="_Toc450566746"></a><a name="_Toc450802389"></a><a name="_Toc453585534"></a><a name="_Toc453590261"></a><a name="_Toc454188317"></a><a name="_Toc454194609"></a><a name="_Toc454204519"></a><a name="_Toc455228514"></a><a name="_Toc455229454"></a><a name="_Toc455242593"></a><a name="_Toc455313318"></a><a name="_Toc459009169"></a><a name="_Toc459014097"></a><a name="_Toc459014148"></a><a name="_Toc459022724"></a><a name="_Toc459448905"></a><a name="_Toc460319427"></a><a name="_Toc516640761"><b><font size=2>3.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Organization
and Qualification</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company is a corporation duly
organized and validly existing under the laws of the State of Oregon.&nbsp; 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 on the assets, condition
(financial or other), prospects or business of the Company (a &quot;Company
Material Adverse Effect&quot;).</font></p>

<page>


<dir>
<p><a name="_Toc425950879"></a><a name="_Toc426006163"></a><a name="_Toc426008682"></a><a name="_Toc426011758"></a><a name="_Toc426197316"></a><a name="_Toc426202616"></a><a name="_Toc426440410"></a><a name="_Toc426447278"></a><a name="_Toc426454828"></a><a name="_Toc426454968"></a><a name="_Toc426459154"></a><a name="_Toc426540467"></a><a name="_Toc426542208"></a><a name="_Toc426542498"></a><a name="_Toc426704625"></a><a name="_Toc426711246"></a><a name="_Toc426717123"></a><a name="_Toc446790782"></a><a name="_Toc449208659"></a><a name="_Toc449275291"></a><a name="_Toc449494951"></a><a name="_Toc454069667"></a><a name="_Toc454095970"></a><a name="_Toc454097388"></a><a name="_Toc454097554"></a><a name="_Toc454276033"></a><a name="_Toc454358419"></a><a name="_Toc459009170"></a><a name="_Toc459014098"></a><a name="_Toc459014149"></a><a name="_Toc459022725"></a><a name="_Toc459448906"></a><a name="_Toc460319428"></a><a name="_Toc516640762"><b><font size=2>3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Enforceability</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company has the requisite corporate power and
authority to execute, deliver and perform its obligations under this Agreement
and each of the certificates, instruments and documents executed or delivered
by it pursuant to the terms of this Agreement.&nbsp;
All corporate action on the part of the Company necessary for the
authorization, execution and delivery of this Agreement and the performance of
all of its obligations under this Agreement has been taken.&nbsp; This Agreement has been duly executed and
delivered by the Company, and this Agreement is a legal, valid and binding
obligation of the Company, enforceable against the Company in accordance with
its terms, except as to the effect, if any, of (a)&nbsp;applicable bankruptcy
and other similar laws affecting the rights of creditors generally,
(b)&nbsp;rules of law governing specific performance, injunctive relief and
other equitable remedies, and (c)&nbsp;the enforceability of provisions
requiring indemnification in connection with the offering, sale or issuance of
securities.</font></p>

<dir>
<p><a name="_Toc425950880"></a><a name="_Toc426006164"></a><a name="_Toc426008683"></a><a name="_Toc426011759"></a><a name="_Toc426197317"></a><a name="_Toc426202617"></a><a name="_Toc426440411"></a><a name="_Toc426447279"></a><a name="_Toc426454829"></a><a name="_Toc426454969"></a><a name="_Toc426459155"></a><a name="_Toc426540468"></a><a name="_Toc426542209"></a><a name="_Toc426542499"></a><a name="_Toc426704626"></a><a name="_Toc426711247"></a><a name="_Toc426717124"></a><a name="_Toc446790783"></a><a name="_Toc449208660"></a><a name="_Toc449275292"></a><a name="_Toc449494952"></a><a name="_Toc454069668"></a><a name="_Toc454095971"></a><a name="_Toc454097389"></a><a name="_Toc454097555"></a><a name="_Toc454276034"></a><a name="_Toc454358420"></a><a name="_Toc459009171"></a><a name="_Toc459014099"></a><a name="_Toc459014150"></a><a name="_Toc459022726"></a><a name="_Toc459448907"></a><a name="_Toc460319429"></a><a name="_Toc516640763"><b><font size=2>3.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Securities</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Common Stock and Warrants to be
issued pursuant to this Agreement, when issued and delivered to the Investor
pursuant to this Agreement, shall be validly issued, fully paid and
nonassessable and, assuming the accuracy of the representations and warranties
contained in Section&nbsp;4, issued in compliance with applicable federal and
state securities laws.&nbsp; The shares of
Common Stock issuable upon exercise of the Warrants (the &quot;Warrant
Shares&quot;), when issued and delivered to the Investor pursuant to the
Warrant, shall be validly issued, fully paid and nonassessable and, assuming
the accuracy of the representations and warranties contained in Section&nbsp;4
as of the date of such issuance, issued in compliance with applicable federal
and state securities laws.</font></p>

<dir>
<p><a name="_Toc425950881"></a><a name="_Toc426006165"></a><a name="_Toc426008684"></a><a name="_Toc426011760"></a><a name="_Toc426197318"></a><a name="_Toc426202618"></a><a name="_Toc426440412"></a><a name="_Toc426447280"></a><a name="_Toc426454830"></a><a name="_Toc426454970"></a><a name="_Toc426459156"></a><a name="_Toc426540469"></a><a name="_Toc426542210"></a><a name="_Toc426542500"></a><a name="_Toc426704627"></a><a name="_Toc426711248"></a><a name="_Toc426717125"></a><a name="_Toc446790784"></a><a name="_Toc449208661"></a><a name="_Toc449275293"></a><a name="_Toc449494953"></a><a name="_Toc454069669"></a><a name="_Toc454095972"></a><a name="_Toc454097390"></a><a name="_Toc454097556"></a><a name="_Toc454276035"></a><a name="_Toc454358421"></a><a name="_Toc459009172"></a><a name="_Toc459014100"></a><a name="_Toc459014151"></a><a name="_Toc459022727"></a><a name="_Toc459448908"></a><a name="_Toc460319430"></a><a name="_Toc516640764"><b><font size=2>3.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No Approvals or Notices Required; No
Conflicts With Instruments</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The execution, delivery and
performance of this Agreement and the consummation of the transactions
contemplated hereby will not (a)&nbsp;constitute a violation (with or without
the giving of notice or lapse of time, or both) of any provision of law or any
judgment, decree, order, regulation or rule of any court or other governmental
authority applicable to the Company; (b)&nbsp;require any consent, approval or
authorization of, or declaration, filing or registration with, any person or
entity, except (i)&nbsp;compliance with applicable securities laws and
(ii)&nbsp;such consents, approvals, authorizations, declarations, filings and
registrations (A) which have been or as of the Closing Date will have been
obtained or effected or (B) the failure of which to obtain or effect would not,
both individually and in the aggregate, have a Company Material Adverse Effect;
(c)&nbsp;result in a default (with or without the giving of notice or lapse of
time, or both) under, or acceleration or termination of, or the creation in any
party of the right to accelerate, terminate, modify or cancel any agreement or
document filed as an exhibit the Company's SEC Documents (as defined below),
except for such defaults, accelerations, terminations or creations of such
rights which would not, both individually and in the aggregate, have a Company
Material Adverse Effect; or (d)&nbsp;conflict with or result in a breach of or
constitute a default under any provision of the Articles of Incorporation or
Bylaws of the Company, in each case as amended.</font></p>

<page>


<dir>
<p><a name="_Toc425950882"></a><a name="_Toc426006166"></a><a name="_Toc426008685"></a><a name="_Toc426011761"></a><a name="_Toc426197319"></a><a name="_Toc426202619"></a><a name="_Toc426440413"></a><a name="_Toc426447281"></a><a name="_Toc426454831"></a><a name="_Toc426454971"></a><a name="_Toc426459157"></a><a name="_Toc426540470"></a><a name="_Toc426542211"></a><a name="_Toc426542501"></a><a name="_Toc426704628"></a><a name="_Toc426711249"></a><a name="_Toc426717126"></a><a name="_Toc446790785"></a><a name="_Toc449208662"></a><a name="_Toc449275294"></a><a name="_Toc449494954"></a><a name="_Toc454069670"></a><a name="_Toc454095973"></a><a name="_Toc454097391"></a><a name="_Toc454097557"></a><a name="_Toc454276036"></a><a name="_Toc454358422"></a><a name="_Toc459009173"></a><a name="_Toc459014101"></a><a name="_Toc459014152"></a><a name="_Toc459022728"></a><a name="_Toc459448909"></a><a name="_Toc460319431"></a><a name="_Toc516640765"><b><font size=2>3.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Capitalization</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The authorized capital stock of the
Company consists of 25,000,000 shares of Common Stock, of which 8,046,285
shares were issued and outstanding as of May 15, 2001, and 5,000,000 shares of
preferred stock, par value $0.01 per share, none of which is issued or
outstanding.&nbsp; Such issued and
outstanding shares of Common Stock are validly issued, fully paid and
nonassessable.</font></p>

<dir>
<p><a name="_Toc425950883"></a><a name="_Toc426006167"></a><a name="_Toc426008686"></a><a name="_Toc426011762"></a><a name="_Toc426197320"></a><a name="_Toc426202620"></a><a name="_Toc426440414"></a><a name="_Toc426447282"></a><a name="_Toc426454832"></a><a name="_Toc426454972"></a><a name="_Toc426459158"></a><a name="_Toc426540471"></a><a name="_Toc426542212"></a><a name="_Toc426542502"></a><a name="_Toc426704629"></a><a name="_Toc426711250"></a><a name="_Toc426717127"></a><a name="_Toc446790786"></a><a name="_Toc449208663"></a><a name="_Toc449275295"></a><a name="_Toc449494955"></a><a name="_Toc454069671"></a><a name="_Toc454095974"></a><a name="_Toc454097392"></a><a name="_Toc454097558"></a><a name="_Toc454276037"></a><a name="_Toc454358423"></a><a name="_Toc459009174"></a><a name="_Toc459014102"></a><a name="_Toc459014153"></a><a name="_Toc459022729"></a><a name="_Toc459448910"></a><a name="_Toc460319432"></a><a name="_Toc516640766"><b><font size=2>3.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; SEC Documents</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company has furnished or made
available to the Investor true and complete copies of (a)&nbsp;its Annual
Report on Form&nbsp;10&#150;K for the fiscal year ended December&nbsp;31,
2000, (b)&nbsp;all Forms&nbsp;8&#150;K filed after the date of such
Form&nbsp;10&#150;K, if any, (c) its Quarterly Report on Form 10-Q for the
quarter ended March 31, 2001, and (d) its Proxy Statement, dated April 16,
2001, for the annual meeting of the Company's shareholders which was held on
May 15, 2001 (collectively, the &quot;SEC Documents&quot;).&nbsp; As of their respective filing dates, each of
the SEC Documents complied in all material respects with the requirements of the
Securities Exchange Act of 1934, as amended (the &quot;Exchange Act&quot;), and
the rules and regulations of the Securities and Exchange Commission promulgated
thereunder.</font></p>

<dir>
<p><a name="_Toc425950886"></a><a name="_Toc426006170"></a><a name="_Toc426008689"></a><a name="_Toc426011765"></a><a name="_Toc426197323"></a><a name="_Toc426202623"></a><a name="_Toc426440417"></a><a name="_Toc426447285"></a><a name="_Toc426454835"></a><a name="_Toc426454975"></a><a name="_Toc426459161"></a><a name="_Toc426540474"></a><a name="_Toc426542215"></a><a name="_Toc426542505"></a><a name="_Toc426704632"></a><a name="_Toc426711253"></a><a name="_Toc426717130"></a><a name="_Toc446790789"></a><a name="_Toc449208665"></a><a name="_Toc449275297"></a><a name="_Toc449494957"></a><a name="_Toc454069673"></a><a name="_Toc454095976"></a><a name="_Toc454097394"></a><a name="_Toc454097560"></a><a name="_Toc454276039"></a><a name="_Toc454358425"></a><a name="_Toc459009176"></a><a name="_Toc459014104"></a><a name="_Toc459014155"></a><a name="_Toc459022730"></a><a name="_Toc459448911"></a><a name="_Toc460319433"></a><a name="_Toc516640767"><b><font size=2>3.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Full Disclosure</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The information furnished by the
Company to the Investor or its representatives in connection with this
Agreement (including, without limitation, the information contained in the SEC
Documents, as the same may have been updated by filings by the Company with the
Securities and Exchange Commission after the date hereof but prior to the
Closing Date), when taken together, does not contain any untrue statement of a
material fact or omit to state a material fact necessary in order to make the
statements so made or information so delivered, in light of the circumstances
under which they were made, not misleading.</font></p>

<dir>
<p><a name="_Toc449208667"></a><a name="_Toc449275299"></a><a name="_Toc449494959"></a><a name="_Toc454069675"></a><a name="_Toc454095977"></a><a name="_Toc454097395"></a><a name="_Toc454097561"></a><a name="_Toc454276040"></a><a name="_Toc454358426"></a><a name="_Toc459009177"></a><a name="_Toc459014105"></a><a name="_Toc459014156"></a><a name="_Toc459022731"></a><a name="_Toc459448912"></a><a name="_Toc460319434"></a><a name="_Toc516640768"><b><font size=2>3.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Brokers or Finders</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company has not incurred, and
will not incur, directly or indirectly, as a result of any action taken by or
on behalf of the Company, any liability for brokerage or finders' fees or
agents' commissions or any similar charges in connection with this Agreement or
any transaction contemplated hereby.</font></p>

<dir>
<p><b><font size=2>3.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; S-3 Eligibility</font></b></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; As of the date hereof, the Company
is eligible to use a registration statement on Form&nbsp;S-3 to register
resales of its Common Stock.</font></p>

<p><a name="_Toc354229230"></a><a name="_Toc354231253"></a><a name="_Toc354315230"></a><a name="_Toc354366425"></a><a name="_Toc354831464"></a><a name="_Toc354831555"></a><a name="_Toc354919769"></a><a name="_Toc354919851"></a><a name="_Toc354991725"></a><a name="_Toc354991807"></a><a name="_Toc355086732"></a><a name="_Toc355703366"></a><a name="_Toc356133610"></a><a name="_Toc356651462"></a><a name="_Toc397684461"></a><a name="_Toc397687314"></a><a name="_Toc397825095"></a><a name="_Toc397951724"></a><a name="_Toc397951783"></a><a name="_Toc398019673"></a><a name="_Toc398095106"></a><a name="_Toc398787964"></a><a name="_Toc398970978"></a><a name="_Toc398974338"></a><a name="_Toc450472977"></a><a name="_Toc450566770"></a><a name="_Toc450802412"></a><a name="_Toc453585560"></a><a name="_Toc453590287"></a><a name="_Toc454188343"></a><a name="_Toc454194635"></a><a name="_Toc454204545"></a><a name="_Toc455228540"></a><a name="_Toc455229480"></a><a name="_Toc455242619"></a><a name="_Toc455313344"></a><a name="_Toc459009178"></a><a name="_Toc459014106"></a><a name="_Toc459014157"></a><a name="_Toc459022732"></a><a name="_Toc459448913"></a><a name="_Toc460319435"></a><a name="_Toc516640769"><b><font size=2>Section
4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Representations and Warranties
of the </font></b></a><b><font size=2>Investor</font></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Investor hereby represents and
warrants for itself, and not for any other Investor that:</font></p>

<dir>
<p><a name="_Toc354229231"></a><a name="_Toc354231254"></a><a name="_Toc354315231"></a><a name="_Toc354366426"></a><a name="_Toc354831465"></a><a name="_Toc354831556"></a><a name="_Toc354919770"></a><a name="_Toc354919852"></a><a name="_Toc354991726"></a><a name="_Toc354991808"></a><a name="_Toc355086733"></a><a name="_Toc355703367"></a><a name="_Toc356133611"></a><a name="_Toc356651463"></a><a name="_Toc397684462"></a><a name="_Toc397687315"></a><a name="_Toc397825096"></a><a name="_Toc397951725"></a><a name="_Toc397951784"></a><a name="_Toc398019674"></a><a name="_Toc398095107"></a><a name="_Toc398787965"></a><a name="_Toc398970979"></a><a name="_Toc398974339"></a><a name="_Toc450472978"></a><a name="_Toc450566771"></a><a name="_Toc450802413"></a><a name="_Toc453585561"></a><a name="_Toc453590288"></a><a name="_Toc454188344"></a><a name="_Toc454194636"></a><a name="_Toc454204546"></a><a name="_Toc455228541"></a><a name="_Toc455229481"></a><a name="_Toc455242620"></a><a name="_Toc455313345"></a><a name="_Toc459009179"></a><a name="_Toc459014107"></a><a name="_Toc459014158"></a><a name="_Toc459022733"></a><a name="_Toc459448914"></a><a name="_Toc460319436"></a><a name="_Toc516640770"><b><font size=2>4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Authorization</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All corporate or other similar
action, if any, required on the part of the Investor for the authorization,
execution and delivery of this Agreement and the other agreements and
transactions contemplated herein, and the performance of all of the Investor's
obligations hereunder and thereunder have been taken, and this Agreement
constitutes, and when executed and delivered by the Investor the other
agreements contemplated herein to which the Investor is a party will
constitute, valid and legally binding obligations of the Investor, enforceable
in accordance with their respective terms, except as to the effect, if any, of
(a)&nbsp;applicable bankruptcy and other similar laws affecting the rights of
creditors generally, (b)&nbsp;rules of law governing specific performance,
injunctive relief and other equitable remedies, and (c)&nbsp;the enforceability
of provisions requiring indemnification in connection with the offering, sale
or issuance of securities.&nbsp; The Investor
has full power and authority to execute, deliver and perform its obligations
under this Agreement and such other agreements and to own the Common Stock and
Warrants to be received by the Investor hereunder and the Warrant Shares
issuable upon exercise of the Warrants (collectively, the
&quot;Securities&quot;).</font></p>

<page>


<p>&nbsp;</p>

<dir>
<p><a name="_Toc354229232"></a><a name="_Toc354231255"></a><a name="_Toc354315232"></a><a name="_Toc354366427"></a><a name="_Toc354831466"></a><a name="_Toc354831557"></a><a name="_Toc354919771"></a><a name="_Toc354919853"></a><a name="_Toc354991727"></a><a name="_Toc354991809"></a><a name="_Toc355086734"></a><a name="_Toc355703368"></a><a name="_Toc356133612"></a><a name="_Toc356651464"></a><a name="_Toc397684463"></a><a name="_Toc397687316"></a><a name="_Toc397825097"></a><a name="_Toc397951726"></a><a name="_Toc397951785"></a><a name="_Toc398019675"></a><a name="_Toc398095108"></a><a name="_Toc398787966"></a><a name="_Toc398970980"></a><a name="_Toc398974340"></a><a name="_Toc450472979"></a><a name="_Toc450566772"></a><a name="_Toc450802414"></a><a name="_Toc453585562"></a><a name="_Toc453590289"></a><a name="_Toc454188345"></a><a name="_Toc454194637"></a><a name="_Toc454204547"></a><a name="_Toc455228542"></a><a name="_Toc455229482"></a><a name="_Toc455242621"></a><a name="_Toc455313346"></a><a name="_Toc459009180"></a><a name="_Toc459014108"></a><a name="_Toc459014159"></a><a name="_Toc459022734"></a><a name="_Toc459448915"></a><a name="_Toc460319437"></a><a name="_Toc516640771"><b><font size=2>4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Purchase
Entirely for Own Account</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This Agreement is made with the
Investor in reliance upon the Investor's representation to the Company, which
by the Investor's execution of this Agreement the Investor hereby confirms,
that the Securities will be acquired for investment for the Investor's own
account, and not with a view to the distribution of any part thereof, and that
the Investor has no present intention of selling, granting any participation
in, or otherwise distributing the same in a manner contrary to the Securities
Act of 1933, as amended (the &quot;Act&quot;), or applicable state securities
laws.</font></p>

<dir>
<p><a name="_Toc354229233"></a><a name="_Toc354231256"></a><a name="_Toc354315233"></a><a name="_Toc354366428"></a><a name="_Toc354831467"></a><a name="_Toc354831558"></a><a name="_Toc354919772"></a><a name="_Toc354919854"></a><a name="_Toc354991728"></a><a name="_Toc354991810"></a><a name="_Toc355086735"></a><a name="_Toc355703369"></a><a name="_Toc356133613"></a><a name="_Toc356651465"></a><a name="_Toc397684464"></a><a name="_Toc397687317"></a><a name="_Toc397825098"></a><a name="_Toc397951727"></a><a name="_Toc397951786"></a><a name="_Toc398019676"></a><a name="_Toc398095109"></a><a name="_Toc398787967"></a><a name="_Toc398970981"></a><a name="_Toc398974341"></a><a name="_Toc450472980"></a><a name="_Toc450566773"></a><a name="_Toc450802415"></a><a name="_Toc453585563"></a><a name="_Toc453590290"></a><a name="_Toc454188346"></a><a name="_Toc454194638"></a><a name="_Toc454204548"></a><a name="_Toc455228543"></a><a name="_Toc455229483"></a><a name="_Toc455242622"></a><a name="_Toc455313347"></a><a name="_Toc459009181"></a><a name="_Toc459014109"></a><a name="_Toc459014160"></a><a name="_Toc459022735"></a><a name="_Toc459448916"></a><a name="_Toc460319438"></a><a name="_Toc516640772"><b><font size=2>4.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Disclosure of
Information; Due Diligence</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Investor has received and
reviewed a copy of each SEC Document.&nbsp;
The Investor represents and acknowledges that it has been solely
responsible for its own &quot;due diligence&quot; investigation of the Company
and of the management and business of the Company, for its own analysis of the
merits and risks of this investment, and for its own analysis of the fairness
and desirability of the terms of the investment; that in taking any action or
performing any role relative to the arranging of the proposed investment, the
Investor has acted solely in its own interests.</font></p>

<dir>
<p><a name="_Toc354229234"></a><a name="_Toc354231257"></a><a name="_Toc354315234"></a><a name="_Toc354366429"></a><a name="_Toc354831468"></a><a name="_Toc354831559"></a><a name="_Toc354919773"></a><a name="_Toc354919855"></a><a name="_Toc354991729"></a><a name="_Toc354991811"></a><a name="_Toc355086736"></a><a name="_Toc355703370"></a><a name="_Toc356133614"></a><a name="_Toc356651466"></a><a name="_Toc397684465"></a><a name="_Toc397687318"></a><a name="_Toc397825099"></a><a name="_Toc397951728"></a><a name="_Toc397951787"></a><a name="_Toc398019677"></a><a name="_Toc398095110"></a><a name="_Toc398787968"></a><a name="_Toc398970982"></a><a name="_Toc398974342"></a><a name="_Toc450472981"></a><a name="_Toc450566774"></a><a name="_Toc450802416"></a><a name="_Toc453585564"></a><a name="_Toc453590291"></a><a name="_Toc454188347"></a><a name="_Toc454194639"></a><a name="_Toc454204549"></a><a name="_Toc455228544"></a><a name="_Toc455229484"></a><a name="_Toc455242623"></a><a name="_Toc455313348"></a><a name="_Toc459009182"></a><a name="_Toc459014110"></a><a name="_Toc459014161"></a><a name="_Toc459022736"></a><a name="_Toc459448917"></a><a name="_Toc460319439"></a><a name="_Toc516640773"><b><font size=2>4.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Investment
Experience; Accredited Investor Status</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Investor is an investor in
securities of the type of the Securities and acknowledges that the Securities
are a speculative risk.&nbsp; The Investor is
able to fend for itself in the transactions contemplated by this Agreement, can
bear the economic risk of its investment (including possible complete loss of
such investment) for an indefinite period of time and has such knowledge and
experience in financial or business matters that it is capable of evaluating
the merits and risks of the investment in the Securities.&nbsp; The Investor understands that the Securities
have not been registered under the Act, or under the securities laws of any
jurisdiction, by reason of reliance upon certain exemptions, and that the
reliance of the Company on such exemptions is predicated upon the accuracy of
the Investor's representations and warranties in this Section 4.&nbsp; The Investor is familiar with Regulation D
promulgated under the Act and is an &quot;accredited investor&quot; as defined
in Rule 501(a) of such Regulation D.</font></p>

<dir>
<p><a name="_Toc354229235"></a><a name="_Toc354231258"></a><a name="_Toc354315235"></a><a name="_Toc354366430"></a><a name="_Toc354831469"></a><a name="_Toc354831560"></a><a name="_Toc354919774"></a><a name="_Toc354919856"></a><a name="_Toc354991730"></a><a name="_Toc354991812"></a><a name="_Toc355086737"></a><a name="_Toc355703371"></a><a name="_Toc356133615"></a><a name="_Toc356651467"></a><a name="_Toc397684466"></a><a name="_Toc397687319"></a><a name="_Toc397825100"></a><a name="_Toc397951729"></a><a name="_Toc397951788"></a><a name="_Toc398019678"></a><a name="_Toc398095111"></a><a name="_Toc398787969"></a><a name="_Toc398970983"></a><a name="_Toc398974343"></a><a name="_Toc450472982"></a><a name="_Toc450566775"></a><a name="_Toc450802417"></a><a name="_Toc453585565"></a><a name="_Toc453590292"></a><a name="_Toc454188348"></a><a name="_Toc454194640"></a><a name="_Toc454204550"></a><a name="_Toc455228545"></a><a name="_Toc455229485"></a><a name="_Toc455242624"></a><a name="_Toc455313349"></a><a name="_Toc459009183"></a><a name="_Toc459014111"></a><a name="_Toc459014162"></a><a name="_Toc459022737"></a><a name="_Toc459448918"></a><a name="_Toc460319440"></a><a name="_Toc516640774"><b><font size=2>4.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Restricted
Securities</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Investor understands that the
Securities are characterized as &quot;restricted securities&quot; under the
federal securities laws inasmuch as they are being acquired from the Company in
a transaction not involving a public offering and that under such laws and
applicable regulations such securities may be resold without registration under
the Act only in certain limited circumstances and in accordance with the terms
and conditions set forth in the legend described in Section 4.6 below.&nbsp; In this connection, the Investor represents
that it is familiar with Rule 144 promulgated under the Act, as currently in
effect, and understands the resale limitations imposed thereby and by the Act.</font></p>

<page>


<dir>
<p><a name="_Toc354229236"></a><a name="_Toc354231259"></a><a name="_Toc354315236"></a><a name="_Toc354366431"></a><a name="_Toc354831470"></a><a name="_Toc354831561"></a><a name="_Toc354919775"></a><a name="_Toc354919857"></a><a name="_Toc354991731"></a><a name="_Toc354991813"></a><a name="_Toc355086738"></a><a name="_Toc355703372"></a><a name="_Toc356133616"></a><a name="_Toc356651468"></a><a name="_Toc397684467"></a><a name="_Toc397687320"></a><a name="_Toc397825101"></a><a name="_Toc397951730"></a><a name="_Toc397951789"></a><a name="_Toc398019679"></a><a name="_Toc398095112"></a><a name="_Toc398787970"></a><a name="_Toc398970984"></a><a name="_Toc398974344"></a><a name="_Toc450472983"></a><a name="_Toc450566776"></a><a name="_Toc450802418"></a><a name="_Toc453585566"></a><a name="_Toc453590293"></a><a name="_Toc454188349"></a><a name="_Toc454194641"></a><a name="_Toc454204551"></a><a name="_Toc455228546"></a><a name="_Toc455229486"></a><a name="_Toc455242625"></a><a name="_Toc455313350"></a><a name="_Toc459009184"></a><a name="_Toc459014112"></a><a name="_Toc459014163"></a><a name="_Toc459022738"></a><a name="_Toc459448919"></a><a name="_Toc460319441"></a><a name="_Toc516640775"><b><font size=2>4.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Legend</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; It is understood that the
certificates evidencing the Securities may bear the following or a similar
legend:</font></p>

<dir>
<p><font size=2>THE
SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE &quot;ACT&quot;), OR APPLICABLE STATE
LAW, AND NO INTEREST THEREIN MAY BE SOLD, DISTRIBUTED, ASSIGNED, OFFERED,
PLEDGED OR OTHERWISE TRANSFERRED UNLESS (A) THERE IS AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE ACT AND APPLICABLE STATE SECURITIES LAWS COVERING ANY SUCH
TRANSACTION INVOLVING SAID SECURITIES, OR (B) SUCH TRANSACTION IS EXEMPT FROM,
AND NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE ACT AND APPLICABLE
STATE SECURITIES LAWS AND THIS CORPORATION RECEIVES AN OPINION OF LEGAL COUNSEL
FOR THE HOLDER OF THESE SECURITIES SATISFACTORY TO THIS CORPORATION STATING
THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION, OR (C) THIS CORPORATION
OTHERWISE SATISFIES ITSELF THAT SUCH TRANSACTION IS EXEMPT FROM REGISTRATION.</font></p>
</dir>

<dir>
<p><a name="_Toc354229237"></a><a name="_Toc354231260"></a><a name="_Toc354315237"></a><a name="_Toc354366432"></a><a name="_Toc354831471"></a><a name="_Toc354831562"></a><a name="_Toc354919776"></a><a name="_Toc354919858"></a><a name="_Toc354991732"></a><a name="_Toc354991814"></a><a name="_Toc355086739"></a><a name="_Toc355703373"></a><a name="_Toc356133617"></a><a name="_Toc356651469"></a><a name="_Toc397684468"></a><a name="_Toc397687321"></a><a name="_Toc397825102"></a><a name="_Toc397951731"></a><a name="_Toc397951790"></a><a name="_Toc398019680"></a><a name="_Toc398095113"></a><a name="_Toc398787971"></a><a name="_Toc398970985"></a><a name="_Toc398974345"></a><a name="_Toc450472984"></a><a name="_Toc450566777"></a><a name="_Toc450802419"></a><a name="_Toc453585567"></a><a name="_Toc453590294"></a><a name="_Toc454188350"></a><a name="_Toc454194642"></a><a name="_Toc454204552"></a><a name="_Toc455228547"></a><a name="_Toc455229487"></a><a name="_Toc455242626"></a><a name="_Toc455313351"></a><a name="_Toc459009185"></a><a name="_Toc459014113"></a><a name="_Toc459014164"></a><a name="_Toc459022739"></a><a name="_Toc459448920"></a><a name="_Toc460319442"></a><a name="_Toc516640776"><b><font size=2>4.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Residency</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For purposes of the application of
state securities laws, the Investor represents that it is a resident of the
state indicated on the signature pages hereof (or if not a natural person, the
Investor made its investment decision with respect to the Securities from its
office located in such state).</font></p>

<dir>
<p><a name="_Toc501247516"></a><a name="_Toc516640777"><b><font size=2>4.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No Intent to
Control the Company</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Investor represents to the
Company that it has no intention to control the Company and that it is not
purchasing the Securities with a view to exerting control of the Company.&nbsp; As used herein, &quot;control&quot; means
the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of the Company, whether through the
ownership of voting securities or by contract or otherwise.</font></p>

<p><a name="_Toc354229238"></a><a name="_Toc354231261"></a><a name="_Toc354315238"></a><a name="_Toc354366433"></a><a name="_Toc354831472"></a><a name="_Toc354831563"></a><a name="_Toc354919777"></a><a name="_Toc354919859"></a><a name="_Toc354991733"></a><a name="_Toc354991815"></a><a name="_Toc355086740"></a><a name="_Toc355703374"></a><a name="_Toc356133618"></a><a name="_Toc356651470"></a><a name="_Toc397684469"></a><a name="_Toc397687322"></a><a name="_Toc397825103"></a><a name="_Toc397951732"></a><a name="_Toc397951791"></a><a name="_Toc398019681"></a><a name="_Toc398095114"></a><a name="_Toc398787972"></a><a name="_Toc398970986"></a><a name="_Toc398974346"></a><a name="_Toc450472985"></a><a name="_Toc450566778"></a><a name="_Toc450802420"></a><a name="_Toc453585568"></a><a name="_Toc453590295"></a><a name="_Toc454188351"></a><a name="_Toc454194643"></a><a name="_Toc454204553"></a><a name="_Toc455228548"></a><a name="_Toc455229488"></a><a name="_Toc455242627"></a><a name="_Toc455313352"></a><a name="_Toc459009186"></a><a name="_Toc459014114"></a><a name="_Toc459014165"></a><a name="_Toc459022740"></a><a name="_Toc459448921"></a><a name="_Toc460319443"></a><a name="_Toc516640778"><b><font size=2>Section
5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Conditions of the Investor's
Obligations at the </font></b></a><b><font size=2>Closing</font></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The obligations of the Investor
under Section 1 of this Agreement are subject to the fulfillment at or before
the Closing of each of the following conditions:</font></p>

<dir>
<p><a name="_Toc354229239"></a><a name="_Toc354231262"></a><a name="_Toc354315239"></a><a name="_Toc354366434"></a><a name="_Toc354831473"></a><a name="_Toc354831564"></a><a name="_Toc354919778"></a><a name="_Toc354919860"></a><a name="_Toc354991734"></a><a name="_Toc354991816"></a><a name="_Toc355086741"></a><a name="_Toc355703375"></a><a name="_Toc356133619"></a><a name="_Toc356651471"></a><a name="_Toc397684470"></a><a name="_Toc397687323"></a><a name="_Toc397825104"></a><a name="_Toc397951733"></a><a name="_Toc397951792"></a><a name="_Toc398019682"></a><a name="_Toc398095115"></a><a name="_Toc398787973"></a><a name="_Toc398970987"></a><a name="_Toc398974347"></a><a name="_Toc450472986"></a><a name="_Toc450566779"></a><a name="_Toc450802421"></a><a name="_Toc453585569"></a><a name="_Toc453590296"></a><a name="_Toc454188352"></a><a name="_Toc454194644"></a><a name="_Toc454204554"></a><a name="_Toc455228549"></a><a name="_Toc455229489"></a><a name="_Toc455242628"></a><a name="_Toc455313353"></a><a name="_Toc459009187"></a><a name="_Toc459014115"></a><a name="_Toc459014166"></a><a name="_Toc459022741"></a><a name="_Toc459448922"></a><a name="_Toc460319444"></a><a name="_Toc516640779"><b><font size=2>5.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Representations
and Warranties</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The representations and warranties
of the Company contained in Section 3 hereof shall be true in all material
respects on and as of the Closing Date with the same effect as though such
representations and warranties had been made as of the Closing Date, other than
such representations and warranties as are made as of another date.</font></p>

<page>


<dir>
<p><a name="_Toc354229240"></a><a name="_Toc354231263"></a><a name="_Toc354315240"></a><a name="_Toc354366435"></a><a name="_Toc354831474"></a><a name="_Toc354831565"></a><a name="_Toc354919779"></a><a name="_Toc354919861"></a><a name="_Toc354991735"></a><a name="_Toc354991817"></a><a name="_Toc355086742"></a><a name="_Toc355703376"></a><a name="_Toc356133620"></a><a name="_Toc356651472"></a><a name="_Toc397684471"></a><a name="_Toc397687324"></a><a name="_Toc397825105"></a><a name="_Toc397951734"></a><a name="_Toc397951793"></a><a name="_Toc398019683"></a><a name="_Toc398095116"></a><a name="_Toc398787974"></a><a name="_Toc398970988"></a><a name="_Toc398974348"></a><a name="_Toc450472987"></a><a name="_Toc450566780"></a><a name="_Toc450802422"></a><a name="_Toc453585570"></a><a name="_Toc453590297"></a><a name="_Toc454188353"></a><a name="_Toc454194645"></a><a name="_Toc454204555"></a><a name="_Toc455228550"></a><a name="_Toc455229490"></a><a name="_Toc455242629"></a><a name="_Toc455313354"></a><a name="_Toc459009188"></a><a name="_Toc459014116"></a><a name="_Toc459014167"></a><a name="_Toc459022742"></a><a name="_Toc459448923"></a><a name="_Toc460319445"></a><a name="_Toc516640780"><b><font size=2>5.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Performance</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company shall have performed
and complied in all material respects with all agreements, obligations and
covenants contained in this Agreement that are required to be performed or
complied with by it on or before the Closing Date.</font></p>

<dir>
<p><a name="_Toc354229241"></a><a name="_Toc354231264"></a><a name="_Toc354315241"></a><a name="_Toc354366436"></a><a name="_Toc354831475"></a><a name="_Toc354831566"></a><a name="_Toc354919780"></a><a name="_Toc354919862"></a><a name="_Toc354991736"></a><a name="_Toc354991818"></a><a name="_Toc355086743"></a><a name="_Toc355703377"></a><a name="_Toc356133621"></a><a name="_Toc356651473"></a><a name="_Toc397684472"></a><a name="_Toc397687325"></a><a name="_Toc397825106"></a><a name="_Toc397951735"></a><a name="_Toc397951794"></a><a name="_Toc398019684"></a><a name="_Toc398095117"></a><a name="_Toc398787975"></a><a name="_Toc398970989"></a><a name="_Toc398974349"></a><a name="_Toc450472988"></a><a name="_Toc450566781"></a><a name="_Toc450802423"></a><a name="_Toc453585571"></a><a name="_Toc453590298"></a><a name="_Toc454188354"></a><a name="_Toc454194646"></a><a name="_Toc454204556"></a><a name="_Toc455228551"></a><a name="_Toc455229491"></a><a name="_Toc455242630"></a><a name="_Toc455313355"></a><a name="_Toc459009189"></a><a name="_Toc459014117"></a><a name="_Toc459014168"></a><a name="_Toc459022743"></a><a name="_Toc459448924"></a><a name="_Toc460319446"></a><a name="_Toc516640781"><b><font size=2>5.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Compliance
Certificate</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Chief Executive Officer of the
Company shall deliver to the Investor at the Closing a certificate certifying that
the conditions specified in Sections 5.1 and 5.2 have been fulfilled.</font></p>

<dir>
<p><a name="_Toc354229242"></a><a name="_Toc354231265"></a><a name="_Toc354315242"></a><a name="_Toc354366437"></a><a name="_Toc354831476"></a><a name="_Toc354831567"></a><a name="_Toc354919781"></a><a name="_Toc354919863"></a><a name="_Toc354991737"></a><a name="_Toc354991819"></a><a name="_Toc355086744"></a><a name="_Toc355703378"></a><a name="_Toc356133622"></a><a name="_Toc356651474"></a><a name="_Toc397684473"></a><a name="_Toc397687326"></a><a name="_Toc397825107"></a><a name="_Toc397951736"></a><a name="_Toc397951795"></a><a name="_Toc398019685"></a><a name="_Toc398095118"></a><a name="_Toc398787976"></a><a name="_Toc398970990"></a><a name="_Toc398974350"></a><a name="_Toc450472989"></a><a name="_Toc450566782"></a><a name="_Toc450802424"></a><a name="_Toc453585572"></a><a name="_Toc453590299"></a><a name="_Toc454188355"></a><a name="_Toc454194647"></a><a name="_Toc454204557"></a><a name="_Toc455228552"></a><a name="_Toc455229492"></a><a name="_Toc455242631"></a><a name="_Toc455313356"></a><a name="_Toc459009190"></a><a name="_Toc459014118"></a><a name="_Toc459014169"></a><a name="_Toc459022744"></a><a name="_Toc459448925"></a><a name="_Toc460319447"></a><a name="_Toc516640782"><b><font size=2>5.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Qualification</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The offer and sale of the Units to
the Investor pursuant to this Agreement shall be qualified or exempt from
qualification under all applicable federal and state securities laws, which
qualification or exemption the Company shall have exercised its reasonable best
efforts to obtain.</font></p>

<dir>
<p><b><font size=2>5.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Minimum Additional Investment</font></b></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; There shall have been placed into
escrow pending the Closing an aggregate of at least $5.0 million by the
Investor and other investors for the purchase of Units pursuant to this
Agreement and other Unit Purchase Agreements in substantially the form of this
Agreement.&nbsp; The Investor acknowledges
that such funds may be held in escrow pending the Closing in a trust account of
Perkins Coie LLP, counsel to the Company, which is a non-interest bearing
account.&nbsp; If the Closing does not occur
prior to June&nbsp;30, 2001, funds in the escrow account shall be returned to
the Investor.</font></p>

<dir>
<p><b><font size=2>5.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Legal Opinion</font></b></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Perkins Coie LLP, counsel to the
Company, shall have delivered to the Investor its legal opinion in
substantially the form of Exhibit&nbsp;B attached hereto.</font></p>

<p><a name="_Toc354229247"></a><a name="_Toc354231270"></a><a name="_Toc354315247"></a><a name="_Toc354366442"></a><a name="_Toc354831482"></a><a name="_Toc354831573"></a><a name="_Toc354919787"></a><a name="_Toc354919869"></a><a name="_Toc354991743"></a><a name="_Toc354991825"></a><a name="_Toc355086750"></a><a name="_Toc355703384"></a><a name="_Toc356133628"></a><a name="_Toc356651480"></a><a name="_Toc397684480"></a><a name="_Toc397687333"></a><a name="_Toc397825113"></a><a name="_Toc397951742"></a><a name="_Toc397951801"></a><a name="_Toc398019691"></a><a name="_Toc398095124"></a><a name="_Toc398787983"></a><a name="_Toc398970997"></a><a name="_Toc398974357"></a><a name="_Toc450472995"></a><a name="_Toc450566788"></a><a name="_Toc450802429"></a><a name="_Toc453585578"></a><a name="_Toc453590305"></a><a name="_Toc454188361"></a><a name="_Toc454194653"></a><a name="_Toc454204563"></a><a name="_Toc455228558"></a><a name="_Toc455229498"></a><a name="_Toc455242637"></a><a name="_Toc455313362"></a><a name="_Toc459009192"></a><a name="_Toc459014119"></a><a name="_Toc459014170"></a><a name="_Toc459022745"></a><a name="_Toc459448926"></a><a name="_Toc460319448"></a><a name="_Toc516640783"><b><font size=2>Section
6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Conditions of the Company's
Obligations at the </font></b></a><b><font size=2>Closing</font></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The obligations of the Company to
the Investor under this Agreement are subject to the fulfillment at or before
the Closing of each of the following conditions:</font></p>

<dir>
<p><a name="_Toc354229248"></a><a name="_Toc354231271"></a><a name="_Toc354315248"></a><a name="_Toc354366443"></a><a name="_Toc354831483"></a><a name="_Toc354831574"></a><a name="_Toc354919788"></a><a name="_Toc354919870"></a><a name="_Toc354991744"></a><a name="_Toc354991826"></a><a name="_Toc355086751"></a><a name="_Toc355703385"></a><a name="_Toc356133629"></a><a name="_Toc356651481"></a><a name="_Toc397684481"></a><a name="_Toc397687334"></a><a name="_Toc397825114"></a><a name="_Toc397951743"></a><a name="_Toc397951802"></a><a name="_Toc398019692"></a><a name="_Toc398095125"></a><a name="_Toc398787984"></a><a name="_Toc398970998"></a><a name="_Toc398974358"></a><a name="_Toc450472996"></a><a name="_Toc450566789"></a><a name="_Toc450802430"></a><a name="_Toc453585579"></a><a name="_Toc453590306"></a><a name="_Toc454188362"></a><a name="_Toc454194654"></a><a name="_Toc454204564"></a><a name="_Toc455228559"></a><a name="_Toc455229499"></a><a name="_Toc455242638"></a><a name="_Toc455313363"></a><a name="_Toc459009193"></a><a name="_Toc459014120"></a><a name="_Toc459014171"></a><a name="_Toc459022746"></a><a name="_Toc459448927"></a><a name="_Toc460319449"></a><a name="_Toc516640784"><b><font size=2>6.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Representations
and Warranties</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The representations and warranties
of the Investor contained in Section&nbsp;4 shall be true in all material
respects on and as of the Closing Date with the same effect as though such
representations and warranties had been made as of the Closing Date.</font></p>

<page>


<dir>
<p><a name="_Toc354229250"></a><a name="_Toc354231273"></a><a name="_Toc354315250"></a><a name="_Toc354366445"></a><a name="_Toc354831485"></a><a name="_Toc354831576"></a><a name="_Toc354919790"></a><a name="_Toc354919872"></a><a name="_Toc354991746"></a><a name="_Toc354991828"></a><a name="_Toc355086753"></a><a name="_Toc355703387"></a><a name="_Toc356133631"></a><a name="_Toc356651483"></a><a name="_Toc397684485"></a><a name="_Toc397687338"></a><a name="_Toc397825115"></a><a name="_Toc397951744"></a><a name="_Toc397951803"></a><a name="_Toc398019693"></a><a name="_Toc398095126"></a><a name="_Toc398787985"></a><a name="_Toc398970999"></a><a name="_Toc398974359"></a><a name="_Toc450472997"></a><a name="_Toc450566790"></a><a name="_Toc450802431"></a><a name="_Toc453585580"></a><a name="_Toc453590307"></a><a name="_Toc454188363"></a><a name="_Toc454194655"></a><a name="_Toc454204565"></a><a name="_Toc455228560"></a><a name="_Toc455229500"></a><a name="_Toc455242639"></a><a name="_Toc455313364"></a><a name="_Toc459009194"></a><a name="_Toc459014121"></a><a name="_Toc459014172"></a><a name="_Toc459022747"></a><a name="_Toc459448928"></a><a name="_Toc460319450"></a><a name="_Toc516640785"><b><font size=2>6.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Qualification</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The offer and sale to the Investor
of the Securities shall be qualified or exempt from qualification under all
applicable federal and state securities laws, which qualification or exemption
the Company shall have exercised its reasonable best efforts to obtain.</font></p>

<p><a name="_Toc459009195"></a><a name="_Toc459014122"></a><a name="_Toc459014173"></a><a name="_Toc459022748"></a><a name="_Toc459448929"></a><a name="_Toc460319451"></a><a name="_Toc516640786"><b><font size=2>Section
7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Registration Rights</font></b></a></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Subject
to Section 7(b) below, the Company shall file, with respect to the shares of
Common Stock included in the Units purchased under this Agreement and the
Warrant Shares (collectively, the &quot;Registrable Shares&quot;), a
registration statement on Form S&#150;3 (or any successor form) on or before
the date 60 days after the Closing Date to register such Registrable Shares
held by the Investor under the Act.&nbsp; Any
such registration statement may also include other shares of Common Stock
issued to other investors by the Company.&nbsp;
The Company shall use its best efforts to have the registration
statement declared effective within 90 days after the Closing Date and to
maintain the effectiveness of such registration statement (and maintain the
current status of the prospectus or prospectuses contained therein) until the
earliest of (i)&nbsp;the fifth anniversary of the Closing Date, (ii)&nbsp;the
date all such Registrable Shares have been disposed of pursuant to such
effective registration statement, (iii)&nbsp;the date such Registrable Shares
are sold or otherwise transferred by the Investor in a transaction in which the
rights under this Section&nbsp;7 are not assigned in accordance with
Section&nbsp;8.2 hereof and (iv)&nbsp;the date the Investor is able to dispose
of all such Registrable Shares in one three-month period pursuant to Rule&nbsp;144
(or any similar provision then in force) under the Act without registration
under the Act.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Company shall not be obligated to effect any such registration pursuant to
Section 7(a):</font></p>

<dir>
<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; if
the offering is deemed by the SEC to involve a primary offering by the Company
and Form S-3 is not available for such offering; or</font></p>
</dir>

<dir>
<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; in
any particular jurisdiction in which the Company would be required to qualify
to do business or to execute a general consent to service of process in
effecting such registration.</font></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Company shall notify the Investor in writing at least thirty (30) days prior to
filing any registration statement under the Act for purposes of effecting a
public offering of securities of the Company (including, but not limited to,
registration statements relating to secondary offerings of securities of the
Company, but excluding registration statements relating to any registration
under Section&nbsp;7(a) of this Agreement or to any employee benefit plan or a
corporate reorganization) and will afford the Investor an opportunity to
include in such registration statement all or any part of the Registrable
Shares then held by the Investor, subject to the provisions of
Sections&nbsp;7(d) and 7(e) below.&nbsp; If
an Investor wants to include in any such registration statement all or any part
of such Registrable Shares held by the Investor, the Investor shall within
twenty (20) days after receipt of the above-described notice from the Company,
so notify the Company in writing, and in such notice shall inform the Company
of the number of such Registrable Shares the Investor wishes to include in such
registration statement.</font></p>

<page>


<p>&nbsp;</p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If
a registration statement under which the Company gives notice under Section
7(c) is for an underwritten offering, then the Company shall so advise the Investor.&nbsp; In such event, the right of an Investor to
include any of the Investor's Registrable Shares in a registration pursuant to
Section 7(c) shall be conditioned upon the Investor's participation in such
underwriting and the inclusion of the Investor's Registrable Shares in the
underwriting on the same terms and conditions as the other participants in such
offering, including, without limitation, entering into an underwriting
agreement in customary form with the managing underwriter or underwriters selected
for such underwriting (including a market stand-off agreement of up to 180 days
if required by such underwriters).&nbsp;
Notwithstanding any other provision of this Agreement, if the managing
underwriter(s) determine(s) in good faith that marketing factors require a
limitation of the number of shares to be underwritten, then the managing
underwriter(s) may exclude shares from the registration and the underwriting,
and the number of shares that may be included in the registration and the
underwriting shall be allocated, <u>first</u>, to the Company, <u>second</u>,
to each holder of registration rights granted by the Company before the date of
this Agreement that contractually require the Company to include such holder's
shares on a priority basis, and <u>third</u>, to the Investor and any other
holder of registration rights granted by the Company (excluding those covered
above), on a pro rata basis based on the total number of shares of Common Stock
then sought to be included by each in such offering.&nbsp; If an Investor disapproves of the terms of any such underwriting,
the Investor may elect to withdraw therefrom by written notice to the Company
and the underwriter(s), delivered at least ten (10) business days prior to the
effective date of the registration statement.&nbsp;
Any Registrable Shares excluded or withdrawn from such underwriting
shall be excluded and withdrawn from the registration.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notwithstanding
the foregoing, the Investor may not have any Registrable Shares registered
pursuant to any registration statement initiated in connection with the
Company's acquisition of the assets of Scour, Inc.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
Investor shall have no right to obtain or seek, nor shall the Investor obtain
or seek, an injunction restraining or otherwise delaying any registration as
the result of any controversy that might arise with respect to the
interpretation or implementation of this Agreement.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In
the event any Registrable Shares are included in a registration statement under
this Agreement or the terms of the Warrant:</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To the extent permitted by law, the
Company will indemnify and hold harmless the Investor and each person, if any,
who controls the Investor within the meaning of the Act or the Securities
Exchange Act of 1934, as amended (the &quot;1934 Act&quot;), against any
losses, claims, damages, or liabilities to which they may become subject under
the Act, the 1934 Act or other federal or state law, insofar as such losses,
claims, damages, or liabilities (or actions in respect thereof) arise out of or
are based upon any of the following statements, omissions or violations
(collectively a &quot;Violation&quot;): (A) any untrue statement or alleged
untrue statement of a material fact contained in such registration statement,
including any preliminary prospectus or final prospectus contained therein or
any amendments or supplements thereto, (B) the omission or alleged omission to
state therein a 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, or (C) any violation or alleged violation by the
Company of the Act, the 1934 Act, any state securities law or any rule or
regulation promulgated under the Act, the 1934 Act or any state securities law
in connection with such registration and sale of securities; and the Company
will pay to the Investor or such controlling person, as incurred, any legal or
other expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability, or action; provided, however,
that the indemnity agreement contained in this subsection&nbsp;7(g)(i) shall
not apply to amounts paid in settlement of any such loss, claim, damage,
liability, or action if such settlement is effected without the consent of the
Company (which consent shall not be unreasonably withheld), nor shall the
Company be liable in any such case for any such loss, claim, damage, liability,
or action to the extent that it arises out of or is based upon a Violation that
occurs in reliance upon and in conformity with written information furnished
expressly for use in connection with such registration by the Investor or such
controlling person or their respective agents.</font></p>

<page>


<p>&nbsp;</p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To the extent permitted by law, the
Investor will indemnify and hold harmless the Company, each of its directors,
each of its officers who has signed the registration statement, each person, if
any, who controls the Company within the meaning of the Act, each agent and any
underwriter, any other person or entity selling securities in such registration
statement and any controlling person of any such underwriter or other person or
entity, against any losses, claims, damages, or liabilities (joint or several)
to which any of the foregoing persons may become subject, under the Act, the
1934 Act or other federal or state law, insofar as such losses, claims,
damages, or liabilities (or actions in respect thereto) arise out of or are
based upon any Violation, in each case to the extent (and only to the extent)
that such Violation occurs in reliance upon and in conformity with written
information furnished by the Investor or its agents expressly for use in
connection with such registration; and the Investor will pay, as incurred, any
legal or other expenses reasonably incurred by any person intended to be indemnified
pursuant to this subsection&nbsp;7(g)(ii), in connection with investigating or
defending any such loss, claim, damage, liability, or action; provided,
however, that the indemnity agreement contained in this
subsection&nbsp;7(g)(ii) shall not apply to amounts paid in settlement of any
such loss, claim, damage, liability or action if such settlement is effected
without the consent of the Investor (which consent shall not be unreasonably
withheld); and, provided further, that in no event shall any indemnity under
this subsection&nbsp;7(g)(ii) exceed the net proceeds from the offering
received by the Investor.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Promptly after receipt by an indemnified
party under this Section&nbsp;7(g) of notice of the commencement of any action
(including any governmental action), such indemnified party will, if a claim in
respect thereof is to be made against any indemnifying party under this
Section&nbsp;7(g), deliver to the indemnifying party a written notice of the
commencement thereof and the indemnifying party shall have the right to
participate in, and, to the extent the indemnifying party so desires, jointly
with any other indemnifying party similarly noticed, to assume the defense
thereof with counsel mutually satisfactory to the parties; provided, however,
that an indemnified party (together with all other indemnified parties that may
be represented without conflict by one counsel) shall have the right to retain
one separate counsel, with reasonable fees and expenses to be paid by the
indemnifying party, if representation of such indemnified party by the counsel
retained by the indemnifying party would be inappropriate due to actual or
potential differing interests between such indemnified party and any other
party represented by such counsel in such proceeding.&nbsp; The failure to deliver written notice to the indemnifying party
within a reasonable time of the commencement of any such action, if prejudicial
to its ability to defend such action, shall relieve such indemnifying party of
any liability to the indemnified party under this Section&nbsp;7(g), but the
omission so to deliver written notice to the indemnifying party will not
relieve it of any liability that it may have to any indemnified party otherwise
than under this Section&nbsp;7(g).</font></p>

<page>


<p>&nbsp;</p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; To the extent the indemnification
provided for in this Section&nbsp;7(g) is held by a court of competent
jurisdiction to be unavailable to an indemnified party with respect to any
losses, claims, damages or liabilities referred to herein, the indemnifying
party, in lieu of indemnifying such indemnified party hereunder, shall to the
extent permitted by applicable law contribute to the amount paid or payable by
such indemnified party as a result of such loss, claim, damage or liability in
such proportion as is appropriate to reflect the relative fault of the
indemnifying party on the one hand and of the indemnified party on the other,
in connection with the Violation(s) that resulted in such loss, claim, damage
or liability, as well as any other relevant equitable considerations.&nbsp; The relative fault of the indemnifying party
and of the indemnified party shall be determined by a court of law by reference
to, among other things, whether the untrue or allegedly untrue statement of a
material fact or the omission to state a material fact relates to information supplied
by the indemnifying party or by the indemnified party and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The obligations of the Company and the
Investor under this Section&nbsp;7(g) shall survive the completion of any
offering of Registrable Shares in a registration statement under
Section&nbsp;7, and otherwise.</font></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If a registration statement covering Registrable Shares
pursuant to this Section 7 is not declared effective by the SEC on or before
the date 180 days after the Closing Date (the &quot;Effective Deadline&quot;),
then as relief for the damages suffered therefrom by the Investor (which remedy
shall be exclusive of any other remedies available at law or in equity), the
Company shall, on the Effective Deadline and on each monthly anniversary
following the Effective Deadline until the earlier of (x) the date such
registration statement is declared effective and (y) the first anniversary of
the Closing Date, pay to the Investor an amount, in cash, as liquidated damages
and not as a penalty equal to 2.0% of the purchase price paid by the Investor
pursuant to this Agreement on the Closing Date for Units (the &quot;Purchase
Price&quot;).&nbsp; The payments to which the
Investor may be entitled pursuant to this Section 7(i) are referred to herein
as &quot;Registration Delay Payments.&quot;&nbsp;
Registration Delay Payments shall be paid within five (5) business days
of the Effective Deadline and, as applicable, each monthly anniversary
thereof.&nbsp; If the Company fails to make
Registration Delay Payments in a timely manner, such Registration Delay
Payments shall bear interest at the rate of 8.0% per annum until paid in
full.&nbsp; Notwithstanding anything to the
contrary, the Company shall not be required to make any Registration Delay
Payments if the registration statement is not declared effective prior to the
Effective Deadline as a result of any comments by the SEC, or refusal of the
SEC to accept or review the registration statement for reasons, relating to or
directed at the Investor, any other purchaser of Units of the Company with
shares included in such registration statement (or any affiliate of the
Investor or any such other purchaser) in connection with the registration
statement.</font></p>

<p><a name="_Toc354229277"></a><a name="_Toc354231300"></a><a name="_Toc354315277"></a><a name="_Toc354366472"></a><a name="_Toc354831512"></a><a name="_Toc354831603"></a><a name="_Toc354919817"></a><a name="_Toc354919899"></a><a name="_Toc354991773"></a><a name="_Toc354991855"></a><a name="_Toc355086780"></a><a name="_Toc355703414"></a><a name="_Toc356133658"></a><a name="_Toc356651510"></a><a name="_Toc397684486"></a><a name="_Toc397687339"></a><a name="_Toc397825118"></a><a name="_Toc397951747"></a><a name="_Toc397951806"></a><a name="_Toc398019696"></a><a name="_Toc398095129"></a><a name="_Toc398787988"></a><a name="_Toc398971002"></a><a name="_Toc398974362"></a><a name="_Toc450472999"></a><a name="_Toc450566792"></a><a name="_Toc450802433"></a><a name="_Toc453585582"></a><a name="_Toc453590309"></a><a name="_Toc454188365"></a><a name="_Toc454194657"></a><a name="_Toc454204567"></a><a name="_Toc455228562"></a><a name="_Toc455229502"></a><a name="_Toc455242641"></a><a name="_Toc455313366"></a><a name="_Toc459009196"></a><a name="_Toc459014123"></a><a name="_Toc459014174"></a><a name="_Toc459022749"></a><a name="_Toc459448930"></a><a name="_Toc460319452"></a><a name="_Toc516640787"><b><font size=2>Section
8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Miscellaneous</font></b></a></p>

<dir>
<p><a name="_Toc354229278"></a><a name="_Toc354231301"></a><a name="_Toc354315278"></a><a name="_Toc354366473"></a><a name="_Toc354831513"></a><a name="_Toc354831604"></a><a name="_Toc354919818"></a><a name="_Toc354919900"></a><a name="_Toc354991774"></a><a name="_Toc354991856"></a><a name="_Toc355086781"></a><a name="_Toc355703415"></a><a name="_Toc356133659"></a><a name="_Toc356651511"></a><a name="_Toc397684487"></a><a name="_Toc397687340"></a><a name="_Toc397825119"></a><a name="_Toc397951748"></a><a name="_Toc397951807"></a><a name="_Toc398019697"></a><a name="_Toc398095130"></a><a name="_Toc398787989"></a><a name="_Toc398971003"></a><a name="_Toc398974363"></a><a name="_Toc450473000"></a><a name="_Toc450566793"></a><a name="_Toc450802434"></a><a name="_Toc453585583"></a><a name="_Toc453590310"></a><a name="_Toc454188366"></a><a name="_Toc454194658"></a><a name="_Toc454204568"></a><a name="_Toc455228563"></a><a name="_Toc455229503"></a><a name="_Toc455242642"></a><a name="_Toc455313367"></a><a name="_Toc459009197"></a><a name="_Toc459014124"></a><a name="_Toc459014175"></a><a name="_Toc459022750"></a><a name="_Toc459448931"></a><a name="_Toc460319453"></a><a name="_Toc516640788"><b><font size=2>8.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Survival of
Warranties</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The warranties, representations and
covenants contained in or made pursuant to this Agreement shall survive the
execution and delivery of this Agreement and the Closing.</font></p>

<page>


<p>&nbsp;</p>

<dir>
<p><a name="_Toc354229279"></a><a name="_Toc354231302"></a><a name="_Toc354315279"></a><a name="_Toc354366474"></a><a name="_Toc354831514"></a><a name="_Toc354831605"></a><a name="_Toc354919819"></a><a name="_Toc354919901"></a><a name="_Toc354991775"></a><a name="_Toc354991857"></a><a name="_Toc355086782"></a><a name="_Toc355703416"></a><a name="_Toc356133660"></a><a name="_Toc356651512"></a><a name="_Toc397684488"></a><a name="_Toc397687341"></a><a name="_Toc397825120"></a><a name="_Toc397951749"></a><a name="_Toc397951808"></a><a name="_Toc398019698"></a><a name="_Toc398095131"></a><a name="_Toc398787990"></a><a name="_Toc398971004"></a><a name="_Toc398974364"></a><a name="_Toc450473001"></a><a name="_Toc450566794"></a><a name="_Toc450802435"></a><a name="_Toc453585584"></a><a name="_Toc453590311"></a><a name="_Toc454188367"></a><a name="_Toc454194659"></a><a name="_Toc454204569"></a><a name="_Toc455228564"></a><a name="_Toc455229504"></a><a name="_Toc455242643"></a><a name="_Toc455313368"></a><a name="_Toc459009198"></a><a name="_Toc459014125"></a><a name="_Toc459014176"></a><a name="_Toc459022751"></a><a name="_Toc459448932"></a><a name="_Toc460319454"></a><a name="_Toc516640789"><b><font size=2>8.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Successors
and Assigns</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The terms and conditions of this Agreement
shall inure to the benefit of and be binding upon the respective successors,
permitted assigns, heirs and legal representatives of the parties.&nbsp; Nothing in this Agreement, express or
implied, is intended to confer upon any party other than the parties hereto and
their respective successors and permitted assigns any rights, remedies,
obligations or liabilities under or by reason of this Agreement, except as
expressly provided in this Agreement.&nbsp;
The rights to cause the Company to register shares of Common Stock
pursuant to Section&nbsp;7 may be assigned by the Investor to a transferee or
assignee of such shares that acquires at least 50,000&nbsp;shares
(appropriately adjusted for any stock dividend, stock split, or combination
applicable to the Common Stock), and who assumes the Investor's obligations
hereunder; provided the Company is, within a reasonable time after such
transfer, furnished with written notice of the name and address of such
transferee or assignee and the Registrable Shares with respect to which such
registration rights are being assigned; and, provided, further, that such
assignment shall be effective only if immediately following such transfer the
further disposition of such shares by the transferee or assignee is restricted
under the Act.</font></p>

<dir>
<p><a name="_Toc354229280"></a><a name="_Toc354231303"></a><a name="_Toc354315280"></a><a name="_Toc354366475"></a><a name="_Toc354831515"></a><a name="_Toc354831606"></a><a name="_Toc354919820"></a><a name="_Toc354919902"></a><a name="_Toc354991776"></a><a name="_Toc354991858"></a><a name="_Toc355086783"></a><a name="_Toc355703417"></a><a name="_Toc356133661"></a><a name="_Toc356651513"></a><a name="_Toc397684489"></a><a name="_Toc397687342"></a><a name="_Toc397825121"></a><a name="_Toc397951750"></a><a name="_Toc397951809"></a><a name="_Toc398019699"></a><a name="_Toc398095132"></a><a name="_Toc398787991"></a><a name="_Toc398971005"></a><a name="_Toc398974365"></a><a name="_Toc450473002"></a><a name="_Toc450566795"></a><a name="_Toc450802436"></a><a name="_Toc453585585"></a><a name="_Toc453590312"></a><a name="_Toc454188368"></a><a name="_Toc454194660"></a><a name="_Toc454204570"></a><a name="_Toc455228565"></a><a name="_Toc455229505"></a><a name="_Toc455242644"></a><a name="_Toc455313369"></a><a name="_Toc459009199"></a><a name="_Toc459014126"></a><a name="_Toc459014177"></a><a name="_Toc459022752"></a><a name="_Toc459448933"></a><a name="_Toc460319455"></a><a name="_Toc516640790"><b><font size=2>8.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Governing Law</font></b></a><b><font size=2>;
Jurisdiction; Venue</font></b></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This Agreement shall be governed by and construed under
the laws of the State of Oregon as applied to agreements among persons
domiciled in Oregon entered into and to be performed entirely within the State
of Oregon.&nbsp; The parties irrevocably
consent to the exclusive jurisdiction and venue of the state and federal courts
located in Multnomah County, Oregon in connection with any action relating to
this Agreement or the Securities.</font></p>

<dir>
<p><a name="_Toc354229281"></a><a name="_Toc354231304"></a><a name="_Toc354315281"></a><a name="_Toc354366476"></a><a name="_Toc354831516"></a><a name="_Toc354831607"></a><a name="_Toc354919821"></a><a name="_Toc354919903"></a><a name="_Toc354991777"></a><a name="_Toc354991859"></a><a name="_Toc355086784"></a><a name="_Toc355703418"></a><a name="_Toc356133662"></a><a name="_Toc356651514"></a><a name="_Toc397684490"></a><a name="_Toc397687343"></a><a name="_Toc397825122"></a><a name="_Toc397951751"></a><a name="_Toc397951810"></a><a name="_Toc398019700"></a><a name="_Toc398095133"></a><a name="_Toc398787992"></a><a name="_Toc398971006"></a><a name="_Toc398974366"></a><a name="_Toc450473003"></a><a name="_Toc450566796"></a><a name="_Toc450802437"></a><a name="_Toc453585586"></a><a name="_Toc453590313"></a><a name="_Toc454188369"></a><a name="_Toc454194661"></a><a name="_Toc454204571"></a><a name="_Toc455228566"></a><a name="_Toc455229506"></a><a name="_Toc455242645"></a><a name="_Toc455313370"></a><a name="_Toc459009200"></a><a name="_Toc459014127"></a><a name="_Toc459014178"></a><a name="_Toc459022753"></a><a name="_Toc459448934"></a><a name="_Toc460319456"></a><a name="_Toc516640791"><b><font size=2>8.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Counterparts</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This Agreement may be executed in
two or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.</font></p>

<dir>
<p><a name="_Toc354229282"></a><a name="_Toc354231305"></a><a name="_Toc354315282"></a><a name="_Toc354366477"></a><a name="_Toc354831517"></a><a name="_Toc354831608"></a><a name="_Toc354919822"></a><a name="_Toc354919904"></a><a name="_Toc354991778"></a><a name="_Toc354991860"></a><a name="_Toc355086785"></a><a name="_Toc355703419"></a><a name="_Toc356133663"></a><a name="_Toc356651515"></a><a name="_Toc397684491"></a><a name="_Toc397687344"></a><a name="_Toc397825123"></a><a name="_Toc397951752"></a><a name="_Toc397951811"></a><a name="_Toc398019701"></a><a name="_Toc398095134"></a><a name="_Toc398787993"></a><a name="_Toc398971007"></a><a name="_Toc398974367"></a><a name="_Toc450473004"></a><a name="_Toc450566797"></a><a name="_Toc450802438"></a><a name="_Toc453585587"></a><a name="_Toc453590314"></a><a name="_Toc454188370"></a><a name="_Toc454194662"></a><a name="_Toc454204572"></a><a name="_Toc455228567"></a><a name="_Toc455229507"></a><a name="_Toc455242646"></a><a name="_Toc455313371"></a><a name="_Toc459009201"></a><a name="_Toc459014128"></a><a name="_Toc459014179"></a><a name="_Toc459022754"></a><a name="_Toc459448935"></a><a name="_Toc460319457"></a><a name="_Toc516640792"><b><font size=2>8.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Headings</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The headings used in this Agreement
are used for convenience only and are not to be considered in construing or
interpreting this Agreement.</font></p>

<dir>
<p><a name="_Toc354229283"></a><a name="_Toc354231306"></a><a name="_Toc354315283"></a><a name="_Toc354366478"></a><a name="_Toc354831518"></a><a name="_Toc354831609"></a><a name="_Toc354919823"></a><a name="_Toc354919905"></a><a name="_Toc354991779"></a><a name="_Toc354991861"></a><a name="_Toc355086786"></a><a name="_Toc355703420"></a><a name="_Toc356133664"></a><a name="_Toc356651516"></a><a name="_Toc397684492"></a><a name="_Toc397687345"></a><a name="_Toc397825124"></a><a name="_Toc397951753"></a><a name="_Toc397951812"></a><a name="_Toc398019702"></a><a name="_Toc398095135"></a><a name="_Toc398787994"></a><a name="_Toc398971008"></a><a name="_Toc398974368"></a><a name="_Toc450473005"></a><a name="_Toc450566798"></a><a name="_Toc450802439"></a><a name="_Toc453585588"></a><a name="_Toc453590315"></a><a name="_Toc454188371"></a><a name="_Toc454194663"></a><a name="_Toc454204573"></a><a name="_Toc455228568"></a><a name="_Toc455229508"></a><a name="_Toc455242647"></a><a name="_Toc455313372"></a><a name="_Toc459009202"></a><a name="_Toc459014129"></a><a name="_Toc459014180"></a><a name="_Toc459022755"></a><a name="_Toc459448936"></a><a name="_Toc460319458"></a><a name="_Toc516640793"><b><font size=2>8.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notices</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Unless otherwise provided, any
notice required or permitted under this Agreement shall be given in writing and
shall be deemed effectively given upon personal delivery to the party to be
notified or three days after deposit in the United States Mail, postage
prepaid, registered or certified with return receipt requested and addressed to
the party to be notified, if to the Company, at 7175 NW Evergreen Parkway,
Hillsboro, Oregon 97124, Attention: Chief Financial Officer, or, if to an
Investor, at the address indicated for the Investor on the signature page
hereof, or at such other address as any such party may designate by ten days'
advance written notice to the other parties given in the foregoing manner.</font></p>

<page>


<dir>
<p><a name="_Toc354229284"></a><a name="_Toc354231307"></a><a name="_Toc354315284"></a><a name="_Toc354366479"></a><a name="_Toc354831519"></a><a name="_Toc354831610"></a><a name="_Toc354919824"></a><a name="_Toc354919906"></a><a name="_Toc354991780"></a><a name="_Toc354991862"></a><a name="_Toc355086787"></a><a name="_Toc355703421"></a><a name="_Toc356133665"></a><a name="_Toc356651517"></a><a name="_Toc397684493"></a><a name="_Toc397687346"></a><a name="_Toc397825125"></a><a name="_Toc397951754"></a><a name="_Toc397951813"></a><a name="_Toc398019703"></a><a name="_Toc398095136"></a><a name="_Toc398787995"></a><a name="_Toc398971009"></a><a name="_Toc398974369"></a><a name="_Toc450473006"></a><a name="_Toc450566799"></a><a name="_Toc450802440"></a><a name="_Toc453585589"></a><a name="_Toc453590316"></a><a name="_Toc454188372"></a><a name="_Toc454194664"></a><a name="_Toc454204574"></a><a name="_Toc455228569"></a><a name="_Toc455229509"></a><a name="_Toc455242648"></a><a name="_Toc455313373"></a><a name="_Toc459009203"></a><a name="_Toc459014130"></a><a name="_Toc459014181"></a><a name="_Toc459022756"></a><a name="_Toc459448937"></a><a name="_Toc460319459"></a><a name="_Toc516640794"><b><font size=2>8.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Expenses</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company shall pay all costs and
expenses incurred by it with respect to the preparation and performance of this
Agreement.&nbsp; The Investor shall pay all
costs and expenses incurred thereby with respect to the preparation and performance
of this Agreement.</font></p>

<dir>
<p><a name="_Toc354229286"></a><a name="_Toc354231309"></a><a name="_Toc354315286"></a><a name="_Toc354366481"></a><a name="_Toc354831521"></a><a name="_Toc354831612"></a><a name="_Toc354919826"></a><a name="_Toc354919908"></a><a name="_Toc354991782"></a><a name="_Toc354991864"></a><a name="_Toc355086789"></a><a name="_Toc355703423"></a><a name="_Toc356133667"></a><a name="_Toc356651519"></a><a name="_Toc397684496"></a><a name="_Toc397687349"></a><a name="_Toc397825127"></a><a name="_Toc397951756"></a><a name="_Toc397951815"></a><a name="_Toc398019705"></a><a name="_Toc398095138"></a><a name="_Toc398787997"></a><a name="_Toc398971011"></a><a name="_Toc398974371"></a><a name="_Toc450473008"></a><a name="_Toc450566801"></a><a name="_Toc450802442"></a><a name="_Toc453585591"></a><a name="_Toc453590318"></a><a name="_Toc454188374"></a><a name="_Toc454194666"></a><a name="_Toc454204576"></a><a name="_Toc455228571"></a><a name="_Toc455229511"></a><a name="_Toc455242650"></a><a name="_Toc455313375"></a><a name="_Toc459009204"></a><a name="_Toc459014131"></a><a name="_Toc459014182"></a><a name="_Toc459022757"></a><a name="_Toc459448938"></a><a name="_Toc460319460"></a><a name="_Toc516640795"><b><font size=2>8.8&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Amendments
and Waivers</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This Agreement may be amended and
the observance of any term of this Agreement may be waived (either generally or
in a particular instance and either retroactively or prospectively) only with
the written consent of the Company and the Investor.</font></p>

<dir>
<p><a name="_Toc354229287"></a><a name="_Toc354231310"></a><a name="_Toc354315287"></a><a name="_Toc354366482"></a><a name="_Toc354831522"></a><a name="_Toc354831613"></a><a name="_Toc354919827"></a><a name="_Toc354919909"></a><a name="_Toc354991783"></a><a name="_Toc354991865"></a><a name="_Toc355086790"></a><a name="_Toc355703424"></a><a name="_Toc356133668"></a><a name="_Toc356651520"></a><a name="_Toc397684497"></a><a name="_Toc397687350"></a><a name="_Toc397825128"></a><a name="_Toc397951757"></a><a name="_Toc397951816"></a><a name="_Toc398019706"></a><a name="_Toc398095139"></a><a name="_Toc398787998"></a><a name="_Toc398971012"></a><a name="_Toc398974372"></a><a name="_Toc450473009"></a><a name="_Toc450566802"></a><a name="_Toc450802443"></a><a name="_Toc453585592"></a><a name="_Toc453590319"></a><a name="_Toc454188375"></a><a name="_Toc454194667"></a><a name="_Toc454204577"></a><a name="_Toc455228572"></a><a name="_Toc455229512"></a><a name="_Toc455242651"></a><a name="_Toc455313376"></a><a name="_Toc459009205"></a><a name="_Toc459014132"></a><a name="_Toc459014183"></a><a name="_Toc459022758"></a><a name="_Toc459448939"></a><a name="_Toc460319461"></a><a name="_Toc516640796"><b><font size=2>8.9&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Severability</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If one or more provisions of this
Agreement is held to be unenforceable under applicable law, such provision
shall be excluded from this Agreement, and the balance of this Agreement shall
be interpreted as if such provision were so excluded and shall be enforceable
in accordance with its terms.</font></p>

<dir>
<p><a name="_Toc354229288"></a><a name="_Toc354231311"></a><a name="_Toc354315288"></a><a name="_Toc354366483"></a><a name="_Toc354831523"></a><a name="_Toc354831614"></a><a name="_Toc354919828"></a><a name="_Toc354919910"></a><a name="_Toc354991784"></a><a name="_Toc354991866"></a><a name="_Toc355086791"></a><a name="_Toc355703425"></a><a name="_Toc356133669"></a><a name="_Toc356651521"></a><a name="_Toc397684498"></a><a name="_Toc397687351"></a><a name="_Toc397825129"></a><a name="_Toc397951758"></a><a name="_Toc397951817"></a><a name="_Toc398019707"></a><a name="_Toc398095140"></a><a name="_Toc398787999"></a><a name="_Toc398971013"></a><a name="_Toc398974373"></a><a name="_Toc450473010"></a><a name="_Toc450566803"></a><a name="_Toc450802444"></a><a name="_Toc453585593"></a><a name="_Toc453590320"></a><a name="_Toc454188376"></a><a name="_Toc454194668"></a><a name="_Toc454204578"></a><a name="_Toc455228573"></a><a name="_Toc455229513"></a><a name="_Toc455242652"></a><a name="_Toc455313377"></a><a name="_Toc459009206"></a><a name="_Toc459014133"></a><a name="_Toc459014184"></a><a name="_Toc459022759"></a><a name="_Toc459448940"></a><a name="_Toc460319462"></a><a name="_Toc516640797"><b><font size=2>8.10&nbsp;&nbsp;&nbsp;&nbsp; Entire
Agreement</font></b></a></p>
</dir>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This Agreement constitutes the full
and entire understanding and agreement between the parties with respect to the
subject matter hereof, and supersedes all prior agreements with respect to the
subject matter hereof, other than any confidentiality agreements entered into
in connection with the transactions contemplated hereby.</font></p>

<dir>
<p><b><font size=2>8.11&nbsp;&nbsp;&nbsp;&nbsp; Limitation on Short Sales</font></b></p>
</dir>

<p><font size=2>The
Investor agrees that as long as the Investor or any of its affiliates holds or
beneficially owns any Securities issued in connection with this Agreement,
neither the Investor nor any of the Investor's affiliates will enter into any
Short Sales (as defined below).&nbsp; For
purposes hereof, a &quot;Short Sale&quot; by the Investor or any affiliate
thereof shall mean a short sale of Common Stock or any equivalent derivative by
the Investor or any affiliate thereof that is made at a time when there is no
equivalent offsetting long position in the Company's Common Stock held by the
Investor or such affiliate involved in such short sale.&nbsp; For purposes of determining whether there is
an equivalent offsetting long position in the Common Stock held by the Investor
or any such affiliate, shares that could be received from the exercises of
Warrants issued hereunder shall be deemed to be held long by the Investor and
affiliates thereof.</font></p>

</div>

<page>


<div>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; IN WITNESS WHEREOF, the parties
have duly executed this Unit Purchase Agreement as of the date first above
written.</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="90%">
 <tr>
  <td width="50%" valign=top>&nbsp;</td>
  <td width="50%" valign=top><font   size=2>CENTERSPAN
  COMMUNICATIONS CORPORATION</font></td>
 </tr>
 <tr>
  <td width="50%" valign=top>&nbsp;</td>
  <td width="50%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="50%" valign=top>&nbsp;</td>
  <td width="50%" valign=top><font   size=2>By:&nbsp; __________________________________________</font></td>
 </tr>
 <tr>
  <td width="50%" valign=top>&nbsp;</td>
  <td width="50%" valign=top><font   size=2>Name:</font></td>
 </tr>
 <tr>
  <td width="50%" valign=top>&nbsp;</td>
  <td width="50%" valign=top><font   size=2>Title:</font></td>
 </tr>
 <tr>
  <td width="50%" valign=top>&nbsp;</td>
  <td width="50%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="50%" valign=top>&nbsp;</td>
  <td width="50%" valign=top><b><font size=2>INVESTOR:</font></b></td>
 </tr>
 <tr>
  <td width="50%" valign=top>&nbsp;</td>
  <td width="50%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="50%" valign=top>&nbsp;</td>
  <td width="50%" valign=top><font   size=2>[NAME]</font></td>
 </tr>
 <tr>
  <td width="50%" valign=top>&nbsp;</td>
  <td width="50%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="50%" valign=top>&nbsp;</td>
  <td width="50%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="50%" valign=top>&nbsp;</td>
  <td width="50%" valign=top><font   size=2>By:___________________________________________</font></td>
 </tr>
 <tr>
  <td width="50%" valign=top>&nbsp;</td>
  <td width="50%" valign=top><font   size=2>Name:&nbsp; </font></td>
 </tr>
 <tr>
  <td width="50%" valign=top>&nbsp;</td>
  <td width="50%" valign=top><font   size=2>Title:</font></td>
 </tr>
 <tr>
  <td width="50%" valign=top>&nbsp;</td>
  <td width="50%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="50%" valign=top>&nbsp;</td>
  <td width="50%" valign=top><font   size=2>Address:
  ____________________</font></td>
 </tr>
 <tr>
  <td width="50%" valign=top>&nbsp;</td>
  <td width="50%" valign=top><font   size=2>____________________________</font></td>
 </tr>
 <tr>
  <td width="50%" valign=top>&nbsp;</td>
  <td width="50%" valign=top><font   size=2>____________________________</font></td>
 </tr>
 <tr>
  <td width="50%" valign=top>&nbsp;</td>
  <td width="50%" valign=top>&nbsp;</td>
 </tr>
 <tr>
  <td width="50%" valign=top>&nbsp;</td>
  <td width="50%" valign=top><font   size=2>Investor's
  State of Residency:&nbsp; ________________</font></td>
 </tr>
 <tr>
  <td width="50%" valign=top>&nbsp;</td>
  <td width="50%" valign=top>&nbsp;</td>
 </tr>
</table>

</div>

<page>


<div>

<p align=center><b><font size=2>EXHIBIT
A</font></b></p>

<p align=center><b><font size=2>FORM OF
WARRANT</font></b></p>

</div>

<page>


<div>

<p align=center><b><font size=2>EXHIBIT
B</font></b></p>

<p align=center><b><font size=2>FORM OF
LEGAL OPINION</font></b></p>

</div>

<page>


<div>

<p align=center><b><font size=2>SCHEDULE
A</font></b></p>

<p align=center><b><font size=2>SCHEDULE
OF EXCEPTIONS</font></b></p>

<p><font size=2>Section 3.7:&nbsp; On May 17, 2001, Ingram Micro, Inc. filed a
lawsuit in the United States District Court for Oregon relating to a dispute
regarding Ingram's ability to return Company merchandise for which it acted as
a distributor.&nbsp; The amount of the claim
is approximately $450,000 plus pre-judgment interest.</font></p>

<p><font size=2>Section 3.8:&nbsp; The Company anticipates issuing common stock
warrants to certain finders in connection with the transactions contemplated by
the Unit Purchase Agreements it is entering into.</font></p>

<page>


<p align=center><b><font size=2>Schedule to Exhibit 10.2</font></b></p>

<p><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All Unit Purchase Agreements are not required to be
filed because each of them is substantially identical to Exhibit 10.2, and the
material details by which each such Unit Purchase Agreement differs from
Exhibit 10.2 are as follows:</font></p>

<p><font size=2>&nbsp;</font></p>

<table border=0 cellspacing=0 cellpadding=0 width="95%">
 <tr>
  <td width="46%" valign=bottom><b><font size=2>Investor</font></b></td>
  <td  align=center width="9%" valign=bottom><b><font size=2>Date of Purchase</font></b></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="10%" valign=bottom><b><font size=2>Number of Units</font></b></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="9%" valign=bottom><b><font size=2>Price Per Unit</font></b></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
  <td  align=center width="15%" valign=bottom><b><font size=2>Aggregate Purchase Price</font></b></td>
  <td  align=center width="2%" valign=bottom>&nbsp;</td>
 </tr>
 <tr>
  <td  align=center width="100%" colspan=9 valign=bottom><div align=right><b><font size=2><hr size=1 width="100%" noshade color=black align=right></font></b></div></td>
 </tr>
 <tr>
  <td width="46%" valign=bottom><font size=2>AIG
  SoundShore Holdings Ltd.</font></td>
  <td  align=center width="9%" valign=bottom><font size=2>06/15/01</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>12,500</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=center width="9%" valign=bottom><font size=2>$11.21</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" valign=bottom><font size=2>$140,125.00</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="46%" valign=bottom><font size=2>AIG
  SoundShore Opportunity Holding Fund Ltd.</font></td>
  <td  align=center width="9%" valign=bottom><font size=2>06/15/01</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>12,500</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=center width="9%" valign=bottom><font size=2>$11.21</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" valign=bottom><font size=2>$140,125.00</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="46%" valign=bottom><font size=2>AIG
  SoundShore Private Investors Holding Fund Ltd.</font></td>
  <td  align=center width="9%" valign=bottom><font size=2>06/15/01</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>12,500</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=center width="9%" valign=bottom><font size=2>$11.21</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" valign=bottom><font size=2>$140,125.00</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="46%" valign=bottom><font size=2>AIG
  SoundShore Strategic Holding Fund Ltd.</font></td>
  <td  align=center width="9%" valign=bottom><font size=2>06/15/01</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>12,500</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=center width="9%" valign=bottom><font size=2>$11.21</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" valign=bottom><font size=2>$140,125.00</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="46%" valign=bottom><font size=2>Baltic
  Securities Limited</font></td>
  <td  align=center width="9%" valign=bottom><font size=2>06/22/01</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>66,905</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=center width="9%" valign=bottom><font size=2>$11.21</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" valign=bottom><font size=2>$750,000.00</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="46%" valign=bottom><font size=2>Kellogg,
  Peter R. <sup>(1)</sup></font></td>
  <td  align=center width="9%" valign=bottom><font size=2>06/20/01</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>140,050</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=center width="9%" valign=bottom><font size=2>$11.21</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" valign=bottom><font size=2>$1,569,960.50</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="46%" valign=bottom><font size=2>Sawtooth
  Partners L.P.</font></td>
  <td  align=center width="9%" valign=bottom><font size=2>06/11/01</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>89,207</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=center width="9%" valign=bottom><font size=2>$11.21</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" valign=bottom><font size=2>$1,000,010.47</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="46%" valign=bottom><font size=2>Steelhead
  Investments, Ltd.</font></td>
  <td  align=center width="9%" valign=bottom><font size=2>06/15/01</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>89,206</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=center width="9%" valign=bottom><font size=2>$11.21</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" valign=bottom><font size=2>$1,000,000.00</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
 <tr>
  <td width="46%" valign=bottom><font size=2>Strong
  River Investments Inc.</font></td>
  <td  align=center width="9%" valign=bottom><font size=2>06/15/01</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="10%" valign=bottom><font size=2>133,809</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=center width="9%" valign=bottom><font size=2>$11.21</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
  <td  align=right width="15%" valign=bottom><font size=2>$1,500,000.00</font></td>
  <td width="2%" valign=bottom><font size=2>&nbsp;</font></td>
 </tr>
</table>

<p><font size=2>&nbsp;</font></p>





<hr size=1 width="25%" noshade color=black align=left>



<table border=0 cellspacing=0 cellpadding=0 width="100%">
 <tr>
  <td width=40 valign=top>&nbsp;</td>
  <td width=37 valign=top><font   size=2>(1)</font></td>
  <td width=698 valign=top><font   size=2>Section
  1 of the Unit Purchase Agreement with Peter R. Kellogg also includes the
  following provision at the end: &#147;provided, however, that if, immediately
  following such issuance and sale, the amount (the &#147;Kellogg Amount&#148;) of (a)
  all shares of Common Stock then held by the Investor plus (b) all shares (the
  &#147;Kellogg Conversion Shares&#148;) of Common Stock issuable upon the conversion or
  exercise of securities of the Company held by the Investor that are
  convertible into or exercisable for shares of Common Stock would represent
  over 24.6% of the amount (the &#147;Adjusted Outstanding Amount&#148;) of (i) the
  number of shares of the Company&#146;s Common Stock then outstanding plus (ii) all
  Kellogg Conversion Shares, the number of Units issued and sold to the
  Investor hereunder (and the aggregate purchase price therefor) shall be
  reduced to such extent, but only to such extent that, immediately after such
  issuance and sale, the Kellogg Amount shall not equal or exceed 24.6% of the
  Addjusted Outstanding Amount.&#148;</font></td>
 </tr>
 <tr>
  <td width=40 valign=top>&nbsp;</td>
  <td width=37 valign=top>&nbsp;</td>
  <td width=698 valign=top>&nbsp;</td>
 </tr>
</table>

<dir>
<p><font size=2>&nbsp;</font></p>
</dir>

</div>

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