Document:

Unassociated Document

    

      Exhibit
        10.1

    

    

    COMMON
      STOCK PURCHASE

    

    AGREEMENT

    

    Dated
      as of May 4, 2007

    

    by
      and between

    

    FOLDERA,
      INC.

    

    and

    

    THE
      PURCHASERS LISTED ON EXHIBIT A

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

      TABLE
        OF
        CONTENTS

    

    

      
        	 	Page 
	
                COMMON
                  STOCK PURCHASE AGREEMENT

              	
                1

              
	 	 
	
                ARTICLE
                  I          PURCHASE
                  AND SALE OF COMMON STOCK

              	
                1

              
	
                Section
                  1.1

              	
                Purchase
                  and Sale of Common Stock.

              	
                1

              
	
                Section
                  1.2

              	
                Purchase
                  Price and Closings

              	
                1

              
	 	 
	
                ARTICLE
                  II         REPRESENTATIONS
                  AND WARRANTIES

              	
                2

              
	
                Section
                  2.1

              	
                Representations
                  and Warranties of the Company

              	
                2

              
	
                Section
                  2.2

              	
                Representations
                  and Warranties of the Purchasers

              	
                13

              
	 	 
	
                ARTICLE
                  III        COVENANTS

              	
                16

              
	
                Section
                  3.1

              	
                Securities
                  Compliance

              	
                16

              
	
                Section
                  3.2

              	
                Registration
                  and Listing

              	
                16

              
	
                Section
                  3.3

              	
                Inspection
                  Rights

              	
                16

              
	
                Section
                  3.4

              	
                Compliance
                  with Laws

              	
                17

              
	
                Section
                  3.5

              	
                Keeping
                  of Records and Books of Account

              	
                17

              
	
                Section
                  3.6

              	
                Reporting
                  Requirements

              	
                17

              
	
                Section
                  3.7

              	
                Other
                  Agreements

              	
                17

              
	
                Section
                  3.8

              	
                Use
                  of Proceeds

              	
                17

              
	
                Section
                  3.9

              	
                Reporting
                  Status

              	
                17

              
	
                Section
                  3.10

              	
                Disclosure
                  of Transaction

              	
                17

              
	
                Section
                  3.11

              	
                Disclosure
                  of Material Information

              	
                18

              
	
                Section
                  3.12

              	
                Form
                  D

              	
                18

              
	
                Section
                  3.13

              	
                No
                  Integrated Offerings

              	
                18

              
	
                Section
                  3.14

              	
                Pledge
                  of Shares

              	
                18

              
	
                Section
                  3.15

              	
                Confidentiality

              	
                18

              
	
                Section
                  3.16

              	
                Updated
                  Schedule of Exceptions

              	
                19

              
	 	 
	
                ARTICLE
                  IV        CONDITIONS

              	
                19

              
	
                Section
                  4.1

              	
                Conditions
                  Precedent to the Obligation of the Company to Close and to Sell
                  the
                  Shares

              	
                19

              
	
                Section
                  4.2

              	
                Conditions
                  Precedent to the Obligation of the Purchasers to Close and to Purchase
                  the
                  Shares

              	
                20

              
	
                 

              	 
	
                ARTICLE
                  V         CERTIFICATE
                  LEGEND

              	
                21

              
	
                Section
                  5.1

              	
                Legend

              	
                21

              
	 	 
	
                ARTICLE
                  VI        INDEMNIFICATION

              	
                23

              
	
                Section
                  6.1

              	
                Company
                  Indemnity

              	
                23

              
	
                Section
                  6.2

              	
                Indemnification
                  Procedure

              	
                23

              
	 	 
	
                ARTICLE
                  VII      MISCELLANEOUS

              	
                24

              
	
                Section
                  7.1

              	
                Fees
                  and Expenses

              	
                24

              
	
                Section
                  7.2

              	
                Specific
                  Performance; Consent to Jurisdiction; Venue.

              	
                24

              
	
                Section
                  7.3

              	
                Entire
                  Agreement; Amendment

              	
                25

              
	
                Section
                  7.4

              	
                Notices

              	
                25

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

        TABLE
          OF
          CONTENTS

        (continued)

      

       

      
        	
                Section
                  7.5

              	
                Waivers

              	
                26

              
	
                Section
                  7.6

              	
                Headings

              	
                26

              
	
                Section
                  7.7

              	
                Successors
                  and Assigns

              	
                26

              
	
                Section
                  7.8

              	
                No
                  Third Party Beneficiaries

              	
                26

              
	
                Section
                  7.9

              	
                Governing
                  Law

              	
                26

              
	
                Section
                  7.10

              	
                Survival

              	
                26

              
	
                Section
                  7.11

              	
                Counterparts

              	
                27

              
	
                Section
                  7.12

              	
                Publicity

              	
                27

              
	
                Section
                  7.13

              	
                Severability

              	
                27

              
	
                Section
                  7.14

              	
                Further
                  Assurances

              	
                27

              

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    COMMON
      STOCK PURCHASE AGREEMENT

    

    This
      COMMON STOCK PURCHASE AGREEMENT (this “Agreement”),
      dated
      as of May 4, 2007 by and between Foldera, Inc., a Nevada corporation (the
      "Company"),
      and
      the purchasers listed on Exhibit
      A
      hereto
      (each a "Purchaser"
      and
      collectively, the "Purchasers"),
      for
      the purchase and sale of shares of the Company’s common stock, par value $0.001
      per share (the “Common
      Stock”).
      

    

    The
      parties hereto agree as follows:

     

    ARTICLE
      I 

     

    PURCHASE
      AND SALE OF COMMON STOCK

     

    Section
      1.1  Purchase
      and Sale of Common Stock.
      Upon the
      following terms and conditions, the Company shall issue and sell to the
      Purchasers, and the Purchasers shall purchase from the Company, shares of Common
      Stock (the “Shares”)
      at a
      price per share of $0.60 (the “Per
      Share Purchase Price”)
      for a
      minimum aggregate purchase price of One Million Dollars ($1,000,000) and a
      maximum aggregate purchase price of Four Million Dollars ($4,000,000) (the
      “Purchase
      Price”).
      Each
      Purchaser shall pay the portion of the Purchase Price set forth opposite its
      name on Exhibit
      A
      hereto.
      The Company and the Purchasers are executing and delivering this Agreement
      in
      accordance with and in reliance upon the exemption from securities registration
      afforded by Section 4(2) of the U.S. Securities Act of 1933, as amended, and
      the
      rules and regulations promulgated thereunder (the "Securities
      Act"),
      including Regulation D ("Regulation
      D"),
      and/or upon such other exemption from the registration requirements of the
      Securities Act as may be available with respect to any or all of the investments
      to be made hereunder. 

     

    Section
      1.2  Purchase
      Price and Closings.
      In
      consideration of and in express reliance upon the representations, warranties,
      covenants, terms and conditions of this Agreement, the Company agrees to issue
      and sell to the Purchasers and, in consideration of and in express reliance
      upon
      the representations, warranties, covenants, terms and conditions of this
      Agreement, the Purchasers, severally but not jointly, agree to purchase the
      number of Shares set forth opposite their respective names on Exhibit
      A.
      The
      Shares shall be sold and funded in separate closings (each, a “Closing”),
      in
      each case pursuant to terms of this Agreement and provided that each such
      Purchaser executes a signature page hereto and to each of the other Transaction
      Documents (as defined in Section 2.1(b) hereof) to which the Purchasers are
      a
      party, and thereby agrees to be bound by and subject to the terms and conditions
      hereof and thereof. The initial Closing under this Agreement (the “Initial
      Closing”)
      shall
      take place on or about May 7, 2007 (the “Initial
      Closing Date”)
      and
      shall be funded in the amount of at least One Million Dollars ($1,000,000).
      Each
      subsequent Closing under this Agreement (each, a “Subsequent
      Closing”)
      shall
      take place upon the mutual agreement of the Company and the Purchasers, but
      in
      no event later than July 31, 2007 (each, a “Subsequent
      Closing Date”).
      The
      Initial Closing Date and each Subsequent Closing Date are sometimes referred
      to
      in this Agreement as the “Closing
      Date”.
      Each
      Closing under this Agreement shall take place at the offices of Kramer Levin
      Naftalis & Frankel LLP, 1177 Avenue of the Americas, New York, New York
      10036 at 10:00 a.m., New York time. Subject to the terms and conditions of
      this
      Agreement, at each Closing the Company shall deliver or cause to be delivered
      to
      each Purchaser (x) a certificate for the number of Shares set forth opposite
      the
      name of such Purchaser on Exhibit
      A
      hereto
      and (y) any other documents required to be delivered pursuant to Article IV
      hereof. At each Closing, each Purchaser shall deliver its portion of the
      Purchase Price by wire transfer to an escrow account designated by the escrow
      agent.

     

    
      
        
        

      

      
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    ARTICLE
      II

     

    REPRESENTATIONS
      AND WARRANTIES

     

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

     

    (a)  Organization,
      Good Standing and Power.
      The
      Company is a corporation duly incorporated, validly existing and in good
      standing under the laws of the State of Nevada and has the requisite corporate
      power to own, lease and operate its properties and assets and to conduct its
      business as it is now being conducted. The Company does not have any
      Subsidiaries (as defined in Section 2.1(g)) or own securities of any kind in
      any
      other entity except as set forth on Schedule
      2.1(g)
      hereto.
      The Company and each such Subsidiary (as defined in Section 2.1(g)) is duly
      qualified to do business as a foreign corporation and is in good standing in
      every jurisdiction in which the nature of the business conducted or property
      owned by it makes such qualification necessary except for any jurisdiction(s)
      (alone or in the aggregate) in which the failure to be so qualified will not
      have a Material Adverse Effect. For the purposes of this Agreement,
      "Material
      Adverse Effect"
      means
      any effect on the business, results of operations, assets or condition
      (financial or otherwise) of the Company that is material and adverse to the
      Company and its subsidiaries, in the aggregate, and/or any condition,
      circumstance, or situation that would prohibit or otherwise materially interfere
      with the ability of the Company from entering into and performing any of its
      obligations under the Transaction Documents (as defined below) in any material
      respect.

     

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

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (c)  Capitalization.
      The
      authorized capital stock of the Company as of the date hereof is set forth
      on
Schedule
      2.1(c)
      hereto.
      All of the outstanding shares of the Common Stock and any other outstanding
      security of the Company have been duly and validly authorized and validly
      issued, fully paid and nonassessable and were issued in accordance with the
      registration or qualification provisions of the Securities Act, or pursuant
      to
      valid exemptions therefrom. Except as set forth in this Agreement and as set
      forth on Schedule
      2.1(c)
      hereto,
      no shares of Common Stock or any other security of the Company are entitled
      to
      preemptive rights, registration rights, rights of first refusal or similar
      rights and there are no outstanding options, warrants, scrip, rights to
      subscribe to, call or commitments of any character whatsoever relating to,
      or
      securities or rights convertible into, any shares of capital stock of the
      Company. Furthermore, except as set forth in this Agreement and as set forth
      on
Schedule
      2.1(c)
      hereto,
      there are no contracts, commitments, understandings, or arrangements by which
      the Company is or may become bound to issue additional shares of the capital
      stock of the Company or options, securities or rights convertible into shares
      of
      capital stock of the Company. Except for customary transfer restrictions
      contained in agreements entered into by the Company in order to sell restricted
      securities or as provided on Schedule
      2.1(c)
      hereto,
      the Company is not a party to or bound by any agreement or understanding
      granting registration or anti-dilution rights to any person with respect to
      any
      of its equity or debt securities. Except as set forth on Schedule
      2.1(c),
      the
      Company is not a party to, and it has no knowledge of, any agreement or
      understanding restricting the voting or transfer of any shares of the capital
      stock of the Company. Except as disclosed on Schedule
      2.1(c),
      (i)
      there are no outstanding debt securities, or other form of material debt of
      the
      Company or any of its Subsidiaries, (ii) except for the Registration Rights
      Agreement, there are no contracts, commitments, understandings, agreements
      or
      arrangements under which the Company or any of its Subsidiaries is required
      to
      register the sale of any of their securities under the Securities Act, (iii)
      there are no outstanding securities of the Company or any of its Subsidiaries
      which contain any redemption or similar provisions, and there are no contracts,
      commitments, understandings, agreements or arrangements by which the Company
      or
      any of its Subsidiaries is or may become bound to redeem a security of the
      Company or any of its Subsidiaries, (iv) there are no securities or instruments
      containing anti-dilution or similar provisions that will be triggered by the
      issuance of the Shares, (v) the Company does not have any stock appreciation
      rights or “phantom stock” plans or agreements, or any similar plan or agreement
      and (vi) as of the date of this Agreement, except as set forth in filings made
      with the Commission, to the Company’s and each of its Subsidiaries’ knowledge,
      no Person (as defined below) or group of related Persons beneficially owns
      (as
      determined pursuant to Rule 13d-3 promulgated under the Exchange Act) or has
      the
      right to acquire by agreement with or by obligation binding upon the Company,
      beneficial ownership of in excess of 5% of the Common Stock. Any
      Person with any right to purchase securities of the Company that would be
      triggered as a result of the transactions contemplated hereby or by any of
      the
      other Transaction Documents has waived such rights or the time for the exercise
      of such rights has passed, except where failure of the Company to receive such
      waiver would not have a Material Adverse Effect. Except as set forth on
Schedule
      2.1(c),
      there
      are no
      options, warrants or other outstanding securities of the Company (including,
      without limitation, any equity securities issued pursuant to any Company Plan)
      the vesting of which will be accelerated by the transactions contemplated hereby
      or by any of the other Transaction Documents. 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (d)  Issuance
      of Shares.
      The
      Shares to be issued at each Closing have been duly authorized by all necessary
      corporate action and, when paid for and issued in accordance with the terms
      hereof, the Shares will be validly issued, fully paid and nonassessable and
      free
      and clear of all liens, encumbrances and rights of refusal of any kind and
      the
      holders shall be entitled to all rights accorded to a holder of Common Stock.
      

     

    (e)  No
      Conflicts.
      The
      execution, delivery and performance of the Transaction Documents by the Company
      and the consummation by the Company of the transactions contemplated hereby
      and
      thereby do not and will not (i) violate any provision of the Company's Articles
      of Incorporation (the “Articles”)
      or
      Bylaws (the “Bylaws”),
      each
      as amended to date, or any Subsidiary's comparable charter documents, (ii)
      conflict with, or constitute a default (or an event which with notice or lapse
      of time or both would become a default) under, or give to others any rights
      of
      termination, amendment, acceleration or cancellation of, any agreement,
      mortgage, deed of trust, indenture, note, bond, license, lease agreement,
      instrument or obligation to which the Company or any of its Subsidiaries is
      a
      party or by which the Company or any of its Subsidiaries' respective properties
      or assets are bound, or (iii) result in a violation of any federal, state,
      local
      or foreign statute, rule, regulation, order, judgment or decree (including
      federal and state securities laws and regulations) applicable to the Company
      or
      any of its Subsidiaries or by which any property or asset of the Company or
      any
      of its Subsidiaries is bound or affected, except, in all cases, other than
      violations pursuant to clauses (i) or (iii) (with respect to federal and state
      securities laws) above, except, for such conflicts, defaults, terminations,
      amendments, acceleration, cancellations and violations as would not,
      individually or in the aggregate, have a Material Adverse Effect. Neither
      the Company nor any of its Subsidiaries is required under federal, state,
      foreign or local law, rule or regulation to obtain any consent, authorization
      or
      order of, or make any filing or registration with, any court or governmental
      agency in order for it to execute, deliver or perform any of its obligations
      under the Transaction Documents or issue and sell the Shares in accordance
      with
      the terms hereof (other than any filings, consents and approvals which may
      be
      required to be made by the Company under applicable state and federal securities
      laws and rules, or as may be required for the Company to carry out its
      obligations under the Registration Rights Agreement).

     

    (f)  Commission
      Documents, Financial Statements.
      The
Common
      Stock of the Company is registered pursuant to Section 15(d) of the Securities
      Exchange Act of 1934, as amended (the "Exchange
      Act"),
      and,
      except as disclosed on Schedule
      2.1(f)
      hereto,
      the Company
      has timely filed all reports, schedules, forms, statements and other documents
      required to be filed by it with the U.S. Securities and Exchange Commission
      (the
“Commission”)
      pursuant to the reporting requirements of the Exchange Act, including pursuant
      to Sections 13, 14 or 15(d) thereof (all of the foregoing and all exhibits
      included therein and financial statements and schedules thereto, including
      filings incorporated by reference therein being referred to herein as the
      "Commission
      Documents").
      At
      the times of their respective filings, the Quarterly Reports on Form 10-QSB
      for
      the quarters ended September 30, 2006, June 30, 2006 and March 31, 2006
      (collectively, the “Form
      10-QSB”)
      and
      the Annual Report on Form 10-KSB for the year ended December 31, 2006 (the
      “Form
      10-KSB”)
      complied in all material respects with the requirements of the Exchange Act
      and
      the rules and regulations of the Commission promulgated thereunder, and the
      Form
      10-QSB and Form 10-KSB at the time of their respective filings did not contain
      any untrue statement of a material fact or omit to state a material fact
      required to be stated therein or necessary in order to make the statements
      therein, in light of the circumstances under which they were made, not
      misleading. As of their respective dates, the financial statements of the
      Company included in the Commission Documents are complete and correct in all
      material respects and comply with applicable accounting requirements and the
      published rules and regulations of the Commission or other applicable rules
      and
      regulations with respect thereto. Such financial statements have been prepared
      in accordance with accounting principles generally accepted in the United States
      ("GAAP")
      applied on a consistent basis during the periods involved (except (i) as may
      be
      otherwise indicated in such financial statements or the Notes thereto or (ii)
      in
      the case of unaudited interim statements, to the extent they may not include
      footnotes or may be condensed or summary statements), and fairly present in
      all
      material respects the financial position of the Company and its Subsidiaries
      as
      of 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
      year-end audit adjustments).

     

    
      
        
        

      

      
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    (g)  Subsidiaries.
      The
      Commission Documents or Schedule
      2.1(g)
      hereto
      sets forth each Subsidiary of the Company, showing the jurisdiction of its
      incorporation or organization and showing the percentage of each person's
      ownership of the outstanding stock or other interests of such Subsidiary. For
      the purposes of this Agreement, "Subsidiary"
      shall
      mean any corporation or other entity of which at least a majority of the
      securities or other ownership interest having ordinary voting power (absolutely
      or contingently) for the election of directors or other persons performing
      similar functions are at the time owned directly or indirectly by the Company
      and/or any of its other Subsidiaries. All of the outstanding shares of capital
      stock of each Subsidiary have been duly authorized and validly issued, and
      are
      fully paid and nonassessable. There is no outstanding preemptive, conversion
      or
      other rights, options, warrants or agreements granted or issued by or binding
      upon any Subsidiary for the purchase or acquisition of any shares of capital
      stock of any Subsidiary or any other securities convertible into, exchangeable
      for or evidencing the rights to subscribe for any shares of such capital stock.
      Neither the Company nor any Subsidiary is subject to any obligation (contingent
      or otherwise) to repurchase or otherwise acquire or retire any shares of the
      capital stock of any Subsidiary or any convertible securities, rights, warrants
      or options of the type described in the preceding sentence except as set forth
      on Schedule
      2.1(g)
      hereto.
      Neither the Company nor any Subsidiary is party to, nor has any knowledge of,
      any agreement restricting the voting or transfer of any shares of the capital
      stock of any Subsidiary.

     

    (h)  No
      Material Adverse Change.
      Since
      December 31, 2006, the Company has not experienced or suffered any Material
      Adverse Effect, except as disclosed in the Commission Documents or on
Schedule
      2.1(h)
      hereto.

     

    (i)  No
      Undisclosed Liabilities.
      Except
      as disclosed in the Commission Documents or on Schedule
      2.1(i)
      hereto,
      since December 31, 2006, neither the Company nor any of its Subsidiaries has
      incurred any liabilities, obligations, claims or losses (whether liquidated
      or
      unliquidated, secured or unsecured, absolute, accrued, contingent or otherwise)
      other than those incurred in the ordinary course of the Company's or its
      Subsidiaries respective businesses or which, individually or in the aggregate,
      are not reasonably likely to have a Material Adverse Effect. Since December
      31,
      2006, except as disclosed in Commission Documents, none of the Company or any
      of
      its Subsidiaries has participated in any transaction material to the condition
      of the Company which is outside of the ordinary course of its
      business.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (j)  No
      Undisclosed Events or Circumstances.
      Since
      December 31, 2006, except as disclosed in the Commission Documents or on
Schedule
      2.1(j)
      hereto,
      no event or circumstance has occurred or exists with respect to the Company
      or
      its Subsidiaries or their respective businesses, properties, operations or
      financial condition, which, under applicable law, rule or regulation, requires
      public disclosure or announcement by the Company but which has not been so
      publicly announced or disclosed. 

     

    (k)  Indebtedness.
      The
      Commission Documents or Schedule
      2.1(k)
      hereto
      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, “Indebtedness”
shall mean (a) any liabilities for borrowed money or amounts owed in excess
      of
      $100,000 (other than trade accounts payable incurred in the ordinary course
      of
      business), (b) all guaranties, endorsements and other contingent obligations
      in
      respect of liabilities for borrowed money of others in excess of $100,000,
      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 payments in excess
      of
      $25,000 due under leases required to be capitalized in accordance with GAAP.
      Neither the Company nor any Subsidiary is in default with respect to any
      Indebtedness.

     

    (l)  Title
      to Assets.
      Each of
      the Company and the Subsidiaries has good and valid title to all of its real
      and
      personal property reflected in the Commission Documents, free and clear of
      any
      mortgages, pledges, charges, liens, security interests or other encumbrances,
      except for those indicated in the Commission Documents or on Schedule
      2.1(l)
      hereto
      or such that, individually or in the aggregate, do not cause a Material Adverse
      Effect. All such leases of the Company and each of its Subsidiaries are valid
      and subsisting and in full force and effect.

     

    (m)  Actions
      Pending.
      There
      is no action, suit, claim, investigation, arbitration, alternate dispute
      resolution proceeding or other proceeding pending or, to the knowledge of the
      Company, threatened against the Company or any Subsidiary which questions the
      validity of this Agreement or any of the other Transaction Documents or any
      of
      the transactions contemplated hereby or thereby or any action taken or to be
      taken pursuant hereto or thereto. Except as set forth in the Commission
      Documents or on Schedule
      2.1(m)
      hereto,
      there is no action, suit, claim, investigation, arbitration, alternate dispute
      resolution proceeding or other proceeding pending or, to the knowledge of the
      Company, threatened against or involving the Company, any Subsidiary or any
      of
      their respective properties or assets, which individually or in the aggregate,
      could reasonably be expected to have a Material Adverse Effect. There are no
      outstanding orders, judgments, injunctions, awards or decrees of any court,
      arbitrator or governmental or regulatory body against the Company or any
      Subsidiary or any officers or directors of the Company or any Subsidiary in
      their capacities as such, which individually or in the aggregate, could
      reasonably be expected to have a Material Adverse Effect. 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (n)  Compliance
      with Law.
      The
      business of the Company and the Subsidiaries has been and is presently being
      conducted in accordance with all applicable federal, state and local
      governmental laws, rules, regulations and ordinances, except as set forth in
      the
      Commission Documents or on Schedule
      2.1(n)
      hereto
      or such that, individually or in the aggregate, the noncompliance therewith
      could not reasonably be expected to have a Material Adverse Effect. The Company
      and each of its Subsidiaries have all franchises, permits, licenses, consents
      and other governmental or regulatory authorizations and approvals necessary
      for
      the conduct of its business as now being conducted by it unless the failure
      to
      possess such franchises, permits, licenses, consents and other governmental
      or
      regulatory authorizations and approvals, individually or in the aggregate,
      could
      not reasonably be expected to have a Material Adverse Effect.

     

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

     

    (p)  Certain
      Fees.
      Except
      as set forth on Schedule
      2.1(p)
      hereto,
      the Company has not employed any broker or finder or incurred any liability
      for
      any brokerage or investment banking fees, commissions, finders' structuring
      fees, financial advisory fees or other similar fees in connection with the
      Transaction Documents.

     

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

     

    (r)  Operation
      of Business.
      The
      Company and each of the Subsidiaries owns or possesses the rights to use all
      patents, trademarks, domain names (whether or not registered) and any patentable
      improvements or copyrightable derivative works thereof, websites and
      intellectual property rights relating thereto, service marks, trade names,
      copyrights, licenses and authorizations which are necessary for the conduct
      of
      its business as now conducted without, to its knowledge, any conflict or
      infringement with the rights of others.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    (s)  Environmental
      Compliance.
      Except
      as disclosed in the Commission Documents or on Schedule
      2.1(s)
      hereto,
      the Company and each of its Subsidiaries have obtained all material approvals,
      authorization, certificates, consents, licenses, orders and permits or other
      similar authorizations of all governmental authorities, or from any other
      person, that are required under any Environmental Laws. "Environmental Laws"
      shall mean all applicable laws relating to the protection of the environment
      including, without limitation, all requirements pertaining to reporting,
      licensing, permitting, controlling, investigating or remediating emissions,
      discharges, releases or threatened releases of hazardous substances, chemical
      substances, pollutants, contaminants or toxic substances, materials or wastes,
      whether solid, liquid or gaseous in nature, into the air, surface water,
      groundwater or land, or relating to the manufacture, processing, distribution,
      use, treatment, storage, disposal, transport or handling of hazardous
      substances, chemical substances, pollutants, contaminants or toxic substances,
      material or wastes, whether solid, liquid or gaseous in nature. Except as set
      forth on Schedule
      2.1(s)
      hereto,
      the Company has all necessary governmental approvals required under all
      Environmental Laws and used in its business or in the business of any of its
      Subsidiaries, except for such instances as would not individually or in the
      aggregate have a Material Adverse Effect. The Company and each of its
      Subsidiaries are also in compliance with all other limitations, restrictions,
      conditions, standards, requirements, schedules and timetables required or
      imposed under all Environmental Laws. Except for such instances as would not
      individually or in the aggregate have a Material Adverse Effect, there are
      no
      past or present events, conditions, circumstances, incidents, actions or
      omissions relating to or in any way affecting the Company or its Subsidiaries
      that violate or would be reasonably likely to violate any Environmental Law
      after the Closing or that would be reasonably likely to give rise to any
      environmental liability, or otherwise form the basis of any claim, action,
      demand, suit, proceeding, hearing, study or investigation (i) under any
      Environmental Law or (ii) based on or related to the manufacture, processing,
      distribution, use, treatment, storage (including, without limitation,
      underground storage tanks), disposal, transport or handling, or the emission,
      discharge, release or threatened release of any hazardous substance.

     

    (t)  Books
      and Records; Internal Accounting Controls.
      The
      records and documents of the Company and its Subsidiaries accurately reflect
      in
      all material respects the information relating to the business of the Company
      and its Subsidiaries, the location and collection of their assets, and the
      nature of all transactions giving rise to the obligations or accounts receivable
      of the Company or any Subsidiary. The Company and each of its Subsidiaries
      maintain a system of internal accounting controls sufficient to provide
      reasonable assurance that (i) transactions are executed in accordance with
      management's general or specific authorizations, (ii) transactions are recorded
      as necessary to permit preparation of financial statements in conformity with
      GAAP and to maintain asset accountability, (iii) access to assets is permitted
      only in accordance with management's general or specific authorization, (iv)
      the
      recorded accountability for assets is compared with the existing assets at
      reasonable intervals and appropriate actions are taken with respect to any
      differences and (v) accounts, notes and other receivables and inventory are
      recorded accurately, and proper and adequate procedures are implemented to
      effect the collection thereof on a current and timely basis. Except as set
      forth
      on Schedule
      2.1(t)
      hereto,
      there are no significant deficiencies or material weaknesses in the design
      or
      operation of internal controls over financial reporting that would reasonably
      be
      expected to adversely affect the Company’s ability to record, process, summarize
      and report financial information, and there is no fraud, whether or not
      material, that involves management or, to the knowledge of the Company, other
      employees who have a significant role in the Company’s internal controls and the
      Company has provided to the Purchaser copies of any written materials relating
      to the foregoing.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (u)  Material
      Agreements.
      Except
      for the Transaction Documents (with respect to clause (i) of this Section 2.1(u)
      only) or as set forth in the Commission Documents or on Schedule
      2.1(u)
      hereto,
      or as would not be reasonably likely to have a Material Adverse Effect, (i)
      the
      Company and each of its Subsidiaries have performed all obligations required
      to
      be performed by them to date under any written or oral contract, instrument,
      agreement, commitment, obligation, plan or arrangement, filed or required to
      be
      filed with the Commission (the "Material
      Agreements"),
      (ii)
      neither the Company nor any of its Subsidiaries has received any notice of
      default under any Material Agreement and, (iii) to the best of the Company's
      knowledge, neither the Company nor any of its Subsidiaries is in default under
      any Material Agreement. 

     

    (v)  Transactions
      with Affiliates.
      Except
      as set forth in the Commission Documents, customary employment agreements or
      on
Schedule
      2.1(v)
      hereto,
      there are no loans, leases, agreements, contracts, royalty agreements,
      management contracts or arrangements or other continuing transactions between
      (a) the Company, any Subsidiary or any of their respective customers or
      suppliers on the one hand, and (b) on the other hand, any officer, employee,
      consultant or director of the Company, or any of its Subsidiaries, or any person
      owning any capital stock of the Company or any Subsidiary or any member of
      the
      immediate family of such officer, employee, consultant, director or stockholder
      or any corporation or other entity controlled by such officer, employee,
      consultant, director or stockholder, or a member of the immediate family of
      such
      officer, employee, consultant, director or stockholder which, in each case,
      is
      required to be disclosed in the Commission Documents or in the Company’s most
      recently filed definitive proxy statement on Schedule 14A, that is not so
      disclosed in the Commission Documents or in such proxy statement.

     

    (w)  Securities
      Act of 1933.
      Subject
      to the accuracy and completeness of the representations and warranties of the
      Purchasers contained in Section 2.2 hereof, the Company has complied and will
      comply with all applicable federal and state securities laws in connection
      with
      the offer, issuance and sale of the Shares hereunder. Neither the Company nor
      anyone acting on its behalf, directly or indirectly, has or will sell, offer
      to
      sell or solicit offers to buy any of the Shares or similar securities to, or
      solicit offers with respect thereto from, or enter into any negotiations
      relating thereto with, any person, or has taken or will take any action so
      as to
      bring the issuance and sale of any of the Shares under the registration
      provisions of the Securities Act and applicable state securities laws, and
      neither the Company nor any of its affiliates, nor any person acting on its
      or
      their behalf, has engaged in any form of general solicitation or general
      advertising (within the meaning of Regulation D under the Securities Act) in
      connection with the offer or sale of any of the Shares.

     

    (x)  Governmental
      Approvals.
      Except
      as set forth on Schedule
      2.1(x)
      hereto,
      and except for the filing of any notice prior or subsequent to the Closing
      that
      may be required under applicable state and/or federal securities laws (which
      if
      required, shall be filed on a timely basis), no authorization, consent,
      approval, license, exemption of, filing or registration with any court or
      governmental department, commission, board, bureau, agency or instrumentality,
      domestic or foreign, is or will be necessary for, or in connection with, the
      execution or delivery of the Shares, or for the performance by the Company
      of
      its obligations under the Transaction Documents.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (y)  Employees.
      Neither
      the Company nor any Subsidiary has any collective bargaining arrangements or
      agreements covering any of its employees, except as set forth on Schedule
      2.1(y)
      hereto
      or disclosed in the Commission Documents. Except as set forth on Schedule
      2.1(y)
      hereto
      or disclosed in the Commission Documents, neither the Company nor any Subsidiary
      has any employment contract, agreement regarding proprietary information,
      non-competition agreement, non-solicitation agreement, confidentiality
      agreement, or any other similar contract or restrictive covenant, relating
      to
      the right of any officer, employee or consultant to be employed or engaged
      by
      the Company or such Subsidiary required to be disclosed in the Commission
      Documents that is not so disclosed. Since December 31, 2006, no officer,
      consultant or key employee of the Company or any Subsidiary whose termination,
      either individually or in the aggregate, would be reasonably likely to have
      a
      Material Adverse Effect, has terminated or, to the knowledge of the Company,
      has
      any present intention of terminating his or her employment or engagement with
      the Company or any Subsidiary.

     

    (z)  Labor
      Relations.
      Except
      as could not reasonably be expected to have a Material Adverse Effect, (i)
      neither the Company nor any of its Subsidiaries is engaged in any unfair labor
      practice, (ii) there is no strike, labor dispute, slowdown or stoppage pending
      or, to the knowledge of the Company, threatened against the Company or any
      of
      its Subsidiaries, and (iii) neither the Company nor any of its Subsidiaries
      is a
      party to any collective bargaining agreement or contract.

     

    (aa)  Absence
      of Certain Developments.
      Except
      as disclosed in the Commission Documents or on Schedule
      2.1(aa)
      hereto,
      since December 31, 2006, neither the Company nor any Subsidiary
      has:

    

    (i)  issued
      any stock, bonds or other corporate securities or any right, options or warrants
      with respect thereto;

     

    (ii)  borrowed
      any amount in excess of $100,000 or incurred or become subject to any other
      liabilities in excess of $100,000 (absolute or contingent) except current
      liabilities incurred in the ordinary course of business which are comparable
      in
      nature and amount to the current liabilities incurred in the ordinary course
      of
      business during the comparable portion of its prior fiscal year, as adjusted
      to
      reflect the current nature and volume of the business of the Company and its
      Subsidiaries;

     

    (iii)  discharged
      or satisfied any lien or encumbrance in excess of $100,000 or paid any
      obligation or liability (absolute or contingent) in excess of $100,000, other
      than current liabilities paid in the ordinary course of business;

     

    (iv)  declared
      or made any payment or distribution of cash or other property to stockholders
      with respect to its stock, or purchased or redeemed, or made any agreements
      so
      to purchase or redeem, any shares of its capital stock, in each case in excess
      of $50,000 individually or $100,000 in the aggregate;

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (v)  sold,
      assigned or transferred any other tangible assets, or canceled any debts or
      claims, in each case in excess of $100,000, except in the ordinary course of
      business;

     

    (vi)  sold,
      assigned or transferred any patent rights, trademarks, trade names, copyrights,
      trade secrets or other intangible assets or intellectual property rights, or
      disclosed any proprietary confidential information to any person except to
      customers in the ordinary course of business or to the Purchasers or their
      representatives;

     

    (vii)  suffered
      any material losses or waived any rights of material value, whether or not
      in
      the ordinary course of business, or suffered the loss of any material amount
      of
      prospective business;

     

    (viii)  made
      any
      changes in employee compensation except in the ordinary course of business
      and
      consistent with past practices;

     

    (ix)  made
      capital expenditures or commitments therefor that aggregate in excess of
      $250,000;

     

    (x)  entered
      into any material transaction, whether or not in the ordinary course of
      business;

     

    (xi)  made
      charitable contributions or pledges in excess of $10,000;

     

    (xii)  suffered
      any material damage, destruction or casualty loss, whether or not covered by
      insurance;

     

    (xiii)  experienced
      any material problems with labor or management in connection with the terms
      and
      conditions of their employment; or 

     

    (xiv)  entered
      into an agreement, written or otherwise, to take any of the foregoing
      actions.

    

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

     

    (cc)  ERISA.
      No
      liability to the Pension Benefit Guaranty Corporation has been incurred with
      respect to any Plan by the Company or any of its Subsidiaries which is or would
      be materially adverse to the Company and its Subsidiaries. The execution and
      delivery of this Agreement and the issuance and sale of the Shares will not
      involve any transaction which is subject to the prohibitions of Section 406
      of
      the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)
      or in
      connection with which a tax could be imposed pursuant to Section 4975 of the
      Internal Revenue Code of 1986, as amended, provided that, if any of the
      Purchasers, or any person or entity that owns a beneficial interest in any
      of
      the Purchasers, is an “employee pension benefit plan” (within the meaning of
      Section 3(2) of ERISA) with respect to which the Company is a “party in
      interest” (within the meaning of Section 3(14) of ERISA), the requirements of
      Sections 407(d)(5) and 408(e) of ERISA, if applicable, are met. As used in
      this
      Section 2.1(cc), the term “Plan” shall mean an “employee pension benefit plan”
(as defined in Section 3 of ERISA) which is or has been established or
      maintained, or to which contributions are or have been made, by the Company
      or
      any Subsidiary or by any trade or business, whether or not incorporated, which,
      together with the Company or any Subsidiary, is under common control, as
      described in Section 414(b) or (c) of the Code.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (dd)  Independent
      Nature of Purchasers.
      The
      Company acknowledges that the obligations of each Purchaser under the
      Transaction Documents are several and not joint with the obligations of any
      other Purchaser, and no Purchaser shall be responsible in any way for the
      performance of the obligations of any other Purchaser under the Transaction
      Documents and the Company shall not be excused from performance of its
      obligations to any Purchaser under the Transaction Documents as a result of
      nonperformance or breach by any other Purchaser. The Company acknowledges that
      it has been advised that the decision of each Purchaser to purchase Shares
      pursuant to this Agreement has been made by such Purchaser independently of
      any
      other purchaser and independently of any information, materials, statements
      or
      opinions as to the business, affairs, operations, assets, properties,
      liabilities, results of operations, condition (financial or otherwise) or
      prospects of the Company or of its Subsidiaries which may have made or given
      by
      any other Purchaser or by any agent or employee of any other Purchaser, and
      no
      Purchaser or any of its agents or employees shall have any liability to any
      Purchaser (or any other person) relating to or arising from any such
      information, materials, statements or opinions. The Company acknowledges that
      nothing contained herein, or in any Transaction Document, and no action taken
      by
      any Purchaser pursuant hereto or thereto, shall be deemed to constitute the
      Purchasers as a partnership, an association, a joint venture or any other kind
      of entity, or create a presumption that the Purchasers are in any way acting
      in
      concert or as a group with respect to such obligations or the transactions
      contemplated by the Transaction Documents. The Company acknowledges that 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. The Company acknowledges that for reasons of administrative convenience
      only, the Transaction Documents have been prepared by counsel for one of the
      Purchasers and such counsel does not represent all of the Purchasers but only
      such Purchaser and the other Purchasers have retained their own individual
      counsel with respect to the transactions contemplated hereby.  The Company
      acknowledges it 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. The Company acknowledges
      such
      procedure with respect to the Transaction Documents in no way creates a
      presumption that the Purchasers are in any way acting in concert or as a group
      with respect to the Transaction Documents or the transactions contemplated
      hereby or thereby.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (ee)  Anti-takeover
      Device.
      Neither
      the Company nor any of its Subsidiaries has any outstanding shareholder rights
      plan or “poison pill” or any similar arrangement. There are no provisions of any
      anti-takeover or
      business combination statute applicable to the Company, the Articles of
      Incorporation and the Bylaws which would
      preclude the issuance and sale of the Shares and the consummation of the other
      transactions contemplated by this Agreement or any of the other Transaction
      Documents. 

     

    (ff)  No
      Integrated Offering.
      In
      reliance on the accuracy of the representation made by Purchaser in Section
      2.2(i) and the Black Box, Inc., SEC No-Action Letter (June 26, 1990), neither
      the Company, nor any of its affiliates, nor any person acting on its or their
      behalf, has directly or indirectly made any offers or sales of any security
      or
      solicited any offers to buy any security under circumstances that would cause
      the offering of the Shares pursuant to this Agreement to be integrated with
      prior offerings by the Company for purposes of the Securities Act which would
      prevent the Company from selling the Shares pursuant to Regulation D and Rule
      506 thereof under the Securities Act, or any applicable exchange-related
      stockholder approval provisions, nor will the Company or any of its affiliates
      or subsidiaries take any action or steps that would cause the offering of the
      Shares to be integrated with other offerings
      if such
      other offering, if integrated, would cause the offer and sale of the Shares
      not
      to be exempt from registration pursuant to Regulation D and Rule 506 thereof
      under the Securities Act. Except as set forth on Schedule
      2.1(ff)
      hereto,
      the Company does not have any registration statement pending before the
      Commission or currently under the Commission’s review and since October 1, 2006,
      the Company has not offered or sold any of its equity securities or debt
      securities convertible into shares of Common Stock.

     

    (gg)  Sarbanes-Oxley
      Act. 
      The Company is in compliance with the applicable provisions of the
      Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley
      Act”),
      and
      the rules and regulations promulgated thereunder, that are effective and for
      which compliance by the Company is required as of the date hereof and intends
      to
      use its reasonable efforts comply with other applicable provisions of the
      Sarbanes-Oxley Act, and the rules and regulations promulgated thereunder, upon
      the effectiveness of such provisions or the date by which compliance therewith
      by the Company is required. 

    

    Section
      2.2  Representations
      and Warranties of the Purchasers.
      Each of
      the Purchasers hereby represents and warrants to the Company with respect solely
      to itself and not with respect to any other Purchaser as follows as of the
      date
      hereof and as of the Closing Date, except as set forth on the Schedule of
      Exceptions attached hereto with each numbered schedule corresponding to the
      section number herein:

     

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

     

    (b)  Authorization
      and Power.
      Such
      Purchaser has the requisite power and authority to enter into and perform the
      Transaction Documents and to purchase the Shares being sold to it hereunder.
      The
      execution, delivery and performance of the Transaction Documents by such
      Purchaser and the consummation by it of the transactions contemplated hereby
      have been duly authorized by all necessary corporate, partnership or other
      action, and no further consent or authorization of such Purchaser or its Board
      of Directors, stockholders, partners or members, as the case may be, is
      required. When executed and delivered by the Purchasers, the other Transaction
      Documents shall constitute valid and binding obligations of such Purchaser
      enforceable against such Purchaser in accordance with their terms, except as
      such enforceability may be limited by applicable bankruptcy, insolvency,
      reorganization, moratorium, liquidation, conservatorship, receivership or
      similar laws relating to, or affecting generally the enforcement of, creditor's
      rights and remedies or by other equitable principles of general
      application.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

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

     

    (d)  Acquisition
      for Investment.
      Such
      Purchaser is purchasing the Shares solely for its own account for the purpose
      of
      investment and not with a view to or for sale in connection with distribution.
      Such Purchaser does not have a present intention to sell any of the Shares
      nor a
      present arrangement (whether or not legally binding) or intention to effect
      any
      distribution of any of the Shares to or through any person or entity;
provided,
      however,
      that by
      making the representations herein, such Purchaser does not agree to hold the
      Shares for any minimum or other specific term and reserves the right to dispose
      of the Shares at any time in accordance with Federal and state securities laws
      applicable to such disposition. Such Purchaser acknowledges that it (i) has
      such
      knowledge and experience in financial and business matters such that Purchaser
      is capable of evaluating the merits and risks of Purchaser's investment in
      the
      Company, (ii) is able to bear the financial risks associated with an investment
      in the Shares and (iii) has been given full access to such records of the
      Company and the Subsidiaries and to the officers of the Company and the
      Subsidiaries as it has deemed necessary or appropriate to conduct its due
      diligence investigation.

     

    (e)  Rule
      144.
      Such
      Purchaser understands that the Shares must be held indefinitely unless such
      Shares are registered under the Securities Act or an exemption from registration
      is available. Such Purchaser acknowledges that such person is familiar with
      Rule
      144 of the rules and regulations of the Commission, as amended, promulgated
      pursuant to the Securities Act ("Rule
      144"),
      and
      that such Purchaser has been advised that Rule 144 permits resales only under
      certain circumstances. Such Purchaser understands that to the extent that Rule
      144 is not available, such Purchaser will be unable to sell any Shares without
      either registration under the Securities Act or the existence of another
      exemption from such registration requirement.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (f)  General.
      Such
      Purchaser understands that the Shares are being offered and sold in reliance
      on
      a transactional exemption from the registration requirements of federal and
      state securities laws and the Company is relying upon the truth and accuracy
      of
      the representations, warranties, agreements, acknowledgments and understandings
      of such Purchaser set forth herein in order to determine the applicability
      of
      such exemptions and the suitability of such Purchaser to acquire the Shares.
      Such Purchaser understands that no United States federal or state agency or
      any
      government or governmental agency has passed upon or made any recommendation
      or
      endorsement of the Shares.

     

    (g)  No
      General Solicitation.
      Such
      Purchaser acknowledges that the Shares were not offered to such Purchaser by
      means of any form of general or public solicitation or general advertising,
      or
      publicly disseminated advertisements or sales literature, including (i) any
      advertisement, article, notice or other communication published in any
      newspaper, magazine, or similar media, or broadcast over television or radio,
      (ii) any seminar or meeting to which such Purchaser was invited by any of the
      foregoing means of communications, or (iii) through electronic mail over the
      Internet. Such Purchaser, in making the decision to purchase the Shares, has
      relied upon independent investigation made by it and the representations,
      warranties, agreements, acknowledgments and understandings set forth in the
      Transaction Documents and has not relied on any information or representations
      made by third parties.

     

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

     

    (i)  Qualified
      Institutional Buyer.
      Such
      Purchaser is a “qualified institutional buyer” (as such term is defined in Rule
      144A(a)(1) of the Securities Act).

     

    (j)  Certain
      Fees.
      The
      Purchasers have not employed any broker or finder or incurred any liability
      for
      any brokerage or investment banking fees, commissions, finders' structuring
      fees, financial advisory fees or other similar fees in connection with the
      Transaction Documents.

     

    (k)  Independent
      Investment.
      Except
      as may be disclosed in any filings with the Commission by the Purchasers under
      Section 13 and/or Section 16 of the Exchange Act, no Purchaser has agreed to
      act
      with any other Purchaser for the purpose of acquiring, holding, voting or
      disposing of the Shares purchased hereunder for purposes of Section 13(d) under
      the Exchange Act, and each Purchaser is acting independently with respect to
      its
      investment in the Shares.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    (l)  Trading
      Activities.
      Each
      Purchaser’s trading activities with respect to the Shares has been and shall be
      in compliance with all applicable federal and state securities laws.
No
      Purchaser nor any of its affiliates has an open short position in the Common
      Stock, each Purchaser agrees that it shall not, and that it will cause its
      affiliates not to, engage in any short sales with respect to the Common
      Stock. 

     

    ARTICLE
      III

     

    COVENANTS

     

    The
      Company covenants with each Purchaser as follows, which covenants are for the
      benefit of each Purchaser and their respective permitted assignees.

     

    Section
      3.1  Securities
      Compliance.
      The
      Company shall notify the Commission in accordance with its rules and
      regulations, of the transactions contemplated by any of the Transaction
      Documents and shall take all other necessary action and proceedings as may
      be
      required and permitted by applicable law, rule and regulation, for the legal
      and
      valid issuance of the Shares to the Purchasers, or their respective subsequent
      holders.

     

    Section
      3.2  Registration
      and Listing.
      The
      Company shall cause its Common Stock to continue to be registered under Sections
      15(d) of the Exchange Act, to comply in all respects with its reporting and
      filing obligations under the Exchange Act, to comply with all requirements
      related to any registration statement filed pursuant to this Agreement, and
      to
      not take any action or file any document (whether or not permitted by the
      Securities Act or the rules promulgated thereunder) to terminate or suspend
      such
      registration or to terminate or suspend its reporting and filing obligations
      under the Exchange Act or Securities Act, except as permitted herein. The
      Company will take all action necessary to continue the listing or trading of
      its
      Common Stock on the OTC Bulletin Board or any successor market. Subject to
      the
      terms of the Transaction Documents, the Company further covenants that it will
      take such further action as the Purchasers may reasonably request, all to the
      extent required from time to time to enable the Purchasers to sell the Shares
      without registration under the Securities Act within the limitation of the
      exemptions provided by Rule 144 promulgated under the Securities Act. Upon
      the
      request of the Purchasers, the Company shall deliver to the Purchasers a written
      certification of a duly authorized officer as to whether it has complied with
      such requirements.

     

    Section
      3.3  Inspection
      Rights.
      The
      Company shall permit, during normal business hours and upon reasonable request
      and reasonable notice, each Purchaser or any employees, agents or
      representatives thereof, so long as such Purchaser shall be obligated hereunder
      to purchase the Shares or shall beneficially own any Shares, for purposes
      reasonably related to such Purchaser's interests as a stockholder to examine
      and
      make reasonable copies of the records and books of account of, and visit and
      inspect the properties, assets, operations and business of the Company and
      any
      Subsidiary, and to discuss the affairs, finances and accounts of the Company
      and
      any Subsidiary with any of its officers, consultants, directors, and key
      employees.

     

    
      
        
        

      

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

     

    Section
      3.5  Keeping
      of Records and Books of Account.
      The
      Company shall keep and cause each Subsidiary to keep adequate records and books
      of account, in which complete entries will be made in accordance with GAAP
      consistently applied, reflecting all financial transactions of the Company
      and
      its Subsidiaries.

     

    Section
      3.6  Reporting
      Requirements.
      If the
      Company ceases to file its periodic reports with the Commission, or if the
      Commission ceases making these periodic reports available via the Internet
      without charge, then the Company shall, promptly after filing with the
      Commission, furnish the following to each Purchaser so long as such Purchaser
      shall be obligated hereunder to purchase the Shares or shall beneficially own
      Shares:

     

    (a)  Quarterly
      Reports on Form 10-QSB filed with the Commission ;

     

    (b)  Annual
      Reports on Form 10-KSB filed with the Commission; and

     

    (c)  Copies
      of
      all notices, information and proxy statements in connection with any meetings,
      that are, in each case, provided generally to holders of shares of Common Stock,
      contemporaneously with the delivery of such notices or information to such
      holders of Common Stock.

     

    Section
      3.7  Other
      Agreements.
      The
      Company shall not enter into any agreement in which the terms of such agreement
      would restrict or impair the right or ability of the Company or any Subsidiary
      to perform its obligations under any Transaction Document.

     

    Section
      3.8  Use
      of
      Proceeds.
      The net
      proceeds from the sale of the Shares will be used by the Company for working
      capital and general corporate purposes and not to redeem any Common Stock or
      securities convertible, exercisable or exchangeable into Common Stock or to
      settle any outstanding litigation.

    

    Section
      3.9  Reporting
      Status. So
      long
      as a Purchaser beneficially owns any of the Shares, the Company shall timely
      file all reports required to be filed with the Commission pursuant to the
      Exchange Act, and the Company shall not terminate its status as an issuer
      required to file reports under the Exchange Act even if the Exchange Act or
      the
      rules and regulations thereunder would permit such termination. 

    

    Section
      3.10  Disclosure
      of Transaction.
      The
      Company shall issue a press release describing the material terms of the
      transactions contemplated hereby (the “Press
      Release”)
      as
      soon as practicable after each Closing Date but in no event later than one
      day
      after the Closing Date. The Company shall also file with the Commission a
      Current Report on Form 8-K (the “Form
      8-K”)
      describing the material terms of the transactions contemplated hereby (and
      attaching as exhibits thereto this Agreement, the Registration Rights Agreement
      and the Press Release) as soon as practicable following each Closing Date,
      but
      in no event more than two (2) Trading Days following such Closing Date, which
      Press Release and Form 8-K shall be subject to prior review and comment by
      the
      Purchasers. "Trading
      Day"
      means
      any day during which the OTC Bulletin Board (or other principal exchange on
      which the Common Stock is traded) shall be open for trading or
      quotation. 

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    Section
      3.11  Disclosure
      of Material Information.
      The
      Company covenants and agrees that neither it nor any other person acting on
      its
      behalf has provided or 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 representations in effecting transactions in securities of the
      Company.

     

    Section
      3.12  Form
      D.
      The
      Company agrees to file a Form D with respect to the Shares as required by
      Rule 506 under Regulation D and to provide a copy thereof to the Purchasers
      promptly after such filing.

     

    Section
      3.13  No
      Integrated Offerings.
      The
      Company shall not make any offers or sales of any security (other than the
      Shares being offered or sold hereunder) under circumstances that would require
      registration of the Shares being offered or sold hereunder under the Securities
      Act.

     

    Section
      3.14  Pledge
      of Shares.
      The
      Company agrees that the Shares may be pledged by a Purchaser in connection
      with
      a bona fide
      margin
      agreement or other loan or financing arrangement that is secured by the Common
      Stock. The pledge of Common Stock shall not be deemed to be a transfer, sale
      or
      assignment of the Common Stock hereunder, and no Purchaser effecting a pledge
      of
      Common Stock shall be required to provide the Company with any notice thereof
      or
      otherwise make any delivery to the Company pursuant to this Agreement or any
      other Transaction Document; provided that a Purchaser and its pledgee shall
      be
      required to comply with the provisions of Article V hereof in order to effect
      a
      sale, transfer or assignment of Common Stock to such pledgee. At the Purchasers'
      expense, the Company hereby agrees to execute and deliver such documentation
      as
      a pledgee of the Common Stock may reasonably request in connection with a pledge
      of the Common Stock to such pledgee by a Purchaser.

     

    Section
      3.15  Confidentiality.
      Each
      party agrees that it will not disclose and it will cause its officers,
      directors, employees, representatives, agents, and advisers not to disclose,
      any
      Confidential Information (as hereinafter defined) with respect to the other
      party furnished, at any time or in any manner, provided that (i) any disclosure
      of such information may be made to which the Company and Purchaser consent
      in
      writing; and (ii) such information may be disclosed if so required by law or
      regulatory authority. “Confidential
      Information”
means
      information or knowledge obtained in any due diligence or other investigation
      relating to the negotiation and execution of this Agreement, information
      relating to the terms of the transactions contemplated hereby and any
      information identified as confidential in writing from one party to the other;
      provided,
      however,
      that
      Confidential Information shall not include information or knowledge that (a)
      becomes generally available to the public absent any breach of this Section
      3.15, (b) was available on a non-confidential basis to a party prior to its
      disclosure pursuant to this Agreement, or (c) becomes available on a
      non-confidential basis from a third party who is not bound to keep such
      information confidential.  

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    Section
      3.16  Updated
      Schedule of Exceptions.
      At
      least three (3) business days prior to any Subsequent Closing Date, the Company
      will deliver to the Purchasers an updated Schedule of Exceptions reflecting
      any
      and all events that arose subsequent to the date of this Agreement which would
      render untrue any representations or warranties of the Company if made as of
      a
      Subsequent Closing Date. Within two (2) business days of the delivery of the
      update of the Schedule of Exceptions, each Purchaser may provide the Company
      with notification that the closing conditions for a Subsequent Closing have
      not
      been met in accordance with the applicable provisions of Section 4.2 hereof.
      If
      a Subsequent Closing occurs, then the Schedule of Exceptions, as of, and with
      respect to, such Subsequent Closing only, shall be deemed amended to reflect
      the
      information contained in such update. Nothing in this Section 3.16 nor the
      fact
      that the Purchasers complete a Subsequent Closing shall waive any rights of
      the
      Purchasers based on a breach of representations and warranties of the Company
      as
      of the Initial Closing.

     

    ARTICLE
      IV

     

    CONDITIONS

     

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

     

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

     

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

     

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

     

    (d)  Delivery
      of Purchase Price.
      The
      Purchasers shall have delivered to the Company the Purchase Price for the Shares
      to be purchased by each Purchaser.

     

    (e)  Delivery
      of Transaction Documents.
      The
      Transaction Documents shall have been duly executed and delivered by the
      Purchasers and, with respect to the Escrow Agreement, the escrow agent, to
      the
      Company.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    (f)  Minimum
      Purchase Price.
      The
      Purchase Price shall be no less than One Million Dollars
      ($1,000,000).

     

    Section
      4.2  Conditions
      Precedent to the Obligation of the Purchasers to Close and to Purchase the
      Shares.
      The
      obligation hereunder of each Purchaser to purchase the Shares and consummate
      the
      transactions contemplated by this Agreement is subject to the satisfaction
      or
      waiver, at or before each Closing Date, of each of the conditions set forth
      below. These conditions are for the Purchaser’s sole benefit and may be waived
      by the Purchaser at any time in its sole discretion.

     

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

     

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

     

    (c)  No
      Suspension, Etc.
      Trading
      in the Common Stock shall not have been suspended by the Commission or the
      OTC
      Bulletin Board (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 Financial Markets ("Bloomberg")
      shall
      not have been suspended or limited, or minimum prices shall not have been
      established on securities whose trades are reported by Bloomberg, or on the
      New
      York Stock Exchange, nor shall a banking moratorium have been declared either
      by
      the United States or New York State authorities.

     

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

     

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

     

    (f)  Opinion
      of Counsel.
      The
      Purchasers shall have received an opinion of counsel to the Company, dated
      the
      date of such Closing, substantially in the form of Exhibit
      D
      hereto,
      with such exceptions and limitations as shall be reasonably acceptable to
      counsel to the Purchasers.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    (g)  Shares.
      At each
      Closing, the Company shall have delivered to the Purchasers certificates
      representing the Shares (in such denominations as each Purchaser may request)
      duly executed by the Company, in each case, being acquired by the Purchasers
      at
      such Closing. 

     

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

     

    (i)  Officer's
      Certificate.
      On each
      Closing Date, the Company shall have delivered to the Purchasers a certificate
      signed by an executive officer on behalf of the Company, dated as of such
      Closing Date, confirming the accuracy of the Company's representations,
      warranties and its compliance with covenants as of the Closing Date and
      confirming the compliance by the Company with the conditions precedent set
      forth
      in paragraphs (b)-(e) of this Section 4.2 as of such Closing Date (provided
      that, with respect to the matters in paragraphs (d) and (e) of this Section
      4.2,
      such confirmation shall be based on the knowledge of the executive
      officer).

     

    (j)  Registration
      Rights Agreement.
      As of
      the Initial Closing Date, the Company shall have duly executed and delivered
      the
      Registration Rights Agreement in the form of Exhibit
      B
      attached
      hereto.

     

    (k)  Escrow
      Agreement.
      At the
      Initial Closing, the Company and the escrow agent shall have executed and
      delivered the Escrow Agreement to each Purchaser.

     

    (l)  Lusk
      Purchase Agreement.
      At the
      Initial closing, Richard Lusk shall have executed and delivered the Stock
      Purchase Agreement in the form of Exhibit
      E
      attached
      hereto.

     

    (m)  Material
      Adverse Effect.
      No
      Material Adverse Effect shall have occurred at or before each Closing Date.
      

     

    (n)  Minimum
      Purchase Price.
      The
      Purchase Price shall be no less than One Million Dollars
      ($1,000,000).

     

    ARTICLE
      V

     

    CERTIFICATE
      LEGEND 

     

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

     

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

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    The
      Company agrees to reissue certificates representing any of the Shares without
      the legend set forth above if at such time, prior to making any transfer of
      any
      such Shares, such holder thereof shall give written notice to the Company
      describing the manner and terms of such transfer and removal as the Company
      may
      reasonably request. Such proposed transfer and removal will not be effected
      until: (a) either (i) the Company has received an opinion of counsel reasonably
      satisfactory to the Company, to the effect that the registration of the Shares
      under the Securities Act is not required in connection with such proposed
      transfer, (ii) a registration statement under the Securities Act covering such
      proposed disposition has been filed by the Company with the Commission and
      has
      become and remains effective under the Securities Act, (iii) the Company has
      received other evidence reasonably satisfactory to the Company that such
      registration and qualification under the Securities Act and state securities
      laws are not required, or (iv) the holder provides the Company with reasonable
      assurances that such security can be sold pursuant to Rule 144 under the
      Securities Act; and (b) either (i) the Company has received an opinion of
      counsel reasonably satisfactory to the Company, to the effect that registration
      or qualification under the securities or "blue sky" laws of any state is not
      required in connection with such proposed disposition, or (ii) compliance with
      applicable state securities or "blue sky" laws has been effected or a valid
      exemption exists with respect thereto. The Company will respond to any such
      notice from a holder within five (5) business days. In the case of any proposed
      transfer under this Section 5.1, the Company will use reasonable efforts to
      comply with any such applicable state securities or "blue sky" laws, but shall
      in no event be required, (x) to qualify to do business in any state where it
      is
      not then qualified, or (y) to take any action that would subject it to tax
      or to
      the general service of process in any state where it is not then subject. The
      restrictions on transfer contained in this Section 5.1 shall be in addition
      to,
      and not by way of limitation of, any other restrictions on transfer contained
      in
      any other section of this Agreement. Whenever
      a
      certificate representing the Shares is required to be issued to a Purchaser
      without a legend, in lieu of delivering physical certificates representing
      the
      Shares, provided the Company's transfer agent is participating in the Depository
      Trust Company ("DTC")
      Fast
      Automated Securities Transfer program, the Company shall use its reasonable
      best
      efforts to cause its transfer agent to electronically transmit the Shares to
      a
      Purchaser by crediting the account of such Purchaser's Prime Broker with DTC
      through its Deposit Withdrawal Agent Commission ("DWAC")
      system
      (to the extent not inconsistent with any provisions of this
      Agreement).

     

    
      
        
        

      

      
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    ARTICLE
      VI

     

    INDEMNIFICATION

     

    Section
      6.1  Company
      Indemnity.
      The
      Company agrees to indemnify and hold harmless the Purchasers (and their
      respective directors, officers, affiliates, agents, successors and assigns)
      from
      and against any and all losses, liabilities, deficiencies, costs, damages and
      expenses (including, without limitation, reasonable attorneys’ fees, charges and
      disbursements) incurred by the Purchasers and their directors, officers,
      affiliates, agents, successors and assigns as a result of any inaccuracy in
      or
      breach of the representations, warranties or covenants made by the Company
      herein, unless any such losses are as a result of the Purchaser’s gross
      negligence, bad faith or wilful misconduct. 

     

    Section
      6.2  Indemnification
      Procedure.
      Any
      party entitled to indemnification under this Article VI (an "indemnified party")
      will give written notice to the indemnifying party of any matters giving rise
      to
      a claim for indemnification; provided, that the failure of any indemnified
      party
      to give notice as provided herein shall not relieve the indemnifying party
      of
      its obligations under this Article VI except to the extent that the indemnifying
      party is actually prejudiced by such failure to give notice. In case any such
      action, proceeding or claim is brought against an indemnified party in respect
      of which indemnification is sought hereunder, the indemnifying party shall
      be
      entitled to participate in and, unless in the reasonable judgment of the
      indemnifying party a conflict of interest between it and the indemnified party
      exists with respect to such action, proceeding or claim (in which case the
      indemnifying party shall be responsible for the reasonable fees and expenses
      of
      one separate counsel for the indemnified parties), to assume the defense thereof
      with counsel reasonably satisfactory to the indemnified party. In the event
      that
      the indemnifying party advises an indemnified party that it will not contest
      such a claim for indemnification hereunder, or fails, within thirty (30) days
      of
      receipt of any indemnification notice to notify, in writing, such person of
      its
      election to defend, settle or compromise, at its sole cost and expense, any
      action, proceeding or claim (or discontinues its defense at any time after
      it
      commences such defense), then the indemnified party may, at its option, defend,
      settle or otherwise compromise or pay such action or claim. In any event, unless
      and until the indemnifying party elects in writing to assume and does so assume
      the defense of any such claim, proceeding or action, the indemnified party's
      costs and expenses arising out of the defense, settlement or compromise of
      any
      such action, claim or proceeding shall be losses subject to indemnification
      hereunder. The indemnified party shall cooperate fully with the indemnifying
      party in connection with any negotiation or defense of any such action or claim
      by the indemnifying party and shall furnish to the indemnifying party all
      information reasonably available to the indemnified party which relates to
      such
      action or claim. The indemnifying party shall keep the indemnified party fully
      apprised at all times as to the status of the defense or any settlement
      negotiations with respect thereto. If the indemnifying party elects to defend
      any such action or claim, then the indemnified party shall be entitled to
      participate in such defense with counsel of its choice at its sole cost and
      expense. The indemnifying party shall not be liable for any settlement of any
      action, claim or proceeding effected without its prior written consent which
      shall not be unreasonably withheld. Notwithstanding anything in this Article
      VI
      to the contrary, the indemnifying party shall not, without the indemnified
      party's prior written consent, settle or compromise any claim or consent to
      entry of any judgment in respect thereof which imposes any future obligation
      on
      the indemnified party or which does not include, as an unconditional term
      thereof, the giving by the claimant or the plaintiff to the indemnified party
      of
      a release from all liability in respect of such claim. The indemnification
      required by this Article VI shall be made by periodic payments of the amount
      thereof during the course of investigation or defense, as and when bills are
      received or expense, loss, damage or liability is incurred, so long as the
      indemnified party irrevocably agrees to refund such moneys if it is ultimately
      determined by a court of competent jurisdiction that such party was not entitled
      to indemnification. The indemnity agreements contained herein shall be in
      addition to (a) any cause of action or similar rights of the indemnified party
      against the indemnifying party or others, and (b) any liabilities the
      indemnifying party may be subject to pursuant to the law.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      VII

     

    MISCELLANEOUS

     

    Section
      7.1  Fees
      and Expenses.
      Each
      party shall pay the fees and expenses of its advisors, counsel, accountants
      and
      other experts, if any, and all other expenses, incurred by such party incident
      to the negotiation, preparation, execution, delivery and performance of this
      Agreement, provided
      that the
      Company shall pay all actual, reasonable attorneys' fees and expenses (including
      disbursements and out-of-pocket expenses) for one counsel to the Purchasers
      incurred by the Purchasers in connection with (i) the preparation, negotiation,
      execution and delivery of this Agreement, the Registration Rights Agreement
      and
      the transactions contemplated thereunder, which payment shall be made at the
      Initial Closing and shall not exceed $20,000, (ii) the filing and declaration
      of
      effectiveness by the Commission of the Registration Statement (as defined in
      the
      Registration Rights Agreement) and (iii) any amendments, modifications or
      waivers of this Agreement or any of the other Transaction Documents. In
      addition, the Company shall pay all reasonable fees and expenses incurred by
      the
      Purchasers in connection with the enforcement of this Agreement or any of the
      other Transaction Documents, including, without limitation, all reasonable
      attorneys' fees and expenses. 

     

    Section
      7.2  Specific
      Performance; Consent to Jurisdiction; Venue. 

     

    (a)  The
      Company and the Purchasers acknowledge and agree that irreparable damage would
      occur in the event that any of the provisions of this Agreement or the other
      Transaction Documents are not performed in accordance with their specific terms
      or are otherwise breached. It is accordingly agreed that the parties shall
      be
      entitled to an injunction or injunctions to prevent or cure breaches of the
      provisions of this Agreement or the other Transaction Documents and to enforce
      specifically the terms and provisions hereof or thereof, this being in addition
      to any other remedy to which any of them may be entitled by law or
      equity.

     

    (b)  The
      parties agree that venue for any dispute arising under this Agreement will
      lie
      exclusively in the state or federal courts located in New York County, New
      York,
      and the parties irrevocably waive any right to raise forum
      non conveniens
      or any
      other argument that New York is not the proper venue. The parties irrevocably
      consent to personal jurisdiction in the state and federal courts of the state
      of
      New York. The Company and each Purchaser consent to process being served in
      any
      such suit, action or proceeding by mailing a copy thereof to such party at
      the
      address in effect for notices to it under this Agreement and agrees that such
      service shall constitute good and sufficient service of process and notice
      thereof. Nothing in this Section 7.2 shall affect or limit any right to serve
      process in any other manner permitted by law. The Company and the Purchasers
      hereby agree that the prevailing party in any suit, action or proceeding arising
      out of or relating to the Shares, this Agreement or the Registration Rights
      Agreement, shall be entitled to reimbursement for reasonable legal fees from
      the
      non-prevailing party.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    Section
      7.3  Entire
      Agreement; Amendment.
      This
      Agreement and the Transaction Documents contain the entire understanding and
      agreement of the parties with respect to the matters covered hereby and, except
      as specifically set forth herein or in the other Transaction Documents, neither
      the Company nor any Purchaser make any representation, warranty, covenant or
      undertaking with respect to such matters, and they supersede all prior
      understandings and agreements with respect to said subject matter, all of which
      are merged herein. Following the Closing, no provision of this Agreement may
      be
      waived or amended other than by a written instrument signed by the Company
      and
      the Purchasers holding at least a majority of all Shares then held by the
      Purchasers. Any amendment or waiver effected in accordance with this Section
      7.3
      shall be binding upon each Purchaser (and their permitted assigns) and the
      Company. 

     

    Section
      7.4  Notices.
      Any
      notice, demand, request, waiver or other communication required or permitted
      to
      be given hereunder shall be in writing and shall be effective (a) upon hand
      delivery by telecopy or facsimile at the address or number designated below
      (if
      delivered on a business day during normal business hours where such notice
      is to
      be received), or the first business day following such delivery (if delivered
      other than on a business day during normal business hours where such notice
      is
      to be received) or (b) on the second business day following the date of mailing
      by express courier service, fully prepaid, addressed to such address, or upon
      actual receipt of such mailing, whichever shall first occur. The addresses
      for
      such communications shall be:

     

    If
      to the
      Company:      Foldera,
      Inc. 

    17011
      Beach Boulevard, Suite 1500 

    Huntington
      Beach, California 92647

    Attention:
      Mr. Reid Dabney, Senior Vice President and Chief Financial Officer

    Tel.
      No.:
      (714) 766-8700 

    Fax
      No.:
      (714) 766-8799

    

    with
      copies (which copies 

    shall
      not
      constitute notice 

    to
      the
      Company) to:    Greenberg
      Traurig, LLP

    The
      MetLife Building

    200
      Park
      Avenue, 15th
      Floor

    New
      York,
      New York 10166

    Attention:
      Spencer G. Feldman

    Tel.
      No.:
      (212) 801-9200

    Fax
      No.:
      (212) 801-6400 

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    If
      to any
      Purchaser :   At
      the
      address of such Purchaser set forth on Exhibit
      A
      to this
      Agreement, with copies to Purchaser’s counsel as set forth on Exhibit
      A
      or as
      specified in writing by such Purchaser with copies to:

    

    Kramer
      Levin Naftalis & Frankel LLP

    1177
      Avenue of the Americas

    New
      York,
      New York 10036

    Attention:
      Christopher S. Auguste

    Tel.
      No.:
      (212) 715-9100

    Fax
      No.:
      (212) 715-8000

    

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

     

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

     

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

     

    Section
      7.7  Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their successors and assigns. After the Closing, the assignment by a party
      to
      this Agreement of any rights hereunder shall not affect the obligations of
      such
      party under this Agreement. Subject to Section 5.1 hereof, the Purchasers may
      assign the Shares and its rights under this Agreement and the other Transaction
      Documents and any other rights hereto and thereto without the consent of the
      Company.

     

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

     

    Section
      7.9  Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the internal
      laws of the State of New York, without giving effect to any of the conflicts
      of
      law principles which would result in the application of the substantive law
      of
      another jurisdiction. This Agreement shall not be interpreted or construed
      with
      any presumption against the party causing this Agreement to be
      drafted.

     

    Section
      7.10  Survival.
      The
      representations and warranties of the Company and the Purchasers shall survive
      the execution and delivery hereof and the Closing until the third anniversary
      of
      the Closing Date.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

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

     

    Section
      7.12  Publicity.
      The
      Company agrees that it will not disclose, and will not include in any public
      announcement, the names of the Purchasers without the consent of the Purchasers,
      which consent shall not be unreasonably withheld or delayed, or unless and
      until
      such disclosure is required by law, rule or applicable regulation, and then
      only
      to the extent of such requirement. 

     

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

     

    Section
      7.14  Further
      Assurances.
      From
      and after the date of this Agreement, upon the request of the Purchasers or
      the
      Company, the Company and each Purchaser shall execute and deliver such
      instruments, documents and other writings as may be reasonably necessary or
      desirable to confirm and carry out and to effectuate fully the intent and
      purposes of this Agreement and the Registration Rights Agreement.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

       

    

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

     

    
      	 	 	 
	 	FOLDERA,
              INC.
	 
 	 
 	 
 
	 	By:  	/s/ Reid
              Dabney
	 	
              
Name:   
 Reid
              Dabney
	 	Title:   Senior
              Vice President and Chief Financial
              Officer

    

     

    
      	 	 	 
	 	PURCHASER:
	 
 	 
 	 
 
	
            	By:  	/s/ Adam
              Benowitz
	 	
              
Name:     
 Adam
              Benowitz
	 	Title:    
                  Portfolio Manager

    

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

      EXHIBIT
        A

      LIST
        OF PURCHASERS

      

      

      
        	
                Names
                  and Addresses of Purchasers

              	 	
                Number
                  of Shares Purchased

              	 	
                Dollar
                  Amount of Investment

              
	 	 	 	 	 
	
                INITIAL
                  CLOSING:

              	 	 	 	 
	 	 	 	 	 
	
                Vision
                  Opportunity Master Fund, Ltd.

              	 	
                1,666,666

              	 	
                $1,000,000

              

      

      20
        W.
        55th
        Street,
        5th
        floor

      New
        York,
        NY 10019

      Fax:
        212-867-1416

      Attn:
        Adam Benowitz and

               
        Antti Uusiheimala

      Email:
        adam@visicap.com

                 antti@visicap.com

       

    

    
      
        
        

      

      
        1Unassociated Document

    

    Exhibit
      10.2

    

    REGISTRATION
      RIGHTS AGREEMENT

    

    This
      Registration Rights Agreement (this "Agreement")
      is
      made and entered into as of May 4, 2007, by and between Foldera, Inc., a Nevada
      corporation (the "Company"),
      and
      the purchasers listed on Schedule
      I
      hereto
      (the "Purchasers").

    

    This
      Agreement is being entered into pursuant to the Common Stock Purchase Agreement
      dated as of the date hereof among the Company and the Purchasers (the
      "Purchase
      Agreement").

    

    The
      Company and the Purchasers hereby agree as follows:

    

    1.       
       Definitions.

    

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

    

    "Advice"
      shall
      have meaning set forth in Section 3(m).

    

    "Affiliate"
      means,
      with respect to any Person, any other Person that directly or indirectly
      controls or is controlled by or under common control with such Person. For
      the
      purposes of this definition, "control,"
      when
      used with respect to any Person, means the possession, direct or indirect,
      of
      the power to direct or cause the direction of the management and policies of
      such Person, whether through the ownership of voting securities, by contract
      or
      otherwise; and the terms of "affiliated,"
      "controlling"
      and
      "controlled"
      have
      meanings correlative to the foregoing.

    

    "Board"
      shall
      have meaning set forth in Section 3(n).

    

    "Business
      Day"
      means
      any day except Saturday, Sunday and any day which shall be a legal holiday
      or a
      day on which banking institutions in the state of New York generally are
      authorized or required by law or other government actions to close.

    

    "Closing
      Date"
      means
      the final date of the closing of the purchase and sale of the Common Stock
      pursuant to the Purchase Agreement, but in no event later than July 31,
      2007.

    

    "Commission"
      means
      the U.S. Securities and Exchange Commission.

    

    "Common
      Stock"
      means
      the Company's Common Stock, par value $0.001 per share.

    

    "Effectiveness
      Date"
      means,
      subject to Section 2(b) hereof, with respect to the Registration Statement,
      the
      earlier of (A) the one hundred twentieth (120th)
      day
      following the Closing Date (or in the event the Registration Statement receives
      a “full review” by the Commission, the one hundred fiftieth (150th)
      day
      following the Closing Date) or (B) the
      date
      which is within three (3) Business Days after the date on which the Commission
      informs the Company (i) that the Commission will not review the Registration
      Statement or (ii) that
      the
      Company may request the acceleration of the effectiveness of the Registration
      Statement and the Company makes such request; provided that,
      if the
      Effectiveness Date falls on a Saturday,
      Sunday or any other day which shall be a legal holiday or a day on which the
      Commission is authorized or required by law or other government actions to
      close, the Effectiveness Date shall be the next succeeding Business
      Day.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    "Effectiveness
      Period"
      shall
      have the meaning set forth in Section 2.

    

    "Event"
      shall
      have the meaning set forth in Section 7(e).

    

    "Event
      Date"
      shall
      have the meaning set forth in Section 7(e).

    

    "Exchange
      Act"
      means
      the Securities Exchange Act of 1934, as amended.

    

    "Filing
      Date"
      means,
      subject to Section 2(b) hereof, the thirtieth (30th)
      day
      following the Closing Date;
      provided that,
      if the
      Filing Date falls on a Saturday,
      Sunday or any other day which shall be a legal holiday or a day on which the
      Commission is authorized or required by law or other government actions to
      close, the Filing Date shall be the following Business Day. 

    

    "Holder"
      or
      "Holders"
      means
      the holder or holders, as the case may be, from time to time of Registrable
      Securities.

    

    "Indemnified
      Party"
      shall
      have the meaning set forth in Section 5(c).

    

    "Indemnifying
      Party"
      shall
      have the meaning set forth in Section 5(c).

    

    "Losses"
      shall
      have the meaning set forth in Section 5(a).

    

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

    

    "Proceeding"
      means
      an action, claim, suit, investigation or proceeding (including, without
      limitation, an investigation or partial proceeding, such as a deposition),
      whether commenced or threatened.

    

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

     

    
      
        
        

      

      
        -
          2
          -

        
          

        

      

      
        
        

      

    

     

    "Registrable
      Securities"
      means
      the shares of Common Stock issued pursuant to the Purchase Agreement and the
      shares of Common Stock sold pursuant to that certain Common Stock Purchase
      Agreement dated as of the date hereof between a certain Purchaser and Richard
      Lusk.

    

    "Registration
      Statement"
      means
      the registration statements and any additional registration statements
      contemplated by Section 2, including (in each case) the Prospectus, amendments
      and supplements to such registration statement or Prospectus, including pre-
      and
      post-effective amendments, all exhibits thereto, and all material incorporated
      by reference in such registration statement.

    

    "Rule
      144"
      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.

    

    "Rule
      158"
      means
      Rule 158 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.

    

    "Rule
      415"
      means
      Rule 415 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule, regulation or
      interpretation adopted or communicated by the Commission having substantially
      the same effect as such Rule.

    

    "Rule
      424"
      means
      Rule 424 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.

    

    "Securities
      Act"
      means
      the Securities Act of 1933, as amended.

    

    "Special
      Counsel"
      means
      Kramer Levin Naftalis & Frankel LLP, for which the Holders will be
      reimbursed by the Company pursuant to Section 4.

    

    “VWAP”
means,
      for any date, (i) the daily volume weighted average price of the Common Stock
      for such date on the OTC Bulletin Board as reported by Bloomberg Financial
      L.P.
      (based on a trading day from 9:30 a.m. Eastern Time to 4:02 p.m. Eastern Time);
      (ii) if the Common Stock is not then listed or quoted on the OTC Bulletin
      Board and if prices for the Common Stock are then reported in the “Pink Sheets”
published by the 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 (iii) 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 Holder and reasonably acceptable to
      the
      Company.

    

    2.           
       Resale
      Registration.

     

    
      
        
        

      

      
        -
          3
          -

        
          

        

      

      
        
        

      

    

     

    (a) On
      or
      prior to the Filing Date, the Company shall prepare and file with the Commission
      a "resale" Registration Statement providing for the resale of all Registrable
      Securities for an offering to be made on a continuous basis pursuant to Rule
      415. The Registration Statement shall be on Form SB-2 (except if the Company
      is
      not then eligible to register for resale the Registrable Securities on Form
      SB-2, in which case such registration shall be on another appropriate form
      in
      accordance herewith and with the Securities Act and the rules promulgated
      thereunder). Such Registration Statement shall cover to the extent allowable
      under the Securities Act and the rules promulgated thereunder (including Rule
      416), such indeterminate number of additional shares of Common Stock resulting
      from stock splits, stock dividends or similar transactions with respect to
      the
      Registrable Securities. The Company shall (i) not permit any securities other
      than the Registrable Securities and the securities listed on Schedule
      II
      hereto
      to be included in the Registration Statement and (ii) use its best efforts
      to
      cause the Registration Statement to be declared effective under the Securities
      Act as promptly as possible after the filing thereof, but in any event prior
      to
      the Effectiveness Date, and to keep such Registration Statement continuously
      effective under the Securities Act until such date as is the earlier of (x)
      the
      date when all Registrable Securities covered by such Registration Statement
      have
      been sold or (y) the date on which the Registrable Securities may be sold
      without any restriction pursuant to Rule 144(k) as determined by the counsel
      to
      the Company pursuant to a written opinion letter, addressed to the Company's
      transfer agent to such effect (the "Effectiveness
      Period").
      The
      Company shall request that the effective time of the Registration Statement
      is
      4:00 p.m. Eastern Time on the effective date. If at any time and for any reason,
      an additional Registration Statement is required to be filed because at such
      time the number of shares of Common Stock exceeds the number of shares of
      Registrable Securities remaining under the Registration Statement, the Company
      shall have twenty (20) Business Days (unless the new filing requires annual
      audited financial statements and they are being prepared within the statutory
      deadlines) to file such additional Registration Statement, and the Company
      shall
      use its best efforts to cause such additional Registration Statement to be
      declared effective by the Commission as soon as possible, but in no event later
      than sixty (60) days after filing. 

    

    (b) Notwithstanding
      anything to the contrary set forth in this Section 2, in the event the
      Commission does not permit the Company to register all of the Registrable
      Securities in the Registration Statement because of the Commission’s application
      of Rule 415, the Company shall register in the Registration Statement such
      number of Registrable Securities as is permitted by the Commission, provided,
      however,
      that
      the Registrable Securities to be included in such Registration Statement or
      any
      subsequent registration statement shall be registered on a pro rata basis among
      the holders thereof. In the event the Commission does not permit the Company
      to
      register all of the Registrable Securities in the initial Registration
      Statement, the Company shall use its best efforts to file subsequent
      Registration Statements to register the Registrable Securities that were not
      registered in the initial Registration Statement as promptly as possible and
      in
      a manner permitted by the Commission. For purposes of this Section 2(b),
“Filing
      Date”
      means
      with respect to each subsequent Registration Statement filed pursuant hereto,
      the
      later
      of (i) sixty (60) days following the sale of substantially all of the
      Registrable Securities included in the initial Registration Statement or any
      subsequent Registration Statement and (ii) six (6) months following the
      effective date of the initial Registration Statement or any subsequent
      Registration Statement, as applicable, or such earlier date as permitted by
      the
      Commission. For
      purposes of this Section 2(b), “Effectiveness
      Date”
means
      with respect to each subsequent Registration Statement filed pursuant hereto,
      the earlier of (A)
      the
      ninetieth (90th)
      day
      following the filing date of such Registration Statement (or in the event such
      Registration Statement receives a “full review” by the Commission, the one
      hundred twentieth (120th)
      day
      following such filing date) or (B) the date which is within three (3) Business
      Days after the date on which the Commission informs the Company (i) that the
      Commission will not review such Registration Statement or (ii) that
      the
      Company may request the acceleration of the effectiveness of such Registration
      Statement and the Company makes such request; provided that,
      if the
      Effectiveness Date falls on a Saturday, Sunday or any other day which shall
      be a
      legal holiday or a day on which the Commission is authorized or required by
      law
      or other government actions to close, the Effectiveness Date shall be the
      following Business Day.

     

    
      
        
        

      

      
        -
          4
          -

        
          

        

      

      
        
        

      

    

     

    3.                
       Registration
      Procedures.

    

     In
      connection with the Company's registration obligations hereunder, the Company
      shall:

     

      (a)
       Prepare
      and file with the Commission, on or prior to the Filing Date, a Registration
      Statement on Form SB-2 (or if the Company is not then eligible to register
      for
      resale the Registrable Securities on Form SB-2 such registration shall be on
      another appropriate form in accordance herewith and with the Securities Act
      and
      the rules promulgated thereunder) in accordance with the plan of distribution
      as
      set forth on Exhibit
      A
      hereto
      and in accordance with applicable law, regulations and Commission policies,
      and
      cause the Registration Statement to become effective and remain effective as
      provided herein; provided,
      however,
      that
      not less than three (3) Business Days prior to the filing of the Registration
      Statement or any related Prospectus or any amendment or supplement thereto,
      the
      Company shall (i) furnish to the Holders and any Special Counsel, copies of
      all
      such documents proposed to be filed, which documents will be subject to the
      review of such Holders and such Special Counsel, and (ii) cause its officers
      and
      directors, counsel and independent certified public accountants to respond
      to
      such inquiries as shall be necessary, in the reasonable opinion of Special
      Counsel, to conduct a reasonable review of such documents. The Company shall
      not
      file the Registration Statement or any such Prospectus or any amendments or
      supplements thereto to which the Holders of a majority of the Registrable
      Securities or any Special Counsel shall reasonably object in writing within
      three (3) Business Days of their receipt thereof.

    

    (b) (i)
      Prepare and file with the Commission such amendments, including post-effective
      amendments, to the Registration Statement as may be necessary to keep the
      Registration Statement continuously effective as to the applicable Registrable
      Securities for the Effectiveness Period and prepare and file with the Commission
      such additional Registration Statements in order to register for resale under
      the Securities Act all of the Registrable Securities; (ii) cause the related
      Prospectus to be amended or supplemented by any required Prospectus supplement,
      and as so supplemented or amended to be filed pursuant to Rule 424 (or any
      similar provisions then in force) promulgated under the Securities Act; (iii)
      respond as promptly as possible, but in no event later than ten (10) Business
      Days, to any comments received from the Commission with respect to the
      Registration Statement or any amendment thereto and as promptly as possible
      provide the Holders true and complete copies of all correspondence from and
      to
      the Commission relating to the Registration Statement; (iv) file the final
      prospectus pursuant to Rule 424 of the Securities Act no later than 9:00 a.m.
      Eastern Time on the Business Day following the date the Registration Statement
      is declared effective by the Commission; and (v) comply in all material respects
      with the provisions of the Securities Act and the Exchange Act with respect
      to
      the disposition of all Registrable Securities covered by the Registration
      Statement during the Effectiveness Period in accordance with the intended
      methods of disposition by the Holders thereof set forth in the Registration
      Statement as so amended or in such Prospectus as so supplemented.

     

    
      
        
        

      

      
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    (c) Notify
      the Holders of Registrable Securities and any Special Counsel as promptly as
      possible (and, in the case of (i)(A) below, not less than three (3) days prior
      to such filing, and in the case of (iii) below, on the same day of receipt
      by
      the Company of such notice from the Commission) and (if requested by any such
      Person) confirm such notice in writing no later than two (2) Business Days
      following the day (i)(A) when a Prospectus or any Prospectus supplement or
      post-effective amendment to the Registration Statement is filed; (B) when the
      Commission notifies the Company whether there will be a "review" of such
      Registration Statement and whenever the Commission comments in writing on such
      Registration Statement and (C) with respect to the Registration Statement or
      any
      post-effective amendment, when the same has become effective; (ii) of any
      request by the Commission or any other Federal or state governmental authority
      for amendments or supplements to the Registration Statement or Prospectus or
      for
      additional information; (iii) of the issuance by the Commission of any stop
      order suspending the effectiveness of the Registration Statement covering any
      or
      all of the Registrable Securities or the initiation or threatening of any
      Proceedings for that purpose; (iv) if at any time any of the representations
      and
      warranties of the Company contained in any agreement contemplated hereby ceases
      to be true and correct in all material respects; (v) of the receipt by the
      Company of any notification with respect to the suspension of the qualification
      or exemption from qualification of any of the Registrable Securities for sale
      in
      any jurisdiction, or the initiation or threatening of any Proceeding for such
      purpose; and (vi) of the occurrence of any event that makes any statement made
      in the Registration Statement or Prospectus or any document incorporated or
      deemed to be incorporated therein by reference untrue in any material respect
      or
      that requires any revisions to the Registration Statement, Prospectus or other
      documents so that, in the case of the Registration Statement or the Prospectus,
      as the case may be, it will not contain any untrue statement of a material
      fact
      or omit to state any material fact required to be stated therein or necessary
      to
      make the statements therein, in the light of the circumstances under which
      they
      were made, not misleading.

    

      (d) Use
      its
      best efforts to avoid the issuance of, or, if issued, obtain the withdrawal
      of,
      as promptly as possible, (i) any order suspending the effectiveness of the
      Registration Statement or (ii) any suspension of the qualification (or exemption
      from qualification) of any of the Registrable Securities
      for sale in any jurisdiction.

    

    (e) If
      requested by the Holders of a majority in interest of the Registrable
      Securities, (i) promptly incorporate in a Prospectus supplement or
      post-effective amendment to the Registration Statement such information as
      the
      Company reasonably agrees should be included therein and (ii) make all required
      filings of such Prospectus supplement or such post-effective amendment as soon
      as practicable after the Company has received notification of the matters to
      be
      incorporated in such Prospectus supplement or post-effective
      amendment.

     

    
      
        
        

      

      
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    (f) If
      requested by any Holder, furnish to such Holder and any Special Counsel, without
      charge, at least one conformed copy of each Registration Statement and each
      amendment thereto, including financial statements and schedules, all documents
      incorporated or deemed to be incorporated therein by reference, and all exhibits
      to the extent requested by such Person (including those previously furnished
      or
      incorporated by reference) promptly after the filing of such documents with
      the
      Commission.

    

    (g) Promptly
      deliver to each Holder and any Special Counsel, without charge, as many copies
      of the Prospectus or Prospectuses (including each form of prospectus) and each
      amendment or supplement thereto as such Persons may reasonably request; and
      subject to the provisions of Sections 3(m) and 3(n), the Company hereby consents
      to the use of such Prospectus and each amendment or supplement thereto by each
      of the selling Holders in connection with the offering and sale of the
      Registrable Securities covered by such Prospectus and any amendment or
      supplement thereto.

    

    (h) Prior
      to
      any public offering of Registrable Securities, use its best efforts to register
      or qualify or cooperate with the selling Holders and any Special Counsel in
      connection with the registration or qualification (or exemption from such
      registration or qualification) of such Registrable Securities for offer and
      sale
      under the securities or Blue Sky laws of such jurisdictions within the United
      States as any Holder requests in writing, to keep each such registration or
      qualification (or exemption therefrom) effective during the Effectiveness Period
      and to do any and all other acts or things necessary or advisable to enable
      the
      disposition in such jurisdictions of the Registrable Securities covered by
      a
      Registration Statement; provided,
      however,
      that
      the Company shall not be required to qualify generally to do business in any
      jurisdiction where it is not then so qualified or to take any action that would
      subject it to general service of process in any such jurisdiction where it
      is
      not then so subject or subject the Company to any material tax in any such
      jurisdiction where it is not then so subject.

    

      (i) Cooperate
      with the Holders to facilitate the timely preparation and delivery of
      certificates representing Registrable Securities to be sold pursuant to a
      Registration Statement, which certificates, to the extent permitted by the
      Purchase Agreement and applicable federal and state securities laws, shall
      be
      free of all restrictive legends, and to enable such Registrable Securities
      to be
      in such denominations and registered in such names as any Holder may request
      in
      connection with any sale of Registrable Securities.

    

    (j) Upon
      the
      occurrence of any event contemplated by Section 3(c)(vi), as promptly as
      possible, prepare a supplement or amendment, including a post-effective
      amendment, to the Registration Statement or a supplement to the related
      Prospectus or any document incorporated or deemed to be incorporated therein
      by
      reference, and file any other required document so that, as thereafter
      delivered, neither the Registration Statement nor such Prospectus will contain
      an untrue statement of a material fact or omit to state a material fact required
      to be stated therein or necessary to make the statements therein, in the light
      of the circumstances under which they were made, not misleading.

    

    (k) Use
      its
      best efforts to cause all Registrable Securities relating to the Registration
      Statement to be listed or quoted on the OTC Bulletin Board or any other
      securities exchange, quotation system or market, if any, on which similar
      securities issued by the Company are then listed or traded as and when required
      pursuant to the Purchase Agreement.

     

    
      
        
        

      

      
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    (l) Comply
      in
      all material respects with all applicable rules and regulations of the
      Commission and make generally available to its security holders all documents
      filed or required to be filed with the Commission, including, but not limited,
      to, earning statements satisfying the provisions of Section 11(a) of the
      Securities Act and Rule 158 not later than 90 days after the end of any 12-month
      period if such period is a fiscal year commencing on the first day of the first
      fiscal quarter of the Company after the effective date of the Registration
      Statement, which statement shall conform to the requirements of Rule 158.

    

    (m) The
      Company may require each selling Holder to furnish to the Company information
      regarding such Holder and the distribution of such Registrable Securities as
      is
      required by law to be disclosed in the Registration Statement, Prospectus,
      or
      any amendment or supplement thereto, and the Company may exclude from such
      registration the Registrable Securities of any such Holder who unreasonably
      fails to furnish such information within a reasonable time after receiving
      such
      request.

    

    If
      the
      Registration Statement refers to any Holder by name or otherwise as the holder
      of any securities of the Company, then such Holder shall have the right to
      require (if such reference to such Holder by name or otherwise is not required
      by the Securities Act or any similar federal or applicable state law then in
      force) the deletion of the reference to such Holder in any amendment or
      supplement to the Registration Statement filed or prepared subsequent to the
      time that such reference ceases to be required.

    

    Each
      Holder covenants and agrees that it will not sell any Registrable Securities
      under the Registration Statement until the Company has electronically filed
      the
      Prospectus as then amended or supplemented as contemplated in Section 3(g)
      and
      notice from the Company that such Registration Statement and any post-effective
      amendments thereto have become effective as contemplated by Section
      3(c).

    

    Each
      Holder agrees by its acquisition of such Registrable Securities that, upon
      receipt of a notice from the Company of the occurrence of any event of the
      kind
      described in Section 3(c)(ii), 3(c)(iii), 3(c)(iv), 3(c)(v), 3(c)(vi) or 3(n),
      such Holder will forthwith discontinue disposition of such Registrable
      Securities under the Registration Statement until such Holder's receipt of
      the
      copies of the supplemented Prospectus and/or amended Registration Statement
      contemplated by Section 3(j), or until it is advised in writing (the
      "Advice")
      by the
      Company that the use of the applicable Prospectus may be resumed, and, in either
      case, has received copies of any additional or supplemental filings that are
      incorporated or deemed to be incorporated by reference in such Prospectus or
      Registration Statement.

    

    (n) If
      (i)
      there is material non-public information regarding the Company which the
      Company's Board of Directors (the "Board")
      determines not to be in the Company's best interest to disclose and which the
      Company is not otherwise required to disclose, (ii) there is a significant
      business opportunity (including, but not limited to, the acquisition or
      disposition of assets (other than in the ordinary course of business) or any
      merger, consolidation, tender offer or other similar transaction) available
      to
      the Company which the Board determines not to be in the Company's best interest
      to disclose, or (iii) the Company is required to file a post-effective amendment
      to the Registration Statement to incorporate the Company’s quarterly and annual
      reports and audited financial statements on Forms 10-QSB and 10-KSB, then the
      Company may (x) postpone or suspend filing of a registration statement for
      a
      period not to exceed thirty (30) consecutive days or (y) postpone or suspend
      effectiveness of a registration statement for a period not to exceed thirty
      (30)
      consecutive days; provided that the Company may not postpone or suspend
      effectiveness of a registration statement under this Section 3(n) for more
      than
      forty-five (45) days in the aggregate during any three hundred sixty (360)
      day
      period; provided,
      however,
      that no
      such postponement or suspension shall be permitted for consecutive twenty (20)
      day periods arising out of the same set of facts, circumstances or
      transactions.

     

    
      
        
        

      

      
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    4.                        Registration
      Expenses.
      

    

    All
      fees
      and expenses incident to the performance of or compliance with this Agreement
      by
      the Company, except as and to the extent specified in this Section 4, shall
      be
      borne by the Company whether or not the Registration Statement is filed or
      becomes effective and whether or not any Registrable Securities are sold
      pursuant to the Registration Statement. The fees and expenses referred to in
      the
      foregoing sentence shall include, without limitation, (i) all registration
      and
      filing fees (including, without limitation, fees and expenses (A) with respect
      to filings required to be made with the OTC Bulletin Board and/or
      each other securities exchange or market on which Registrable Securities are
      required hereunder to be quoted or listed, if any (B) with respect to filing
      fees required to be paid to the National Association of Securities Dealers,
      Inc.
      and the NASD Regulation, Inc. and (C) in compliance with state securities or
      Blue Sky laws (including, without limitation, fees and disbursements of counsel
      for the Holders in connection with Blue Sky qualifications of the Registrable
      Securities and determination of the eligibility of the Registrable Securities
      for investment under the laws of such jurisdictions as the Holders of a majority
      of Registrable Securities may designate)), (ii) printing expenses (including,
      without limitation, expenses of printing certificates for Registrable Securities
      and of printing prospectuses if the printing of prospectuses is requested by
      the
      holders of a majority of the Registrable Securities included in the Registration
      Statement), (iii) messenger, telephone and delivery expenses, (iv) fees and
      disbursements of counsel for the Company and Special Counsel for the Holders,
      in
      the case of the Special Counsel, up to a maximum amount of $7,500, (v)
      Securities Act liability insurance, if the Company so desires such insurance,
      and (vi) fees and expenses of all other Persons retained by the Company in
      connection with the consummation of the transactions contemplated by this
      Agreement, including, without limitation, the Company's independent public
      accountants (including the expenses of any comfort letters or costs associated
      with the delivery by independent public accountants of a comfort letter or
      comfort letters). In addition, the Company shall be responsible for all of
      its
      internal expenses incurred in connection with the consummation of the
      transactions contemplated by this Agreement (including, without limitation,
      all
      salaries and expenses of its officers and employees performing legal or
      accounting duties), the expense of any annual audit, the fees and expenses
      incurred in connection with the listing of the Registrable Securities on any
      securities exchange as required hereunder. The Company shall not be responsible
      for any discounts, commissions, transfer taxes or other similar fees incurred
      by
      the Holders in connection with the sale of the Registrable
      Securities.

    

    5.                       
       Indemnification.

     

    
      
        
        

      

      
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    (a) Indemnification
      by the Company.
      The
      Company shall, notwithstanding any termination of this Agreement, indemnify
      and
      hold harmless each Holder, the officers, directors, managers, partners, members,
      shareholders, agents, brokers, investment advisors and employees of each of
      them, each Person who controls any such Holder (within the meaning of Section
      15
      of the Securities Act or Section 20 of the Exchange Act) and the officers,
      directors, agents and employees of each such controlling Person, to the fullest
      extent permitted by applicable law, from and against any and all losses, claims,
      damages, liabilities, costs (including, without limitation, costs of preparation
      and reasonable attorneys' fees) and expenses (collectively, "Losses")
      , as
      incurred, arising out of or relating to any violation of securities laws by
      the
      Company or untrue or alleged untrue statement of a material fact contained
      in
      the Registration Statement, any Prospectus or any form of prospectus or in
      any
      amendment or supplement thereto or in any preliminary prospectus, or arising
      out
      of or relating to any omission or alleged omission of a material fact required
      to be stated therein or necessary to make the statements therein (in the case
      of
      any Prospectus or form of prospectus or supplement thereto, in the light of
      the
      circumstances under which they were made) not misleading, except to the extent,
      but only to the extent, that such untrue statements or omissions are based
      solely upon information regarding such Holder or such other Indemnified Party
      furnished in writing to the Company by such Holder expressly for use therein.
      The Company shall notify the Holders promptly of the institution, threat or
      assertion of any Proceeding of which the Company is aware in connection with
      the
      transactions contemplated by this Agreement.

    

    (b) Indemnification
      by Holders.
      Each
      Holder shall, severally and not jointly, indemnify and hold harmless the
      Company, its directors, officers, agents and employees, each Person who controls
      the Company (within the meaning of Section 15 of the Securities Act and Section
      20 of the Exchange Act), and the directors, officers, agents and employees
      of
      such controlling Persons, to the fullest extent permitted by applicable law,
      from and against all Losses (as determined by a court of competent jurisdiction
      in a final judgment not subject to appeal or review), as incurred, arising
      solely out of or based solely upon any untrue statement of a material fact
      contained in the Registration Statement, any Prospectus, or any form of
      prospectus, or in any amendment or supplement thereto, or arising solely out
      of
      or based solely upon any omission of a material fact required to be stated
      therein or necessary to make the statements therein (in the case of any
      Prospectus or form of prospectus or supplement thereto, in the light of the
      circumstances under which they were made) not misleading, to the extent, but
      only to the extent, that such untrue statement or omission is contained in
      any
      information so furnished in writing by such Holder or other Indemnifying Party
      to the Company specifically for inclusion in the Registration Statement or
      such
      Prospectus. Notwithstanding anything to the contrary contained herein, each
      Holder shall be liable under this Section 5(b) for only that amount as does
      not
      exceed the net proceeds to such Holder as a result of the sale of Registrable
      Securities pursuant to such Registration Statement.

    

    (c) Conduct
      of Indemnification Proceedings.
      If any
      Proceeding shall be brought or asserted against any Person entitled to indemnity
      hereunder (an "Indemnified
      Party"),
      such
      Indemnified Party promptly shall notify the Person from whom indemnity is sought
      (the "Indemnifying
      Party)
      in
      writing, and the Indemnifying Party shall be entitled to assume the defense
      thereof, including the employment of counsel reasonably satisfactory to the
      Indemnified Party and the payment of all fees and expenses incurred in
      connection with defense thereof; provided, that the failure of any Indemnified
      Party to give such notice shall not relieve the Indemnifying Party of its
      obligations or liabilities pursuant to this Agreement, except (and only) to
      the
      extent that it shall be finally determined by a court of competent jurisdiction
      (which determination is not subject to appeal or further review) that such
      failure shall have proximately and materially adversely prejudiced the
      Indemnifying Party.

     

    
      
        
        

      

      
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    An
      Indemnified Party shall have the right to employ separate counsel in any such
      Proceeding and to participate in the defense thereof, but the fees and expenses
      of such counsel shall be at the expense of such Indemnified Party or Parties
      unless: (1) the Indemnifying Party has agreed in writing to pay such fees and
      expenses; or (2) the Indemnifying Party shall have failed promptly to assume
      the
      defense of such Proceeding and to employ counsel reasonably satisfactory to
      such
      Indemnified Party in any such Proceeding; or (3) the named parties to any such
      Proceeding (including any impleaded parties) include both such Indemnified
      Party
      and the Indemnifying Party, and such parties shall have been advised by counsel
      that a conflict of interest is likely to exist if the same counsel were to
      represent such Indemnified Party and the Indemnifying Party (in which case,
      if
      such Indemnified Party notifies the Indemnifying Party in writing that it elects
      to employ separate counsel at the expense of the Indemnifying Party, the
      Indemnifying Party shall not have the right to assume the defense thereof and
      such counsel shall be at the expense of the Indemnifying Party). The
      Indemnifying Party shall not be liable for any settlement of any such Proceeding
      effected without its written consent, which consent shall not be unreasonably
      withheld or delayed. No Indemnifying Party shall, without the prior written
      consent of the Indemnified Party, effect any settlement of any pending or
      threatened Proceeding in respect of which any Indemnified Party is a party
      and
      indemnity has been sought hereunder, unless such settlement includes an
      unconditional release of such Indemnified Party from all liability on claims
      that are the subject matter of such Proceeding.

    

    All
      fees
      and expenses of the Indemnified Party (including reasonable fees and expenses
      to
      the extent incurred in connection with investigating or preparing to defend
      such
      Proceeding in a manner not inconsistent with this Section) shall be paid to
      the
      Indemnified Party, as incurred, within ten (10) Business Days of written notice
      thereof to the Indemnifying Party (regardless of whether it is ultimately
      determined that an Indemnified Party is not entitled to indemnification
      hereunder; provided,
      that the Indemnified Party shall reimburse all such fees and expenses to the
      extent it is finally judicially determined that such Indemnified Party is not
      entitled to indemnification hereunder).

    

    (d) Contribution.
      If a
      claim for indemnification under Section 5(a) or 5(b) is due but unavailable
      to
      an Indemnified Party because of a failure or refusal of a governmental authority
      to enforce such indemnification in accordance with its terms (by reason of
      public policy or otherwise), then each Indemnifying Party, in lieu of
      indemnifying such Indemnified Party, shall contribute to the amount paid or
      payable by such Indemnified Party as a result of such Losses, in such proportion
      as is appropriate to reflect the relative fault of the Indemnifying Party and
      Indemnified Party in connection with the actions, statements or omissions that
      resulted in such Losses as well as any other relevant equitable considerations.
      The relative fault of such Indemnifying Party and Indemnified Party shall be
      determined by reference to, among other things, whether any action in question,
      including any untrue or alleged untrue statement of a material fact or omission
      or alleged omission of a material fact, has been taken or made by, or relates
      to
      information supplied by, such Indemnifying, Party or Indemnified Party, and
      the parties'
      relative intent, knowledge, access to information and opportunity to correct
      or
      prevent such action, statement or omission. The amount paid or payable by a
      party as a result of any Losses shall be deemed to include, subject to the
      limitations set forth in Section 5(c), any reasonable attorneys' or other
      reasonable fees or expenses incurred by such party in connection with any
      Proceeding to the extent such party would have been indemnified for such fees
      or
      expenses if the indemnification provided for in this Section was available
      to
      such party in accordance with its terms. In no event shall any selling Holder
      be
      required to contribute an amount under this Section 5(d) in excess of the net
      proceeds received by such Holder upon sale of such Holder’s Registrable
      Securities pursuant to the Registration Statement giving rise to such
      contribution obligation.

     

    
      
        
        

      

      
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    The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section 5(d) were determined by pro rata allocation or by
      any
      other method of allocation that does not take into account the equitable
      considerations referred to in the immediately preceding paragraph. No Person
      guilty of fraudulent misrepresentation (within the meaning of Section 11(f)
      of
      the Securities Act) shall be entitled to contribution from any Person who was
      not guilty of such fraudulent misrepresentation.

    

    The
      indemnity and contribution agreements contained in this Section are in addition
      to any liability that the Indemnifying Parties may have to the Indemnified
      Parties pursuant to the law.

    

    6. 
Rule
      144.

    

    As
      long
      as any Holder owns Registrable Securities, the Company covenants 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 Section 13(a) or 15(d) of the Exchange Act. As long as any Holder
      owns Registrable Securities, if the Company is not required to file reports
      pursuant to Section 13(a) or 15(d) of the Exchange Act, it will prepare and
      furnish to the Holders and make publicly available in accordance with Rule
      144(c) promulgated under the Securities Act annual and quarterly financial
      statements, together with a discussion and analysis of such financial statements
      in form and substance substantially similar to those that would otherwise be
      required to be included in reports required by Section 13(a) or 15(d) of the
      Exchange Act, as well as any other information required thereby, in the time
      period that such filings would have been required to have been made under the
      Exchange Act. The Company further covenants that it will take such further
      action as any Holder may reasonably request, all to the extent required from
      time to time to enable such Person to sell Registrable Securities without
      registration under the Securities Act within the limitation of the exemptions
      provided by Rule 144 promulgated under the Securities Act, including providing
      any legal opinions relating to such sale pursuant to Rule 144. Upon the request
      of any Holder, the Company shall deliver to such Holder a written certification
      of a duly authorized officer as to whether it has complied with such
      requirements.

     

    
      
        
        

      

      
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    7. 
Miscellaneous.

    

    (a) Remedies.
      In the
      event of a breach by the Company or by a Holder, of any of their obligations
      under this Agreement, such Holder or the Company, as the case may be, in
      addition to being entitled to exercise all rights granted by law and under
      this
      Agreement, including recovery of damages, will be entitled to specific
      performance of its rights under this Agreement.
      The Company and each Holder agree that monetary damages would not
      provide adequate
      compensation for any losses incurred by reason of a breach by it of any of
      the
      provisions of this Agreement and hereby further agrees that, in the event of
      any
      action for specific performance in respect of such breach, it shall waive the
      defense that a remedy at law would be adequate.

    

    (b) No
      Inconsistent Agreements.
      Neither
      the Company nor any of its subsidiaries has, as of the date hereof entered
      into
      and currently in effect, nor shall the Company or any of its subsidiaries,
      on or
      after the date of this Agreement, enter into any agreement with respect to
      its
      securities that is inconsistent with the rights granted to the Holders in this
      Agreement or otherwise conflicts with the provisions hereof. Except as disclosed
      in Schedule
      2.1(c)
      of the
      Purchase Agreement or Schedule
      II
      hereto,
      neither the Company nor any of its subsidiaries has previously entered into
      any
      agreement currently in effect granting any registration rights with respect
      to
      any of its securities to any Person. Without limiting the generality of the
      foregoing, without the written consent of the Holders of a majority of the
      then
      outstanding Registrable Securities, the Company shall not grant to any Person
      the right to request the Company to register any securities of the Company
      under
      the Securities Act unless the rights so granted are subject in all respects
      to
      the prior rights in full of the Holders set forth herein, and are not otherwise
      in conflict with the provisions of this Agreement.

    

    (c) No
      Piggyback on Registrations.
      Neither
      the Company nor any of its security holders (other than the Holders in such
      capacity pursuant hereto or as disclosed on Schedule
      II
      hereto)
      may include securities of the Company in the Registration Statement, and the
      Company shall not after the date hereof enter into any agreement providing
      such
      right to any of its securityholders, unless the right so granted is subject
      in
      all respects to the prior rights in full of the Holders set forth herein, and
      is
      not otherwise in conflict with the provisions of this Agreement.

    

    (d) Piggy-Back
      Registrations.
      If at
      any time when there is not an effective Registration Statement covering
      Registrable Securities, the Company shall determine to prepare and file with
      the
      Commission a registration statement relating to an offering for its own account
      or the account of others under the Securities Act of any of its equity
      securities, other than on Form S-4 or Form S-8 (each as promulgated under the
      Securities Act) or their then equivalents relating to equity securities to
      be
      issued solely in connection with any acquisition of any entity or business
      or
      equity securities issuable in connection with stock option or other employee
      benefit plans, the Company shall send to each Holder of Registrable Securities
      written notice of such determination and, if within ten (10) Business Days
      after
      receipt of such notice, or within such shorter period of time as may be
      specified by the Company in such written notice as may be necessary for the
      Company to comply with its obligations with respect to the timing of the filing
      of such registration statement, any such Holder shall so request in writing,
      (which request shall specify the Registrable Securities intended to be disposed
      of by the Purchasers), the Company will cause the registration under the
      Securities Act of all Registrable Securities which the Company has been so
      requested to register by the Holder, to the extent requisite to permit the
      disposition of the Registrable Securities so to be registered, provided that
      if
      at any time after giving written notice of its intention to register any
      securities and prior to the effective date of the registration statement filed
      in connection with such registration, the Company shall determine for any reason
      not to register or to delay registration of such securities, the Company may,
      at
      its election, give written notice of such determination to such Holder and,
      thereupon, (i) in the case of a determination not to register, shall be relieved
      of its obligation to register any Registrable Securities in connection with
      such
      registration (but not from its obligation to pay expenses in accordance with
      Section 4 hereof), and (ii) in the case of a determination to delay registering,
      shall be permitted to delay registering any Registrable Securities being
      registered pursuant to this Section 7(d) for the same period as the delay in
      registering such other securities. The Company shall include in such
      registration statement all or any part of such Registrable Securities such
      Holder requests to be registered; provided,
      however,
      that
      the Company shall not be required to register any Registrable Securities
      pursuant to this Section 7(d) that are eligible for sale pursuant to Rule 144(k)
      of the Securities Act. In the case of an underwritten public offering, if the
      managing underwriter(s) or underwriter(s) should reasonably object to the
      inclusion of the Registrable Securities in such registration statement, then
      if
      the Company after consultation with the managing underwriter should reasonably
      determine that the inclusion of such Registrable Securities would materially
      adversely affect the offering contemplated in such registration statement,
      and
      based on such determination recommends inclusion in such registration statement
      of fewer or none of the Registrable Securities of the Holders, then (x) the
      number of Registrable Securities of the Holders included in such registration
      statement shall be reduced pro-rata among such Holders (based
      upon the number of Registrable Securities requested to be included in the
      registration), if the Company after consultation with the underwriter(s)
      recommends the inclusion of fewer Registrable Securities, or (y) none of the
      Registrable Securities of the Holders shall be included in such registration
      statement, if the Company after consultation with the underwriter(s) recommends
      the inclusion of none of such Registrable Securities; provided,
      however,
      that if
      securities are being offered for the account of other persons or entities as
      well as the Company, such reduction shall not represent a greater fraction
      of
      the number of Registrable securities intended to be offered by the Holders
      than
      the fraction of similar reductions imposed on such other persons or entities
      (other than the Company).

     

    
      
        
        

      

      
        -
          13
          -

        
          

        

      

      
        
        

      

    

     

    (e) Failure
      to File Registration Statement and Other Events.
      The
      Company and the Purchasers agree that the Holders will suffer damages if the
      Registration Statement is not filed on or prior to the Filing Date and not
      declared effective by the Commission on or prior to the Effectiveness Date
      and
      maintained in the manner contemplated herein during the Effectiveness Period
      or
      if certain other events occur. The Company and the Holders further agree that
      it
      would not be feasible to ascertain the extent of such damages with precision.
      Accordingly, if (A) the Registration Statement is not filed on or prior to
      the
      Filing Date, or (B) the Registration Statement is not declared effective by
      the
      Commission on or prior to the Effectiveness Date, or (C) the Company fails
      to
      file with the Commission a request for acceleration in accordance with Rule
      461
      promulgated under the Securities Act within three (3) Business Days of the
      date
      that the Company is notified (orally or in writing, whichever is earlier) by
      the
      Commission that a Registration Statement will not be "reviewed," or not subject
      to further review, or (D) the Registration Statement is filed with and declared
      effective by the Commission but thereafter ceases to be effective as to all
      Registrable Securities at any time prior to the expiration of the Effectiveness
      Period, without being succeeded immediately by a subsequent Registration
      Statement filed with and declared effective by the Commission, or (E) the
      Company has breached Section 3(n) hereof, or (F) trading in the Common Stock
      shall be suspended or if the Common Stock is no longer quoted on or delisted
      from the principal exchange on which the Common Stock is then traded for any
      reason for more than three (3) Business Days in the aggregate (any such failure
      or breach being referred to as an "Event,"
      and
      for purposes of clauses (A) and (B) the date on which such Event occurs, or
      for
      purposes of clause (C) the date on which such three (3) Business Day period
      is
      exceeded, or for purposes of clause (D) after more than fifteen (15) Business
      Days, or for purposes of clause (F) the date on which such three (3) Business
      Day period is exceeded, being referred to as "Event
      Date"),
      the
      Company shall pay an amount as liquidated damages to each Holder, payable in
      cash or shares of Common Stock, at the Company’s sole option, equal to two
      percent (2.0%) of the amount of the Holder’s initial investment in the Shares
      for each calendar month or portion thereof thereafter from the Event Date until
      the applicable Event is cured; provided,
      however,
      that in
      no event shall the amount of liquidated damages payable at any time and from
      time to time to any Holder pursuant to this Section 7(e) exceed an aggregate
      of
      fifteen percent (15%) of the amount of the Holder’s initial investment in the
      Shares; and provided,
      further,
      that in
      the event the Commission does not permit all of the Registrable Securities
      to be
      included in the Registration Statement because of its application of Rule 415,
      liquidated damages payable pursuant to clause (B) above shall be payable by
      the
      Company based on two percent (2%) of the portion of the Holder’s initial
      investment in the Shares that corresponds to the number of such Holder’s
      Registrable Securities permitted to be registered by the Commission pursuant
      to
      Rule 415. Notwithstanding anything to the contrary in this paragraph (e), if
      (a)
      any of the Events described in clauses (A), (B), (C), (D) or (F) shall have
      occurred, (b) on or prior to the applicable Event Date, the Company shall have
      exercised its rights under Section 3(n) hereof and (c) the postponement or
      suspension permitted pursuant to such Section 3(n) shall remain effective as
      of
      such applicable Event Date, then the applicable Event Date shall be deemed
      instead to occur on the second Business Day following the termination of such
      postponement or suspension. If the Company elects to pay liquidated damages
      in
      shares of Common Stock, the number of such shares of Common Stock to be issued
      to the Holders pursuant to this Section 7(e) shall be an amount equal to the
      quotient of (i) the liquidated damage amount, divided by (ii) the average of
      the
      VWAP for the twenty (20) trading days immediately preceding such Event Date.
      Liquidated damages payable by the Company pursuant to this Section 7(e) shall
      be
      payable on the first (1st)
      Business Day of each thirty (30) day period following the Event Date.

     

    
      
        
        

      

      
        -
          14
          -

        
          

        

      

      
        
        

      

    

     

    (f) Amendments
      and Waivers.
      The
      provisions of this Agreement, including the provisions of this sentence, may
      not
      be amended, modified or supplemented, and waivers or consents to departures
      from
      the provisions hereof may not be given, unless the same shall be in writing
      and
      signed by the Company and the Holders of seventy-five percent (75%) of the
      Registrable Securities outstanding. 

    

    (g) Notices.
      Any
      notice, demand, request, waiver or other communication required or permitted
      to
      be given hereunder shall be in writing and shall be effective (a) upon hand
      delivery, telecopy, e-mail or facsimile at the address or number designated
      below (if delivered on a business day during normal business hours where such
      notice is to be received), or the first business day following such delivery
      (if
      delivered other than on a business day during normal business hours where such
      notice is to be received) or (b) on the second business day following the date
      of mailing by express courier service, fully prepaid, addressed to such address,
      or upon actual receipt of such mailing, whichever shall first occur. The
      addresses for such communications shall be:

     

    
      
        
        

      

      
        -
          15
          -

        
          

        

      

      
        
        

      

    

     

    
      
        	
                If
                  to the Company:

              	
                Foldera,
                  Inc. 

                17011
                  Beach Boulevard, Suite 1500 

                Huntington
                  Beach, California 92647

                Attention:
                  Mr. Reid Dabney, Senior Vice President and Chief Financial
                  Officer

                Tel.
                  No.: (714) 766-8700 

                Fax
                  No.: (714) 766-8799

              
	 	 
	
                with
                  copies (which shall not constitute notice) to:

              	
                Greenberg
                  Traurig, LLP

                The
                  MetLife Building

                200
                  Park Avenue, 15th
                  Floor

                New
                  York, New York 10166

                Attention:
                  Spencer G. Feldman

                Tel.
                  No.: (212) 801-9200

                Fax
                  No.: (212) 801-6400 

              
	 	 
	
                If
                  to any Purchaser:

              	
                At
                  the address of such Purchaser set forth on Exhibit
                  A
                  to
                  this Agreement, with copies to Purchaser’s counsel as set forth below or
                  as specified in writing by such Purchaser:

              
	 	 
	
                with
                  copies (which shall not constitute notice) to:

              	
                Kramer
                  Levin Naftalis & Frankel LLP

                1177
                  Avenue of the Americas

                New
                  York, New York 10036

                Attention:
                  Christopher S. Auguste

                Tel
                  No.: (212) 715-9100

                Fax
                  No.: (212) 715-8000

              

      

    

     

    Any
      party
      hereto may from time to time change its address for notices by giving at least
      ten (10) days written notice of such changed address to the other party
      hereto.

    

    (h) Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their successors and permitted assigns and shall inure to the benefit of each
      Holder and its successors and assigns. The Company may not assign this Agreement
      or any of its rights or obligations hereunder without the prior written consent
      of each Holder. Each Purchaser may assign its rights hereunder in the manner
      and
      to the Persons as permitted under the Purchase Agreement.

    

    (i) Assignment
      of Registration Rights.
      The
      rights of each Holder hereunder, including the right to have the Company
      register for resale Registrable Securities in accordance with the terms of
      this
      Agreement, shall be automatically assignable by each Holder to any Person of
      all
      or a portion of
      the
      Registrable Securities if: (i) the Holder agrees in writing with the transferee
      or assignee to assign such rights, and a copy of such agreement is furnished
      to
      the Company within a reasonable time after such assignment, (ii) the Company
      is,
      within a reasonable time after such transfer or assignment, furnished with
      written notice of (a) the name and address of such transferee or assignee,
      and
      (b) the securities with respect to which such registration rights are being
      transferred or assigned, (iii) following such transfer or assignment the further
      disposition of such securities by the transferee or assignees is restricted
      under the Securities Act and applicable state securities laws, (iv) at or before
      the time the Company receives the written notice contemplated by clause (ii)
      of
      this Section, the transferee or assignee agrees in writing with the Company
      to
      be bound by all of the provisions of this Agreement, and (v) such transfer
      shall
      have been made in accordance with the applicable requirements of the Purchase
      Agreement. The rights to assignment shall apply to the Holders (and to
      subsequent) successors and assigns. 

     

    
      
        
        

      

      
        -
          16
          -

        
          

        

      

      
        
        

      

    

     

    (j) Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original and, all of which taken together
      shall constitute one and the same Agreement and shall become effective when
      counterparts have been signed by each party and delivered to the other parties
      hereto, it being understood that all parties need not sign the same counterpart.
      In the event that any signature is delivered by facsimile transmission, such
      signature shall create a valid binding obligation of the party executing (or
      on
      whose behalf such signature is executed) the same with the same force and effect
      as if such facsimile signature were the original thereof.

     

    (k) Governing
      Law; Jurisdiction.
      This
      Agreement shall be governed by and construed in accordance with the internal
      laws of the State of New York, without giving effect to any of the conflicts
      of
      law principles which would result in the application of the substantive law
      of
      another jurisdiction. This Agreement shall not be interpreted or construed
      with
      any presumption against the party causing this Agreement to be drafted. The
      Company and the Holders agree that venue for any dispute arising under this
      Agreement will lie exclusively in the state or federal courts located in New
      York County, New York, and the parties irrevocably waive any right to raise
      forum
      non conveniens
      or any
      other argument that New York is not the proper venue. The Company and the
      Holders irrevocably consent to personal jurisdiction in the state and federal
      courts of the state of New York. The Company and the Holders consent to process
      being served in any such suit, action or proceeding by delivering a copy thereof
      to such party at the address in effect for notices to it under this Agreement
      and agrees that such service shall constitute good and sufficient service of
      process and notice thereof. Nothing in this Section 7(k) shall affect or limit
      any right to serve process in any other manner permitted by law. The Company
      and
      the Holders hereby agree that the prevailing party in any suit, action or
      proceeding arising out of or relating to this Agreement or the Purchase
      Agreement, shall be entitled to reimbursement for reasonable legal fees from
      the
      non-prevailing party. The parties hereby waive all rights to a trial by
      jury.

    

    (l) Cumulative
      Remedies.
      The
      remedies provided herein are cumulative and not exclusive of any remedies
      provided by law.

    

    (m) Severability.
      If any
      term, provision, covenant or restriction of this Agreement is held to be
      invalid, illegal, void or unenforceable in any respect, 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 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.

     

    
      
        
        

      

      
        -
          17
          -

        
          

        

      

      
        
        

      

    

     

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

    

    (o) Shares
      Held by the Company and its Affiliates.
      Whenever the consent or approval of Holders of a specified percentage of
      Registrable Securities is required hereunder, Registrable Securities held by
      the
      Company or its Affiliates (other than any Holder or transferees or successors
      or
      assigns thereof if such Holder is deemed to be an Affiliate solely by reason
      of
      its holdings of such Registrable Securities) shall not be counted in determining
      whether such consent or approval was given by the Holders of such required
      percentage.

    

    (p) Independent
      Nature of Purchasers.
      The
      Company acknowledges that the obligations of each Purchaser under the
      Transaction Documents are several and not joint with the obligations of any
      other Purchaser, and no Purchaser shall be responsible in any way for the
      performance of the obligations of any other Purchaser under the Transaction
      Documents. The Company acknowledges that it has been advised that the decision
      of each Purchaser to purchase Securities pursuant to the Purchase Agreement
      has
      been made by such Purchaser independently of any other Purchaser and
      independently of any information, materials, statements or opinions as to the
      business, affairs, operations, assets, properties, liabilities, results of
      operations, condition (financial or otherwise) or prospects of the Company
      or of
      its Subsidiaries which may have been made or given by any other Purchaser or
      by
      any agent or employee of any other Purchaser, and no Purchaser or any of its
      agents or employees shall have any liability to any Purchaser (or any other
      person) relating to or arising from any such information, materials, statements
      or opinions. The Company acknowledges that nothing contained herein, or in
      any
      Transaction Document, and no action taken by any Purchaser pursuant hereto
      or
      thereto (including, but not limited to, the (i) inclusion of a Purchaser in
      the
      Registration Statement and (ii) review by, and consent to, such Registration
      Statement by a Purchaser) 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. The Company acknowledges that 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. The Company
      acknowledges that for reasons of administrative convenience only, the
      Transaction Documents have been prepared by counsel for one of the Purchasers
      and such counsel does not represent all of the Purchasers.  The Company
      acknowledges that it 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. The Company acknowledges
      that such procedure with respect to the Transaction Documents in no way creates
      a presumption that the Purchasers are in any way acting in concert or as a
      group
      with respect to the Transaction Documents or the transactions contemplated
      hereby or thereby.

     

    
      
        
        

      

      
        -
          18
          -

        
          

        

      

      
        
        

      

    

    

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

     

    
      	 	 	 
	 	FOLDERA,
              INC.
	 
 	 
 	 
 
	
            	By:  	/s/ Reid
              Dabney
	 	
              
Name: 
 Reid
              Dabney
	 	Title:    
              Senior Vice President and Chief Financial
              Officer

    

     

    
      	 	 	 
	 	PURCHASER:
	 
 	 
 	 
 
	
            	By:  	/s/ Adam
              Benowitz
	 	
              
Name:    
Adam
              Benowitz
	 	Title:      
              Portfolio Manager

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