Telanetix,Inc
EXHIBIT 10.1 - SECURITIES EXCHANGE AGREEMENT
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<TYPE>EX-10
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<DESCRIPTION>EXHIBIT 10.1 - SECURITIES EXCHANGE AGREEMENT
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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="right"><b><font style="FONT-SIZE: 11pt">EXHIBIT 10.1</font></b></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><b><font style="FONT-SIZE: 11pt">SECURITIES EXCHANGE AGREEMENT</font></b></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt">This Securities Exchange Agreement (this "</font><u><font style="FONT-SIZE: 11pt">Agreement</font></u><font style="FONT-SIZE: 11pt">") is dated as of June 30, 2008, between Telanetix, Inc., a Delaware corporation (the "</font><u><font style="FONT-SIZE: 11pt">Company</font></u><font style="FONT-SIZE: 11pt">"), and each purchaser identified on the
            signature pages hereto (each, including its successors and assigns, a "</font><u><font style="FONT-SIZE: 11pt">Purchaser</font></u><font style="FONT-SIZE: 11pt">" and collectively the "</font><u><font style="FONT-SIZE: 11pt">Purchasers</font></u><font style="FONT-SIZE: 11pt">").</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt">WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(2) of the Securities Act of 1933, as amended (the "</font><u><font style="FONT-SIZE: 11pt">Securities Act</font></u><font style="FONT-SIZE: 11pt">"), and Rule 506 promulgated thereunder, the Company desires to issue and sell to each Purchaser, and each
            Purchaser, severally and not jointly, desires to purchase from the Company, securities of the Company as more fully described in this Agreement.</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt">NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the Company and each Purchaser agree as follows:</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt"><b><font style="FONT-SIZE: 11pt">ARTICLE I.&nbsp;</font></b></font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt"><b><font style="FONT-SIZE: 11pt">DEFINITIONS</font></b></font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">1.1</font> <u><font style="FONT-SIZE: 11pt">Definitions</font></u>. In addition to the terms defined elsewhere in this Agreement: (a) capitalized terms that are not otherwise defined herein have the meanings given to such terms in the Debentures (as defined herein), and (b) the following terms
            have the meanings set forth in this Section 1.1</font></p>

            <p dir="ltr" align="center"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">Action</font></u><font style="FONT-SIZE: 11pt">" shall have the meaning ascribed to such term in Section</font> <font style="FONT-SIZE: 11pt">3.1(j)</font> <font style="FONT-SIZE: 11pt">.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"<u>Affiliate</u>" means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 405 under the Securities Act.<a name="_Toc430524857"></a>
            <a name="_Toc449254725">With respect to a Purchaser, any investment fund or managed account that is managed on a discretionary basis by the same investment manager as such Purchaser will be deemed to be an Affiliate of such Purchaser.</a></font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"<u>Board of Directors</u>" means the board of directors of the Company.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"<u>Business Day</u>" means any day except Saturday, Sunday, any day which shall be a federal legal holiday in the United States or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"<u>Closing</u>" means the closing of the purchase and sale of the Securities pursuant to Section</font> <font style="FONT-SIZE: 11pt">2.1</font> <font style="FONT-SIZE: 11pt">.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"<u>Closing Date</u>" means the Trading Day when all of the Transaction Documents have been executed and delivered by the applicable parties thereto, and all conditions precedent to the Company's obligations to deliver the Debentures have been satisfied or waived.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"<u>Commission</u>" means the Securities and Exchange Commission.</font></font></p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"<u>Common Stock</u>" means the common stock of the Company, par value $0.0001 per share, and any other class of securities into which such securities may hereafter be reclassified or changed into.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"<u>Common Stock Equivalents</u>" means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, rights, options, warrants or other instrument that is at any time convertible into
            or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"<u>Company Counsel</u>" means Duane Morris LLP, with offices located at 101 West Broadway, Suite 900, San Diego, California, 92101.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"<u>Conversion Price</u>" shall have the meaning ascribed to such term in the Debentures.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"<u>Debentures</u>" means the Amended and Restated Senior Secured Convertible Debentures due, subject to the terms therein, June 30, 2014, issued by the Company to the Purchasers hereunder in exchange for the Old Debentures and the Preferred Stock, as amended, supplemented and modified from time to time,
            in the form of</font> <u><font style="FONT-SIZE: 11pt">Exhibit A</font></u> <font style="FONT-SIZE: 11pt">attached hereto.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">Disclosure Schedules</font></u><font style="FONT-SIZE: 11pt">" shall have the meaning ascribed to such term in Section 3.1.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">Effective Date</font></u><font style="FONT-SIZE: 11pt">" means the date on which the Underlying Shares may be sold under Rule 144 without the requirements for the Company to be in compliance with Rule 144(c)(1) and otherwise without restrictions or limitations
            pursuant to Rule 144 as determined by the counsel to the Company pursuant to a written opinion letter to such effect, addressed and acceptable to the Transfer Agent and the Purchasers.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">Evaluation Date</font></u><font style="FONT-SIZE: 11pt">" shall have the meaning ascribed to such term in Section 3.1(r).</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">Exchange Act</font></u><font style="FONT-SIZE: 11pt">" means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">Exempt Issuance</font></u><font style="FONT-SIZE: 11pt">" means the issuance of (a) shares of Common Stock or options to employees, officers or directors of the Company pursuant to any stock or option plan in effect on the date of this Agreement or hereafter duly
            adopted for such purpose by a majority of the non-employee members of the Board of Directors of the Company or a majority of the members of a committee of non-employee directors established, (b) securities upon the exercise or exchange of or conversion of any Securities issued hereunder and/or other securities exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding on the date of this Agreement, provided that such securities have not been
            amended since the date of this Agreement to increase the number of such securities or to decrease the exercise, exchange or conversion price of such securities, (c) securities issued pursuant to acquisitions or strategic transactions approved by a majority of the disinterested directors of the Company, provided that any such issuance shall only be to a Person which is, itself or through its subsidiaries, an operating company in a business synergistic with the business of the Company
            and in which the Company receives benefits in addition to the investment of funds, but shall not include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities, and (d) shares of Common Stock issued in lieu of the cash payment of principal or accrued interest pursuant to the terms of the Debenture.</font></font></p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">FWS</font></u><font style="FONT-SIZE: 11pt">" means Feldman Weinstein &amp; Smith LLP, with offices located at 420 Lexington Avenue, Suite 2620, New York, New York 10170-0002.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">GAAP</font></u><font style="FONT-SIZE: 11pt">" shall have the meaning ascribed to such term in Section 3.1(h).</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">Indebtedness</font></u><font style="FONT-SIZE: 11pt">" shall have the meaning ascribed to such term in Section 3.1(aa).</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">Intellectual Property Rights</font></u><font style="FONT-SIZE: 11pt">" shall have the meaning ascribed to such term in Section 3.1(o).</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">Legend Removal Date</font></u><font style="FONT-SIZE: 11pt">" shall have the meaning ascribed to such term in Section 4.1(c).</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">Liens</font></u><font style="FONT-SIZE: 11pt">" means a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">Material Adverse Effect</font></u><font style="FONT-SIZE: 11pt">" shall have the meaning assigned to such term in Section 3.1(b).</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">Material Permits</font></u><font style="FONT-SIZE: 11pt">" shall have the meaning ascribed to such term in Section 3.1(m).</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">Maximum Rate</font></u><font style="FONT-SIZE: 11pt">" shall have the meaning ascribed to such term in Section 5.17.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">Old Debentures</font></u><font style="FONT-SIZE: 11pt">" means the debentures issued by the Company to the Purchasers, as the case may be, on each of December 28, 2006 (the "</font><u><font style="FONT-SIZE: 11pt">December 2006
            Debentures</font></u><font style="FONT-SIZE: 11pt">"), August 30, 2007 (the "</font><u><font style="FONT-SIZE: 11pt">August 2007 Debentures</font></u><font style="FONT-SIZE: 11pt">") and March 27, 2008 (the "</font><u><font style="FONT-SIZE: 11pt">March 2008 Debenture</font></u><font style="FONT-SIZE: 11pt">").</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">Participation Maximum</font></u><font style="FONT-SIZE: 11pt">" shall have the meaning ascribed to such term in Section 4.12.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">Person</font></u><font style="FONT-SIZE: 11pt">" means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or
            other entity of any kind.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">Pre-Notice</font></u><font style="FONT-SIZE: 11pt">" shall have the meaning ascribed to such term in Section 4.12.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">Preferred Stock</font></u><font style="FONT-SIZE: 11pt">" means the Company's Series A Convertible Preferred Stock.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">Proceeding</font></u><font style="FONT-SIZE: 11pt">" means an action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">Purchaser Party</font></u><font style="FONT-SIZE: 11pt">" shall have the meaning ascribed to such term in Section 4.10.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">Required Approvals</font></u><font style="FONT-SIZE: 11pt">" shall have the meaning ascribed to such term in Section 3.1(e).</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">Required Minimum</font></u><font style="FONT-SIZE: 11pt">" means, as of any date, the maximum aggregate number of shares of Common Stock then issued or potentially issuable in the future pursuant to the Transaction Documents, including any Underlying Shares issuable
            upon exercise or conversion in full of all Debentures (including Underlying Shares issuable as payment of interest), ignoring any conversion or exercise limits set forth therein, and assuming that the Conversion Price is at all times on and after the date of determination 75% of the then Conversion Price on the Trading Day immediately prior to the date of determination.</font></font></p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">Rule 144</font></u><font style="FONT-SIZE: 11pt">" means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such Rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially
            the same effect as such Rule.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">SEC Reports</font></u><font style="FONT-SIZE: 11pt">" shall have the meaning ascribed to such term in Section 3.1(h).</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">Securities</font></u><font style="FONT-SIZE: 11pt">" means the Debentures and the Underlying Shares.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">Securities Act</font></u><font style="FONT-SIZE: 11pt">" means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"</font><u><font style="FONT-SIZE: 11pt">Security Agreement</font></u><font style="FONT-SIZE: 11pt">" means the Amended and Restated Security Agreement, dated the date hereof, among the Company and the Purchasers, in the form of</font> <u><font style="FONT-SIZE: 11pt">Exhibit B</font></u>
            <font style="FONT-SIZE: 11pt">attached hereto.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"<u>Security Documents</u>" means the Security Agreement, the Subsidiary Guarantees and any other documents and filing required thereunder in order to grant the Purchasers a first priority security interest in the assets of the Company and the Subsidiaries as provided in the Security Agreement, including
            all UCC-1 filing receipts.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"<u>Short Sales</u>" means all "short sales" as defined in Rule 200 of Regulation SHO under the Exchange Act (but shall not be deemed to include the location and/or reservation of borrowable shares of Common Stock).</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000">"</font><u><font style="FONT-SIZE: 11pt; COLOR: #000000">Subsequent Financing</font></u><font style="FONT-SIZE: 11pt; COLOR: #000000">" shall have the meaning ascribed to such term in Section 4.12.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt">"<u><font style="FONT-SIZE: 11pt">Subsequent Financing Notice</font></u><font style="FONT-SIZE: 11pt">" shall have the meaning ascribed to such term in Section 4.12.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"<u>Subsidiary</u>" means any subsidiary of the Company as set forth on</font> <u><font style="FONT-SIZE: 11pt">Schedule 3.1(a)</font></u> <font style="FONT-SIZE: 11pt">and shall, where applicable, also include any direct or indirect subsidiary of the Company formed or acquired after the date
            hereof.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"<u>Subsidiary Guarantee</u>" means the Amended and Restated Subsidiary Guarantee, dated the date hereof, by each Subsidiary in favor of the Purchasers, in the form of</font> <u><font style="FONT-SIZE: 11pt">Exhibit C</font></u> <font style="FONT-SIZE: 11pt">attached hereto.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"<u>Trading Day</u>" means a day on which the New York Stock Exchange is open for trading.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"<u>Trading Market</u>" means the following markets or exchanges on which the Common Stock is listed or quoted for trading on the date in question: the American Stock Exchange, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange or the OTC
            Bulletin Board.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"<u>Transaction Documents</u>" means this Agreement, the Debentures, the Security Agreement, the Subsidiary Guarantee, all schedules and exhibits thereto and hereto and any other documents or agreements executed in connection with the transactions contemplated hereunder.</font></font></p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"<u>Transfer Agent</u>" means Empire Stock Transfer, with a mailing address of 7251 West Lake Mead Blvd., Suite 300, Las Vegas, Nevada, 89128 and a facsimile number of (702) 974-1444, and any successor transfer agent of the Company.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"<u>Underlying Shares</u>" means the shares of Common Stock issued and issuable upon conversion or redemption of the Debentures and issued and issuable in lieu of the cash payment of interest on the Debentures in accordance with the terms of the Debentures.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">"<u>Variable Rate Transaction</u>"</font> <font style="FONT-SIZE: 11pt; COLOR: #000000">shall have the meaning ascribed to such term in Section 4.13(b).</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt">"<u><font style="FONT-SIZE: 11pt">VWAP</font></u><font style="FONT-SIZE: 11pt">" means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest
            preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time); (b) if the Common Stock is not then quoted for trading on a Trading Market and if prices for the Common Stock are then reported in the "Pink Sheets" published by Pink Sheets, LLC (or a similar organization or agency succeeding to its functions of reporting prices), the
            most recent bid price per share of the Common Stock so reported; or (c) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Purchasers of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company.</font><br>
            <br>
            <br>
            </font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt"><b><font style="FONT-SIZE: 11pt">ARTICLE II.&nbsp;</font></b></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt"><b><font style="FONT-SIZE: 11pt">PURCHASE AND SALE</font></b></font></p>
            <a name="_Ref199305208"></a>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">2.1</font> <u><font style="FONT-SIZE: 11pt">Closing</font></u>. On the Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent with the execution and delivery of this Agreement by the parties hereto, the Company agrees to issue and deliver to each
            Purchaser, a Debenture in the principal amount set forth on Schedule 2.1 hereto for such Purchaser in exchange for the retirement of the Old Debentures and redemption of the Preferred Stock, in each case, held by such Purchaser. Upon satisfaction of the conditions set forth in Sections 2.2 and 2.3, the Closing shall occur at the offices of FWS or such other location as the parties shall mutually agree.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">2.2</font> <u>Deliveries</u></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'TIMES NEW ROMAN'">(a)</font> <font style="FONT-SIZE: 11pt">On the Closing Date, the Company shall deliver or cause to be delivered to each Purchaser the following:</font></font></p>

            <blockquote dir="ltr" style="MARGIN-RIGHT: 0px">
                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">(i)&nbsp;this Agreement duly executed by the Company;</font></font></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">(ii) a legal opinion of Company Counsel, substantially in the form of <u>Exhibit D</u> attached hereto;</font></font></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">(iii) a Debenture with a principal amount equal to the amount set forth for such Purchaser on Schedule 2.1 for its Preferred Stock, December 2006 Debentures and August 2007 Debentures, registered in the name of such Purchaser;</font></font></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">(iv)&nbsp;a Debenture (the "<u>March 2008 Replacement Debenture</u>") with a principal amount equal to the amount set forth for such Purchaser on Schedule 2.1 for its March 2008 Debenture, registered in the name of such Purchaser; and</font></font></p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

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                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

                <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">(v) the Security Agreement, duly executed by the Company and each Subsidiary, along with all of the Security Documents, including the Subsidiary Guarantee, duly executed by the parties thereto.&nbsp;</font></font></p>
            </blockquote>

            <p></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'TIMES NEW ROMAN'">(b)</font> On the Closing Date, each Purchaser shall deliver or cause to be delivered to the Company the following:</font></p>

            <p></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(i) this Agreement duly executed by such Purchaser; and</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(ii)</font> the Security Agreement duly executed by such Purchaser.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">2.3</font> <u><font style="FONT-SIZE: 11pt">Closing Conditions</font></u>.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'TIMES NEW ROMAN'">(a)</font> <font style="FONT-SIZE: 11pt">The obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(i)</font> <font style="FONT-SIZE: 11pt">the accuracy in all material respects when made and on the Closing Date of the representations and warranties of the Purchasers contained herein;</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in; TEXT-INDENT: 36px">(ii) all obligations, covenants and agreements of each Purchaser required to be performed at or prior to the Closing Date shall have been performed; and</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in; TEXT-INDENT: 36px">(iii) the delivery by each Purchaser of the items set forth in Section 2.2(b) of this Agreement.</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 1in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'TIMES NEW ROMAN'">(b)</font> <font style="FONT-SIZE: 11pt">The respective obligations of the Purchasers hereunder in connection with the Closing are subject to the following conditions being met:</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt">the accuracy in all material respects when made and on the Closing Date of the representations and warranties of the Company contained herein;</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt">all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been performed;</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt">the delivery by the Company of the items set forth in Section 2.2(a) of this Agreement;</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt">there shall have been no Material Adverse Effect with respect to the Company since the date hereof; and</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 1in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt">from the date hereof to the Closing Date, trading in the Common Stock shall not have been suspended by the Commission or the Company's principal Trading Market (except for any suspension of trading of limited duration agreed to by the Company, which suspension shall be terminated prior to the Closing), and, at any time prior to the
            Closing Date, trading in securities generally as reported by Bloomberg L.P. shall not have been suspended or limited, or minimum prices shall not have been established on securities whose trades are reported by such service, or on any Trading Market, nor shall a banking moratorium have been declared either by the United States or New York State authorities nor shall there have occurred any material outbreak or escalation of hostilities or other national or international calamity of
            such magnitude in its effect on, or any material adverse change in, any financial market which, in each case, in the reasonable judgment of each Purchaser, makes it impracticable or inadvisable to purchase the Securities at the Closing.<br>
            </font></p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt"><b><font style="FONT-SIZE: 11pt">ARTICLE III.</font></b></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 0in" align="center"><font style="FONT-SIZE: 11pt"><b><font style="FONT-SIZE: 11pt">REPRESENTATIONS AND WARRANTIES</font></b></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 0in" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><u><font style="FONT-SIZE: 11pt; COLOR: #000000">Representations and Warranties of the Company</font></u> <font style="FONT-SIZE: 11pt">The Company hereby makes the following representations and warranties to each Purchaser:</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(a)</font> <u><font style="FONT-SIZE: 11pt">Subsidiaries</font></u>. All of the direct and indirect subsidiaries of the Company are set forth on <u>Schedule 3.1(a)</u>. Except as set forth on <u>Schedule 3.1(a)</u>, the Company owns, directly or indirectly, all of the capital
            stock or other equity interests of each Subsidiary free and clear of any Liens, and all of the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities. If the Company has no subsidiaries, all other references to the Subsidiaries or any of them in the Transaction Documents shall be disregarded.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">(b) <u>Organization and Qualification</u>. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization (as applicable), with the requisite power and authority to own and use its properties and assets and to
            carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation or default of any of the provisions of its respective certificate or articles of incorporation, bylaws or other organizational or charter documents. Each of the Company and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it
            makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could not have or reasonably be expected to result in (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on
            the Company's ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a "<u>Material Adverse Effect</u>") and no Proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">(c) <u>Authorization; Enforcement</u>. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by each of the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of each of the Transaction Documents by the Company and the
            consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, the Board of Directors or the Company's stockholders in connection therewith other than in connection with the Required Approvals. Each Transaction Document has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof and
            thereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar
            as indemnification and contribution provisions may be limited by applicable law.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">(d)&nbsp;<u>No Conflicts</u>. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the Company of the other transactions contemplated hereby and thereby do not and will not: (i) conflict with or violate any provision of the Company's or any Subsidiary's certificate or articles of incorporation,
            bylaws or other organizational or charter documents, or (ii) except as set forth on <u>Schedule 3.1(d)</u>, conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any
            agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which
            the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as could not have or reasonably be expected to result in a Material Adverse Effect.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">(e) <u>Filings, Consents and Approvals</u>. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance by the Company
            of the Transaction Documents, other than (i) filings required pursuant to Section 4.6, (ii) the notice and/or application(s) to each applicable Trading Market for the issuance and sale of the Securities and the listing of the Underlying Shares for trading thereon in the time and manner required thereby (iii) the filing of Form D with the Commission and such filings as are required to be made under applicable state securities laws, (iv) and notices described on <u>Schedule 3.1(e)</u>
            (collectively, the "<u>Required Approvals</u>").</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">(f)&nbsp;<u>Issuance of the Securities</u>. The Securities are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company other than restrictions on transfer provided for in the Transaction
            Documents. The Underlying Shares, when issued in accordance with the terms of the Transaction Documents, will be validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company other than restrictions on transfer provided for in the Transaction Documents. The Company has reserved from its duly authorized capital stock a number of shares of Common Stock for issuance of the Underlying Shares at least equal to the Required Minimum on the date
            hereof.</font></p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">(g) <u>Capitalization</u>. The capitalization of the Company is as set forth on <u>Schedule 3.1(g)</u>, which <u>Schedule 3.1(g)</u> shall also include the number of shares of Common Stock owned beneficially, and of record, by Affiliates of the Company as of the date hereof. The Company has not issued any capital stock since its
            <font style="COLOR: #000000">most recently filed periodic report under the Exchange Act,</font> other than pursuant to the exercise of employee stock options under the Company's stock option plans, the issuance of shares of Common Stock to employees pursuant to the Company's employee stock purchase plans and pursuant to the conversion or exercise of Common Stock Equivalents outstanding as of the date of the most recently filed periodic report under the Exchange Act. Except as set
            forth on <u>Schedule 3.1(g)</u>, no Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by the Transaction Documents. Except as a result of the purchase and sale of the Securities, there are no outstanding options, warrants, scrip rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities, rights or obligations convertible into or exercisable or
            exchangeable for, or giving any Person any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common Stock or Common Stock Equivalents. The issuance and sale of the Securities will not obligate the Company to issue shares of Common Stock or other securities to any Person (other than the Purchasers) and will not result in a
            right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under any of such securities. All of the outstanding shares of capital stock of the Company are validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. No further approval or
            authorization of any stockholder, the Board of Directors or others is required for the issuance and sale of the Securities. There are no stockholders agreements, voting agreements or other similar agreements with respect to the Company's capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company's stockholders.</font></p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(h)</font> <u>SEC Reports; Financial Statements</u>. The Company has never been an issuer subject to Rule 144(i) under the Securities Act. Except as set forth on <u>Schedule 3.1(h)</u>, the Company has filed all reports, schedules, forms, statements and other documents
            required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the Company was required by law or regulation to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the "<u>SEC Reports</u>") on a timely basis or has received a
            valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements
            therein, in the light of the circumstances under which they were made, not misleading. The financial statements of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during
            the periods involved ("<u>GAAP</u>"), except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated Subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements,
            to normal, immaterial, year-end audit adjustments.</font></p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(i)</font> <u>Material Changes</u>. Since the date of the latest audited financial statements included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the date hereof, (i) there has been no event, occurrence or development
            that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company's financial statements pursuant to GAAP or disclosed in filings made with the Commission, (iii) the Company has not altered its
            method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except pursuant to existing Company stock option plans. The Company does not have pending before the Commission any request for confidential treatment
            of information. Except for the issuance of the Securities contemplated by this Agreement or as set forth on <u>Schedule 3.1(i)</u>, no event, liability or development has occurred or exists with respect to the Company or its Subsidiaries or their respective business, properties, operations or financial condition, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly
            disclosed at least one Trading Day prior to the date that this representation is made.</font></p>

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            <a name="_Ref199305190"></a>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(j)</font> <u>Litigation</u>. There is no action, suit, inquiry, notice of violation, proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any
            court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an "<u>Action</u>") which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Securities or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor any director or
            officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company or any current or former director or officer of the Company. The Commission has not issued any stop order or other order suspending the effectiveness
            of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(k)</font> <u>Labor Relations</u>. No material labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company which could reasonably be expected to result in a Material Adverse Effect. Except as set forth on
            <u>Schedule 3.1(k)</u>, none of the Company's or its Subsidiaries' employees is a member of a union that relates to such employee's relationship with the Company or such Subsidiary, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe that their relationships with their employees are good. No executive officer, to the knowledge of the Company, is, or is now expected to be, in violation of
            any material term of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant in favor of any third party, and the continued employment of each such executive officer does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance with all U.S. federal,
            state, local and foreign laws and regulations relating to employment and employment practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.</font></p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(l)</font> <u>Compliance</u>. Neither the Company nor any Subsidiary (i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under),
            nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived<a name="SelTemp"></a>), (ii) is in violation of any order of any court, arbitrator or governmental body, or (iii) is or has been in violation of any
            statute, rule or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws applicable to its business and all such laws that affect the environment, except in each case as could not have or reasonably be expected to result in a Material Adverse Effect.</font></p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">m)&nbsp;<u>Regulatory Permits</u>. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports, except where the failure to possess such permits could not reasonably
            be expected to result in a Material Adverse Effect ("<u>Material Permits</u>"), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any Material Permit.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">(n) <u>Title to Assets</u>. The Company and the Subsidiaries have good and marketable title in fee simple to all real property owned by them and good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries, in each case free and clear of all Liens, except for Liens set forth on
            <u>Schedule 3.1(n)</u> and Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries and Liens for the payment of federal, state or other taxes, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable
            leases with which the Company and the Subsidiaries are in compliance.&nbsp;</font></p>

            <p></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(o)</font> <u>Patents and Trademarks</u>. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual
            property rights and similar rights used in connection with their respective businesses as currently operated and described in the SEC Reports and which the failure to so have could have a Material Adverse Effect (collectively, the "<u>Intellectual Property Rights</u>"). Neither the Company nor any Subsidiary has received a notice (written or otherwise) that any of the Intellectual Property Rights used by the Company or any Subsidiary violates or infringes upon the rights of any
            Person. To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there is no existing infringement by another Person of any of the Intellectual Property Rights. The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual properties, except where failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse
            Effect.</font></p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">(p)&nbsp;<u>Insurance</u>. The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary in the businesses in which the Company and the Subsidiaries are engaged, including, but not limited to, directors and officers insurance coverage at
            least equal to the aggregate principal amount of the Debentures. Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant increase in cost.</font></p>

            <p></p>

            <p></p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(q)</font> <u>Transactions with Affiliates and Employees</u>. Except as set forth in the SEC Reports, none of the officers or directors of the Company and, to the knowledge of the Company, none of the employees of the Company is presently a party to any transaction with the
            Company or any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer,
            director, trustee or partner, in each case in excess of $120,000 other than for (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements under any stock option plan of the Company.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(r)</font> <u>Sarbanes-Oxley; Internal Accounting Controls</u>. Except as set forth on <u>Schedule 3.1(r)</u>, the Company is in material compliance with all provisions of the Sarbanes-Oxley Act of 2002 which are applicable to it as of the Closing Date. As a small reporting
            company, the Company is not required to have its independent auditors attest to the adequacy of its internal controls. <font style="COLOR: #000000">The Company has established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and designed such disclosure controls and procedures to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is recorded, processed,
            summarized and reported, within the time periods specified in the Commission's rules and forms. The Company's certifying officers have evaluated the effectiveness of the Company's disclosure controls and procedures as of the end of the period covered by the Company's most recently filed periodic report under the Exchange Act (such date, the "</font><u><font style="COLOR: #000000">Evaluation Date</font></u><font style="COLOR: #000000">"). The Company presented in its most recently
            filed periodic report under the Exchange Act the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date. Since the Evaluation Date, there have been no changes in the Company's internal control over financial reporting (as such term is defined in the Exchange Act) that has materially affected, or is reasonably likely to materially affect, the Company's internal control over
            financial reporting.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="COLOR: #000000">(s) <u>Certain Fees</u>. No brokerage or finder's fees or commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents. The Purchasers shall have no
            obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection with the transactions contemplated by the Transaction Documents.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="COLOR: #000000">(t) <u>Private Placement</u>. Assuming the accuracy of the Purchasers' representations and warranties set forth in Section 3.2, no registration under the Securities Act is required for the offer and sale of the Securities by the Company to the Purchasers as contemplated hereby. The issuance and sale of the Securities
            hereunder does not contravene the rules and regulations of the Trading Market.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="COLOR: #000000">(u) <u>Investment Company</u>. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Securities, will not be or be an Affiliate of, an "investment company" within the meaning of the Investment Company Act of 1940, as amended. The Company shall conduct its business in a manner so
            that it will not become subject to the Investment Company Act of 1940, as amended.&nbsp;</font></font></p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="COLOR: #000000">(v)&nbsp;<u>Registration Rights</u>. Other than each of the Purchasers and as set forth on <u>Schedule 3.1(v)</u>, no Person has any right to cause the Company to effect the registration under the Securities Act of any securities of the Company.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="COLOR: #000000">(w) <u>Listing and Maintenance Requirements</u>. The Common Stock is registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act nor has
            the Company received any notification that the Commission is contemplating terminating such registration. The Company has not, in the 12 months preceding the date hereof, received notice from any Trading Market on which the Common Stock is or has been listed or quoted to the effect that the Company is not in compliance with the listing or maintenance requirements of such Trading Market. The Company is, and has no reason to believe that it will not in the foreseeable future continue
            to be, in compliance with all such listing and maintenance requirements.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="COLOR: #000000">(x) <u>Application of Takeover Protections</u>. The Company and the Board of Directors have taken all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under
            the Company's certificate of incorporation (or similar charter documents) or the laws of its state of incorporation that is or could become applicable to the Purchasers as a result of the Purchasers and the Company fulfilling their obligations or exercising their rights under the Transaction Documents, including without limitation as a result of the Company's issuance of the Securities and the Purchasers' ownership of the Securities.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="COLOR: #000000">(y) <u>Disclosure</u>. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company confirms that neither it nor any other Person acting on its behalf has provided any of the Purchasers or their agents or counsel with any information that it believes
            constitutes or might constitute material, nonpublic information. The Company understands and confirms that the Purchasers will rely on the foregoing representation in effecting transactions in securities of the Company. All disclosure furnished by or on behalf of the Company to the Purchasers regarding the Company, its business and the transactions contemplated hereby, including the Disclosure Schedules to this Agreement, is true and correct and does not contain any untrue statement
            of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. The press releases disseminated by the Company during the twelve months preceding the date of this Agreement did not, at the time they were issued, contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the
            statements, in light of the circumstances under which they were made and when made, not misleading. The Company acknowledges and agrees that no Purchaser makes or has made any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth in Section 3.2 hereof.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="COLOR: #000000">(z) <u>No Integrated Offering</u>. Assuming the accuracy of the Purchasers' representations and warranties set forth in Section 3.2, neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to
            buy any security, under circumstances that would cause this offering of the Securities to be integrated with prior offerings by the Company for purposes of (i) the Securities Act which would require the registration of any such securities under the Securities Act, or (ii) any applicable shareholder approval provisions of any Trading Market on which any of the securities of the Company are listed or designated.</font></font></p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(aa)</font> <u>Solvency</u>. Based on the consolidated financial condition of the Company as of the Closing Date after giving effect to the receipt by the Company of the proceeds from the sale of the Securities hereunder, (i) the fair saleable value of the Company's assets
            exceeds the amount that will be required to be paid on or in respect of the Company's existing debts and other liabilities (including known contingent liabilities) as they mature; (ii) the Company's assets do not constitute unreasonably small capital to carry on its business as now conducted and as proposed to be conducted including its capital needs taking into account the particular capital requirements of the business conducted by the Company, and projected capital requirements
            and capital availability thereof; and (iii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its liabilities when such amounts are required to be paid. The Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and
            amounts of cash to be payable on or in respect of its debt). The Company has no knowledge of any facts or circumstances which lead it to believe that it will file for reorganization or liquidation under the bankruptcy or reorganization laws of any jurisdiction within one year from the Closing Date. <u>Schedule 3.1(aa)</u> sets forth as of the date hereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary
            has commitments. For the purposes of this Agreement, "<u>Indebtedness</u>" means (a) any liabilities for borrowed money or amounts owed in excess of $50,000 (other than trade accounts payable incurred in the ordinary course of business), (b) all guaranties, endorsements and other contingent obligations in respect of indebtedness of others, whether or not the same are or should be reflected in the Company's balance sheet (or the notes thereto), except guaranties by endorsement of
            negotiable instruments for deposit or collection or similar transactions in the ordinary course of business; and (c) the present value of any lease <a name="_Toc497644622">payments in excess of $50,000 due under leases required to be capitalized in accordance with GAAP.</a> Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(bb)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u>Tax Status</u>. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect, the Company and each Subsidiary has filed all
            necessary federal, state and foreign income and franchise tax returns and has paid or accrued all taxes shown as due thereon, and the Company has no knowledge of a tax deficiency which has been asserted or threatened against the Company or any Subsidiary.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">(cc) <u>No General Solicitation</u>. Neither the Company nor any person acting on behalf of the Company has offered or sold any of the Securities by any form of general solicitation or general advertising. The Company has offered the Securities for sale only to the Purchasers and certain other "accredited investors" within the meaning of Rule 501 under
            the Securities Act.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">(dd) <u>Foreign Corrupt Practices.</u> Neither the Company, nor to the knowledge of the Company, any agent or other person acting on behalf of the Company, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful
            payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company (or made by any person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.</font></p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">(ee) <u>Accountants</u>. The Company's accounting firm is set forth on <u>Schedule 3.1(ee)</u> of the Disclosure Schedule. To the knowledge and belief of the Company, such accounting firm (i) is a registered public accounting firm as required by the Exchange Act and (ii) shall express its opinion with respect to the financial statements to be included
            in the Company's Annual Report on Form 10-KSB for the year ending December 31, 2008.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">(ff) <u>Seniority</u>. As of the Closing Date, no Indebtedness or other claim against the Company is senior to the Debentures in right of payment, whether with respect to interest or upon liquidation or dissolution, or otherwise, other than indebtedness secured by purchase money security interests (which is senior only as to underlying assets covered
            thereby) and capital lease obligations (which is senior only as to the property covered thereby).</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">(gg) <u>No Disagreements with Accountants and Lawyers.</u> There are no disagreements of any kind presently existing, or reasonably anticipated by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the Company and the Company is current with respect to any fees owed to its accountants and lawyers
            which could affect the Company's ability to perform any of its obligations under any of the Transaction Documents.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">(hh) <u>Acknowledgment Regarding Purchasers' Purchase of Securities</u>. The Company acknowledges and agrees that each of the Purchasers is acting solely in the capacity of an arm's length purchaser with respect to the Transaction Documents and the transactions contemplated thereby. The Company further acknowledges that no Purchaser is acting as a
            financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated thereby and any advice given by any Purchaser or any of their respective representatives or agents in connection with the Transaction Documents and the transactions contemplated thereby is merely incidental to the Purchasers' purchase of the Securities. The Company further represents to each Purchaser that the Company's decision to
            enter into this Agreement and the other Transaction Documents has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">(ii) <u>Acknowledgment Regarding Purchasers' Trading Activity</u>. Notwithstanding anything in this Agreement or elsewhere herein to the contrary (except for Sections 3.2(f) and 4.15 hereof), it is understood and acknowledged by the Company that (i) none of the Purchasers has been asked to agree by the Company, nor has any Purchaser agreed, to desist
            from purchasing or selling, long and/or short, securities of the Company, or "derivative" securities based on securities issued by the Company or to hold the Securities for any specified term, (ii) past or future open market or other transactions by any Purchaser, specifically including, without limitation, Short Sales or "derivative" transactions, before or after the closing of this or future private placement transactions, may negatively impact the market price of the Company's
            publicly-traded securities, (iii) any Purchaser, and counter-parties in "derivative" transactions to which any such Purchaser is a party, directly or indirectly, may presently have a "short" position in the Common Stock; and (iv) each Purchaser shall not be deemed to have any affiliation with or control over any arm's length counter-party in any "derivative" transaction. The Company further understands and acknowledges that (a) one or more Purchasers may engage in hedging activities
            at various times during the period that the Securities are outstanding, including, without limitation, during the periods that the value of the Underlying Shares deliverable with respect to Securities are being determined and (b) such hedging activities (if any) could reduce the value of the existing stockholders' equity interests in the Company at and after the time that the hedging activities are being conducted. The Company acknowledges that such aforementioned hedging activities
            do not constitute a breach of any of the Transaction Documents.</font></p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(jj)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u>Regulation M Compliance</u>.&nbsp; The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the
            price of any security of the Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the securities of the Company or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company, other than, in the case of clauses (ii) and (iii), compensation paid to the Company's placement agent in connection with the placement
            of the Securities.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(kk)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font style="FONT-SIZE: 12pt">3(a)(9) Exchange</font></u><font style="FONT-SIZE: 12pt">. The exchange of the Preferred Stock and the Old Debentures for the Securities issuable hereunder is being consummated pursuant to Sections
            3(a)(9) and 18(b)(4)(C) of the Securities Act. Accordingly, pursuant to Rule 144, the holding period of the Debentures and the Underlying Shares shall tack back to the original issue date of the Old Debentures and the Preferred Stock, respectively.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">3.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font style="FONT-SIZE: 11pt">Representations and Warranties of the Purchasers</font></u>. Each Purchaser, for itself and for no other Purchaser, hereby represents and warrants as of the date hereof and as of the Closing Date to the Company as
            follows:</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font style="FONT-SIZE: 11pt">Organization; Authority</font></u>. Such Purchaser is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with full right, corporate or
            partnership power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of the Transaction Documents and performance by such Purchaser of the transactions contemplated by the Transaction Documents have been duly authorized by all necessary corporate or similar action on the part of such Purchaser. Each Transaction Document to which it is
            a party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally, (ii) as limited by
            laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">(b) <u>Own Account</u>. Such Purchaser understands that the Securities are "restricted securities" and have not been registered under the Securities Act or any applicable state securities law and is acquiring the Securities as principal for its own account and not with a view to or for distributing or reselling such Securities or any part thereof in
            violation of the Securities Act or any applicable state securities law, has no present intention of distributing any of such Securities in violation of the Securities Act or any applicable state securities law and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Securities (this representation and warranty not limiting such Purchaser's right to sell the Securities pursuant to a registration statement
            or otherwise in compliance with applicable federal and state securities laws) in violation of the Securities Act or any applicable state securities law. Such Purchaser is acquiring the Securities hereunder in the ordinary course of its business.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u>Purchaser Status</u>. At the time such Purchaser was offered the Securities, it was, and at the date hereof it is, and on each date on which it converts any Debentures it will be either: (i) an "accredited investor" as defined in
            Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act or (ii) a "qualified institutional buyer" as defined in Rule 144A(a) under the Securities Act. Such Purchaser is not required to be registered as a broker-dealer under Section 15 of the Exchange Act.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">(d) <u>Experience of Such Purchaser</u>. Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Securities, and has so evaluated the merits and risks of such
            investment. Such Purchaser is able to bear the economic risk of an investment in the Securities and, at the present time, is able to afford a complete loss of such investment.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">(e) <u>General Solicitation</u>. Such Purchaser is not purchasing the Securities as a result of any advertisement, article, notice or other communication regarding the Securities published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation or general
            advertisement.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">(f)&nbsp;<u>Short Sales and Confidentiality Prior To The Date Hereof</u><font style="COLOR: #000000">. Other than consummating the transactions contemplated hereunder, such Purchaser has not directly or indirectly, nor has any Person acting on behalf of or pursuant to any understanding with such Purchaser, executed any purchases or sales, including
            Short Sales, of the securities of the Company during the period commencing from the time that such Purchaser first received a term sheet (written or oral) from the Company or any other Person representing the Company setting forth the material terms of the transactions contemplated hereunder until the date hereof</font> <font style="COLOR: #000000">("</font><u><font style="COLOR: #000000">Discussion Time</font></u><font style="COLOR: #000000">")<a name="_DV_M122"></a>.</font>
            Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser's assets and the portfolio managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser's assets, the representation set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made
            the investment decision to purchase the Securities covered by this Agreement. Other than to other Persons party to this Agreement, such Purchaser has maintained the confidentiality of all disclosures made to it in connection with this transaction (including the existence and terms of this transaction).</font></p>

            <p></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt"><b><font style="FONT-SIZE: 11pt">ARTICLE IV.&nbsp;&nbsp;</font></b></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt"><b><font style="FONT-SIZE: 11pt">OTHER AGREEMENTS OF THE PARTIES<br>
            </font></b></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">4.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font style="FONT-SIZE: 11pt">Transfer Restrictions</font></u>.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font style="FONT-SIZE: 11pt">The Securities may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Securities other than pursuant to an effective registration statement or Rule
            144, to the Company or to an Affiliate of a Purchaser or in connection with a pledge as contemplated in Section 4.1(b), the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred Securities under the Securities
            Act. As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement and shall have the rights of a Purchaser under this Agreement.</font></font></p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>The Purchasers agree to the imprinting, so long as is required by this Section 4.1, of a legend on the March 2008 Replacement Debenture and any Underlying Shares issuable upon conversion of the March 2008 Replacement Debenture prior to
            September _, 2008:</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">[NEITHER] THIS SECURITY [NOR THE SECURITIES INTO WHICH THIS SECURITY IS [EXERCISABLE] [CONVERTIBLE]] HAS [NOT] BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
            ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY AND
            THE SECURITIES ISSUABLE UPON [EXERCISE] [CONVERSION] OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">The Company acknowledges and agrees that a Purchaser may from time to time pledge pursuant to a bona fide margin agreement with a registered broker-dealer or grant a security interest in some or all of the Securities to a financial institution that is an "accredited investor" as defined in Rule 501(a)
            under the Securities Act and who agrees to be bound by the provisions of this Agreement and, if required under the terms of such arrangement, such Purchaser may transfer pledged or secured Securities to the pledgees or secured parties. Such a pledge or transfer would not be subject to approval of the Company and no legal opinion of legal counsel of the pledgee, secured party or pledgor shall be required in connection therewith. Further, no notice shall be required of such pledge. At
            the appropriate Purchaser's expense, the Company will execute and deliver such reasonable documentation as a pledgee or secured party of Securities may reasonably request in connection with a pledge or transfer of the Securities.</font></font></p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font style="FONT-SIZE: 12pt">Certificates evidencing the Debentures and the Underlying Shares (other than the March 2008 Replacement Debenture and Underlying Shares issuable upon conversion of such March 2008 Replacement Debenture)
            shall not include any legend.</font> Certificates evidencing the March 2008 Replacement Debenture and Underlying Shares issuable upon conversion thereof shall not contain any legend (including the legend set forth in Section 4.1(b) hereof): (i) while a registration statement covering the resale of such security is effective under the Securities Act, or (ii) following any sale of such Underlying Shares pursuant to Rule 144, or (iii) if such Underlying Shares are eligible for sale
            under Rule 144 without restrictions or limitations pursuant to Rule 144, or (iv) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission). The Company shall cause its counsel to issue a legal opinion to the Transfer Agent promptly after the Effective Date if required by the Transfer Agent to effect the removal of the legend hereunder. If all or any portion of a
            Debenture is converted at a time when there is an effective registration statement to cover the resale of the Underlying Shares, or if such Underlying Shares may be sold under Rule 144 without the requirements for the Company to be in compliance with Rule&nbsp;144(c)(1) and otherwise without restrictions or limitations pursuant to Rule 144 or if such legend is not otherwise required under applicable requirements of the Securities Act (including judicial interpretations and
            pronouncements issued by the staff of the Commission) then such Underlying Shares shall be issued free of all legends. The Company agrees that following the Effective Date or at such time as such legend is no longer required under this Section 4.1(c), it will, no later than three Trading Days following the delivery by a Purchaser to the Company or the Transfer Agent of a certificate representing Underlying Shares, as applicable, issued with a restrictive legend (such third Trading
            Day, the "<u>Legend Removal Date</u>"), deliver or cause to be delivered to such Purchaser a certificate representing such shares that is free from all restrictive and other legends. The Company may not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section. Certificates for Underlying Shares subject to legend removal hereunder shall be transmitted by the Transfer Agent to the Purchaser by
            crediting the account of the Purchaser's prime broker with the Depository Trust Company System as directed by such Purchaser.</font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font style="FONT-SIZE: 11pt">In addition to such Purchaser's other available remedies, the Company shall pay to a Purchaser, in cash, as partial liquidated damages and not as a penalty, for each $1,000 of Underlying Shares (based on
            the VWAP of the Common Stock on the date such Securities are submitted to the Transfer Agent) delivered for removal of the restrictive legend and subject to Section 4.1(c), $10 per Trading Day (increasing to $20 per Trading Day 5 Trading Days after such damages have begun to accrue) for each Trading Day after the Legend Removal Date until such certificate is delivered without a legend. Nothing herein shall limit such Purchaser's right to pursue actual damages for the Company's
            failure to deliver certificates representing any Securities as required by the Transaction Documents, and such Purchaser shall have the right to pursue all remedies available to it at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief.</font></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">(e)&nbsp;Each Purchaser, severally and not jointly with the other Purchasers, agrees that such Purchaser will sell any Securities only pursuant to either the registration requirements of the Securities Act, including any applicable prospectus delivery requirements, or an exemption therefrom, and that if Securities are sold pursuant to a registration statement, they will be sold in
            compliance with the plan of distribution set forth therein, and acknowledges that the removal of the restrictive legend from certificates representing Securities as set forth in this Section 4.1 is predicated upon the Company's reliance upon this understanding.<font style="FONT-SIZE: 11pt"><br>
            </font></p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">4.2&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font style="FONT-SIZE: 11pt">Acknowledgment of Dilution</font></u>. The Company acknowledges that the issuance of the Securities may result in dilution of the outstanding shares of Common Stock, which dilution may be substantial under certain market
            conditions. The Company further acknowledges that its obligations under the Transaction Documents, including without limitation its obligation to issue the Underlying Shares pursuant to the Transaction Documents, are unconditional and absolute and not subject to any right of set off, counterclaim, delay or reduction, regardless of the effect of any such dilution or any claim the Company may have against any Purchaser and regardless of the dilutive effect that such issuance may have
            on the ownership of the other stockholders of the Company.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">4.3&nbsp;&nbsp;<u>Furnishing of Information</u>.<br>
            </font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -36px" align="justify"><font style="FONT-SIZE: 11pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Until the time that no Purchaser owns Securities, the Company covenants to maintain the registration of the Common Stock under Section 12(b) or 12(g) of the Exchange Act and to timely file (or obtain extensions in respect thereof and file
            within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act. As long as any Purchaser owns Securities, if the Company is not required to file reports pursuant to the Exchange Act, it will prepare and furnish to the Purchasers and make publicly available in accordance with Rule 144(c) such information as is required for the Purchasers to sell the Securities under Rule 144. The Company further covenants that it
            will take such further action as any holder of Securities may reasonably request, to the extent required from time to time to enable such Person to sell such Securities without registration under the Securities Act within the requirements of the exemption provided by Rule 144.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: -36px" align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <font style="FONT-SIZE: 11pt">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font style="FONT-SIZE: 12pt">At any time during the period following the date hereof and ending at such time that all of the Securities may be sold without the requirement for the Company to be in compliance with Rule 144(c)(1) and otherwise without
            restriction or limitation pursuant to Rule 144, if the Company shall fail for any reason to satisfy the current public information requirement under Rule 144(c) (a "</font><u><font style="FONT-SIZE: 12pt">Public Information Failure</font></u><font style="FONT-SIZE: 12pt">") then, in addition to such Purchaser's other available remedies, the Company shall pay to a Purchaser, in cash, as partial liquidated damages and not as a penalty, by reason of any such delay in or reduction of
            its ability to sell the Securities, an amount in cash equal to one percent (1.0%) of the principal amount of the Debentures then held by such Purchaser on the day of a Public Information Failure and on every thirtieth (30</font><sup><font style="FONT-SIZE: 12pt">th</font></sup><font style="FONT-SIZE: 12pt">) day (pro rated for periods totaling less than thirty days) thereafter until the earlier of (a) the date such Public Information Failure is cured and (b) such time that such
            public information is no longer required&nbsp; for the Purchasers to transfer the Underlying Shares pursuant to Rule 144;</font> <u>provided</u>, <u>however</u>, such damages shall not accrue during any periods that such Purchaser is an Affiliate of the Company (and for the 90 day period immediately following any such period that such Purchaser is an Affiliate of the Company) solely as a result of the Purchaser purchasing shares of Common Stock in the open market or waiving the
            beneficial ownership limitations included in any of the Common Stock Equivalents held by the Purchaser.<font style="FONT-SIZE: 12pt">&nbsp; The payments to which a Purchaser shall be entitled pursuant to this Section 4.3(b) are referred to herein as "</font><u><font style="FONT-SIZE: 12pt">Public Information Failure Payments</font></u><font style="FONT-SIZE: 12pt">."&nbsp; Public Information Failure</font> <font style="FONT-SIZE: 12pt">Payments shall be paid on the earlier of (i)
            the last day of the calendar month during which such Public Information Failure</font> <font style="FONT-SIZE: 12pt">Payments are incurred and (ii) the third (3</font><sup><font style="FONT-SIZE: 12pt">rd</font></sup><font style="FONT-SIZE: 12pt">) Business Day after the event or failure giving rise to the Public Information Failure</font> <font style="FONT-SIZE: 12pt">Payments is cured.&nbsp; In the event the Company fails to make Public Information Failure</font>
            <font style="FONT-SIZE: 12pt">Payments in a timely manner, such Public Information Failure</font> <font style="FONT-SIZE: 12pt">Payments shall bear interest at the rate of 1.5% per month (prorated for partial months) until paid in full. Nothing herein shall limit such Purchaser's right to pursue actual damages for the Public Information Failure, and such Purchaser shall have the right to pursue all remedies available to it at law or in equity including, without limitation, a decree
            of specific performance and/or injunctive relief.</font></font></p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">4.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u>Integration</u>. The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Securities to
            the Purchasers in a manner that would require the registration under the Securities Act of the sale of the Securities to the Purchasers or that would be integrated with the offer or sale of the Securities for purposes of the rules and regulations of any Trading Market.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">4.5&nbsp;<u>Conversion Procedures</u>. The form of Notice of Conversion included in the Debentures sets forth the totality of the procedures required of the Purchasers in order to convert the Debentures. No additional legal opinion or other information or instructions shall be required of the Purchasers to convert their Debentures. The Company shall honor conversions of
            the Debentures and shall deliver Underlying Shares in accordance with the terms, conditions and time periods set forth in the Transaction Documents.<br>
            </font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">4.6&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u>Securities Laws Disclosure; Publicity</u>. The Company shall, by 8:30 a.m. (New York City time) on the Trading Day immediately following the date hereof, issue a Current Report on Form 8-K, disclosing the material terms of the transactions contemplated
            hereby and including the Transaction Documents as exhibits thereto. The Company and each Purchaser shall consult with each other in issuing any other press releases with respect to the transactions contemplated hereby, and neither the Company nor any Purchaser shall issue any such press release or otherwise make any such public statement without the prior consent of the Company, with respect to any press release of any Purchaser, or without the prior consent of each Purchaser, with
            respect to any press release of the Company, which consent shall not unreasonably be withheld or delayed, except if such disclosure is required by law, in which case the disclosing party shall promptly provide the other party with prior notice of such public statement or communication. Notwithstanding the foregoing, the Company shall not publicly disclose the name of any Purchaser, or include the name of any Purchaser in any filing with the Commission or any regulatory agency or
            Trading Market, without the prior written consent of such Purchaser, except (i) as required by federal securities law in connection with (A) a registration statement acceptable in form in substance to the Purchasers and (B) the filing of final Transaction Documents (including signature pages thereto) with the Commission and (ii) to the extent such disclosure is required by law or Trading Market regulations, in which case the Company shall provide the Purchasers with prior notice of
            such disclosure permitted under this clause (ii). The Company is authorized to permit any broker representing it to publish a "tombstone" for the transaction after Closing, which identifies the Company, the nature of the transaction and the broker's role in the transaction.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">4.7&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u>Shareholder Rights Plan</u>. No claim will be made or enforced by the Company or, with the consent of the Company, any other Person, that any Purchaser is an "Acquiring Person" under any control share acquisition, business combination, poison pill
            (including any distribution under a rights agreement) or similar anti-takeover plan or arrangement in effect or hereafter adopted by the Company, or that any Purchaser could be deemed to trigger the provisions of any such plan or arrangement, by virtue of receiving Securities under the Transaction Documents or under any other agreement between the Company and the Purchasers.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">4.8&nbsp;<u>Non-Public Information</u>. Except with respect to the material terms and conditions of the transactions contemplated by the Transaction Documents, the Company covenants and agrees that neither it nor any other Person acting on its behalf will provide any Purchaser or its agents or counsel with any information that the Company believes constitutes material
            non-public information, unless prior thereto such Purchaser shall have executed a written agreement regarding the confidentiality and use of such information. The Company understands and confirms that each Purchaser shall be relying on the foregoing covenant in effecting transactions in securities of the Company.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">4.9&nbsp;<u>Use of Proceeds</u>. Except as set forth on Schedule 4.9 attached hereto, the Company shall use the net proceeds from the sale of the Securities hereunder for working capital purposes and shall not use such proceeds for (a) the satisfaction of any portion of the Company's debt (other than payment of trade payables in the ordinary course of the Company's
            business and prior practices), (b) the redemption of any Common Stock or Common Stock Equivalents or (c) the settlement of any outstanding litigation.</font></p>

            <p></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">4.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u>Indemnification of Purchasers</u>. Subject to the provisions of this Section 4.10, the Company will indemnify and hold each Purchaser and its directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a
            functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) of
            such controlling person (each, a "<u>Purchaser Party</u>") harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys' fees and costs of investigation that any such Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or agreements made by the Company in this
            Agreement or in the other Transaction Documents or (b) any action instituted against a Purchaser in any capacity, or any of them or their respective Affiliates, by any stockholder of the Company who is not an Affiliate of such Purchaser, with respect to any of the transactions contemplated by the Transaction Documents (unless such action is based upon a breach of such Purchaser's representations, warranties or covenants under the Transaction Documents or any agreements or
            understandings such Purchaser may have with any such stockholder or any violations by the Purchaser of state or federal securities laws or any conduct by such Purchaser which constitutes fraud, gross negligence, willful misconduct or malfeasance). If any action shall be brought against any Purchaser Party in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall have the right to
            assume the defense thereof with counsel of its own choosing reasonably acceptable to the Purchaser Party. Any Purchaser Party shall have the right to employ separate counsel in any such action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable
            period of time to assume such defense and to employ counsel or (iii) in such action there is, in the reasonable opinion of such separate counsel, a material conflict on any material issue between the position of the Company and the position of such Purchaser Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel. The Company will not be liable to any Purchaser Party under this Agreement (i) for any
            settlement by a Purchaser Party effected without the Company's prior written consent, which shall not be unreasonably withheld or delayed; or (ii) to the extent, but only to the extent that a loss, claim, damage or liability is attributable to any Purchaser Party's breach of any of the representations, warranties, covenants or agreements made by such Purchaser Party in this Agreement or in the other Transaction Documents.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">4.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u>Reservation and Listing of Securities</u>.<font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">&nbsp;&nbsp;</font></font></p>

            <p></p>

            <p></p>

            <table>
                <tr>
                    <td>
                    </td>

                    <td valign="top">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;</td>

                    <td valign="top">&nbsp;<font style="FONT-SIZE: 11pt">The Company shall maintain a reserve from its duly authorized shares of Common Stock for issuance pursuant to the Transaction Documents in such amount as may be required to fulfill its obligations in full under the Transaction Documents.</font></td>
                </tr>

                <tr>
                    <td>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; COLOR: #000000; TEXT-INDENT: 0px"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>

                    <td valign="top">If, on any date, the number of authorized but unissued (and otherwise unreserved) shares of Common Stock is less than 130% of (i) the Required Minimum on such date, minus (ii) the number of shares of Common Stock previously issued pursuant to the Transaction Documents, then the Board of Directors shall use commercially reasonable efforts to amend the Company's certificate or articles of incorporation to increase the number of authorized but unissued shares
                    of Common Stock to at least the Required Minimum at such time (minus the number of shares of Common Stock previously issued pursuant to the Transaction Documents), as soon as possible and in any event not later than the 75th day after such date; provided that the Company will not be required at any time to authorize a number of shares of Common Stock greater than the maximum remaining number of shares of Common Stock that could possibly be issued after such time pursuant to
                    the Transaction Documents.</td>
                </tr>
            </table>

            <table>
                <tr>
                    <td>
                    </td>

                    <td valign="top">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; COLOR: #000000; TEXT-INDENT: 0px"><font style="FONT-FAMILY: 'TIMES NEW ROMAN'">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></p>
                    </td>

                    <td valign="top">The Company shall: (i) as soon as practicable have obtained the listing of the Common Stock, including all of the Underlying Shares, on a Trading Market other than the OTC Bulletin Board, (ii) provide to the Purchasers evidence of such listing, and (iii) if approved, maintain the listing of such Common Stock on any date at least equal to the Required Minimum on such date on such Trading Market or another Trading Market.</td>
                </tr>
            </table>
            <font style="FONT-SIZE: 11pt"><br>
            </font>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">4.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font style="FONT-SIZE: 11pt">Participation in Future Financing</font></u>.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font style="FONT-SIZE: 11pt">From the date hereof until the date that is the 12 month anniversary of the Closing Date, upon any issuance by the Company or any of its Subsidiaries of Common Stock or Common Stock Equivalents (a
            "</font><u>Subsequent Financing</u>"), each Purchaser shall have the right to participate in up to an amount of the Subsequent Financing equal to 100% of the Subsequent Financing (the "<u>Participation Maximum</u>") on the same terms, conditions and price provided for in the Subsequent Financing.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">(b) At least 5 Trading Days prior to the closing of the Subsequent Financing, the Company shall deliver to each Purchaser a written notice of its intention to effect a Subsequent Financing ("<u>Pre-Notice</u>"), which Pre-Notice shall ask such Purchaser if it wants to review the details of such financing (such additional notice, a "<u>Subsequent
            Financing Notice</u>"). Upon the request of a Purchaser, and only upon a request by such Purchaser, for a Subsequent Financing Notice, the Company shall promptly, but no later than 1 Trading Day after such request, deliver a Subsequent Financing Notice to such Purchaser. The Subsequent Financing Notice shall describe in reasonable detail the proposed terms of such Subsequent Financing, the amount of proceeds intended to be raised thereunder and the Person or Persons through or with
            whom such Subsequent Financing is proposed to be effected and shall include a term sheet or similar document relating thereto as an attachment.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

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            </div>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">(c) Any Purchaser desiring to participate in such Subsequent Financing must provide written notice to the Company by not later than 5:30 p.m. (New York City time) on the 5th Trading Day after all of the Purchasers have received the Pre-Notice that the Purchaser is willing to participate in the Subsequent Financing, the amount of the Purchaser's participation, and that the Purchaser
            has such funds ready, willing, and available for investment on the terms set forth in the Subsequent Financing Notice. If the Company receives no notice from a Purchaser as of such 5th Trading Day, such Purchaser shall be deemed to have notified the Company that it does not elect to participate.</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">(d) If by 5:30 p.m. (New York City time) on the 5<sup>th</sup> Trading Day after all of the Purchasers have received the Pre-Notice, notifications by the Purchasers of their willingness to participate in the Subsequent Financing (or to cause their designees to participate) is, in the aggregate, less than the total amount of the Subsequent Financing, then the Company may effect the
            remaining portion of such Subsequent Financing on the terms and with the Persons set forth in the Subsequent Financing Notice.&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>If by 5:30 p.m. (New York City time) on the 5<sup>th</sup> Trading Day after all of the Purchasers have received the Pre-Notice, the Company receives responses to a Subsequent Financing Notice from Purchasers seeking to purchase more
            than the aggregate amount of the Participation Maximum, each such Purchaser shall have the right to purchase its Pro Rata Portion (as defined below) of the Participation Maximum.&nbsp; "<u>Pro Rata Portion</u>" means the ratio of (x) the principal amount of the Debentures acquired on the Closing Date by a Purchaser participating under this Section 4.12 and (y) the sum of the aggregate principal amount of the Debentures acquired on the Closing Date by all Purchasers participating
            under this Section 4.12.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font>The Company must provide the Purchasers with a second Subsequent Financing Notice, and the Purchasers will again have the right of participation set forth above in this Section 4.12, if the Subsequent Financing subject to the initial
            Subsequent Financing Notice is not consummated for any reason on the terms set forth in such Subsequent Financing Notice within 60 Trading Days after the date of the initial Subsequent Financing Notice.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">(g) Notwithstanding the foregoing, this Section 4.12 shall not apply in respect of (i) an Exempt Issuance or (ii) an underwritten public offering of Common Stock.&nbsp;</font></p>

            <p></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">4.13&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font style="FONT-SIZE: 11pt">Subsequent Equity Sales</font></u>.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><font style="FONT-SIZE: 11pt">From the date hereof until 90 days after the Effective Date, neither the Company nor any Subsidiary shall issue shares of Common Stock or Common Stock Equivalents;</font> <u>provided</u>, <u>however</u>,
            the 90 day period set forth in this Section 4.13 shall be extended for the number of Trading Days during such period in which (i) trading in the Common Stock is suspended by any Trading Market, or (ii) following the Effective Date, a registration statement is not effective or the prospectus included in the registration statement may not be used by the Purchasers for the resale of the Underlying Shares if the Underlying Shares may not be sold under Rule 144 without the requirements
            for the Company to be in compliance with Rule&nbsp;144(c)(1) and otherwise without restrictions or limitations pursuant to Rule 144.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

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            </div>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">(b)&nbsp;&nbsp;From the date hereof until such time as no Purchaser holds any of the Securities, the Company shall be prohibited from effecting or entering into an agreement to effect any Subsequent Financing involving a Variable Rate Transaction. "<u>Variable Rate Transaction</u>" means a transaction in which the Company issues or sells (i) any debt
            or equity securities that are convertible into, exchangeable or exercisable for, or include the right to receive additional shares of Common Stock either (A) at a conversion, exercise or exchange rate or other price that is based upon and/or varies with the trading prices of or quotations for the shares of Common Stock at any time after the initial issuance of such debt or equity securities, or (B) with a conversion, exercise or exchange price that is subject to being reset at some
            future date after the initial issuance of such debt or equity security or upon the occurrence of specified or contingent events directly or indirectly related to the business of the Company or the market for the Common Stock or (ii) enters into any agreement, including, but not limited to, an equity line of credit, whereby the Company may sell securities at a future determined price.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0.5in; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">(c)&nbsp;Notwithstanding the foregoing, this Section 4.13 shall not apply in respect of an Exempt Issuance, except that no Variable Rate Transaction shall be an Exempt Issuance.</font></p>

            <p></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">4.14&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font style="FONT-SIZE: 11pt">Equal Treatment of Purchasers</font></u>. No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of any of the Transaction Documents unless the same
            consideration is also offered to all of the parties to the Transaction Documents. Further, the Company shall not make any payment of principal or interest on the Debentures in amounts which are disproportionate to the respective principal amounts outstanding on the Debentures at any applicable time. For clarification purposes, this provision constitutes a separate right granted to each Purchaser by the Company and negotiated separately by each Purchaser, and is intended for the
            Company to treat the Purchasers as a class and shall not in any way be construed as the Purchasers acting in concert or as a group with respect to the purchase, disposition or voting of Securities or otherwise.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">4.15&nbsp;<u>Short Sales and Confidentiality After The Date Hereof</u>. Each Purchaser, severally and not jointly with the other Purchasers, covenants that neither it nor any Affiliate acting on its behalf or pursuant to any understanding with it will execute any Short Sales during the period commencing at the Discussion Time and ending at the time that the transactions
            contemplated by this Agreement are first publicly announced as described in Section 4.6. Each Purchaser, severally and not jointly with the other Purchasers, covenants that until such time as the transactions contemplated by this Agreement are publicly disclosed by the Company as described in Section 4.6, such Purchaser will maintain the confidentiality of the existence and terms of this transaction and the information included in the Disclosure Schedules. Notwithstanding the
            foregoing, no Purchaser makes any representation, warranty or covenant hereby that it will not engage in Short Sales in the securities of the Company after the time that the transactions contemplated by this Agreement are first publicly announced as described in Section 4.6. Notwithstanding the foregoing, in the case of a Purchaser that is a multi-managed investment vehicle whereby separate portfolio managers manage separate portions of such Purchaser's assets and the portfolio
            managers have no direct knowledge of the investment decisions made by the portfolio managers managing other portions of such Purchaser's assets, the covenant set forth above shall only apply with respect to the portion of assets managed by the portfolio manager that made the investment decision to purchase the Securities covered by this Agreement.</font></p>

            <p></p>

            <p></p>

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            </div>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">4.16&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u>Form D; Blue Sky Filings</u>. The Company agrees to timely file a Form D with respect to the Securities as required under Regulation D and to provide a copy thereof, promptly upon request of any Purchaser. The Company shall take such action as the
            Company shall reasonably determine is necessary in order to obtain an exemption for, or to qualify the Securities for, sale to the Purchasers at the Closing under applicable securities or "Blue Sky" laws of the states of the United States, and shall provide evidence of such actions promptly upon request of any Purchaser.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">4.17&nbsp;<u>Capital Change</u>. Until the one year anniversary of the Effective Date, the Company shall not undertake a reverse or forward stock split or reclassification of the Common Stock without the prior written consent of the Purchasers holding at least 90% or more in principal amount outstanding of the Debentures.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">4.18 <u>The Old Debentures and Preferred Stock</u>. <font style="COLOR: #000000">The parties acknowledge, agree and confirm that the issuance of the Debentures to the Purchasers hereunder is being made in</font> substitution for, and not in satisfaction of the Old Debentures. <font style="COLOR: #000000">Within three Business Days of the Closing, each Purchaser shall
            surrender its Old Debentures and certificates evidencing the Preferred Stock to the Company for cancellation. The Debentures issued hereunder</font> shall not constitute a novation or satisfaction and accord of any of the Old Debentures.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><br>
            &nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">4.19&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font style="FONT-SIZE: 11pt">Amendment to Exercise Price of the Warrants</font></u><font style="FONT-SIZE: 11pt">. The exercise price of the all of the warrants of the Company held by the Purchasers and listed on</font> <u><font style="FONT-SIZE: 11pt">Schedule
            4.19</font></u> <font style="FONT-SIZE: 11pt">attached hereto, is hereby reduced to $1.00 (subject to further adjustment pursuant to such warrants).</font></font></p>

            <p></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt"><b><font style="FONT-SIZE: 11pt">ARTICLE V.&nbsp;</font></b></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt"><b><font style="FONT-SIZE: 11pt">MISCELLANEOUS</font></b></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt"><b><font style="FONT-SIZE: 11pt"><br>
            &nbsp;</font></b></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">5.1&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u><font style="FONT-SIZE: 11pt">Termination</font></u>.&nbsp; This Agreement may be terminated by any Purchaser, as to such Purchaser's obligations hereunder only and without any effect whatsoever on the obligations between the Company and the other
            Purchasers, by written notice to the other parties, if the Closing has not been consummated on or before June 27, 2008; <u>provided</u>, <u>however</u>, that such termination will not affect the right of any party to sue for any breach by the other party (or parties).</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">5.2&nbsp;<u>Fees and Expenses</u>. At the Closing, the Company has agreed to reimburse (i) Enable Capital Management, LLC ("<u>Enable</u>") the non-accountable sum of $10,000 for its legal fees and expenses and (ii) Hudson Bay Capital the non-accountable sum of $10,000 for its legal fees and expenses. Except as expressly set forth in the Transaction Documents to the
            contrary, each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all transfer agent fees, stamp taxes and other taxes and duties levied in connection with the delivery of any Securities to the Purchasers.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">5.3&nbsp;<u>Entire Agreement</u>. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents,
            exhibits and schedules.</font></p>

            <p></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">5.4&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u>Notices</u>. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or
            communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto prior to 5:30 p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a Trading Day or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the 2<sup>nd</sup>
            Trading Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; COLOR: #000000; FONT-FAMILY: 'TIMES NEW ROMAN'">5.5&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font><u>Amendments; Waivers</u>. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in the case of an amendment, by the Company and the Purchasers holding 90% in interest of the Securities then
            outstanding or, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the
            exercise of any such right.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">5.6 <u>Headings</u>. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">5.7&nbsp;<u>Successors and Assigns</u>. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of each Purchaser (other than by merger). Any Purchaser may assign any or all of its rights under
            this Agreement to any Person to whom such Purchaser assigns or transfers any Securities, provided that such transferee agrees in writing to be bound, with respect to the transferred Securities, by the provisions of the Transaction Documents that apply to the "Purchasers".</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">5.8 <u>No Third-Party Beneficiaries</u>. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in Section 4.10.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">5.9 <u>Governing Law</u>. All questions concerning the construction, validity, enforcement and interpretation of the Transaction Documents shall be governed by and construed and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the
            interpretations, enforcement and defense of the transactions contemplated by this Agreement and any other Transaction Documents (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in the City of New York,
            borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of the Transaction Documents), and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient
            venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein
            shall be deemed to limit in any way any right to serve process in any other manner permitted by law. If either party shall commence an action or proceeding to enforce any provisions of the Transaction Documents, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its reasonable attorneys' fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or proceeding.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">5.10 <u>Survival</u>. The representations and warranties shall survive the Closing and the delivery of the Securities for the applicable statute of limitations.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">5.11 <u>Execution</u>. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any
            signature is delivered by facsimile transmission or by e-mail delivery of a ".pdf" format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or ".pdf" signature page were an original thereof.&nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">5.12 <u>Severability</u>. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the
            parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or
            unenforceable.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">5.13 <u>Rescission and Withdrawal Right</u>. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) any of the other Transaction Documents, whenever any Purchaser exercises a right, election, demand or option under a Transaction Document and the Company does not timely perform its related obligations within the periods
            therein provided, then such Purchaser may rescind or withdraw, in its sole discretion prior to such Purchaser's actual receipt of the Company's performance of its related obligations, upon written notice to the Company, any relevant notice, demand or election in whole or in part without prejudice to its future actions and rights; <u>provided</u>, <u>however</u>, in the case of a rescission of a conversion of a Debenture, the Purchaser shall be required to return any shares of Common
            Stock subject to any such rescinded conversion or exercise notice.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">5.14 <u>Replacement of Securities</u>. If any certificate or instrument evidencing any Securities is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or in lieu of and substitution therefor, a new certificate or instrument, but only upon receipt
            of evidence reasonably satisfactory to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement Securities.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">5.15 <u>Remedies</u>. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the Purchasers and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach
            of obligations contained in the Transaction Documents and hereby agrees to waive and not to assert in any action for specific performance of any such obligation the defense that a remedy at law would be adequate.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

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            </div>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">5.16 <u>Payment Set Aside</u>. To the extent that the Company makes a payment or payments to any Purchaser pursuant to any Transaction Document or a Purchaser enforces or exercises its rights thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential,
            set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other person under any law (including, without limitation, any bankruptcy law, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been
            made or such enforcement or setoff had not occurred.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">5.17&nbsp;<u>Usury</u>. To the extent it may lawfully do so, the Company hereby agrees not to insist upon or plead or in any manner whatsoever claim, and will resist any and all efforts to be compelled to take the benefit or advantage of, usury laws wherever enacted, now or at any time hereafter in force, in connection with any claim, action or proceeding that may be
            brought by any Purchaser in order to enforce any right or remedy under any Transaction Document. Notwithstanding any provision to the contrary contained in any Transaction Document, it is expressly agreed and provided that the total liability of the Company under the Transaction Documents for payments in the nature of interest shall not exceed the maximum lawful rate authorized under applicable law (the "<u>Maximum Rate</u>"), and, without limiting the foregoing, in no event shall
            any rate of interest or default interest, or both of them, when aggregated with any other sums in the nature of interest that the Company may be obligated to pay under the Transaction Documents exceed such Maximum Rate. It is agreed that if the maximum contract rate of interest allowed by law and applicable to the Transaction Documents is increased or decreased by statute or any official governmental action subsequent to the date hereof, the new maximum contract rate of interest
            allowed by law will be the Maximum Rate applicable to the Transaction Documents from the effective date forward, unless such application is precluded by applicable law. If under any circumstances whatsoever, interest in excess of the Maximum Rate is paid by the Company to any Purchaser with respect to indebtedness evidenced by the Transaction Documents, such excess shall be applied by such Purchaser to the unpaid principal balance of any such indebtedness or be refunded to the
            Company, the manner of handling such excess to be at such Purchaser's election.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">5.18 <u>Independent Nature of Purchasers' Obligations and Rights</u>. The obligations of each Purchaser under any Transaction Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance or non-performance of the obligations of any other Purchaser under any Transaction Document.
            Nothing contained herein or in any other Transaction Document, and no action taken by any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. Each Purchaser shall be entitled to independently protect
            and enforce its rights, including without limitation the rights arising out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose. Each Purchaser has been represented by its own separate legal counsel in their review and negotiation of the Transaction Documents. For reasons of administrative convenience only, Purchasers and their respective counsel have
            chosen to communicate with the Company through FWS. FWS does not represent all of the Purchasers but only Enable. The Company has elected to provide all Purchasers with the same terms and Transaction Documents for the convenience of the Company and not because it was required or requested to do so by the Purchasers.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">5.19&nbsp;<u>Liquidated Damages</u>. The Company's obligations to pay any partial liquidated damages or other amounts owing under the Transaction Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated damages and other amounts have been paid notwithstanding the fact that the instrument or security pursuant to which
            such partial liquidated damages or other amounts are due and payable shall have been canceled.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">5.20 <u>Saturdays, Sundays, Holidays, etc</u>. If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a Business Day, then such action may be taken or such right may be exercised on the next succeeding Business Day.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt">5.21 <u>Construction</u>. The parties agree that each of them and/or their respective counsel has reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any
            amendments hereto.</font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><font style="FONT-SIZE: 11pt"><strong>5.22 <u>WAIVER OF JURY TRIAL</u><b>. IN ANY ACTION, SUIT OR PROCEEDING IN ANY JURISDICTION BROUGHT BY ANY PARTY AGAINST ANY OTHER PARTY, THE PARTIES EACH KNOWINGLY AND INTENTIONALLY, TO THE GREATEST EXTENT PERMITTED BY APPLICABLE LAW, HEREBY ABSOLUTELY, UNCONDITIONALLY, IRREVOCABLY AND EXPRESSLY WAIVES FOREVER TRIAL BY JURY.</b>&nbsp;</strong></font></p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 0pt; TEXT-INDENT: 36px"><strong>&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</strong> <font style="FONT-SIZE: 11pt"><i>(Signature Page Follows)</i></font></p>

            <p></p>

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                <hr width="100%" noshade>
            </div>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 11pt; MARGIN-BOTTOM: 12pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt">IN WITNESS WHEREOF, the parties hereto have caused this Securities&nbsp;Exchange Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.</font></p>

            <p></p>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="600" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="391">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 11pt; TEXT-TRANSFORM: uppercase; FONT-FAMILY: 'TIMES NEW ROMAN BOLD'">telanetix, inc.</font></b></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="247">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><u><font style="FONT-SIZE: 11pt">Address for Notice:</font></u></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="391">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt">By:</font> <u>/<font style="FONT-SIZE: 11pt">s/ Douglas N. Johnson</font></u></p>

                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt">Name: Douglas N. Johnson<br>
                        Title: Chief Executive Officer<br>
                        </font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="247">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 11pt">11201 SE 8th Street<br>
                        Suite 200</font></b></p>

                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 11pt">Bellevue, WA 98004<br>
                        Facsimile: 425-646-8182<br>
                        Attention: CEO</font></b></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="391">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt">With a copy to (which shall not constitute notice):<br>
                        &nbsp;<br>
                        &nbsp;<br>
                        </font></p>
                    </td>

                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="247">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 11pt">James A. Mercer III, Esq.<br>
                        Duane Morris LLP<br>
                        101 West Broadway, Suite 900<br>
                        San Diego, CA 92101</font></b></p>
                    </td>
                </tr>
            </table>
            <font style="FONT-SIZE: 11pt"><br>
            </font>

            <p></p>
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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="left">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="left"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">IN WITNESS WHEREOF, the following Subsidiaries have caused this Securities&nbsp;Exchange Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.</font></font></p>

            <p></p>

            <p></p>

            <p></p>

            <table cellspacing="0" cellpadding="0" width="600" border="0">
                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="391">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 11pt; TEXT-TRANSFORM: uppercase; FONT-FAMILY: 'TIMES NEW ROMAN BOLD'">telanetix, inc.,</font></b> <b><font style="FONT-SIZE: 11pt">a California corporation</font></b>&nbsp;<br>
                        </p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="391">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt">By:</font> <u><font style="FONT-SIZE: 11pt">/s/ Douglas N. Johnson</font></u></p>

                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt">Name: Douglas N. Johnson<br>
                        Title: Chief Executive Officer<br>
                        </font></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="391">&nbsp;</td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="391">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 11pt; TEXT-TRANSFORM: uppercase; FONT-FAMILY: 'TIMES NEW ROMAN BOLD'">Union Labor Force One, LLC,</font></b> <b><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'TIMES NEW ROMAN BOLD'">a New Jersey limited liability company</font></b></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="391">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt">By:</font> <u><font style="FONT-SIZE: 11pt">/s/ Douglas N. Johnson</font></u></p>

                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt">Name: Douglas N. Johnson<br>
                        Title: Authorized Officer<br>
                        </font></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="391">&nbsp;</td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="391">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 11pt; TEXT-TRANSFORM: uppercase; FONT-FAMILY: 'TIMES NEW ROMAN BOLD'">AVS Installation , LLC,</font></b> <b><font style="FONT-SIZE: 11pt; FONT-FAMILY: 'TIMES NEW ROMAN BOLD'">a New Jersey limited liability company</font></b></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="391">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt">By:</font> <u><font style="FONT-SIZE: 11pt">/s/ Douglas N. Johnson</font></u></p>

                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt">Name: Douglas N. Johnson<br>
                        Title: Authorized Officer<br>
                        </font></p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="391">&nbsp;</td>
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                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="391">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><b><font style="FONT-SIZE: 11pt; TEXT-TRANSFORM: uppercase; FONT-FAMILY: 'TIMES NEW ROMAN BOLD'">accessLINE hOLDINGS, INC.,</font></b> <b><font style="FONT-SIZE: 11pt">a Delaware corporation</font></b>&nbsp;<br>
                        </p>
                    </td>
                </tr>

                <tr>
                    <td style="PADDING-RIGHT: 0.07in; PADDING-LEFT: 0.07in; PADDING-BOTTOM: 0in; PADDING-TOP: 0in" valign="top" width="391">
                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt">By:</font> <u><font style="FONT-SIZE: 11pt">/s/ Douglas N. Johnson</font></u></p>

                        <p style="MARGIN-TOP: 0pt; FONT-SIZE: 12pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt">Name: Douglas N. Johnson<br>
                        Title: Chief Executive Officer<br>
                        </font></p>
                    </td>
                </tr>
            </table>
            <font style="FONT-SIZE: 11pt"><br>
            </font>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 24pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">SIGNATURE PAGE FOR PURCHASER FOLLOWS]</font></font></p>
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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; TEXT-TRANSFORM: uppercase">[PURCHASER SIGNATURE PAGES TO SECURITIES&nbsp;EXCHANGE AGREEMENT]</font></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 24pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">IN WITNESS WHEREOF, the undersigned have caused this Securities&nbsp;Exchange Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">Name of Purchaser:</font> <u><font style="FONT-SIZE: 11pt">Pierce Diversified Strategy Master Fund LLC, ena&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 11pt"><i><font style="FONT-SIZE: 11pt">Signature of Authorized Signatory of Purchaser</font></i><font style="FONT-SIZE: 11pt">:</font> <font style="FONT-SIZE: 11pt"><u>/s/ Brendan O'Neil</u><br>
            Name of Authorized Signatory:</font> <u><font style="FONT-SIZE: 11pt">Brendan O'Neil</font></u><font style="FONT-SIZE: 11pt">_______________________________________<br>
            Title of Authorized Signatory:</font> <u><font style="FONT-SIZE: 11pt">Principal and Portfolio Manager</font></u><font style="FONT-SIZE: 11pt">____________________________<br>
            Email Address of Purchaser:</font> <u><font style="FONT-SIZE: 11pt">boneil@enablecapital.com</font></u><font style="FONT-SIZE: 11pt">__________________________________</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">Facsimile Number of Purchaser:</font> <u><font style="FONT-SIZE: 11pt">415-677-1580</font></u><font style="FONT-SIZE: 11pt">_________________________________________</font></font></p>

            <p></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">Address for Notice of Purchaser:<br>
            &nbsp;<br>
            One Ferry Building Suite 255<br>
            San Francisco, CA 94111<br>
            &nbsp;<br>
            Address for Delivery of Securities for Purchaser (if not same as above):<br>
            &nbsp;<br>
            &nbsp;<br>
            &nbsp;<br>
            &nbsp;<br>
            &nbsp;<br>
            EIN Number:</font> <b><font style="FONT-SIZE: 11pt">[PROVIDE THIS UNDER SEPARATE COVER]</font></b><br>
            &nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">[SIGNATURE PAGES CONTINUE]</font></font></p>

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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; TEXT-TRANSFORM: uppercase">[PURCHASER SIGNATURE PAGES TO SECURITIES&nbsp;EXCHANGE AGREEMENT]</font></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 24pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">IN WITNESS WHEREOF, the undersigned have caused this Securities&nbsp;Exchange Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">Name of Purchaser:</font> <u><font style="FONT-SIZE: 11pt">Enable Growth Partners LP&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 11pt"><i><font style="FONT-SIZE: 11pt">Signature of Authorized Signatory of Purchaser</font></i><font style="FONT-SIZE: 11pt">:</font> <font style="FONT-SIZE: 11pt"><u>/s/ Brendan O'Neil</u><br>
            Name of Authorized Signatory:</font> <u><font style="FONT-SIZE: 11pt">Brendan O'Neil</font></u><font style="FONT-SIZE: 11pt">_______________________________________<br>
            Title of Authorized Signatory:</font> <u><font style="FONT-SIZE: 11pt">Principal and Portfolio Manager</font></u><font style="FONT-SIZE: 11pt">____________________________<br>
            Email Address of Purchaser:</font> <u><font style="FONT-SIZE: 11pt">boneil@enablecapital.com</font></u><font style="FONT-SIZE: 11pt">__________________________________</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">Facsimile Number of Purchaser:</font> <u><font style="FONT-SIZE: 11pt">415-677-1580</font></u><font style="FONT-SIZE: 11pt">_________________________________________</font></font></p>

            <p></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">Address for Notice of Purchaser:<br>
            &nbsp;<br>
            One Ferry Building Suite 255<br>
            San Francisco, CA 94111<br>
            &nbsp;<br>
            Address for Delivery of Securities for Purchaser (if not same as above):<br>
            &nbsp;<br>
            &nbsp;<br>
            &nbsp;<br>
            &nbsp;<br>
            &nbsp;<br>
            EIN Number:</font> <b><font style="FONT-SIZE: 11pt">[PROVIDE THIS UNDER SEPARATE COVER]</font></b><br>
            &nbsp;</font></p>

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            &nbsp;</font></font></p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; TEXT-TRANSFORM: uppercase">[PURCHASER SIGNATURE PAGES TO SECURITIES&nbsp;EXCHANGE AGREEMENT]</font></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 24pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">IN WITNESS WHEREOF, the undersigned have caused this Securities&nbsp;Exchange Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">Name of Purchaser:</font> <u><font style="FONT-SIZE: 11pt">Enable Opportunity Partners LP&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;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 11pt"><i><font style="FONT-SIZE: 11pt">Signature of Authorized Signatory of Purchaser</font></i><font style="FONT-SIZE: 11pt">:</font> <font style="FONT-SIZE: 11pt"><u>/s/ Brendan O'Neil</u><br>
            Name of Authorized Signatory:</font> <u><font style="FONT-SIZE: 11pt">Brendan O'Neil</font></u><font style="FONT-SIZE: 11pt">_______________________________________<br>
            Title of Authorized Signatory:</font> <u><font style="FONT-SIZE: 11pt">Principal and Portfolio Manager</font></u><font style="FONT-SIZE: 11pt">____________________________<br>
            Email Address of Purchaser:</font> <u><font style="FONT-SIZE: 11pt">boneil@enablecapital.com</font></u><font style="FONT-SIZE: 11pt">__________________________________</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">Facsimile Number of Purchaser:</font> <u><font style="FONT-SIZE: 11pt">415-677-1580</font></u><font style="FONT-SIZE: 11pt">_________________________________________</font></font></p>

            <p></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">Address for Notice of Purchaser:<br>
            One Ferry Building Suite 255<br>
            San Francisco, CA 94111<br>
            &nbsp;<br>
            &nbsp;<br>
            &nbsp;<br>
            Address for Delivery of Securities for Purchaser (if not same as above):<br>
            &nbsp;<br>
            &nbsp;<br>
            &nbsp;<br>
            &nbsp;<br>
            &nbsp;<br>
            EIN Number:</font> <b><font style="FONT-SIZE: 11pt">[PROVIDE THIS UNDER SEPARATE COVER]</font></b><br>
            &nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">[SIGNATURE PAGES CONTINUE]</font></font></p>

            <p></p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; TEXT-TRANSFORM: uppercase">[PURCHASER SIGNATURE PAGES TO SECURITIES&nbsp;EXCHANGE AGREEMENT]</font></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 24pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">IN WITNESS WHEREOF, the undersigned have caused this Securities&nbsp;Exchange Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">Name of Purchaser:</font> <u><font style="FONT-SIZE: 11pt">Hudson Bay Fund LP</font></u></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 11pt"><i><font style="FONT-SIZE: 11pt">Signature of Authorized Signatory of Purchaser</font></i><font style="FONT-SIZE: 11pt">:</font> <u><font style="FONT-SIZE: 11pt">&nbsp;/s/ Yoav Roth</font></u></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">Name of Authorized Signatory:</font> <u><font style="FONT-SIZE: 11pt">Yoav Roth</font></u><br>
            <font style="FONT-SIZE: 11pt">Title of Authorized Signatory:</font> <u><font style="FONT-SIZE: 11pt">Principal and Portfolio Manager</font></u><br>
            <font style="FONT-SIZE: 11pt">Email Address of Authorized Signatory:</font> <u><font style="FONT-SIZE: 11pt">investments@hudsonbaycapital.com</font></u></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">Fax Number of Authorized Signatory:</font> <u><font style="FONT-SIZE: 11pt">212-571-1279</font></u></font></p>

            <p></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">Address for Notice of Purchaser:<br>
            &nbsp;<br>
            120 Broadway, 40</font><sup><font style="FONT-SIZE: 11pt">th</font></sup> <font style="FONT-SIZE: 11pt">Floor<br>
            New York, NY 10271<br>
            &nbsp;<br>
            Address for Delivery of Securities for Purchaser (if not same as above):<br>
            &nbsp;<br>
            &nbsp;<br>
            &nbsp;<br>
            &nbsp;<br>
            &nbsp;<br>
            EIN Number:</font> <b><font style="FONT-SIZE: 11pt">[PROVIDE THIS UNDER SEPARATE COVER]</font></b><br>
            &nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">[SIGNATURE PAGES CONTINUE]</font></font></p>

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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; TEXT-TRANSFORM: uppercase">[PURCHASER SIGNATURE PAGES TO SECURITIES&nbsp;EXCHANGE AGREEMENT]</font></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 24pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">IN WITNESS WHEREOF, the undersigned have caused this Securities&nbsp;Exchange Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">Name of Purchaser:</font> <u><font style="FONT-SIZE: 11pt">Hudson Bay Overseas Fund LTD</font></u></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 11pt"><i><font style="FONT-SIZE: 11pt">Signature of Authorized Signatory of Purchaser</font></i><font style="FONT-SIZE: 11pt">:</font>&nbsp; <u><font style="FONT-SIZE: 11pt">/s/ Yoav Roth</font></u></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">Name of Authorized Signatory:</font> <u><font style="FONT-SIZE: 11pt">Yoav Roth</font></u><br>
            <font style="FONT-SIZE: 11pt">Title of Authorized Signatory:</font> <u><font style="FONT-SIZE: 11pt">Principal and Portfolio Manager</font></u><br>
            <font style="FONT-SIZE: 11pt">Email Address of Authorized Signatory:</font> <u><font style="FONT-SIZE: 11pt">investments@hudsonbaycapital.com</font></u></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">Fax Number of Authorized Signatory:</font> <u><font style="FONT-SIZE: 11pt">212-571-1279</font></u></font></p>

            <p></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">Address for Notice of Purchaser:<br>
            &nbsp;<br>
            120 Broadway, 40</font><sup><font style="FONT-SIZE: 11pt">th</font></sup> <font style="FONT-SIZE: 11pt">Floor<br>
            New York, NY 10271<br>
            &nbsp;<br>
            Address for Delivery of Securities for Purchaser (if not same as above):<br>
            &nbsp;<br>
            &nbsp;<br>
            &nbsp;<br>
            &nbsp;<br>
            &nbsp;<br>
            EIN Number:</font> <b><font style="FONT-SIZE: 11pt">[PROVIDE THIS UNDER SEPARATE COVER]</font></b><br>
            &nbsp;</font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">[SIGNATURE PAGES CONTINUE]</font></font></p>

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            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center">&nbsp;</p>

            <p style="MARGIN-TOP: 0pt; FONT-SIZE: 10pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt; TEXT-TRANSFORM: uppercase">[PURCHASER SIGNATURE PAGES TO SECURITIES&nbsp;EXCHANGE AGREEMENT]</font></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 24pt; MARGIN-LEFT: 0in; TEXT-INDENT: 36px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">IN WITNESS WHEREOF, the undersigned have caused this Securities&nbsp;Exchange Agreement to be duly executed by their respective authorized signatories as of the date first indicated above.</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">Name of Purchaser:</font> <u><font style="FONT-SIZE: 11pt">Crescent International Ltd.&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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u></font></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="justify"><font style="FONT-SIZE: 11pt"><i><font style="FONT-SIZE: 11pt">Signature of Authorized Signatory of Purchaser</font></i><font style="FONT-SIZE: 11pt">:</font> <u><font style="FONT-SIZE: 11pt">&nbsp;/s/ Maxi Brezzi</font></u><br>
            <font style="FONT-SIZE: 11pt">Name of Authorized Signatory:</font> <u><font style="FONT-SIZE: 11pt">Maxi Brezzi</font></u> <font style="FONT-SIZE: 11pt">_______________________<br>
            Title of Authorized Signatory:</font> <u><font style="FONT-SIZE: 11pt">Authorized Signatory&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></u><font style="FONT-SIZE: 11pt">________________________<br>
            Email Address of Purchaser:</font> <u><font style="FONT-SIZE: 11pt">canatara@dmitrust.com</font></u><font style="FONT-SIZE: 11pt">___________________________________</font></font></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">Facsimile Number of Purchaser:</font> <u><font style="FONT-SIZE: 11pt">+41 22 791 7171</font></u><font style="FONT-SIZE: 11pt">______________________________________</font></font></p>

            <p></p>

            <p></p>

            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="left"><font style="FONT-SIZE: 11pt"><font style="FONT-SIZE: 11pt">Address for Notice of Purchaser:<br>
            &nbsp;<br>
            C/O Cantara (Switzerland) S.A.<br>
            84 Avenue Louis-Casa&iuml;<br>
            CH-1216 Cointrin/Geneva, Switzerland<br>
            &nbsp;<br>
            &nbsp;<br>
            Address for Delivery of Securities for Purchaser (if not same as above):<br>
            &nbsp;<br>
            &nbsp;<br>
            &nbsp;<br>
            &nbsp;<br>
            &nbsp;<br>
            EIN Number: N/A<br>
            &nbsp;</font></font></p>

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            <p style="MARGIN-TOP: 0pt; MARGIN-BOTTOM: 0pt; MARGIN-LEFT: 0in; TEXT-INDENT: 0px" align="center"><font size="1">38</font></p>
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