Document:

Exhibit 10.1

EXHIBIT 10.1

INVESTMENT AGREEMENT

This INVESTMENT AGREEMENT (this "AGREEMENT"), dated as of September 15, 2009
("Execution Date") is entered into by and between MMR Information Systems, Inc., a Delaware corporation (the
"Company"), and Dutchess Equity Fund, LP, a Delaware Limited Partnership (the "Investor"). 

RECITALS

WHEREAS, the parties desire that, upon the terms and subject to the conditions contained herein, the
Investor shall invest up to Eight Million dollars ($8,000,000) to purchase the Company's Common Stock, $0.001 par value per share
(the "Common Stock"); 

WHEREAS, such investments will be made in reliance upon the provisions of Section 4(2) under the Securities
Act of 1933, as amended (the "1933 Act"), Rule 506 of Regulation D, and the rules and regulations promulgated thereunder, and/or
upon such other exemption from the registration requirements of the 1933 Act as may be available with respect to any or all of the
investments in Common Stock to be made hereunder; and 

WHEREAS, contemporaneously with the execution and delivery of this Agreement, the parties hereto are
executing and delivering a Registration Rights Agreement substantially in the form attached hereto (the "Registration Rights
Agreement") pursuant to which the Company has agreed to provide certain registration rights under the 1933 Act, and the rules and
regulations promulgated thereunder, and applicable state securities laws. 

AGREEMENT

NOW THEREFORE, in consideration of the foregoing recitals, which shall be considered an integral part of
this Agreement, the covenants and agreements set forth hereafter, and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Company and the Investor hereby agree as follows: 

SECTION 1. DEFINITIONS. 

As used in this Agreement, the following terms shall have the following meanings specified or indicated below,
and such meanings shall be equally applicable to the singular and plural forms of such defined terms.

"1933 Act" shall have the meaning set forth in the second recital of this Agreement.

"1934 Act" shall mean the Securities Exchange Act of 1934, as it may be amended from
time to time.

                                          1

"Affiliate" shall mean, with respect to any person or entity, another person or entity that,
directly or indirectly, (I) has a 5% or more equity interest in that person or entity, (II) has 5% or more common ownership with that
person or entity, (III) controls that person or entity, or (IV) is under common control with that person or entity. 

"Agreement" shall have the meaning specified in the preamble.

"Best Bid" shall mean the highest posted bid price of the Common Stock at any given
time.

"By-laws" shall have the
meaning specified in Section 4(C).

"Certificate of
Incorporation" shall have the meaning specified in Section 4(C).

"Closing" shall have the meaning specified in
Section 2(G).

"Closing Date" shall have the meaning specified in Section 2(G).  

"Common Stock" shall have the meaning set forth in the first recital of this Agreement.

"Company" shall have the meaning set forth in the preamble of this Agreement.

"Company's knowledge" or "to the knowledge of the Company" or
words of similar import shall mean the actual knowledge of Robert H. Lorsch, Chief Executive Officer of the Company and the
Company's wholly owned subsidiary, MyMedicalRecords, Inc.

"Control" or "Controls" shall mean a person or entity that has the
power, directly or indirectly, to conduct or govern the policies of another person or entity.

"DTC" shall have the meaning set forth in Section 2(G).

"DWAC" shall have the meaning set forth in Section 2(G).

"Effective Date" means the date that the initial
Registration Statement filed by the Company pursuant to the Registration Rights Agreement is first declared effective by the
SEC.

"Environmental Laws" shall have the meaning specified in Section 4(M).

"Equity Line Transaction Documents" shall mean this Agreement and the Registration Rights
Agreement.

                                          2

"Execution Date" shall have the meaning set forth in the preamble to this Agreement.

"FAST" shall have the meaning set forth in Section 2(G).

"GAAP" shall mean generally accepted accounting principles as applied in the United
States of America.

"Indemnities" shall have the meaning specified in Section 11.

"Indemnitor" shall have the meaning specified in Section 11.

"Indemnified Liabilities" shall have the meaning specified in Section 11.

"Investor" shall have the meaning set forth in the preamble of this Agreement.

"Material Adverse Effect" shall have the meaning specified in Section 4(A).

"Maximum Common Stock Issuance" shall have the meaning specified in Section
2(H).

"Minimum Acceptable Price" with respect to any Put shall mean the price per share
specified by the Company in a Put Notice as the lowest price per share during any Pricing Period at which the Company shall sell its
Common Stock in accordance with this Agreement.

"No. of Days Late" shall have the meaning set forth in Section 2(G).

"Open Market Adjustment Amount" shall have the meaning specified in Section 2(I).

"Open Market Purchase" shall have the meaning specified in Section 2(I)

"Open Period" shall mean the period beginning on and including the Trading Day
immediately following the Effective Date of the initial Registration Statement and ending on the earlier to occur of (i) the date
which is sixty (60) months from the Effective Date of the initial Registration Statement; or (ii) termination of the Agreement in
accordance with Section 9, below.

"PCAOB" shall mean the Public Companies Accounting Oversight Board

"Pricing Period" shall mean the period beginning on the Put Notice Date and ending on and
including the date that is five (5) Trading Days after such Put Notice Date.

                                          3

"Principal Market" shall mean the NYSE Amex, the New York Stock Exchange, the Nasdaq
Global Market, the Nasdaq Global Select Market, the Nasdaq Capital Market, or the OTC Bulletin Board, whichever is the principal
market on which the Common Stock of the Company is then listed or quoted.

"Prospectus" shall mean the prospectus, preliminary prospectus and supplemental
prospectus used in connection with a Registration Statement.

"Purchase Amount" shall mean the total amount being paid by the Investor on a particular
Closing Date to purchase the Securities.

"Purchase Price" shall mean ninety-four percent (94%) of the lowest closing Best Bid
during the Pricing Period. 

"Put" shall have the meaning set forth in Section 2(B)(1) hereof.

"Put Amount" shall have the meaning set forth in Section 2(B)(1) hereof.  

"Put Notice" shall mean a written notice sent to the Investor by the Company stating the
Put Amount in U.S. dollars the Company intends to sell to the Investor pursuant to the terms of the Agreement and stating the current
number of Shares issued and outstanding on such date.

"Put Notice Date" shall mean the Trading Day, as set forth below, immediately following the
day on which the Investor receives a Put Notice; however, notwithstanding anything else to the contrary contained in this Agreement, a
Put Notice shall be deemed received on (a) the Trading Day it is received by facsimile, e-mail or otherwise by the Investor if
such notice is received prior to 9:00 am Eastern Time, or (b) the immediately succeeding Trading Day if it is received by
facsimile, e-mail or otherwise after 9:00 am Eastern Time on a Trading Day.  No Put Notice may be deemed received on a day that is
not a Trading Day. 

"Put Restriction" shall mean the days between the beginning of the Pricing Period and
Closing Date.  During this time, the Company shall not be entitled to deliver another Put Notice.

"Put Settlement Sheet" shall have the meaning set forth in Section 7(B).

"Put Shares Due" shall have the meaning specified in Section 2(I).

"Registration Rights Agreement" shall have the meaning set forth in the third recitals of this
Agreement.

"Registration Statement" means a registration statement meeting the requirements set forth
in the Registration Rights Agreement and covering the resale by the Investor of the Common Stock issuable hereunder.

                                           4

"Resolution" shall have the meaning specified in
Section 8(E).

"SEC" shall mean the U.S. Securities & Exchange Commission.

"SEC Documents" shall have the meaning specified in Section 4(F).

"Securities" shall mean the shares of Common Stock issued pursuant to the terms of the
Agreement.

"Shares" shall mean the shares of the Company's Common Stock.

"Share Delivery Date" shall mean no later than seven (7) days after a Put Notice Date.

"Subsidiary" means, with respect to any person or entity, any corporation, limited liability
company or other entity as to which more than fifty percent (50%) of the outstanding securities having ordinary voting rights or power
(and excluding securities having voting rights only upon the occurrence of a contingency unless and until such contingency occurs and
such rights may be exercised) is owned or controlled, directly or indirectly, by such person or entity.

"Trading Day" means a day on which the Common Stock
is traded on a Principal Market.

"VWAP"  means, for any date, the price determined by the first of the following clauses that
applies: (a) if the Common Stock is then listed or quoted on a Principal Market, the daily volume weighted average closing price of the
Common Stock for such date (or the nearest preceding date) on the Principal Market on which the Common Stock is then listed or
quoted for trading as reported by Bloomberg Financial L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m.
(New York City time); (b)  if the OTC Bulletin Board is not a Principal Market, the volume weighted average closing price of the
Common Stock for such date (or the nearest preceding date) on the OTC Bulletin Board; (c) if the Common Stock is not then quoted for
trading on the OTC Bulletin Board and if prices for the Common Stock are then reported in the "Pink Sheets" published by
Pink OTC Markets, Inc. (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 (d) 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 Board of Directors of the Company and reasonably acceptable to the
Holder.

                                          5

SECTION 2. PURCHASE AND SALE OF COMMON STOCK. 

(A) PURCHASE AND SALE OF COMMON STOCK. Subject to the terms and conditions set forth herein, during
the Open Period, the Company may issue and sell to the Investor, and the Investor shall purchase from the Company, up to that
number of Shares having an aggregate Purchase Price of Eight Million dollars ($8,000,000).

(B) DELIVERY OF PUT NOTICES. 

(I) Subject to the terms and conditions of the Equity Line Transaction Documents, and from time to time during
the Open Period, the Company may, in its sole discretion, deliver a Put Notice to the Investor which states the dollar amount
(designated in U.S. Dollars) (the "Put Amount"), which the Company intends to sell to the Investor on a Closing Date (the "Put"). The
Put Notice shall be in the form attached hereto as Exhibit C and incorporated herein by reference. The Put Amount that the Company
shall be entitled to Put to the Investor shall not exceed, at the Company's sole election, the greater of either: (A) Two Hundred percent
(200%) of the average daily volume (U.S. market only) of the Common Stock for the three (3) Trading Days prior to the applicable Put
Notice Date, multiplied by the average of the three (3) daily closing bid prices immediately preceding the Put Date, or (B) one hundred
fifty thousand dollars ($150,000). After the Company's delivery of the initial Put Notice, the Company shall not be entitled to submit a
subsequent Put Notice until the Closing in respect to the previous Put Notice has been completed. The Purchase Price for the Common
Stock identified in the Put Notice shall be equal to ninety-four percent (94%) of the lowest closing Best Bid during the Pricing Period.

(C) COMPANY'S RIGHT TO WITHDRAWAL. Notwithstanding anything else to the contrary contained in this
Agreement, the Company shall reserve the right, but not the obligation, to withdraw that portion of the Put Amount for each Trading Day
during the Pricing Period if the VWAP for such Trading Day is below the Minimum Acceptable Price by submitting to the Investor prior
to the applicable Closing Date, in writing, a notice to withdraw that portion of the Put Amount.  In the event that the Company withdraws
that portion of any Put Amount that is below the Minimum Acceptable Price, only the balance of such Put Amount above the Minimum
Acceptable Price shall be put to the Investor.

(D) INTENTIONALLY OMITTED.

(E) INTENTIONALLY OMITTED. 

(F) INTENTIONALLY OMITTED.

(G) MECHANICS OF PURCHASE OF SHARES BY INVESTOR. Subject to the satisfaction of the conditions set
forth in Sections 7 and 8, the closing of the purchase by the Investor of Shares (a "Closing") shall occur on the date which is no later
than one business day after the Share Delivery Date (each a "Closing Date"). On or prior to each Closing Date, (I) the Company shall
deliver to the Investor pursuant to this Agreement certificates representing the Shares to be issued to the Investor on such date and
registered in the name of the Investor; and (II) the Investor shall deliver to the Company the Purchase Price to be paid for such Shares,
determined as set forth in Section 2(B), by wire transfer of immediately available funds pursuant to the wire instructions provided by the

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Company. In lieu of delivering physical certificates representing the Securities and provided that the Company's transfer agent then is
participating in The Depository Trust Company ("DTC") Fast Automated Securities Transfer ("FAST") program, upon request of the
Investor, the Company shall use all commercially reasonable efforts to cause its transfer agent to electronically transmit the Securities
by crediting the account of the Investor's prime broker (as specified by the Investor within a reasonable amount of time in advance of
the Investor's notice) with DTC through its Deposit Withdrawal Agent Commission ("DWAC") system. 

The Company understands that a delay in the issuance of Securities beyond the applicable Closing Date could
result in economic damage to the Investor. After the Effective Date, as compensation to the Investor for such loss, the Company agrees
to make late payments to the Investor for late issuance of Securities (delivery of Securities after the applicable Closing Date) up to the
amount determined in accordance with the following schedule (where "No. of Days Late" is defined as the number of Trading Days after
the applicable Closing Date, with the amounts being cumulative): 

	
LATE PAYMENT FOR EACH

                   NO.  OF  DAYS  LATE               

	
    

                   $10,000 WORTH OF COMMON  STOCK

	
1

                   2

                   3

                   4

                   5

                   6

                   7

                   8

                   9

                   10

                   Over 10 
 
 	
$100

                   $200

                   $300

                   $400

                   $500

                   $600

                   $700

                   $800

                   $900

                   $1,000

                   $1,000  +  $200  for  each

                   Business  Day  late  beyond  10  days

The Company shall make any payments incurred under this Section 2(G) in immediately
available funds as soon as reasonably practicable following receipt of a demand by the Investor. Nothing herein shall limit the Investor's
right to pursue actual damages for the Company's failure to issue and deliver the Securities to the Investor, except that such late
payments shall offset any such actual damages incurred by the Investor, and any Open Market Adjustment Amount, as set forth below.

 (H) OVERALL LIMIT ON COMMON STOCK ISSUABLE. Notwithstanding anything contained herein to the
contrary, if during the Open Period the Company becomes listed on an exchange that limits the number of shares of Common Stock
that may be issued without shareholder approval, then the number of Shares issuable by the Company and purchasable by the Investor
shall not exceed that number of the shares of Common Stock that may be issuable without shareholder approval (the "Maximum
Common Stock Issuance").  If such issuance of shares of Common Stock could cause a delisting

                                           7

on the Principal Market, then the
Maximum Common Stock Issuance shall first be approved by the Company's shareholders in accordance with applicable law and the
By-laws and Amended and Restated Certificate of Incorporation of the Company. The parties understand and agree that the
Company's failure to seek or obtain such shareholder approval shall in no way adversely affect the validity and due authorization of the
issuance and sale of Securities or the Investor's obligation in accordance with the terms and conditions hereof to purchase a number of
Shares in the aggregate up to the Maximum Common Stock Issuance limitation, and that such approval pertains only to the applicability
of the Maximum Common Stock Issuance limitation provided in this Section 2(H). 

(I)  If, by the third (3rd) business day after a Closing Date, the Company fails to deliver any of the Shares Put to
the Investor on such Closing Date (the "Put Shares Due") and the Investor purchases, in an open market transaction or
otherwise, shares of Common Stock necessary to make delivery to a third party of Shares which could have been delivered from the
Put Shares Due if the full amount of the Put Shares Due had been timely delivered to the Investor by the Company (the "Open
Market Purchase"), then the Company shall pay to the Investor, in addition to delivering the Put Shares Due and not in lieu
thereof, the Open Market Adjustment Amount (as defined below). The "Open Market Adjustment Amount" is the amount
equal to the excess, if any, of (x) the Investor's total purchase price (including brokerage commissions, if any) for the Open Market
Purchase minus (y) the net proceeds (after brokerage commissions, if any) received by the Investor from the sale of the Put Shares
Due. The Company shall pay the Open Market Adjustment Amount to the Investor in immediately available funds within five (5)
business days of written demand by the Investor. By way of illustration and not in limitation of the foregoing, if the Investor purchases
shares of Common Stock having a total purchase price (including brokerage commissions) of $11,000 in an Open Market Purchase to
cover a sale of shares of Common Stock for net proceeds of $10,000, the Open Market Adjustment Amount which the Company would
be required to pay to the Investor would be $1,000.

(J)  LIMITATION ON AMOUNT OF OWNERSHIP. Notwithstanding anything to the contrary in this Agreement, in no event shall the
Investor be required to purchase that number of Shares, which when added to the sum of the number of shares of Common Stock
beneficially owned (as such term is defined under Section 13(d) and Rule 13d-3 of the 1934 Act), by the Investor, would exceed 4.99%
of the number of shares of Common Stock outstanding on the Closing Date, as determined in accordance with Rule 13d-1(j) of the
1934 Act. 

SECTION 3. INVESTOR'S REPRESENTATIONS, WARRANTIES AND COVENANTS. 

The Investor represents and warrants to the Company, and covenants, that: 

(A) SOPHISTICATED INVESTOR. The Investor has, by reason of its business and financial experience, such
knowledge, sophistication and experience in financial and business matters and in making investment decisions of this type

                                             8

that it is capable of (I) evaluating the merits and risks of an investment in the Securities and making an informed investment decision; (II)
protecting its own interest; and (III) bearing the economic risk of such investment for an indefinite period of time. 

(B) AUTHORIZATION; ENFORCEMENT. This Agreement has been duly and validly authorized, executed and
delivered on behalf of the Investor and is a valid and binding agreement of the Investor enforceable against the Investor in accordance
with its terms, subject as to enforceability to general principles of equity and to applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors' rights and
remedies. 

(C) SECTION 9 OF THE 1934 ACT. During the term of this Agreement, the Investor will comply with the
provisions of Section 9 of the 1934 Act, and the rules promulgated thereunder, with respect to transactions involving the Common
Stock. The Investor agrees not to sell the Company's Common Stock short, either directly or indirectly through its Affiliates, principals or
advisors, during the term of this Agreement. 

(D) ACCREDITED INVESTOR. Investor is an "Accredited Investor" as that term is defined in Rule 501(a) of
Regulation D promulgated under the 1933 Act. 

(E) NO CONFLICTS. The execution, delivery and performance of the Equity Line Transaction Documents by
the Investor and the consummation by the Investor of the transactions contemplated hereby and thereby will not result in a violation of
Partnership Agreement or other organizational documents of the Investor. 

(F) OPPORTUNITY TO DISCUSS. The Investor has received all materials relating to the Company's business,
finance and operations which it has requested. The Investor has had an opportunity to discuss the business, management and financial
affairs of the Company with the Company's management. 

(G) INVESTMENT PURPOSES. The Investor is purchasing the Securities for its own account for investment
purposes and not with a view towards distribution and agrees to resell or otherwise dispose of the Securities solely in accordance with
the registration provisions of the 1933 Act (or pursuant to an exemption from such registration provisions). 

(H) NO REGISTRATION AS A DEALER. The Investor is not and will not be required to be registered as a
"dealer" under the 1934 Act, either as a result of its execution and performance of its obligations under this Agreement or otherwise.

(I)  GOOD STANDING.  The Investor is a limited partnership, duly organized, validly existing and in good
standing in the Cayman Islands.

(J)  TAX LIABILITIES.  The Investor understands that it is liable for its own tax liabilities.

                                            9

(K) REGULATION M.  The Investor will comply with Regulation M under the 1934 Act, if applicable.

(L) COMMERCIALLY REASONABLE EFFORTS. The Investor shall use all commercially reasonable efforts to
timely satisfy each of the conditions set forth in Section 7 of this Agreement.  

SECTION 4. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. 

Except as set forth in the Disclosure Schedules attached hereto (which Disclosure Schedules shall be deemed
a part hereof and to qualify any representation or warranty otherwise made herein to the extent of such disclosure), or as disclosed in
the Company's SEC Documents, the Company represents and warrants to the Investor that: 

(A) ORGANIZATION AND QUALIFICATION. The Company is a corporation duly organized and validly existing
in good standing under the laws of the State of Delaware, USA and has the requisite corporate power and authorization to own its
properties and to carry on its business as now being conducted. Both the Company and its Subsidiaries are duly qualified to do
business and are in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it
makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not have a
Material Adverse Effect. As used in this Agreement, "Material Adverse Effect" means any material adverse effect on the business,
properties, assets, operations, results of operations, or financial condition of the Company and its Subsidiaries, if any, taken as a whole,
or on the transactions contemplated hereby or by the agreements and instruments to be entered into in connection herewith, or on the
authority or ability of the Company to perform its obligations under the Equity Line Transaction Documents.   

(B) AUTHORIZATION; ENFORCEMENT; COMPLIANCE WITH OTHER INSTRUMENTS. 

(I) The Company has the requisite corporate power and authority to enter into and perform each of the
Equity Line Transaction Documents, and to issue the Securities in accordance with the terms hereof and thereof. 

(II) The execution and delivery of the Equity Line Transaction Documents by the Company and the
consummation by it of the transactions contemplated hereby and thereby, including without limitation the reservation for issuance and
the issuance of the Securities pursuant to this Agreement, have been duly and validly authorized by the Company's Board of Directors
and no further consent or authorization is required by the Company, its Board of Directors, or its shareholders (subject to Section 2(H)
above). 

(III) The Equity Line Transaction Documents have been duly and validly executed and delivered by the
Company. 

                                            10

(IV) The Equity Line Transaction Documents constitute the valid and binding obligations of the Company
enforceable against the Company in accordance with their terms, except as such enforceability may be limited by general principles of
equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the
enforcement of creditors' rights and remedies, insofar as indemnification and contribution provisions may be limited by applicable
law.

(C) CAPITALIZATION. As of the date hereof, the authorized capital stock of the Company consists of
650,000,000 shares of Common Stock, of which as of the date hereof, approximately 131,206,644 shares are issued and outstanding.
There are no: (I) shares of the Company's capital stock subject to preemptive rights or any other similar rights or any liens or
encumbrances suffered or permitted by the Company; (II) outstanding debt securities; (III) outstanding shares of capital stock, options,
warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible
into, any shares of capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements
by which the Company or any of its Subsidiaries is or may become bound to issue additional shares of capital stock of the Company or
any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to,
or securities or rights convertible into, any shares of capital stock of the Company or any of its Subsidiaries; (IV) agreements or
arrangements under which the Company or any of its Subsidiaries is obligated to register the sale of any of their securities under the
1933 Act (except the Registration Rights Agreement); (V) outstanding securities of the Company or any of its Subsidiaries which
contain any redemption or similar provisions; (VI) contracts, commitments, understandings 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; (VII) securities or
instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities as described in this
Agreement; and (VII) stock appreciation rights or "phantom stock" plans or agreements or any similar plan or agreement relating to the
Company's Common Stock. 

The Company has furnished to the Investor, or the Investor has had access through EDGAR to, true and correct
copies of the Company's Certificate of Incorporation, as amended and in effect on the date hereof (the "Certificate of Incorporation"),
and the Company's By-laws, as amended and in effect on the date hereof (the "By-laws"). 

(D) ISSUANCE OF SHARES. The Company has reserved 100,000,000 Shares for issuance pursuant to this
Agreement, which have been duly authorized and reserved for issuance (subject to adjustment pursuant to the Company's covenant set
forth in Section 5(F) below) pursuant to this Agreement. Upon issuance in accordance with this Agreement, the Securities will be validly
issued, fully paid for and non-assessable and free from all taxes, liens and charges with

                                            11

respect to the issue thereof (other than any taxes, liens or charges which may arise from the acts of the Investor).  

(E) NO CONFLICTS. The execution, delivery and performance of the Equity Line Transaction Documents by
the Company and the consummation by the Company of the transactions contemplated hereby and thereby will not (I) result in a
violation of the Certificate of Incorporation or the By-laws; or (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 material agreement, contract, indenture mortgage, indebtedness or instrument to which the Company or any of its
Subsidiaries is a party, or to the Company's knowledge result in a violation of any law, rule, regulation, order, judgment or decree
(including United States federal and state securities laws and regulations and the rules and regulations of the Principal Market or
principal securities exchange or trading market on which the Common Stock is traded or listed) 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 the case of
clause (II), as would not, individually or in the aggregate, have a Material Adverse Effect. Neither the Company nor its Subsidiaries is in
violation of any term of, or in default under, the Certificate of Incorporation or the By-laws or their organizational charter or by-laws,
respectively, or any contract, agreement, mortgage, indebtedness, indenture, instrument, judgment, decree or order or any statute, rule
or regulation applicable to the Company or its Subsidiaries, except for possible conflicts, defaults, terminations, amendments,
accelerations, cancellations and violations that would not individually or in the aggregate have or constitute a Material Adverse Effect.
The business of the Company and its Subsidiaries is not being conducted, and shall not be conducted, in violation of any law, statute,
ordinance, rule, order or regulation of any governmental authority or agency, regulatory or self-regulatory agency, or court, except for
possible violations the sanctions for which either individually or in the aggregate would not have a Material Adverse Effect. Except as
specifically contemplated by this Agreement and as required under the 1933 Act or any securities laws of any states, to the Company's
knowledge, the Company is not required to obtain any consent, authorization, permit or order of, or make any filing or registration
(except the filing of one or more Registration Statements as outlined in the Registration Rights Agreement between the parties hereto)
with, any court, governmental authority or agency, regulatory or self-regulatory agency or other third party in order for it to execute,
deliver or perform any of its obligations under, or contemplated by, the Equity Line Transaction Documents in accordance with the
terms hereof or thereof. All consents, authorizations, permits, orders, filings and registrations which the Company is required to obtain
pursuant to the preceding sentence (other than those specifically contemplated by this Agreement and
as required under the 1933 Act and state securities laws) have been obtained or effected on or prior to the date hereof and are in full
force and effect as of the date hereof. To the Company's knowledge, there are no facts or circumstances which might give rise to any of
the foregoing set forth in this Section 4(E). The Company is not in

                                            12

violation of the listing requirements of the Principal Market as in effect
on the date hereof and, to the Company's knowledge, is not aware of any facts which would reasonably lead to delisting of the
Common Stock by the Principal Market in the foreseeable future. 

(F) SEC DOCUMENTS; FINANCIAL STATEMENTS. As of the date hereof, since January 27, 2009, the
Company has filed all reports, schedules, forms, statements and other documents required to be filed by it with the SEC pursuant to the
reporting requirements of the 1934 Act (all of the foregoing filed prior to the date hereof and all exhibits included therein and financial
statements and schedules thereto and documents incorporated by reference therein being hereinafter referred to as the "SEC
Documents"). The Company has delivered to the Investor or its representatives, or they have had access through EDGAR to, true and
complete copies of the SEC Documents. As of their respective filing dates, the SEC Documents complied in all material respects with
the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents,
and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted
to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading. As of their respective dates, the financial statements of the Company included in the SEC
Documents complied as to form in all material respects with applicable accounting requirements and the published rules and
regulations of the SEC with respect thereto. Such financial statements have been prepared in accordance with generally accepted
accounting principles consistently applied, by a firm that is a member of the PCAOB, 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 exclude footnotes or may be condensed or summary statements) and fairly present in all material respects the financial
position of the Company as of the dates thereof and the results of its operations and cash flows for the periods then ended (subject, in
the case of unaudited statements, to normal year-end audit adjustments). Neither the Company nor any of its Subsidiaries or, to the
Company's knowledge, any of their officers, directors, employees or agents have provided the Investor with any material, nonpublic
information which was not publicly disclosed prior to the date hereof and any material, nonpublic information provided to the Investor by
the Company or its Subsidiaries or any of their officers, directors, employees or agents prior to any Closing Date shall be publicly
disclosed by the Company prior to such Closing Date. 

(G) ABSENCE OF CERTAIN CHANGES. The Company has not taken any steps to seek protection pursuant to
any bankruptcy law nor, to the Company's knowledge, has the Company's creditors taken any steps to initiate involuntary bankruptcy
proceedings. 

(H) ABSENCE OF LITIGATION AND/OR REGULATORY PROCEEDINGS. There is no action, suit, proceeding, inquiry or investigation before or by any

                                            13

court, public board, government agency, self-regulatory organization or body pending or, to the
Company's knowledge, threatened against or adversely affecting the Company, the Common Stock or any of the Company's
Subsidiaries or any of the Company's or the Company's Subsidiaries' officers or directors in their capacities as such, in which, in each
case, an adverse decision could have a Material Adverse Effect.

(I) ACKNOWLEDGMENT REGARDING INVESTOR'S PURCHASE OF SHARES. The Company acknowledges
and agrees that the Investor is acting solely in the capacity of an arm's length purchaser with respect to the Equity Line Transaction
Documents and the transactions contemplated hereby and thereby (notwithstanding that the Investor will be an underwriter for
purposes of the Registration Statement). The Company further acknowledges that the Investor is not acting as a financial advisor or
fiduciary of the Company (or in any similar capacity) with respect to the Equity Line Transaction Documents and the transactions
contemplated hereby and thereby and any advice given by the Investor or any of its respective representatives or agents in connection
with the Equity Line Transaction Documents and the transactions contemplated hereby and thereby is merely incidental to the
Investor's purchase of the Securities, and is not being relied on by the Company. The Company further represents to the Investor that
the Company's decision to enter into the Equity Line Transaction Documents has been based solely on the independent evaluation by
the Company and its representatives. 

(J) NO UNDISCLOSED EVENTS, LIABILITIES, DEVELOPMENTS OR CIRCUMSTANCES. As of the date
hereof, no event, liability, development or circumstance has occurred or exists, or to the Company's knowledge is imminent, with
respect to the Company or its Subsidiaries or their respective business, properties, assets, prospects, operations or financial condition,
that would be required to be disclosed by the Company under applicable federal securities laws and which has not been publicly
announced. 

(K) EMPLOYEE RELATIONS. Neither the Company nor any of its Subsidiaries is involved in any union labor
dispute nor, to the knowledge of the Company, is any such dispute threatened. Neither the Company nor any of its Subsidiaries is a
party to a collective bargaining agreement. As of the date of this Agreement, no executive officer (as defined in Rule 501(f) of the 1933
Act) has notified the Company that such officer intends to leave the Company's employ or otherwise terminate such officer's
employment with the Company. 

(L) INTELLECTUAL PROPERTY RIGHTS. To the Company's knowledge, the Company and its Subsidiaries
own or possess adequate rights or licenses to use all material trademarks, trade names, service marks, service mark registrations,
service names, patents, patent rights, copyrights, inventions, licenses, approvals, governmental authorizations, trade secrets and rights
necessary to conduct their respective businesses as now conducted. None of the Company's trademarks, trade names, service marks,
service mark registrations, service names, patents, patent rights, copyrights, inventions, licenses, approvals, government

                                            14

authorizations, trade secrets or other intellectual property rights necessary to conduct its business as now conducted have expired or
terminated. The Company does not have any knowledge of any infringement by the Company or its Subsidiaries of trademark, trade
name rights, patents, patent rights, copyrights, inventions, licenses, service names, service marks, service mark registrations, trade
secret or other similar rights of others, and there is no claim, action or proceeding being made or brought against, or to the Company's
knowledge, being threatened against, the Company or its Subsidiaries regarding trademark, trade name, patents, patent rights,
invention, copyright, license, service names, service marks, service mark registrations, trade secret or other infringement; and to the
Company's knowledge, there are no facts or circumstances which might give rise to any of the foregoing. The Company and its
Subsidiaries have taken commercially reasonable security measures to protect the secrecy, confidentiality and value of all of their
intellectual properties. 

(M) ENVIRONMENTAL LAWS. The Company and its Subsidiaries (I) are, to the knowledge of the Company, in
compliance with any and all applicable foreign, federal, state and local laws and regulations relating to the protection of human health
and safety, the environment or hazardous or toxic substances or wastes, pollutants or contaminants ("Environmental Laws"); (II) have,
to the knowledge of the Company, received all permits, licenses or other approvals required of them under applicable Environmental
Laws to conduct their respective businesses; and (III) are in compliance, to the knowledge of the  Company, with all terms and
conditions of any such permit, license or approval where, in each of the three (3) foregoing cases, the failure to so comply would have,
individually or in the aggregate, a Material Adverse Effect. 

(N) TITLE. The Company and its Subsidiaries have good and marketable title to all personal property owned by
them which is material to the business of the Company and its Subsidiaries, in each case free and clear of all liens, encumbrances and
defects except such as are described in the SEC Documents or such as do not materially affect the value of such property and do not
interfere with the use made and proposed to be made of such property by the Company or any of its Subsidiaries. Any real property
and facilities held under lease by the Company or any of its Subsidiaries are held by them under valid, subsisting and enforceable
leases with such exceptions as are not material and do not interfere with the use made and proposed to be made of such property and
buildings by the Company and its Subsidiaries. 

(O) INSURANCE. Each of the Company's Subsidiaries are insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as management of the Company reasonably believes to be prudent
and customary in the businesses in which the Company and its Subsidiaries are engaged. Neither the Company nor any of its
Subsidiaries has been refused any insurance coverage sought or applied for and neither the Company nor its Subsidiaries has any
reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar

                                            15

coverage from similar insurers as may be necessary to continue its business at a cost that would not have a Material Adverse Effect.

(P) REGULATORY PERMITS. The Company and its Subsidiaries have in full force and effect all certificates,
approvals, authorizations and permits from the appropriate federal, state, local or foreign regulatory authorities and comparable foreign
regulatory agencies, necessary to own, lease or operate their respective properties and assets and conduct their respective businesses
as now conducted, and neither the Company nor any such Subsidiary has received any notice of proceedings relating to the revocation
or modification of any such certificate, approval, authorization or permit, except for such certificates, approvals, authorizations or
permits which if not obtained, or such revocations or modifications which, would not have a Material Adverse Effect. 

(Q) INTERNAL ACCOUNTING CONTROLS. The Company and each of its Subsidiaries maintain a system of
internal accounting controls sufficient to provide reasonable assurance that (I) the Company and its Subsidiaries maintain records that
in reasonable detail accurately and fairly reflect their respective transactions and dispositions of assets, (II) receipts and expenditures
are executed in accordance with management's general or specific authorizations, and (III) transactions are recorded as necessary to
permit preparation of financial statements in conformity with GAAP (except in the case of unaudited statements, as permitted by the
rules and regulations of the SEC). 

(R) NO MATERIALLY ADVERSE CONTRACTS, ETC. Neither the Company nor any of its Subsidiaries is
subject to any charter, corporate or other legal restriction, or any judgment, decree, order, rule or regulation which, to the Company's
knowledge, has or would reasonably be expected to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is
a party to any contract or agreement which, to the Company's knowledge, has or would reasonably be expected to have a Material
Adverse Effect. 

(S) TAX STATUS. The Company and each of its Subsidiaries has made or filed all United States federal and
state income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject and due prior to the
date hereof (unless and only to the extent that the Company and each of its Subsidiaries has set aside on its books provisions
reasonably adequate for the payment of all unpaid and unreported taxes) and has paid all taxes and other governmental assessments
and charges that are material in amount, shown or determined to be due on such returns, reports and declarations, except those being
contested in good faith and has set aside on its books provision reasonably adequate for the payment of all taxes for periods
subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount
claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such claim. 

(T) CERTAIN TRANSACTIONS. Except for arm's length transactions pursuant to which the Company makes
payments in the ordinary course of business upon

                                            16

terms no less favorable than the Company could obtain from disinterested third
parties, and other than the grant of equity awards disclosed in the SEC Documents, none of the officers, directors, or employees of the
Company is, as of the date of this Agreement, a party to any transaction with the Company or any of its Subsidiaries (other than for
services as employees, officers and directors) of the type or involving an amount that requires such
transaction to be disclosed pursuant to Item 404 of Regulation S-K. 

(U) DILUTIVE EFFECT. The Company understands and acknowledges that the number of shares of Common
Stock issuable upon purchases pursuant to this Agreement will increase in certain circumstances including, but not necessarily limited
to, the circumstance wherein the trading price of the Common Stock declines during the period between the Effective Date and the end
of the Open Period. The Company's executive officers and directors have studied and fully understand the nature of the transactions
contemplated by this Agreement and recognize that they have a potential dilutive effect on the shareholders of the Company. The
Board of Directors of the Company has concluded, in its good faith business judgment, and with full understanding of the implications,
that such issuance is in the best interests of the Company. The Company specifically acknowledges that, subject to such limitations as
are expressly set forth in the Equity Line Transaction Documents, its obligation to issue shares of Common Stock upon purchases
pursuant to this Agreement is absolute and unconditional regardless of the dilutive effect that such issuance may have on the
ownership interests of other shareholders of the Company. 

(V) INTENTIONALLY OMITTED.

(W) NO GENERAL SOLICITATION. Neither the Company, nor any of its Affiliates, nor any person acting on its
behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with
the offer or sale of the Common Stock to be offered as set forth in this Agreement. 

(X) NO BROKERS, FINDERS OR FINANCIAL ADVISORY FEES OR COMMISSIONS.  No brokers, finders or
financial advisory fees or commissions will be payable by the Company, its agents or Subsidiaries, with respect to the transactions
contemplated by this Agreement, except as otherwise disclosed in this Agreement. 

(Y) NO OTHER REPRESENTATIONS OR WARRANTIES. Except for the
representations and warranties contained in this Section 4, neither the Company nor any other person on behalf of Company, including
any director, officer or employee of the Company, makes any express or implied representation or warranty with respect to the
Company or its Subsidiaries or with respect to any other information provided to Investor or its agents or Affiliates in connection with the
transactions contemplated hereby. Neither the Company nor any other person, including any director, officer or employee of the
Company, will have or be subject to any liability or obligation to Investor or any other person resulting

                                            17

from the distribution to Investor,
or Investor's use of, any such information, including any information, documents, projections, forecasts of other material made available
to Investor in expectation of the transactions contemplated hereby, unless any such information is expressly included in a
representation or warranty contained in this Section 4.

SECTION 5. COVENANTS OF THE COMPANY 

(A) BEST EFFORTS. The Company shall use all commercially reasonable efforts to timely satisfy each of the
conditions set forth in Section 8 of this Agreement. 

(B) BLUE SKY. The Company shall, at its sole cost and expense, on or before each of the Closing Dates, take
such action as the Company shall reasonably determine is necessary to qualify the Securities for, or obtain exemption for the Securities
for, sale to the Investor at each of the Closings pursuant to this Agreement under applicable securities or "Blue Sky" laws of such states
of the United States, as reasonably specified by the Investor, and shall provide evidence of any such action so taken to the Investor on
or prior to the Closing Date. 

(C) REPORTING STATUS. Until one of the following occurs, the Company shall file all reports required to be
filed by the Company with the SEC pursuant to the 1934 Act, and the Company shall not terminate its status, or take an action or fail to
take any action, which would terminate its status as a reporting company under the 1934 Act: (I) this Agreement terminates pursuant to
Section 9 and the Investor has the right to sell all of the Securities without restrictions pursuant to Rule 144 promulgated under the 1933
Act, or such other exemption (II) the date on which the Investor has sold all the Securities.

(D) USE OF PROCEEDS. The Company will use the proceeds from the sale of the Securities (excluding
amounts paid by the Company for fees as set forth in the Equity Line Transaction Documents) for general corporate and working capital
purposes and acquisitions or assets, businesses or operations or for other purposes that the Board of Directors, in its good faith
judgment deem to be in the best interest of the Company. 

(E) FINANCIAL INFORMATION. During the Open Period, the Company agrees to make available to the
Investor via EDGAR or other electronic means the following documents and information on the forms set forth: (I) within five (5) Trading
Days after the filing thereof with the SEC, a copy of its Annual Reports on Form 10-K, its Quarterly Reports on Form 10-Q, any Current
Reports on Form 8-K and any Registration Statements or amendments filed pursuant to the 1933 Act; (II) copies of any notices and
other information made available or given to the shareholders of the Company generally, contemporaneously with the making available
or giving thereof to the shareholders; and (III) within two (2) calendar days of filing or delivery thereof, copies of all documents filed with,
and all correspondence sent to, the Principal Market, any securities exchange or market, or the National Association of Securities
Dealers, Inc., unless the Company, in its

                                            18

sole discretion, deems any of the foregoing information to be material nonpublic information. 

(F) RESERVATION OF SHARES. The Company shall take all action necessary to at all times have authorized,
and reserved for the purpose of issuance, a sufficient number of shares of Common Stock to provide for the issuance of the Securities
to the Investor as required hereunder. In the event that the Company determines that it does not have a sufficient number of authorized
shares of Common Stock to reserve and keep available for issuance as described in this Section 5(F), the Company shall use all
commercially reasonable efforts to increase the number of authorized shares of Common Stock by seeking shareholder approval for
the authorization of such additional shares. 

(G) INTENTIONALLY OMITTED. 

(H) INTENTIONALLY OMITTED. 

(I) FILING OF FORM 8-K. On or before the date which is four (4) Trading Days after the Execution Date, the
Company shall file a Current Report on Form 8-K with the SEC describing the material terms of the transaction contemplated by the
Equity Line Transaction Documents. 

(J) CORPORATE EXISTENCE. The Company shall use all commercially reasonable efforts to preserve and
continue the corporate existence of the Company. 

(K) NOTICE OF CERTAIN EVENTS AFFECTING REGISTRATION; SUSPENSION OF RIGHT TO MAKE A
PUT. The Company shall promptly notify the Investor upon the occurrence of any of the following events in respect of a Registration
Statement or related prospectus in respect of an offering of the Securities: (I) receipt of any request for additional information by the
SEC or any other federal or state governmental authority during the period of effectiveness of the Registration Statement for
amendments or supplements to the Registration Statement or related prospectus; (II) the issuance by the SEC or any other federal or
state governmental authority of any stop order suspending the effectiveness of any Registration Statement or the initiation of any
proceedings for that purpose;  (III) receipt of any notification with respect to the suspension of the qualification or exemption from
qualification of any of the Securities for sale in any jurisdiction or the initiation or notice of any proceeding for such purpose; (IV) the
happening of any event that makes any statement made in such Registration Statement or related prospectus or any document
incorporated or deemed to be incorporated therein by reference untrue in any material respect or that requires the making of any
changes in the Registration Statement, related prospectus or documents so that, in the case of a Registration Statement, 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 not misleading, and that in the case of the related prospectus, 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

                                            19

circumstances under which they were made, not misleading; and (V) the Company's reasonable determination that a post-effective
amendment to the Registration Statement would be appropriate, and the Company shall promptly make available to Investor any such
supplement or amendment to the related prospectus. The Company shall not deliver to the Investor any Put Notice during the
continuation of any of the foregoing events in this Section 5(K).  Notwithstanding the foregoing, any and all information provided by the
Company pursuant to this Section 5(K) shall remain confidential to the Investor unless or until such information is public, unless
disclosure by the Investor is required by law; and provided, further, that notwithstanding the Investor's agreement to keep such
information confidential, the Investor makes no acknowledgement that any such information is material, non-public information.

(L)  INTENTIONALLY OMITTED.

(M) TRANSFER AGENT.  Upon effectiveness of the Registration Statement, and for so long as the Registration
Statement is effective, the Company shall deliver instructions to its transfer agent to issue Shares to the Investor that are covered for
resale by the Registration Statement free of restrictive legends.  The Company must have a transfer agent duly authorized to deliver
shares to the Investor in order to submit a Put Notice.

(N) ACKNOWLEDGEMENT OF TERMS.  The Company hereby represents and warrants to the Investor that: (I)
it is voluntarily entering into this Agreement of its own freewill, (II) it is not entering this Agreement under economic duress, (III) the
terms of this Agreement are reasonable and fair to the Company, and (IV) the Company has had independent legal counsel of its own
choosing review this Agreement, advise the Company with respect to this Agreement, and represent the Company in connection with
this Agreement.

SECTION 6. INTENTIONALLY OMITTED.

SECTION 7. CONDITIONS OF THE COMPANY'S OBLIGATION TO SELL. 

The obligation hereunder of the Company to issue and sell the Securities to the Investor is further subject to the
satisfaction, at or before each Closing Date, of each of the following 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) The Investor shall have executed this Agreement and the Registration Rights Agreement and delivered the
same to the Company. 

(B) The Investor shall have delivered to the Company prior to the applicable Closing Date, a Put Settlement
Sheet in the form attached hereto as Exhibit D (the "Put Settlement Sheet") setting forth the calculation of the number of
Shares subject to the Put (based on the applicable Put Amount and Purchase Price) and to be purchased by the Investor on the
applicable Closing Date, including any revisions required as a result of a withdrawal by the Company of any portion of

                                              20

the applicable Put Amount pursuant to Section 2(C). The Investor shall have delivered to the Company the Purchase Price for the Securities being
purchased by the Investor between the end of the Pricing Period and the Closing Date via a Put Settlement Sheet. After receipt of
confirmation of delivery of such Securities to the Investor, the Investor, by wire transfer of immediately available funds pursuant to the
wire instructions provided by the Company will disburse the funds constituting the Purchase Amount. 

(C)The representations and warranties of the Investor shall be true and correct in all material respects
(except that any representations and warranties which are qualified as to "materiality" shall be true and correct in all
respects) as of the date when made and as of the applicable Closing Date as though made at that time (except for representations and
warranties that speak as of a particular date, which shall be true and correct in all material respects as of such dates) and the Investor
shall have performed, satisfied and complied, in all material respects, with the covenants, agreements and conditions required by the
Equity Line Transaction Documents to be performed, satisfied or complied with by the Investor on or before such Closing Date.

(D) 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. 

SECTION 8. CONDITIONS OF THE INVESTOR'S OBLIGATION TO PURCHASE. 

The obligation of the Investor hereunder to purchase Shares is subject to the satisfaction, on or before each
Closing Date, of each of the following conditions set forth below. 

(A) The Company shall have executed the Equity Line Transaction Documents and delivered the same to the
Investor.

(B) The Common Stock shall be eligible for quotation on the Principal Market and trading in the Common Stock
shall not have been suspended by the Principal Market or the SEC, at any time beginning on the applicable Put Notice Date and
through and including the respective Closing Date (excluding suspensions of not more than one (1) Trading Day resulting from
business announcements by the Company). 

(C) The representations and warranties of the Company shall be true and correct in all material respects (except
that any representations and warranties which are qualified as to "materiality" or "Material Adverse Effect" shall
be true and correct in all respects) as of the date when made and as of the applicable Closing Date as though made at that time (except
for representations and warranties that speak as of a particular date, which shall be true and correct in all material respects as of such
dates) and the Company shall have performed, satisfied and complied, in all material respects, with the covenants, agreements and
conditions required by the Equity Line Transaction Documents to be performed, satisfied or

                                              21

complied with by the Company on or before
such Closing Date. At the Investor's request, the Company shall deliver a certificate of an authorized officer of the Company, setting
forth an update as of such Closing Date of the representation contained in Section 4(C) above. 

(D) The Company shall have executed and delivered to the Investor the certificates representing, or have
executed electronic book-entry transfer of, the Securities (in such denominations as the Investor shall request) being purchased by the
Investor at such Closing. 

(E) The Board of Directors of the Company shall have adopted resolutions consistent with Section 4(B)(II)
above (the "Resolutions") and such Resolutions shall not have been amended to be inconsistent with Section 4(B)(II) or rescinded prior
to such Closing Date. 

(F) Intentionally Omitted. 

(G) 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. 

(H) The Registration Statement shall be effective on each Closing Date and no stop order suspending the
effectiveness of the Registration Statement shall be in effect or to the Company's knowledge shall be pending or threatened.
Furthermore, on each Closing Date (I) neither the Company nor the Investor shall have received notice that the SEC has issued or
intends to issue a stop order with respect to such Registration Statement or that the SEC otherwise has suspended or withdrawn the
effectiveness of such Registration Statement, either temporarily or permanently, or intends or has threatened to do so (unless the
SEC's concerns have been addressed and Investor is reasonably satisfied that the SEC no longer is considering or intends to take such
action), and (II) no other suspension of the use or withdrawal of the effectiveness of such Registration Statement or related prospectus
shall exist. 

(I) At the time of each Closing, the Registration Statement (including information or documents incorporated by
reference therein) and any amendments or supplements thereto shall 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 not misleading or which would require
public disclosure or an update supplement to the prospectus. 

(J) If applicable, the shareholders of the Company shall have approved the issuance of any Shares in excess of
the Maximum Common Stock Issuance in accordance with Section 2(H) or the Company shall have obtained appropriate approval
pursuant to the requirements of the Company's Certificate of Incorporation and By-laws.

(K) Intentionally Omitted.

                                              22

(L)  The Company shall have certified to the Investor the number of Shares of Common Stock outstanding when
a Put Notice is given to the Investor.  The Company's delivery of a Put Notice to the Investor constitutes the Company's certification of
the existence of the necessary number of shares of Common Stock reserved for issuance.

SECTION 9. TERMINATION. This Agreement shall terminate upon any of the following events: 

(I) when the Investor has purchased an aggregate of Eight Million dollars ($8,000,000) in the Common Stock of
the Company pursuant to this Agreement; or,

(II) on the date which is sixty (60) months after the Effective Date of the initial Registration Statement; or,

(III) upon written notice of the Company to the Investor.  

Any and all shares, or penalties, if any, due under this Agreement shall be immediately payable and due upon
termination of this Agreement. 

SECTION 10.  SUSPENSION

This Agreement shall be suspended upon any of the following events, and shall remain suspended until such
event is rectified:

(I)  the trading of the Common Stock is suspended by the SEC or the Principal Market for a period of two (2)
consecutive Trading Days during the Open Period; or,

(II) The Common Stock ceases to be registered under the 1934 Act or listed or traded on the Principal Market.
Immediately upon the occurrence of one of the above-described events, the Company shall send written notice of such event to the
Investor.

SECTION 11. INDEMNIFICATION. 

In consideration of the parties mutual obligations set forth in the Equity Line Transaction Documents, each of
the parties (in such capacity, an "Indemnitor") shall defend, protect, indemnify and hold harmless the other and all of the
other party's shareholders, officers, directors, employees, counsel, and direct or indirect investors and any of the foregoing person's
agents or other representatives (including, without limitation, those retained in connection with the transactions contemplated by this
Agreement) (collectively, the "Indemnitees") from and against any and all actions, causes of action, suits, claims, losses,
costs, penalties, fees, liabilities and damages, and reasonable expenses in connection therewith (irrespective of whether any such
Indemnitee is a party to the action for which indemnification hereunder is sought), and including

                                              23

reasonable attorneys' fees and
disbursements (the "Indemnified Liabilities"), incurred by any Indemnitee as a result of, or arising out of, or relating to (I) any
material misrepresentation or material breach of any representation or warranty made by the Indemnitor in any Equity Line Transaction
Document; (II) any material breach of any covenant, agreement or obligation of the Indemnitor contained in the Equity Line Transaction
Documents; or (III) any cause of action, suit or claim brought or made against such Indemnitee by a third party and arising out of or
resulting from the Indemnitor's execution, delivery, performance or enforcement of the Equity Line Transaction Documents, except (i)
insofar as any such misrepresentation, breach or any untrue statement, alleged untrue statement, omission or alleged omission is
made in reliance upon and in conformity with information furnished to Indemnitor which is specifically intended for use in the preparation
of any such Registration Statement, preliminary prospectus, prospectus or amendments to the prospectus or (ii) for any diminution in
the value of Common Stock or loss incurred upon any resale of Securities. To the extent that the foregoing undertaking by the
Indemnitor may be unenforceable for any reason, the Indemnitor shall make the maximum contribution to the payment and satisfaction
of each of the Indemnified Liabilities which is permissible under applicable law. The indemnity provisions contained herein shall be
exclusive of any cause of action or similar rights Indemnitor may have, and any liabilities to which the Indemnitor or the Indemnitees
may be subject. 

SECTION 12. GOVERNING LAW; DISPUTES SUBMITTED TO ARBITRATION. 

All disputes arising under this agreement shall be governed by and interpreted in accordance with the laws
of the Commonwealth of Massachusetts, without regard to principles of conflict of laws.  The parties to this agreement will submit all
disputes arising under this agreement to arbitration in Boston, Massachusetts before a single arbitrator of the American Arbitration
Association ("AAA").  The arbitrator shall be selected by application of the rules of the AAA, or by mutual agreement of the
parties, except that such arbitrator shall be an attorney admitted to practice law in the Commonwealth of Massachusetts.  No party to
this agreement will challenge the jurisdiction or venue provisions as provided in this Section 12.  No party to this agreement will
challenge the jurisdiction or venue provisions as provided in this Section 12.  Nothing contained herein shall prevent the party from
obtaining an injunction.

(B) LEGAL FEES; AND MISCELLANEOUS FEES. Except as otherwise set forth in the Equity Line Transaction
Documents, each party shall pay the fees and expenses of its advisers, counsel, the 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. Any
attorneys' fees and expenses incurred by either the Company or the Investor in connection with the preparation, negotiation, execution
and delivery of any amendments to this Agreement or relating to the enforcement of the rights of any party, after the occurrence of any
breach of the terms of this Agreement by another party or any default by another party in respect of the transactions contemplated hereunder,

                                              24

shall be paid on demand by the party which breached the Agreement and/or defaulted, as the case may be. The Company
shall pay all stamp and other taxes and duties levied in connection with the issuance of any Securities. 

(C) COUNTERPARTS. This Agreement may be executed in two or more identical counterparts, all of which
shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and
delivered to the other party; provided that a facsimile signature or an e-mail delivery of a ".pdf" format data file shall be
considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an
original signature. 

(D) HEADINGS; SINGULAR/PLURAL. The headings of this Agreement are for convenience of reference and
shall not form part of, or affect the interpretation of, this Agreement. Whenever required by the context of this Agreement, the singular
shall include the plural and masculine shall include the feminine. 

(E) SEVERABILITY. If any provision of this Agreement shall be invalid or unenforceable in any jurisdiction, such
invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Agreement in that jurisdiction or the
validity or enforceability of any provision of this Agreement in any other jurisdiction. 

(F) ENTIRE AGREEMENT; AMENDMENTS. This Agreement is the FINAL AGREEMENT between the
Company and the Investor with respect to the terms and conditions set forth herein, and, the terms of this Agreement may not be
contradicted by evidence of prior, contemporaneous, or subsequent oral agreements of the parties hereto.  No provision of this
Agreement may be amended other than by an instrument in writing signed by the Company and the Investor, and no provision hereof
may be waived other than by an instrument in writing signed by the party against whom enforcement is sought. The execution and
delivery of the Equity Line Transaction Documents shall not alter the force and effect of any other agreements between the parties
hereto, and the obligations under those agreements.

(G) NOTICES. Any notices or other communications required or permitted to be given under the terms of this
Agreement must be in writing and will be deemed to have been delivered (I) upon receipt, when delivered personally; (II) upon receipt,
when sent by facsimile (provided confirmation of transmission is mechanically or electronically generated and kept on file by the
sending party); or (III) one (1) day after deposit with a nationally recognized overnight delivery service, in each case properly addressed
to the party to receive the same. The addresses and facsimile numbers for such communications shall be: 

If to the Company:

MMR Information Systems, Inc. 

   2934 1/2 Beverly Glen Circle, Suite 702

                                           25

Los Angeles, CA 90077

   Telephone: (310) 476-7002

   Facsimile: (206) 374-6136

If to the Investor:

Dutchess Equity Fund, LP 

                   50 Commonwealth Avenue, Suite 2

                   Boston, MA 02116 

   Telephone: 617-301-4700 

Facsimile: 617-249-0947

Each party shall provide five (5) days prior written notice to the other party of any change in address or facsimile
number. 

(H) NO ASSIGNMENT. This Agreement may not be assigned. 

(I) NO THIRD PARTY BENEFICIARIES. This Agreement is intended for the benefit of the parties hereto and is
not for the benefit of, nor may any provision hereof be enforced by, any other person, except that the Company acknowledges that the
rights of the Investor may be enforced by its general partner. 

(J) SURVIVAL. Section 11 and Section 12 of this Agreement shall survive termination of this Agreement. 

 (K) PUBLICITY. The Company and the Investor shall consult with each other in
issuing any press releases or otherwise making public statements with respect to the transactions contemplated hereby and no party
shall issue any such press release or otherwise make any such public statement without the prior consent of the other party, which
consent shall not be unreasonably withheld, conditioned or delayed, except that no prior consent shall be required if such disclosure is
required by law, in which such case the disclosing party shall provide the other party with prior notice of such public statement to the
extent permitted by applicable law or regulatory authority. The Investor acknowledges that this Agreement and all or part of the Equity
Line Transaction Documents may be deemed to be "material contracts" as that term is defined by Item 601(b)(10) of
Regulation S-K, and that the Company may therefore be required to file such documents as exhibits to reports or registration
statements filed under the 1933 Act or the 1934 Act. The Investor further agrees that the status of such documents and materials as
material contracts shall be determined solely by the Company, in consultation with its counsel. 

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

(M) INTENTIONALLY OMITTED. 

                                           26

(N) NO STRICT CONSTRUCTION. The language used in this Agreement will be deemed to be the language
chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party, as the parties
mutually agree that each has had a full and fair opportunity to review this Agreement and seek the advice of counsel on it. 

(O) REMEDIES. Any person having any rights under any provision of this Agreement shall be entitled to enforce
such rights specifically (without posting a bond or other security), to recover damages by reason of any default or breach of any
provision of this Agreement, including the recovery of reasonable attorneys fees and costs, and to exercise all other rights granted by
law. 

(P) PAYMENT SET ASIDE. To the extent that the Company makes a payment or payments to the Investor
hereunder or under the Registration Rights Agreement or the Investor enforces or exercises its rights hereunder or thereunder, and
such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared
to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to
the Company, a trustee, receiver or any other person under any law (including, without limitation, any bankruptcy law, state or federal
law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally
intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such
enforcement or setoff had not occurred. 

(Q) PRICING OF COMMON STOCK. For purposes of this Agreement, the bid price of the Common Stock shall
be as reported on Bloomberg. 

SECTION 13. NON-DISCLOSURE OF NON-PUBLIC INFORMATION.

(a) The Company shall not disclose material, non-public information to the Investor, its advisors, or its
representatives.

(b) Nothing herein shall require the Company to disclose material, non-public information to the Investor or its
advisors or representatives, and the Company represents that it does not disseminate material, non-public information to any investors
who purchase stock in the Company in a public offering, to money managers or to securities analysts, provided, however, that
notwithstanding anything herein to the contrary, the Company will, as hereinabove provided, immediately notify the advisors and
representatives of the Investor and, if any, underwriters, of any event or the existence of any circumstance (without any obligation to
disclose the specific event or circumstance) of which it becomes aware, constituting material, non-public information (whether or not
requested of the Company specifically or generally during the course of due diligence by such persons or entities), which, if not
disclosed in the prospectus included in the Registration Statement would cause such prospectus to include a material misstatement or
to omit a material fact required to be stated therein in order to make the statements, therein, in light of the circumstances in which they
were made, not misleading. Nothing contained in this Section 13 shall be construed to

                                           27

mean that such persons or entities other than the
Investor (without the written consent of the Investor prior to disclosure of such information) may not obtain material, non-public
information in the course of conducting due diligence in accordance with the terms of this Agreement and nothing herein shall prevent
any such persons or entities from notifying the Company of their opinion that based on such due diligence by such persons or entities,
that the Registration Statement contains an untrue statement of material fact or omits a material fact required to be stated in the
Registration Statement or necessary to make the statements contained therein, in light of the circumstances in which they were made,
not misleading. 

ARTICLE 14  ACKNOWLEDGEMENTS OF THE PARTIES.

Notwithstanding anything in this Agreement to the contrary, the parties hereto hereby acknowledge and agree
to the following: (I) the Investor makes no representations or covenants that it will not engage in trading in the securities of the
Company, other than the Investor will not sell short the Company's common stock at any time during this Agreement and will comply
with all applicable laws, regulations and rules; (II) the Company shall, by 8:30 a.m. Eastern Time on the fourth business day following
the date hereof, file a current report on Form 8-K disclosing the material terms of the transactions contemplated hereby and in the other
Equity Line Transaction Documents; (III) the Company has not and shall not provide material non-public information to the Investor
unless prior thereto the Investor shall have executed a written agreement regarding the confidentiality and use of such information; and
(IV) the Company understands and confirms that the Investor will be relying on the acknowledgements set forth in clauses (I) through
(III) above if the Investor effects any transactions in the securities of the Company.  

[Signature Page Follows]

 

                                           28

SIGNATURE PAGE OF INVESTMENT AGREEMENT 

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

 

DUTCHESS EQUITY FUND, LP

By:

 /s/ Douglas. H. Leighton_______

                  Douglas H. Leighton

                   Managing Member of:

                   Dutchess Capital Management, LLC

                   General Partner to:

                   Dutchess Equity Fund, LP

 

 

 

MMR INFORMATION SYSTEMS, INC.

By: 

   /s/ Robert H. Lorsch___

                   Robert H. Lorsch, Chairman, President & CEO

  

 

 

 

                                           29

LIST OF EXHIBITS 

	
EXHIBIT  A         Registration  Rights  Agreement

EXHIBIT  B                   Form of Notice of Effectiveness of Registration Statement 

EXHIBIT  C                   Put  Notice

EXHIBIT  D                   Put  Settlement  Sheet

                                           30

EXHIBIT A

REGISTRATION RIGHTS AGREEMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                            31

EXHIBIT B

FORM OF NOTICE OF EFFECTIVENESS

                  OF REGISTRATION STATEMENT

Date: __________

[TRANSFER AGENT]

Re:MMR Information Systems, Inc.

Ladies and Gentlemen:

We are counsel to MMR Information Systems, Inc. We represented the
Company in connection with that certain Investment Agreement (the "Investment Agreement") entered into by and among the Company
and Dutchess Equity Fund, LP (the "Investor") pursuant to which the Company has agreed to issue to the Investor shares of the
Company's common stock, $0.001 par value per share (the "Common Stock") on the terms and conditions set forth in the Investment
Agreement. Pursuant to the Investment Agreement, the Company also has entered into a Registration Rights Agreement with the
Investor (the "Registration Rights Agreement") pursuant to which the Company agreed, among other things, to register for resale the
Registrable Securities (as defined in the Registration Rights Agreement), including the shares of Common Stock issued or issuable
under the Investment Agreement under the Securities Act of 1933, as amended (the "1933 Act"). In connection with the Company's
obligations under the Registration Rights Agreement, on _________, 200_ the Company filed a Registration Statement on Form S-1
(File No. 333-________) (the "Registration Statement") with the Securities and Exchange Commission (the "SEC") relating to the
Registrable Securities which names the Investor as a selling shareholder thereunder.

In connection with the foregoing, we advise you that the Registration
Statement has become effective under the 1933 Act at [enter the time of effectiveness] on [enter the date of
effectiveness] and to the best of our knowledge, after telephonic inquiry of a member of the SEC's staff, no stop order suspending
its effectiveness has been issued and no proceedings for that purpose are pending before, or threatened by, the SEC and the
Registrable Securities are available for resale under the 1933 Act pursuant to the Registration Statement.

Very truly yours,

STRADLING YOCCA CARLSON & RAUTH

 

 

 

 

                                            32

EXHIBIT C

PUT NOTICE

Date: 

RE: Put Notice Number __ 

Dear Mr. Leighton, 

This is to inform you that as of today, MMR Information Systems, Inc., a Delaware corporation (the "Company"),
hereby elects to exercise its right pursuant to the Investment Agreement to require Dutchess Equity Fund, LP to purchase shares of its
common stock. The Company hereby certifies that: 

The amount of this put is $__________. 

The Pricing Period runs from ________ until _______. 

The Minimum Acceptable Price is _____________.

The current number of shares issued and outstanding as of the Company is: ______________________ 

The number of shares currently issuable pursuant to the Investment Agreement and available for resale
pursuant to the Registration Statement (prior to giving effect to this Put Notice) is: _________________________________

Regards, 

 

_________________________________

                   MMR Information Systems, Inc. 

                   Robert H. Lorsch - Chairman, President & CEO

 

 

 

 

 

 

 

 

 

 

                                             33

EXHIBIT D

PUT SETTLEMENT SHEET

Date: 

Dear Mr. Lorsch, 

Pursuant to the Put given by MMR Information Systems, Inc., to Dutchess Equity Fund, LP on
_________________ 200_, we are now submitting the amount of common shares for you to issue to Dutchess. 

Please have a certificate bearing no restrictive legend totaling __________ shares issued to Dutchess Equity
Fund, LP immediately and send via DWAC to the following account: 

XXXXXX 

If not DWAC eligible, please send FedEx Priority Overnight to: 

Dutchess Equity Fund, LP

50 Commonwealth Ave., Suite 2

Boston, MA 02116  

Fed ID # 26-4363529

Once these shares are received by us, we will have the funds wired to the Company. 

Regards, 

Douglas H. Leighton 

 

 

 

 

 

 

 

                                           34

	
 

 

 

 

 

 

 

DATE. . . . . . . . . . . . . . . . . . . . .  PRICE

Date of Day 1 . . . . . . . . . . . . . . . .  Closing Best Bid of Day 1

Date of Day 2 . . . . . . . . . . . . . . . .  Closing Best Bid of Day 2

Date of Day 3 . . . . . . . . . . . . . . . .  Closing Best Bid of Day 3

Date of Day 4 . . . . . . . . . . . . . . . .  Closing Best Bid of Day 4

Date of Day 5 . . . . . . . . . . . . . . . .  Closing Best Bid of Day 5

 

 

LOWEST CLOSING BEST BID IN PRICING PERIOD

                                            ------------

PUT AMOUNT

                                            ------------

AMOUNT WIRED TO COMPANY

                                            ------------

PURCHASE PRICE (94)% (NINETY-FOUR PERCENT))

                                            ------------

AMOUNT OF SHARES DUE

                                            ------------

 

 

 

The undersigned has completed this Put as of this ___th day of _________, 200_. 

MMR Information Systems, Inc.

______________________________

Robert H. Lorsch - Chairman, President & CEO

 

 

 

                                            35Exhibit 10.2

EXHIBIT 10.2

REGISTRATION RIGHTS AGREEMENT

This Registration Rights Agreement (the "Agreement"), dated as of September 15, 2009, is entered into by and
between MMR Information Systems, Inc., a corporation organized under the laws of Delaware, USA, with its
principal executive office at 2934 1/2 Beverly Glen Circle, Suite 702, Los Angeles, CA 90077 (the "Company"), and
Dutchess Equity Fund, LP, a Delaware Limited Partnership, with its principal office at 50 Commonwealth Avenue, Suite 2, Boston, MA
02116 (the "Holder").

Whereas, in connection with the Investment Agreement by and between the Company and the
Investor of this date (the "Investment Agreement"), the Company has agreed to issue and sell to the Investor an
indeterminate number of shares of the Company's Common Stock, par value $0.001 per share (the "Common
Stock"), to be purchased pursuant to the terms and subject to the conditions set forth in the Investment Agreement; and 

Whereas, to induce the Investor to execute and deliver the Investment Agreement, the
Company has agreed to provide certain registration rights under the Securities Act of 1933, as amended, and the rules and regulations
thereunder, or any similar successor statute (collectively, the "1933 Act"), and applicable state securities laws, with
respect to the shares of Common Stock issuable pursuant to the Investment Agreement.

Now therefore, in
consideration of the foregoing promises and the mutual covenants contained hereinafter and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Company and the Investor hereby agree as follows: 

Section 1.  DEFINITIONS.

As used in this Agreement, the following terms shall have the following meanings:

"Execution Date" means the date of this Agreement set forth above.

"Investor" means Dutchess Equity Fund, LP, a Delaware Limited Partnership.

"Person" means a corporation, a limited liability company, an association, a partnership, an
organization, a business, an individual, a governmental or political subdivision thereof or a governmental agency. 

"Principal Market" shall mean the NYSE Amex, the New York Stock Exchange, the Nasdaq
Global Market, the Nasdaq Global Select Market, the Nasdaq Capital Market, or the OTC Bulletin Board, whichever is the principal
market on which the Common Stock of the Company is then listed or quoted. 

"Register," "Registered," and "Registration" refer
to the registration effected by preparing and filing one (1) or more Registration Statements in compliance with the 1933 Act and
pursuant to Rule 415 under the 1933 Act or any successor rule providing for offering securities on a continuous basis ("Rule
415"), and the declaration or ordering of effectiveness of such Registration Statement(s) by the United States Securities and
Exchange Commission (the "SEC").

"Registrable Securities" means (i) the shares of Common Stock issued or issuable
pursuant to the Investment Agreement, and (ii) any shares of capital stock issued or issuable with respect to such shares of
Common Stock, if any, as a result of any stock split, stock dividend, recapitalization, exchange or similar event or otherwise, which have
not been (x) included in the Registration Statement that has been declared effective by the SEC, or (y) sold under
circumstances meeting all of the applicable conditions of Rule 144 (or any similar provision then in force) under the 1933 Act.

"Registration Statement" means a registration statement or statements of the Company
filed under the 1933 Act covering the Registrable Securities.

                                           1

All capitalized terms used in this Agreement and not otherwise defined herein shall have the same meaning
ascribed to them as in the Investment Agreement. 

Section 2.  REGISTRATION.

(a)  The Company shall, within thirty (30) days of the date of this Agreement, file with the SEC an initial
Registration Statement on Form S-1 (or, if such form is unavailable for such a registration, on such other form as is available for such
registration), covering the resale of a portion of the Registrable Securities equal to one-third (1/3) of the Company's public float (where
"public float" shall be derived by subtracting the number of shares of Common Stock held by officers, directors and
"affiliates" (as such term is defined in Rule 144(a)(1) of the 1933 Act) of the Company from the total number of shares of
Common Stock then outstanding).  Such initial Registration Statement, and any subsequent Registration Statement, shall state that, in
accordance with Rule 416 promulgated under the 1933 Act, such Registration Statement also covers such indeterminate number of
additional shares of Common Stock as may become issuable upon stock splits, stock dividends or similar transactions.  After the later
of (i) sixty (60) days after the time that the Holder shall have resold substantially all of the Registrable Securities registered for resale
under the initial Registration Statement, or (ii) six (6) months after the effective date of the initial Registration Statement, the Company
shall register for resale another portion of the Registrable Securities equal to one-third (1/3) of the Company's then outstanding public
float.  The registration process described in this Section 2(a) will be repeated until such time as all 100,000,000 shares of Common
Stock issuable under the Investment Agreement have been registered for resale on effective Registration Statements.  In no event will
the Company be obligated to register for resale more than 100,000,000 shares of Common Stock. 

(b)  The Company shall use all commercially reasonable efforts to have the initial Registration
Statement declared effective by the SEC within one hundred twenty (120) calendar days after the Execution Date. 

(c)  The Company may include in a Registration Statement covering the Registrable Securities
such other securities as may have been acquired by officers, directors, consultants and other "affiliates" (as such term is
defined in Rule 144(a)(1) of the 1933 Act) of the Company pursuant to any "equity benefit plan" as defined in Rule 405 of
Regulation C under the 1933 Act (such securities, the "Insider Securities") without the Investor's prior written
consent; provided, however, that if the SEC requires the Company to withdraw any securities from a proposed
Registration Statement, then the Company will withdraw the Insider Securities before withdrawing any Registrable Securities.
Furthermore, except for a Registration Statement on Form S-8 covering Insider Securities, which S-8 may be filed at any time without
the Investor's prior written consent, the Company agrees that it will not file any other registration statement for other securities until
thirty calendar days after a Registration Statement for the Registrable Securities is declared effective by the SEC.

Section 3.  RELATED OBLIGATIONS.

At such time as the Company is obligated to prepare and file a Registration Statement with the SEC
pursuant to the terms hereof, the Company will effect the registration of the Registrable Securities in accordance with a plan of
distribution to be provided by the Holder prior to the filing of the Registration Statement ("Plan of Distribution") and,
with respect thereto, the Company shall have the following obligations: 

(a)  The Company shall use all commercially reasonable efforts to cause the initial Registration
Statement relating to the Registrable Securities to become effective within one hundred twenty (120) days after the Execution Date and
shall keep such Registration Statement effective until the earlier of the date on which (i) the Investor shall have sold all the
Registrable Securities; or (ii) the Investor has no right to acquire any additional shares of Common Stock under the Investment
Agreement (the "Registration Period").  Such initial Registration Statement and any subsequent Registration
Statement (including, in both cases, any amendments or supplements thereto and prospectuses contained therein), shall not

                                           2

contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the
statements therein, in light of the circumstances in which they were made, not misleading. The Company shall use all commercially
reasonable efforts to respond to all SEC comments within fourteen (14) business days from receipt of such comments by the Company.
The Company shall use all commercially reasonable efforts to cause a Registration Statement relating to the Registrable Securities to
become effective no later than five (5) business days after notice from the SEC that such Registration Statement may be declared
effective.  The Investor agrees to provide all information which it is required by law to provide to the Company, including the Plan of
Distribution.

(b)  The Company shall prepare and file with the SEC such amendments (including post-effective
amendments) and supplements to any Registration Statement and any prospectus used in connection with such Registration
Statement, which prospectus is to be filed pursuant to Rule 424 promulgated under the 1933 Act, as may be necessary to keep such
Registration Statement effective during the Registration Period, and, during such period, comply with the provisions of the 1933 Act with
respect to the disposition of all Registrable Securities of the Company covered by such Registration Statement until such time as all of
such Registrable Securities shall have been disposed of in accordance with the Plan of Distribution.  In the event the number of shares
of Common Stock covered by the initial Registration Statement filed pursuant to this Agreement is at any time insufficient to cover all of
the Registrable Securities, the Company shall amend such Registration Statement, or file a new Registration Statement (on the short
form available therefor, if applicable), or both, so as to cover all of the Registrable Securities, in each case, as soon as practicable, but
in any event by 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.
The Company shall use all commercially reasonable efforts to have any amendments to the initial Registration Statement or any
subsequent Registration Statement declared effective by the SEC within ninety (90) calendar days after the filing date of such
amendment of subsequent Registration Statement (or in the event the SEC reviews such amendment or subsequent Registration
Statement, the one hundred twentieth (120th) day following such filing date. The Company shall use its best efforts to keep any
Registration Statement filed pursuant to this Section 2(b) continuously effective under the Securities Act until the expiration of the
Registration Period.

(c)  Upon the Investor's request, the Company shall make available to the Investor whose Registrable
Securities are included in any Registration Statement and its legal counsel, without charge and to the extent such information is not
available via EDGAR, (i) one (1) copy of such Registration Statement and any amendment(s) thereto, including financial
statements and schedules, all documents incorporated therein by reference and all exhibits, the prospectus included in such
Registration Statement (including each preliminary prospectus) and, with regards to such Registration Statement, to the extent such
materials do not constitute material non-public information, as determined in the Company's sole discretion after consultation with the
Company's counsel, any correspondence by or on behalf of the Company to the SEC or the staff of the SEC and any correspondence
from the SEC or the staff of the SEC to the Company or its representatives; (ii) upon the effectiveness of any Registration
Statement, the Company shall make available copies of the prospectus included in such Registration Statement and all amendments
and supplements thereto; and (iii) such other documents, including copies of any preliminary or final prospectus, as the
Investor may reasonably request from time to time in order to facilitate the disposition of the Registrable Securities.

(d)  The Company shall use commercially reasonable efforts to (i) register and qualify the
Registrable Securities covered by a Registration Statement under such other securities or "blue sky" laws of such states in
the United States as the Investor reasonably requests; (ii) prepare and file in those jurisdictions, such amendments (including
post-effective amendments) and supplements to such registrations and qualifications as may be necessary to maintain the
effectiveness thereof during the Registration Period; (iii) take such other actions as may be necessary to maintain such
registrations and qualifications in effect at all times during the Registration Period, and (iv) take all other actions reasonably
necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however, that the Company
shall not be required in connection therewith or as a condition thereto to (A)

                                            3

qualify to do business in any jurisdiction where it
would not otherwise be required to qualify but for this Section 3(d), (B) subject itself to general taxation in any such jurisdiction,
or (C) file a general consent to service of process in any such jurisdiction.  The Company shall promptly notify the Investor who
holds Registrable Securities of the receipt by the Company of any notification with respect to the suspension of the registration or
qualification of any of the Registrable Securities for sale under the securities or "blue sky" laws of any jurisdiction in the
United States or its receipt of actual notice of the initiation or threatening of any proceeding for such purpose.

(e)  As promptly as practicable after becoming aware of such event, the Company shall notify Investor
in writing of the happening of any event as a result of which the prospectus included in the Registration Statement, as then in effect,
includes an untrue statement of a material fact or omission to state a material fact required to be stated therein or necessary to make
the statements therein, in light of the circumstances under which they were made, not misleading (a "Registration
Default").  The Company shall use all commercially reasonable efforts to promptly prepare a supplement or amendment to
the applicable Registration Statement to cure such Registration Default and shall take any other necessary steps to cure the
Registration Default (which, if such Registration Statement is on Form S-3, may consist of a document to be filed by the Company with
the SEC pursuant to Section 13(a), 13(c), 14 or 15(d) of the 1934 Act (as defined below) and to be incorporated by reference in the
prospectus) to correct such untrue statement or omission, and make available copies of such supplement or amendment to the Investor
upon the Investor's request. The Company shall also promptly notify the Investor in writing (i) when a prospectus or any
prospectus supplement or post-effective amendment has been filed and when any Registration Statement or any post-effective
amendment has become effective; (ii) of any request by the SEC for amendments or supplements to any Registration
Statement or related prospectus or related information, (iii) of the Company's reasonable determination that a post-effective
amendment to a Registration Statement would be appropriate, (iv) in the event a Registration Statement is no longer effective,
(v) if a Registration Statement is stale as a result of the Company's failure to timely file its financials or otherwise, or
(vi) of the occurrence or existence of any pending corporate development with respect to the Company that the Company
believes may be material and that, in the determination of the Company, makes it not in the best interest of the Company to allow
continued availability of a Registration Statement or prospectus or supplement or amendment thereto.  Notwithstanding the foregoing,
any and all information provided by the Company pursuant to this Section 3(e) shall remain confidential to the Investor unless or until
such information is public, unless disclosure by the Investor is required by law; and provided, further, that notwithstanding
the Investor's agreement to keep such information confidential, the Investor makes no acknowledgement that any such information is
material, non-public information.  

(f)  The Company shall use all commercially reasonable efforts to prevent the issuance of any stop
order or other suspension of effectiveness of a Registration Statement, or the suspension of the qualification of any of the Registrable
Securities for sale in any jurisdiction and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension
at the earliest possible moment and, to the extent permitted by applicable law or regulatory authority, to notify the Investor holding
Registrable Securities being sold of the issuance of such order and the  resolution thereof or its receipt of actual notice of the initiation
or threat of any proceeding concerning the effectiveness of such Registration Statement.

(g)  The Company shall permit the Investor and one (1) legal counsel, designated by the Investor, to
review and comment upon a Registration Statement and all amendments and supplements thereto at least one (1) calendar day prior to
their filing with the SEC.  However, any postponement of a filing of a Registration Statement or any postponement of a request for
acceleration or any postponement of the effective date or effectiveness of a Registration Statement by written request of the Investor
(collectively, the "Investor's Delay") shall not act to trigger any penalty of any kind, or any cash amount due or any in-kind
amount due the Investor from the Company under any and all agreements of any nature or kind between the Company and the
Investor.  The event(s) of an Investor's Delay shall act to suspend all obligations of any kind or nature of the Company under any and all
agreements of any nature or kind between the Company and the Investor.   

                                            4

(h)  At the request of the Investor, the Company's counsel shall furnish to the Investor an opinion letter
confirming the effectiveness of a Registration Statement.  Such opinion letter shall be issued as of the date of the effectiveness of such
Registration Statement and be in a form suitable to the Investor.

(i)  The Company shall hold in confidence and not make any disclosure of information concerning the
Investor unless (i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the
disclosure of such information is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii)
the release of such information is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental
body of competent jurisdiction, (iv) such information has been made generally available to the public other than by disclosure
in violation of this Agreement or any other agreement, or (v) the Investor consents to the disclosure of such information by the
Company.  To the extent permitted by applicable law or regulatory authority, the Company agrees that it shall, upon learning that
disclosure of such information concerning the Investor is sought in or by a court or governmental body of competent jurisdiction or
through other means, give prompt written notice to the Investor and allow the Investor, at the Investor's expense, to undertake
appropriate action to prevent disclosure of, or to obtain a protective order covering such information.

(j)  The Company shall use all commercially reasonable efforts to maintain designation and quotation
of all the Registrable Securities covered by any Registration Statement on the Principal Market.  If, despite the Company's
commercially reasonable efforts, the Company is unsuccessful in satisfying the preceding sentence, it shall use commercially
reasonable efforts to cause all the Registrable Securities covered by any Registration Statement to be listed on each other national
securities exchange and automated quotation system, if any, on which securities of the same class or series issued by the Company
are then listed, if any, if the listing of such Registrable Securities is then permitted under the rules of such exchange or system.  The
Company shall pay all fees and expenses in connection with satisfying its obligation under this Section 3(j).

(k)  The Company shall cooperate with the Investor to facilitate the prompt preparation and delivery of
certificates representing the Registrable Securities to be offered pursuant to a Registration Statement and enable such certificates to be
in such denominations or amounts, as the case may be, as the Investor may reasonably request (and after any resales of such
Registrable Securities by the Investor, such certificates not bearing any restrictive legend, to the extent permitted by the Investment
Agreement).

(l)  The Company shall provide a transfer agent for all the Registrable Securities not later than the
effective date of the initial Registration Statement filed pursuant hereto.

(m)  If requested by the Investor, the Company shall, unless otherwise advised by its counsel,
(i) as soon as reasonably practical, incorporate in a prospectus supplement or post-effective amendment such information as
the Investor reasonably determines should be included therein relating to the resale and distribution of Registrable Securities, including,
without limitation, information with respect to the offering of the Registrable Securities to be sold in such offering; (ii) make all
required filings of such prospectus supplement or post-effective amendment as soon as reasonably possible after being notified of the
matters to be incorporated in such prospectus supplement or post-effective amendment; and (iii) supplement or make
amendments to any Registration Statement if reasonably requested by the Investor.

(n)  The Company shall use all commercially reasonable efforts to cause the Registrable Securities
covered by the applicable Registration Statement to be registered with or approved by such other governmental agencies or authorities
as may be necessary to facilitate the disposition of such Registrable Securities.

(o)  The Company shall otherwise use all commercially reasonable efforts to comply with all applicable
rules and regulations of the SEC in connection with any registration hereunder.

(p)  Within one (1) business day after a Registration Statement which includes Registrable Securities is
declared effective by the SEC, the Company shall deliver to the transfer agent for such Registrable Securities, with copies to the
Investor, confirmation that such Registration Statement has been declared effective by the SEC.

                                            5

(q)  The Company shall take all other reasonable actions necessary to expedite and facilitate
disposition by the Investor of Registrable Securities pursuant to any Registration Statement.

Section 4.  OBLIGATIONS OF THE INVESTOR.

(a)  At least five (5) calendar days prior to the first anticipated filing date of a Registration Statement
the Company shall notify the Investor in writing of the information the Company requires from the Investor for such Registration
Statement.  It shall be a condition precedent to the obligations of the Company to complete the registration pursuant to this Agreement
with respect to the Registrable Securities that the Investor (i) furnishes to the Company that information regarding itself, the
Registrable Securities and the Plan of Distribution as shall reasonably be required to effect the registration of such Registrable
Securities and (ii) executes such documents in connection with such registration as the Company may reasonably request,
including providing to the Company a Selling Security-Holder Notice and Questionnaire in the form attached hereto as Exhibit
A.  The Investor covenants and agrees that, in connection with any resale of Registrable Securities by it pursuant to a Registration
Statement, it shall comply with the Plan of Distribution, as the same may be modified by the corresponding section of the then current
prospectus relating to such Registration Statement.

(b)  The Investor, by its acceptance of the Registrable Securities, agrees to cooperate with the
Company as reasonably requested by the Company in connection with the preparation and filing of any Registration Statement
hereunder, unless the Investor has notified the Company in writing of an election to exclude all of the Investor's Registrable Securities
from such Registration Statement. 

(c)  The Investor agrees that, upon receipt of written notice from the Company of the happening of any
event of the kind described in Section 3(f) or the first sentence of 3(e), the Investor will immediately discontinue disposition of
Registrable Securities pursuant to any Registration Statement(s) covering such Registrable Securities until the Investor's receipt of the
copies of the supplemented or amended prospectus contemplated by Section 3(f) or 3(e).

(d) The Company may require the Investor to furnish to the Company a certified statement as to the
number of shares of Common Stock beneficially owned by the Investor and, if required by the SEC, the natural persons thereof that
have voting and dispositive control over such Common Stock.  The Investor acknowledges that it will be named as an
"underwriter" of the Registrable Securities in the prospectus, as required by SEC policies.

Section 5.  EXPENSES OF REGISTRATION.

All documented expenses, other than underwriting discounts and commissions and other than as set forth
in the Investment Agreement, incurred in connection with registrations including comments, filings or qualifications pursuant to Sections
2 and 3, including, without limitation, all registration, listing and qualifications fees, printing and accounting fees, and reasonable fees
and disbursements of counsel for the Company or for the Investor shall be paid by the Company.

Section 6.  INDEMNIFICATION.

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

(a)  To the fullest extent permitted by law, the Company, under this Agreement, will, and hereby
does, indemnify, hold harmless and defend the Investor who holds Registrable Securities, the directors, officers, partners, employees,
counsel, agents, representatives of, and each Person, if any, who controls, any Investor within the meaning of the 1933 Act or the
Securities Exchange Act of 1934, as amended (the "1934 Act") (each, an "Indemnified
Person"), against any losses, claims, damages, liabilities, judgments, fines, penalties, charges, costs, attorneys' fees,
amounts paid in settlement or expenses, joint or several

                                            6

(collectively, "Claims"), incurred in investigating, preparing
or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or
governmental, administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an
Indemnified Person is or may be a party thereto ("Indemnified Damages"), to which any of them may become
subject insofar as such Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are
based upon: (i) any untrue statement or alleged untrue statement of a material fact in a Registration Statement or any
post-effective amendment thereto or in any filing made in connection with the qualification of the offering under the securities or other
"blue sky" laws of any jurisdiction in which the Investor has requested in writing that the Company register or qualify the
Shares ("Blue Sky Filing"), or the omission or alleged omission to state a material fact required to be stated therein
or necessary to make the statements therein, in light of the circumstances under which the statements therein were made, not
misleading, (ii) any untrue statement or alleged untrue statement of a material fact contained in the final prospectus (as
amended or supplemented, if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or
alleged omission to state therein any material fact necessary to make the statements made therein, in light of the circumstances under
which the statements therein were made, not misleading, or (iii) any violation or alleged violation by the Company of the 1933
Act, the 1934 Act, any other law, including, without limitation, any state securities law, or any rule or regulation thereunder relating to
the offer or resale of the Registrable Securities pursuant to a Registration Statement (the matters in the foregoing clauses (i) through
(iii) being, collectively, "Violations").  Subject to the restrictions set forth in Section 6(c) the Company shall
reimburse the Investor and each such controlling person, promptly as such expenses are incurred and are due and payable, for any
reasonable legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim.
Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Section 6(a): (A)
shall not apply to a Claim arising out of or based upon a Violation which is due to the inclusion in a Registration Statement of the
information furnished to the Company by any Indemnified Person expressly for use in connection with the preparation of a Registration
Statement or any such amendment thereof or supplement thereto; (B) shall not be available to the extent such Claim is based
on (x) a failure of the Investor to deliver or to cause to be delivered the prospectus made available by the Company or
(y) the Indemnified Person's use of an incorrect, outdated or defective prospectus despite being promptly advised by the
Company in writing not to use such incorrect, outdated or defective prospectus; (C) any claims based on the manner of resale
of the Registrable Securities by the Investor or of the Investor's failure to register as a dealer under applicable securities laws;
(D) any omission of the Investor to notify the Company of any material fact that should be stated in a Registration Statement or
prospectus relating to the Investor or the manner of resale; and (E) any amounts paid in settlement of any Claim if such
settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld.  Such
indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified Person and shall
survive the resale of the Registrable Securities by the Investor.

(b)  In connection with any Registration Statement in which Investor is participating, the Investor
agrees to severally and jointly indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in
Section 6(a), the Company, each of its directors, each of its officers, each Person, if any, who controls the Company within the meaning
of the 1933 Act or the 1934 Act and the Company's agents (collectively and together with an Indemnified Person, an
"Indemnified Party"), against any Claim or Indemnified Damages to which any of them may become subject, under
the 1933 Act, the 1934 Act or otherwise, insofar as such Claim or Indemnified Damages arise out of or are based upon any Violation, in
each case to the extent, and only to the extent, that such Violation is due to (i) the inclusion in a Registration Statement of the
written information furnished to the Company by the Investor expressly for use in connection with such Registration Statement,
(ii) a failure of the Investor to deliver or to cause to be delivered the prospectus made available by the Company or the
Investor's use of an incorrect prospectus despite being timely advised by the Company in writing not to use such incorrect prospectus;
(iii) the Investor's failure to register or remain registered as a dealer under applicable securities laws; or (iv) any
omission of the Investor to notify the Company of any material fact that should be stated in a Registration Statement or prospectus
relating to the Investor of the manner of sale.  Subject to Section 6(c), the Investor will reimburse any legal or other expenses
reasonably incurred by such Indemnified Party in connection with investigating or defending any such Claim; provided, however, that the indemnity

                                            7

agreement contained in this Section 6(b) and the agreement with respect to contribution contained in Section 7 shall
not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Investor,
which consent shall not be unreasonably withheld, conditioned or delayed; and provided further, however, that the
Investor shall only be liable under this Section 6(b) for  that amount of a Claim or Indemnified Damages as does not exceed the net
proceeds to such Investor as a result of the resale of Registrable Securities pursuant to such Registration Statement.  Such indemnity
shall remain in full force and effect regardless of any investigation made by or on behalf of such Indemnified Party and shall survive the
resale of the Registrable Securities by the Investor. Notwithstanding anything to the contrary contained herein, the indemnification
agreement contained in this Section 6(b) with respect to any preliminary prospectus shall not inure to the benefit of any Indemnified
Party if the untrue statement or omission of material fact contained in the preliminary prospectus were corrected on a timely basis in the
prospectus, as then amended or supplemented.  This indemnification provision shall apply separately to each Investor and liability
hereunder shall not be joint and several.

(c)  Promptly after receipt by an Indemnified Person or Indemnified Party under this Section 6 of
notice of the commencement of any action or proceeding (including any governmental action or proceeding) involving a Claim, such
Indemnified Person or Indemnified Party shall, if a Claim in respect thereof is to be made against any indemnifying party under this
Section 6, deliver to the indemnifying party a written notice of the commencement thereof, and the indemnifying party shall have the
right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to
assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the
Indemnified Party, as the case may be; provided, however, that an Indemnified Person or Indemnified Party shall have
the right to retain its own counsel with the fees and expenses to be paid by the indemnifying party, if, in the reasonable opinion of
counsel retained by the Indemnified Person or Indemnified Party, the representation by counsel of the Indemnified Person or
Indemnified Party and the indemnifying party would be inappropriate due to actual or potential differing interests between such
Indemnified Person or Indemnified Party and any other party represented by such counsel in such proceeding.  The indemnifying party
shall pay for only one (1) separate legal counsel for the Indemnified Persons or the Indemnified Parties, as applicable, and such
counsel shall be selected by the Investor, if the Investor is entitled to indemnification hereunder, or the Company, if the Company is
entitled to indemnification hereunder, as applicable.  The Indemnified Party or Indemnified Person 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 or Indemnified Person which relates to such
action or Claim.  The indemnifying party shall keep the Indemnified Party or Indemnified Person fully apprised at all times as to the
status of the defense or any settlement negotiations with respect thereto.  No indemnifying party shall be liable for any settlement of any
action, claim or proceeding affected without its written consent, provided, however, that the indemnifying party shall not
unreasonably withhold, delay or condition its consent. No indemnifying party shall, without the consent of the Indemnified Party or
Indemnified Person, consent to entry of any judgment or enter into any settlement or other compromise which does not include as an
unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a release from all
liability in respect to such Claim.  Following indemnification as provided for hereunder, the indemnifying party shall be subrogated to all
rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms or corporations relating to the matter for
which indemnification has been made.  The failure to deliver written notice to the indemnifying party within a reasonable time of the
commencement of any such action shall not relieve such indemnifying party of any liability to the Indemnified Person or Indemnified
Party under this Section 6, except to the extent that the indemnifying party is prejudiced in its ability to defend such action.

(d)  The indemnity agreements contained herein shall be in addition to (i) any cause of
action or similar right of the Indemnified Party or Indemnified Person against the indemnifying party or others, and (ii) any
liabilities the indemnifying party may be subject to pursuant to the law.

                                             8

Section 7.  CONTRIBUTION.

To the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying
party agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 6 to
the fullest extent permitted by law; provided, however, that: (i) no contribution shall be made under circumstances
where the maker would not have been liable for indemnification under the fault standards set forth in Section 6; (ii) no seller of
Registrable Securities guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to
contribution from any seller of Registrable Securities who was not guilty of fraudulent misrepresentation; and (iii) contribution
by any seller of Registrable Securities shall be limited in amount to the net amount of proceeds received by such seller from the resale
of such Registrable Securities.

Section 8.REPORTS UNDER THE 1934 ACT.

With a view to making available to the Investor the benefits of Rule 144 promulgated under the 1933 Act or
any other similar rule or regulation of the SEC that may at any time permit the Investor to sell securities of the Company to the public
without registration ("Rule 144"), and provided that the Investor holds any Registrable Securities that are eligible
for resale under Rule 144, the Company agrees to take the following actions to the extent such actions are necessary for the Investor to
sell such Registrable Securities under said Rule 144:

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

(b)file with the SEC in a timely manner all reports and other documents required of the Company
under the 1933 Act and the 1934 Act so long as the Company remains subject to such requirements (it being understood that nothing
herein shall limit the Company's obligations under Section 5(c) of the Investment Agreement) and the filing of such reports and other
documents is required for the applicable provisions of Rule 144; and

(c)furnish to the Investor, promptly upon request, (i) a written statement by the Company
that it has complied with the reporting requirements of Rule 144, the 1933 Act and the 1934 Act and (ii) such other information
as may be reasonably requested to permit the Investor to sell such securities pursuant to Rule 144 without registration.

Section 9.  NO ASSIGNMENT OF REGISTRATION RIGHTS.

The rights and obligations under this Agreement shall not be assignable.

Section 10.  AMENDMENT OF REGISTRATION RIGHTS.

The provisions of this Agreement may be amended only with the written consent of the Company and
Investor.  

                                               9

Section 11.  MISCELLANEOUS.

(a)  Any notices or other communications required or permitted to be given under the terms of this
Agreement that must be in writing will be deemed to have been delivered (i) upon receipt, when delivered personally; (ii)
upon receipt, when sent by facsimile (provided a confirmation of transmission is mechanically or electronically generated and kept
on file by the sending party); or (iii) one (1) day after deposit with a nationally recognized overnight delivery service, in each
case properly addressed to the party to receive the same.  The addresses and facsimile numbers for such communications shall
be:

If to the Company:

MMR Information Systems, Inc.

                   2934 1/2 Beverly Glen Circle, Suite 702

                   Los Angeles, CA 90077

                   Telephone: (310) 476-7002

                   Facsimile: (206) 374-6136

If to the Investor:

Dutchess Equity Fund, LP

                   50 Commonwealth Ave, Suite 2

                   Boston, MA 02116

                   Telephone: (617) 301-4700

                   Facsimile:  (617) 249-0947

Each party shall provide five (5) business days prior notice to the other party of any change in address,
phone number or facsimile number.

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

(c)   This Agreement and the Equity Line Transaction Documents constitute the entire agreement
among the parties hereto with respect to the subject matter hereof and thereof.  There are no restrictions, promises, warranties or
undertakings, other than those set forth or referred to herein and therein.

(d)  This Agreement and the Equity Line Transaction Documents supersede all prior agreements and
understandings among the parties hereto with respect to the subject matter hereof and thereof, including that certain Term Sheet
entered into by and between the parties dated August 13, 2009.

(e)  The headings in this Agreement are for convenience of reference only and shall not limit or
otherwise affect the meaning hereof.  Whenever required by the context of this Agreement, the singular shall include the plural and
masculine shall include the feminine.  This Agreement shall not be construed as if it had been prepared by one of the parties, but rather
as if all the parties had prepared the same.

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

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

                                            10

(h) In case any provision of this Agreement is held by a court of competent jurisdiction to be excessive
in scope or otherwise invalid or unenforceable, such provision shall be adjusted rather than voided, if possible, so that it is enforceable
to the maximum extent possible, and the validity and enforceability of the remaining provisions of this Agreement will not in any way be
affected or impaired thereby.

(i) If the Company is required pursuant to the terms of this Agreement to make any filing with the SEC
or to meet any deadline that falls on a Saturday, Sunday or any other day that is a legal holiday or a day on which the SEC is
authorized or required by law or other government actions to close, then the Company may make such filing or meet such deadline on
the following business day.

(j) In the event of a breach of this Agreement by the Company or by the Investor, of any of their
respective obligations under this Agreement, the Investor 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 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 agree that, in the event of any
action for specific performance in respect of such breach, it shall not assert or shall waive the defense that a remedy at law would be
adequate.    

Section 12.  Disputes subject to arbitration governed by massachusetts law

All disputes arising under this agreement shall be governed by and interpreted in accordance with the laws
of the Commonwealth of Massachusetts, without regard to principles of conflict of laws.  The parties to this agreement will submit all
disputes arising under this agreement to arbitration in Boston, Massachusetts before a single arbitrator of the American Arbitration
Association ("AAA").  The arbitrator shall be selected by application of the rules of the AAA, or by mutual agreement of the
parties, except that such arbitrator shall be an attorney admitted to practice law in the Commonwealth of Massachusetts.  No party to
this agreement will challenge the jurisdiction or venue provisions as provided in this section.  Nothing contained herein shall prevent the
party from obtaining an injunction.

 

*.*.*

                                            11

SIGNATURE PAGE OF REGISTRATION RIGHTS AGREEMENT

Your signature on this Signature Page evidences your agreement to be bound by the terms and conditions of
the Investment Agreement and the Registration Rights Agreement as of the date first written above. 

 

DUTCHESS EQUITY FUND, LP.

By: /s/ Douglas H. Leighton______________________

                   Douglas H. Leighton

                   Managing Member of:

                   Dutchess Capital Management, LLC

                   General Partner to:

                   Dutchess Equity Fund, LP

 

MMR INFORMATION SYSTEMs, Inc.

 

By: _/s/ Robert H. Lorsch_____________________ 

        Robert H. Lorsch - Chairman, President & CEO

                                            12

Exhibit A

Selling Security-Holder Notice and Questionnaire

The undersigned beneficial owner of common stock, par value $0.001 per share (the "Common
Stock"), of MMR Information Systems, Inc., a Delaware corporation (the "Company"), (the
"Registrable Securities") understands that the Company has filed or intends to file with the Securities and
Exchange Commission (the "Commission") a registration statement on Form [_____] (the "Registration
Statement") for the registration and resale under Rule 415 of the Securities Act of 1933, as amended (the
"Securities Act"), of the Registrable Securities, in accordance with the terms of the Registration Rights Agreement,
dated as of August __, 2009 (the "Registration Rights Agreement"), among the Company and the Investor
named therein.  A copy of the Registration Rights Agreement is available from the Company upon request at the address set forth
below.  All capitalized terms not otherwise defined herein shall have the meanings ascribed thereto in the Registration Rights
Agreement.

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

NOTICE

The undersigned beneficial owner (the "Selling Securityholder") of Registrable
Securities hereby elects to include the Registrable Securities owned by it and listed below in Item 3 (unless otherwise specified under
such Item 3) in the Registration Statement.

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

QUESTIONNAIRE

1.Name.

(a)Full Legal Name of Selling Security-holder

           ________________________________________________________________________

(b)Full Legal Name of registered holder (if not the same as (a) above) through which Registrable
Securities Listed in Item 3 below are held:

           ________________________________________________________________________

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

           ________________________________________________________________________

2.  Address for Notices to Selling Securityholder:

	

	

	

	
Telephone: _______________________________________

	
Fax: _______________________________________

	
Contact Person: _______________________________________

3.  Beneficial Ownership of Registrable Securities:

(a)Type and number of Registrable Securities beneficially owned (not including the Registrable Securities that are
issuable pursuant to the Investment Agreement):

           ______________________________________________________________________

              ______________________________________________________________________

              ______________________________________________________________________

4.  Broker-Dealer Status:

(a)Are you a broker-dealer?

 Yes           No       

(b)If "yes" to Section 4(a),
did you receive your Registrable Securities as compensation for investment banking services to the Company.

 Yes           No       

Note:If no, the Commission's staff has
indicated that you should be identified as an underwriter in the Registration Statement.

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

 Yes           No       

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

 Yes           No       

Note:If no, the Commission's staff has
indicated that you should be identified as an underwriter in the Registration Statement.

5.  Beneficial Ownership of other Securities of the Company Owned by the Selling Security-holder.

Except as set forth below in this Item 5, the undersigned is not the beneficial or registered owner of any
securities of the Company other than the Registrable Securities listed above in Item 3.

(a)Type and Amount of Other Securities beneficially owned by the Selling
Securityholder:

           ______________________________________________________________________

              ______________________________________________________________________

 

6.  Relationships with the Company:

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

State any exceptions here:

 ___________________________________________________________________________________

    ___________________________________________________________________________________

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

By signing below, the undersigned consents to the disclosure of the information contained herein in its answers
to Items 1 through 6 and the inclusion of such information in the Registration Statement and the related prospectus and any
amendments or supplements thereto.  The undersigned understands that such information will be relied upon by the Company in
connection with the preparation or amendment of the Registration Statement and the related prospectus.

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

	
Dated: ________________________
	
Beneficial Owner: _____________________________ 
   

By: ________________________________

    Name:

    Title:

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

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