Document:

EXHIBIT 10.29

                          CONSULTING AGREEMENT BETWEEN
                          IVI COMMUNICATIONS, INC. AND
                       BIG APPLE CONSULTING U.S.A., INC.

<PAGE>

EXHIBIT 10.29

                              CONSULTING AGREEMENT
                              --------------------

THIS CONSULTING AGREEMENT (this "Agreement") is entered into and is effective as
of August 8, 2006 (the  "Effective  Date") by and  between  IVI  Communications,
Inc.,  a Nevada  Corporation,  with a  principal  place of  business  at 5959 W.
Century Boulevard, Suite 566, Los Angeles,  California 90045 ("Company") and Big
Apple Consulting U.S.A., Inc., a Delaware Corporation, with principal offices at
280 Wekiva Springs Road, Suite 201, Longwood, FL 32779 ("Consultant").

                                R E C I T A L S:
                                ---------------

     A. Consultant  represents  various financial  websites that individuals can
access to learn more about companies they may not otherwise be exposed to.

     B. In  addition,  Consultant  maintains  an  extensive  database of brokers
representing  investors  interested  in owning  stock in  companies  such as the
Company and employs a stock profiler team which regularly communicates with such
brokers.

     C. Company  wishes to promote itself  through  Consultant's  efforts in the
brokerage community in order to gain as much exposure as possible for Company.

                                   T E R M S:
                                   ---------

NOW THEREFORE,  in consideration of the mutual premises and covenants  contained
herein, and other good and valuable consideration,  the receipt, sufficiency and
adequacy of which is hereby acknowledged, the parties agree as follows:

1.00     Services to be Performed by Consultant
         --------------------------------------

         1.01 Consultant  shall access its database of brokers and shall utilize
         a profiler team  (comparable  in size and  capability to that currently
         employed  by  Consultant)  in order to contact  brokers  interested  in
         recommending Company to their investor clients.

         1.02 Consultant shall diligently  market and promote Company to brokers
         and other investors, advisors,  counselors,  trustees, agents and other
         individuals  and  entities  whom  Consultant  is legally  permitted  to
         contact  (including with the proper  disclosures and  disclaimers)  and
         shall introduce Company and its principals to Consultant's  current and
         future network of brokerage firms and market makers.

         1.03 Consultant shall provide investor lead management  services normal
         and customary in the industry.

         1.04  Consultant  shall  organize,   initiate,  manage  and  facilitate
         broker/investor  conference  telephone  calls and  other  presentations
         mutually   agreeable   to  Company   and   Consultant.   Expenses   for
         broker/investor conference calls and other presentations are to be paid
         by the Consultant, and must be pre-approved by the Company.

                                      - 1 -
<PAGE>

1.05     Consultant shall review and monitor Company's  stockholder base and all
         transfer  agent and DTC  reports,  and shall  analyze,  present to, and
         discuss with Company the results and implications of such reports.

         1.06 In addition to the  services  identified  in Section  1.01 to 1.05
         above,  at the  direction  of and  with  the  consent  of the  Company,
         Consultant  has agreed to retain  Management  Solutions  International,
         Inc. to provide the  services  described in Exhibit "A" and made a part
         of this Agreement under the terms and conditions set forth herein.

2.00     Terms & Fees
         ------------

         2.01 The term of this  Agreement  shall  commence on the Effective Date
         and shall expire one (1) year  thereafter.  The Company  shall have the
         right to extend this  contract an  additional  six (6) months after the
         initial term expires.

         2.02 As compensation for  Consultant's  services  required   hereunder,
         Consultant shall be entitled to receive:

                           (a) Cash  Value:  Cash  value  of  contract is  Seven
                           Hundred Eighty Thousand ($780,000) Dollars.

                           (b) Compensation: On a monthly basis Consultant shall
                           be  entitled  to  receive  Sixty-Five  Thousand  U.S.
                           Dollars  ($65,000.00)  per  month due the 8th of each
                           month. If payment is made in stock  Consultant  shall
                           be  entitled  to  receive  Sixty-Five  Thousand  U.S.
                           Dollars ($65,000.00) per month worth of common shares
                           of IVI  Communications,  Inc. (IVCM) common stock due
                           the 8th of each  month  based upon the  previous  ten
                           (10) day  average  closing  bid price.  The first and
                           last month's  payment of  2,600,000  shares of common
                           stock is due and  payable  upon the  signing  of this
                           Agreement.  Commencing  on or before  August 8, 2006,
                           all  subsequent  monthly  payments  will be delivered
                           from the escrow  account as described in Section 2.03
                           below. All shares are earned when received.

                           (d) SB-2  Registration:   Company agrees to  register
                           14,764,413   shares,  the  common  stock  issued  for
                           compensation, in  the name  of  "Big Apple Consulting
                           USA, Inc." in an SB-2 registration  with the SEC with
                           -in one hundred twenty (120)  days of  the  effective
                           date of the currently pending SB-2 registration which
                           shall become effective  within sixty  (60) days after
                           the date of such SB-2 filing date.  However, Consult-
                           ant  acknowledges  that the Company cannot  guarantee
                           the exact date on which SEC shall  declare  the  SB-2
                           effective.  In the event that the SB-2 has not become
                           effective within one hundred twenty  (120) days after
                           the date of such  SB-2  filing date, then  Consultant
                           shall have  the  option to terminate  this  Agreement
                           with five (5) days written notice.

                                      - 2 -
<PAGE>

         2.03     Escrow Account: Company agrees to deposit 12,164,413 shares of
                  common stock in an escrow  account  with J.  Bennett  Grocock,
                  Esq.,  an SEC  attorney,  upon the signing of this  Agreement.
                  Pursuant to Section 2.02(b), commencing on or before August 8,
                  2006,  and  continuing  throughout  the  Initial  Term of this
                  Agreement,  on or  before  the 8th of each  month,  Sixty-Five
                  Thousand   U.S.    Dollars    ($65,000.00)    worth   of   IVI
                  Communications,  Inc. common stock based upon the previous ten
                  (10) day average  closing bid price will be released  from the
                  escrow  account.  After  expiration of this Agreement any free
                  trading  shares  common  stock  remaining  in  escrow  will be
                  returned to the Company.

3.00     Termination
         -----------

         In the event of a breach of this agreement by Company, Company shall be
         responsible for any  outstanding  fees and expenses.  Consultant  shall
         have the  right to  terminate  this  Agreement  on the  grounds  of the
         Company's  failure to remit the  required  monthly  payments  or in the
         event of any breach of the Agreement by Company.  Company has the right
         to terminate this agreement with ninety (90) days written  notice.  The
         parties agree that written notice will be deemed  accepted and received
         by the parties via certified mail delivered to the address above or fax
         notification.

4.00     Representations
         ---------------

         Company  represents  and  warrants  that it is in  compliance  with all
         required  filings  and  regulations  of NASD,  the SEC and/or any other
         governmental  agencies,  and that the Company's  stock is not suspended
         from trading for any reason whatsoever.  Company further represents and
         warrants  that during the term of this  agreement,  it will continue to
         file  all  required  reports  with  the  SEC,  NASD  and/or  any  other
         governmental  agencies and will continue to adhere to SEC, NASD, and/or
         any other  governmental  agency's  requirements,  and that it will take
         whatever  steps are  deemed  necessary  to keep its  shares  listed and
         "fully  reporting." The Company's failure to comply with the provisions
         of this paragraph  shall  constitute a material  breach of the parties'
         agreement.  Since Consultant has agreed to accept payment for services,
         in part, in the form of shares of the Company,  the Company agrees that
         the value of the shares at the time of this agreement will be adversely
         affected and impacted if the  promotion of the Company to the financial
         community   and   others   is   suspended   due  to  a  breach  of  the
         representations and warranties contained herein.  Further, in the event
         of a breach of the representations and warranties  contained herein the
         Company  agrees to  continue to make any  payments  due and the Company
         agrees to pay  Consultant one and a half (1.5) times the cash value for
         any  shares  Consultant  holds  or is due and  payable  (as part of its
         compensation for this agreement) at the time of the Company's breach of
         this paragraph. This "make whole payment" shall be made within five (5)
         business days of the date of the breach.

                                      - 3 -
<PAGE>

5.00    Miscellaneous Terms
        -------------------

         5.02    Successors. The provisions of this Agreement shall be deemed to
                 obligate, extend to and inure to the benefit of the successors,
                 assigns, transferees,  grantees, and indemnities of each of the
                 parties to this Agreement.

         5.03    Governing  Law.  This  Agreement  and  the  interpretation  and
                 enforcement of the terms  of this  Agreement shall be  governed
                 under and subject to the laws of the State of New York.

         5.04    Jurisdiction.   Jurisdiction   for  court  action,   court  and
                 authorities  in the State of New York or the  Federal  District
                 Court  having  venue  for the  State  of New York  should  have
                 jurisdiction over all controversies that may arise with respect
                 to this  agreement.  Company  hereby  waives any other venue to
                 which  it  might  be  entitled  to by  virtue  of  domicile  or
                 otherwise  and  expressly  consents and  acknowledges  that the
                 courts  and  authorities  in the State of New York  shall  have
                 jurisdiction.

          5.05   Integration.    This    Agreement,    after   full   execution,
                 acknowledgment  and delivery,  memorializes and constitutes the
                 entire  agreement  and  understanding  between  the parties and
                 supersedes and replaces all prior  negotiations  and agreements
                 of the  parties,  whether  written  or  unwritten.  Each of the
                 parties to this Agreement acknowledges that no other party, nor
                 any agent or attorney of any other party has made any promises,
                 representations,  or warranty  whatsoever,  express or implied,
                 which is not expressly  contained in this  Agreement;  and each
                 party further  acknowledges that he or it has not executed this
                 Agreement  in  reliance  upon  any  belief  as to any  fact not
                 expressly recited herein above.

           5.06  Attorneys Fees.  In the event of a dispute between  the parties
                 concerning the enforcement or interpretation of this Agreement,
                 the prevailing party in such dispute, whether by legal proceed-
                 ings or  otherwise, shall  be  reimbursed  immediately for  the
                 reasonably  incurred  attorneys'  fees  and   other  costs  and
                 expenses by the other parties to the dispute.

         5.07    Context.  Wherever the context so requires, the singular number
                 shall  include  the  plural  and  the  plural shall include the
                 singular.

         5.08    Captions. The captions by which the sections and subsections of
                 this  Agreement are  identified are  for convenience  only, and
                 shall have no effect whatsoever upon its interpretation.

         5.09    Severance.  If any  provision of this  Agreement  is held to be
                 illegal or invalid by  a court  of competent jurisdiction, such
                 provision shall be deemed to be severed and deleted and neither
                 such  provision, nor its  severance and  deletion, shall affect
                 the validity of the remaining provisions.

                                      - 4 -
<PAGE>

         5.10    Counterparts.  This  Agreement may be executed in any number of
                 counterparts,  each of  which  shall be deemed an original and,
                 when taken together  shall  constitute one and the same instru-
                 ment.

         5.11    Expenses Associated  With This Agreement.  Each of  the parties
                 hereto agrees to bear its own costs, attorney's fees and relat-
                 ed expenses associated with this Agreement.

         5.12    Arbitration.  Any dispute  or claim arising  from or in any way
                 related to this  agreement  shall be settled  by arbitration in
                 New York at the option of Consultant.  All arbitration shall be
                 conducted in accordance  with the rules and  regulations of the
                 American Arbitration Association ("AAA"). AAA shall designate a
                 panel of three arbitrators from an approved list of arbitrators
                 following both  parties' review and deletion of those arbitrat-
                 ors on  the approved  list having a conflict of  interest  with
                 either party.  Each party shall pay its own expenses associated
                 with such arbitration.  A demand for arbitration  shall be made
                 within a  reasonable time  after the  claim, dispute  or  other
                 matter  has  arisen and in no event  shall such  demand be made
                 after the date when  institution of legal or equitable proceed-
                 ings based on such claim, dispute or other  matter in  question
                 would be barred by the  applicable statutes of limitations. The
                 decision of the arbitrators shall be rendered within sixty (60)
                 days of submission of any claim or dispute, shall be in writing
                 and mailed to all the parties included in the  arbitration. The
                 decision of the  arbitrator shall be binding  upon the  parties
                 and  judgment in  accordance with that decision may  be entered
                 in any court having jurisdiction thereof.

         5.13    Assignment.  Neither Company,  nor  Consultant,  shall have the
                 right to assign or delegate  this  A greement  or any rights or
                 obligations  created  hereby  unless  the  non-assigning  party
                 expressly approves the assignment in writing.

         5.14    Authority  to Bind.  A  responsible   officer of each party has
                 read and  understands  the contents of  this  Agreement  and is
                 empowered  and duly  authorized  on  behalf  of that  party  to
                 execute it.

         5.15    Continuing Obligations: Both Company and Consultant shall here-
                 after  execute  all  documents  and  do   all  acts  reasonably
                 necessary to effect the provisions of this Agreement.

         5.16    Reversion  of  Payment:  If at  any time,  Company  shall be in
                 default of the payment provisions of this contract for a period
                 greater than seven (7) days, then the Consultant shall no long-
                 er be obligated  to accept  payment in the form of free trading
                 shares of stock and the balance due, and any payments due there
                 -after,  shall be paid only in cash,  certified check, cashiers
                 check or money  order,  unless  Company is advised otherwise by
                 Consultant in writing.  Further,  if at any time, Company shall
                 be in default of the payment  provisions of this contract for a
                 period greater than five (5) days, all services provided by Con
                 -sultant under  this Agreement  shall be  suspended until  such
                 time as payment in full of any outstanding  balance is made and
                 services  under the Agreement  shall  be reinstated on the  day

                                       - 5 -
<PAGE>

                  after  the  day on  which   payment  is  received.  Consultant
                  reserves the right, at Consultant's sole option, to submit and
                  assign any outstanding  balance to an  independent third party
                  for the  purpose of  collecting  any  outstanding balance owed
                  Consultant.

         5.17     Claims,  Actions or  Proceedings  relating to the  issuance of
                  Stock  compensation:  In the event  that  Company  compensates
                  Consultant  with stock,  then Company  agrees to indemnify and
                  hold  harmless  the  Consultant  from  any  action,  claim  or
                  proceeding  resulting  from the  issuance of the shares.  Said
                  indemnification  shall  include  all fees and costs  including
                  reasonable  attorney's  fees which the  Consultant  may incur.
                  Consultant  shall have the right to designate  its own counsel
                  for representation  arising out of any indemnification and the
                  costs thereof shall be borne by the Company.

         5.18     Notices:  All  notices  must  be in  writing  and  sent to the
                  appropriate  address listed above, or to such other address as
                  either party may designate in writing, by first class mail and
                  either  certified mail return  receipt  requested or overnight
                  courier service. In the case of certified mail notice shall be
                  deemed given as of the date of deposit with the United  States
                  Postal  Service,  and in case  of  overnight  courier  service
                  notice  shall be deemed  given as of the date of deposit  with
                  such overnight courier service.

         5.19     Confidentiality:  Both  Consultant  and Company  agree that it
                  will not at any time,  or in any  fashion  or manner  divulge,
                  disclose   or   otherwise   communicate   to  any   person  or
                  corporation,  in any manner whatsoever, any information of any
                  kind, nature, or description  concerning any matters affecting
                  or relating  to the  business  of each  others  company.  This
                  includes its method of operation, or its plans, its processes,
                  or other data of any kind or nature that they know,  or should
                  have known, is confidential  and not already  information that
                  resides in the public domain.  Both the Consultant and Company
                  expressly  agree  that  confidentiality  of these  matters  is
                  extremely  important and gravely affect the successful conduct
                  of business of each company,  and its  goodwill,  and that any
                  breach of the terms of this  section is a  material  breach of
                  this  Agreement.  The provisions of this section shall survive
                  termination of the Agreement.

6.00     Enforceability of Agreement:  This Agreement shall neither be deemed to
         be nor be enforceable until executed by Consultant. Further, should the
         parties fail to execute this Agreement within thirty (30) days from the
         date of delivery of this  Agreement,  then this  Agreement  and all the
         terms and conditions  contained  herein shall become and be deemed null
         and  void and  neither  party  named  herein  shall  be  bound  hereby.
         Consultant,  without the consent of Company, shall have the sole option
         to extend the time requirements set forth within this section 6.00, and
         any  request by Company  to extend the time  requirements  set forth in
         section 6.00 must be approved by Consultant in writing.

                     [REMAINDER OF PAGE INTENTIONALLY BLANK]

                                      - 6 -
<PAGE>

IN WITNESS WHEREOF,  the parties have executed this Agreement as of the date set
forth above.

                                            COMPANY:
                                            -------

                                            IVI Communications, Inc.
                                            A Nevada corporation

                                            By:      /s/ Nyhl Henson
                                                     ---------------------------
                                                     Nyhl Henson, President

                                            CONSULTANT:
                                            ----------

                                            Big Apple Consulting USA, Inc.
                                            A Delaware Corporation

                                            By:      /s/ Marc Jablon
                                                     ---------------------------
                                                     Marc Jablon, President

                                     - 7 -

<PAGE>

                                 E X H I B I T  A
                   (MANAGEMENT CONSULTING AND AGENT SERVICES)

At the direction of and with the consent of the Company,  Consultant  has agreed
to retain  Management  Solutions  International,  Inc.  ("MSI") to  provide  the
services  described  below  under  the terms  and  conditions  set forth in this
Agreement  and  the  Consultant  will  work  closely  with  the  Company  to set
priorities and objectives to be accomplished during this engagement.

        A)     Assist in Defining Capital needs and Sources and Uses of Funds.

        B)     Work closely with Client to develop a Business Plan

        C)     Draft a Private Placement Memorandum and Subscription.

        D)     Assist in the preparation of all of the  appropriate  form filing
               to raise private capital.

        E)     Research and evaluate current and future  acquisition  candidates
               based on the Client's outlined acquisition strategy.

        F)     Analyze, Evaluate and do preliminary Due Diligence on any current
               and future  acquisition  candidates.  This  includes  meetings in
               Person, by Phone, Fax, Email, etc.

        G)     Evaluate  existing and Develop new Distribution  Channels for the
               Client's products

        H)     Layout Timeline and Action Plan based on the outlined acquisition
               strategy.

        I)     General Business Consulting (answering questions,  giving advice,
               introductions) as required.

                                      - 8 -WWW.EXFILE.COM  888.775-4789    GLOBAL MATRECHS, INC.   EXHIBIT 10.1 TO FORM 8K

    EXHIBIT
      10.1

    

    

    

    PRIVATE
      EQUITY CREDIT AGREEMENT

    

    

    

    BY
      AND
      BETWEEN

    

    

    GLOBAL
      MATRECHS, INC.

    

    

    AND

    

    

    BRITTANY
      CAPITAL MANAGEMENT LTD.

    

    

    

    

    Dated
      

    

    September
      14, 2006

    

    
 

     

     

     

     

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    THIS
      PRIVATE EQUITY CREDIT AGREEMENT is entered into as of the 15th
      day of
      September, 2006 (this “AGREEMENT”), by and between BRITTANY CAPITAL MANAGEMENT
      LTD., a limited liability company organized and existing under the laws of
      The
      Bahamas (“INVESTOR”), and GLOBAL MATRECHS, INC., a corporation organized and
      existing under the laws of the State of Delaware (the “COMPANY”). 

    

    WHEREAS,
      the parties desire that, upon the terms and subject to the conditions contained
      herein, the Company shall issue and sell to Investor, from time to time as
      provided herein, and Investor shall purchase, up to Fifteen Million Dollars
      ($15,000,000) of the Common Stock (as defined below); 

    

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

    

    NOW,
      THEREFORE, the parties hereto agree as follows:

    

    ARTICLE
      I

    

    CERTAIN
      DEFINITIONS

    

    Section
      1.1 DEFINED TERMS as used in this Agreement, the following terms shall have
      the
      following meanings specified or indicated (such meanings to be equally
      applicable to both the singular and plural forms of the terms defined)

    

    “ADDITIONAL
      CLOSING DATE” shall mean the date of the closing of the purchase and sale of the
      Additional Common Stock.

    

    “AGREEMENT”
      shall have the meaning specified in the preamble hereof.

    

    “BID
      PRICE” shall mean, for any Trading Day, the closing bid price of the Common
      Stock on the Principal Market for such Trading Day.

    

    “BLACKOUT
      NOTICE” shall have the meaning specified in the Registration Rights Agreement.

    

    “BLACKOUT
      SHARES” shall have the meaning specified in Section 2.6

    

    
      
         

      

      
        -
          2
          -

        
          

        

      

      
         

      

    

    “BY-LAWS”
      shall have the meaning specified in Section 4.8. 

    

    “CERTIFICATE”
      shall have the meaning specified in Section 4.8

    

    “CLAIM
      NOTICE” shall have the meaning specified in Section 9.3(a). 

    

    “CLOSING”
      shall mean one of the closings of a purchase and sale of shares of Common Stock
      pursuant to Section 2.3. 

    

    “CLOSING
      DATE” shall mean, with respect to a Closing, the twelfth (12th) Trading Day
      following the Put Date related to such Closing, or such earlier date as the
      Company and Investor shall agree, provided all conditions to such Closing have
      been satisfied on or before such Trading Day.

    

    “COMMITMENT
      PERIOD” shall mean the period commencing on the Effective Date, and ending on
      the earlier of (i) the date on which Investor shall have purchased Put Shares
      pursuant to this Agreement for an aggregate Purchase Price of the Maximum
      Commitment Amount, (ii) the date this Agreement is terminated pursuant to
      Section 2.5, or (iii) the date occurring thirty-six (36) months from the date
      of
      commencement of the Commitment Period.

    

    “COMMON
      STOCK” shall mean the Company’s common stock, $.0001 par value per share, and
      any shares of any other class of common stock whether now or hereafter
      authorized, having the right to participate in the distribution of dividends
      (as
      and when declared) and assets (upon liquidation of the Company). 

    

    “COMMON
      STOCK EQUIVALENTS” shall mean any securities that are convertible into or
      exchangeable for Common Stock or any options or other rights to subscribe for
      or
      purchase Common Stock or any such convertible or exchangeable
      securities.

     

    “COMPANY”
      shall have the meaning specified in the preamble to this Agreement.

    

    “CONDITION
      SATISFACTION DATE” shall have the meaning specified in Section 7.2.

    

    “DAMAGES”
      shall mean any loss, claim, damage, liability, costs and expenses (including,
      without limitation, reasonable attorneys’ fees and disbursements and costs and
      expenses of expert witnesses and investigation). 

    

    “DISCOUNT”
      shall mean eight (8%) percent. 

    

    “DISPUTE
      PERIOD” shall have the meaning specified in Section 9.3(a).

    

    
      
         

      

      
        -
          3
          -

        
          

        

      

      
         

      

    

    “DTC”
      shall the meaning specified in Section 2.3. 

    

    “DWAC”
      shall the meaning specified in Section 2.3.

    

    “EFFECTIVE
      DATE” shall mean the date on which the SEC first declares effective a
      Registration Statement registering resale of the Registrable Securities as
      set
      forth in Section 7.2(a). 

    

    “EXCHANGE
      ACT” shall mean the Securities Exchange Act of 1934, as amended, and the rules
      and regulations promulgated thereunder. 

    

    “FAST”
      shall the meaning specified in Section 2.3. 

    

    “INDEMNIFIED
      PARTY” shall have the meaning specified in Section 9.3(a). 

    

    “INDEMNIFYING
      PARTY” shall have the meaning specified in Section 9.3(a). 

    

    “INDEMNITY
      NOTICE” shall have the meaning specified in Section 9.3(b). 

    

    “INITIAL
      REGISTRABLE SECURITIES” shall have the meaning specified in the Registration
      Rights Agreement. 

    

    “INITIAL
      REGISTRATION STATEMENT” shall have the meaning specified in the Registration
      Rights Agreement. 

    

    “INVESTMENT
      AMOUNT” shall mean the dollar amount (within the range specified in Section 2.2)
      to be invested by Investor to purchase Put Shares with respect to any Put Date
      as notified by the Company to Investor in accordance with Section
      2.2.

    

    “INVESTOR”
      shall have the meaning specified in the preamble to this Agreement.

    

    “LEGEND”
      shall have the meaning specified in Section 8.1.

    

    “MARKET
      PRICE” on any given date shall mean the average of the three lowest of the Bid
      Prices for the ten (10) Trading Days immediately following the Put
      Date.

    

    “MAXIMUM
      COMMITMENT AMOUNT” shall mean Fifteen Million Dollars ($
      15,000,000).

    

    
      
         

      

      
        -
          4
          -

        
          

        

      

      
         

      

    

    “MATERIAL
      ADVERSE EFFECT” shall mean any effect on the business, operations, properties,
      prospects or financial condition of the Company that is material and adverse
      to
      the Company or to the Company and such other entities controlling or controlled
      by the Company, taken as a whole, and/or any condition, circumstance, or
      situation that would prohibit or otherwise materially interfere with the ability
      of the Company to enter into and perform its obligations under any of (a) this
      Agreement and (b) the Registration Rights Agreement. 

     

    “MAXIMUM
      PUT AMOUNT” shall mean, with respect to any Put, the lesser of (a) Five Hundred
      Thousand Dollars ($500,000), or (b)Five Hundred (500%) percent of the Weighted
      Average Volume for the twenty (20) Trading Days immediately preceding the Put
      Date.

    

    “MINIMUM
      COMMITMENT AMOUNT” shall mean One Hundred Thousand Dollars
      ($100,000).

    

    “MINIMUM
      PUT AMOUNT” shall mean, with respect to any Put, Twenty-Five Thousand Dollars
      ($25,000).

    

    “NASD”
      shall mean the National Association of Securities Dealers, Inc. 

    

    “NASDAQ”
      shall mean The Nasdaq Stock Market, Inc. 

    

    “NEW
      BID
      PRICE” shall have the meaning specified in Section 2.6. 

    

    “OLD
      BID
      PRICE” shall have the meaning specified in Section 2.6. 

    

    “OUTSTANDING”
      shall mean, with respect to the Common Stock, at any date as of which the number
      of shares of Common Stock is to be determined, all issued and outstanding shares
      of Common Stock, including all shares of Common Stock issuable in respect of
      outstanding convertible securities, scrip or any certificates representing
      fractional interests in shares of Common Stock; provided, however, that
      Outstanding shall not include any shares of Common Stock then directly or
      indirectly owned or held by or for the account of the Company.

    

    “PERSON”
      shall mean an individual, a corporation, a partnership, an association, a trust
      or other entity or organization, including a government or political subdivision
      or an agency or instrumentality thereof.

    

    “PRINCIPAL
      MARKET” shall mean the Nasdaq National Market, the Nasdaq SmallCap Market, the
      Over the Counter Bulletin Board, the American Stock Exchange or the New York
      Stock Exchange, whichever is at the time the principal trading exchange or
      market for the Common Stock.

    

    “PURCHASE
      PRICE” shall mean, with respect to a Put, the Market Price on the applicable Put
      Date (or such other date on which the Purchase Price is calculated in accordance
      with the terms and conditions of this Agreement) less the product of the
      Discount and the Market Price.

    

    
      
         

      

      
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          5
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    “PUT”
      shall mean each occasion that the Company elects to exercise its right to tender
      a Put Notice requiring Investor to purchase shares of Common Stock, subject
      to
      the terms and conditions of this Agreement. 

    

    “PUT
      DATE” shall mean the Trading Day during the Commitment Period that a Put Notice
      is deemed delivered pursuant to Section 2.2(b).

    

    “PUT
      NOTICE” shall mean a written notice, substantially in the form of Exhibit B
      hereto, to Investor setting forth the Investment Amount with respect to which
      the Company intends to require Investor to purchase shares of Common Stock
      pursuant to the terms of this Agreement.

    

    “PUT
      SHARES” shall mean all shares of Common Stock issued or issuable pursuant to a
      Put that has been exercised or may be exercised in accordance with the terms
      and
      conditions of this Agreement.

    

    “REGISTRABLE
      SECURITIES” shall mean the (a) Put Shares, (b) the Blackout Shares and (c) any
      securities issued or issuable with respect to any of the foregoing by way of
      exchange, stock dividend or stock split or in connection with a combination
      of
      shares, recapitalization, merger, consolidation or other reorganization or
      otherwise. As to any particular Registrable Securities, once issued such
      securities shall cease to be Registrable Securities when (i) a Registration
      Statement has been declared effective by the SEC and such Registrable Securities
      have been disposed of pursuant to a Registration Statement, (ii) such
      Registrable Securities have been sold under circumstances under which all of
      the
      applicable conditions of Rule 144 are met, (iii) such time as such Registrable
      Securities have been otherwise transferred to holders who may trade such shares
      without restriction under the Securities Act, and the Company has delivered
      a
      new certificate or other evidence of ownership for such securities not bearing
      a
      restrictive legend or (iv) in the opinion of counsel to the Company, which
      counsel shall be reasonably acceptable to Investor, such Registrable Securities
      may be sold without registration under the Securities Actor the need for an
      exemption from any such registration requirements and without any time, volume
      or manner limitations pursuant to Rule 144(k) (or any similar provision then
      in
      effect) under the Securities Act. 

    

    “REGISTRATION
      RIGHTS AGREEMENT” shall mean the 

    registration
      rights agreement in the form of Exhibit A hereto.

    

    “REGISTRATION
      STATEMENT” shall mean a registration statement on Form SB-2 (if use of such form
      is then available to the Company pursuant to the rules of the SEC and, if not,
      on such other form promulgated by the SEC for which the Company then qualifies
      and which counsel for the Company shall deem appropriate and which form shall
      be
      available for the resale of the Registrable Securities to be
      registered

     

    
      
         

      

      
        -
          6
          -

        
          

        

      

      
         

      

    

     thereunder
      in accordance with the provisions of this Agreement and the Registration Rights
      Agreement and in accordance with the intended method of distribution of such
      securities), for the registration of the resale by Investor of the Registrable
      Securities under the Securities Act.

    

    “REGULATION
      D” shall have the meaning specified in the recitals of this Agreement.

    

    “REMAINING
      PUT SHARES” shall have the meaning specified in Section 2.6. 

    

    “RULE
      144” shall mean Rule 144 under the Securities Act or any similar provision then
      in force under the Securities Act. 

    

    “SEC”
      shall mean the Securities and Exchange Commission. 

    

    “SECTION
      4(2)” shall have the meaning specified in the recitals of this Agreement.

    

    “SECURITIES
      ACT” shall have the meaning specified in the recitals of this Agreement.

    

    “SEC
      DOCUMENTS” shall mean, as of a particular date, all reports and other documents
      filed by the Company pursuant to Section 13(a) or 15(d) of the Exchange Act
      since the beginning of the Company’s then most recently completed fiscal year as
      of the time in question (provided that if the date in question is within ninety
      days of the beginning of the Company’s fiscal year, the term shall include all
      documents filed since the beginning of the second preceding fiscal year).

    

    “SUBSCRIPTION
      DATE” shall mean the date on which this Agreement is executed and delivered by
      the Company and Investor. 

    

    “THIRD
      PARTY CLAIM” shall have the meaning specified in Section 9.3(a). 

    

    “TRADING
      DAY” shall mean any day during which the Principal Market shall be open for
      business.

    

    “TRANSACTION
      DOCUMENTS” means the Private Equity Credit Agreement, the Registration Rights
      Agreement, Closing Certificate, and the Transfer Agent
      Instructions.

    

    “TRANSFER
      AGENT” shall mean the transfer agent for the Common Stock (and to any substitute
      or replacement transfer agent for the Common Stock upon the Company’s
      appointment of any such substitute or replacement transfer agent). 

    

    
      
         

      

      
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          7
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    “TRANSFER
      AGENT INSTRUCTIONS” shall
      mean the instructions for the Transfer Agent attached hereto as Exhibit
      E.

    

    “UNDERWRITER”
      shall mean any underwriter participating in any disposition of the Registrable
      Securities on behalf of Investor pursuant to a Registration
      Statement.

    “VALUATION
      EVENT” shall mean an event in which the Company at any time during a Valuation
      Period takes any of the following actions: 

    

    
      	 	
              (a)
                

            	
              subdivides
                or combines the Common Stock;

            

    

    
      	 	
              (b)

            	
              pays
                a dividend in shares of Common Stock or makes any other distribution
                of
                shares of Common Stock, except for dividends paid with respect to
                the
                Preferred Stock;

            

    

    
      	 	
              (c)
                

            	
              issues
                any options or other rights to subscribe for or purchase shares of
                Common
                Stock and the price per share for which shares of Common Stock may
                at any
                time thereafter be issuable pursuant to such options or other rights
                shall
                be less than the Bid Price in effect immediately prior to such
                issuance;

            

    

    
      	 	
              (d)

            	
              issues
                any securities convertible into or exchangeable for shares of Common
                Stock
                and the consideration per share for which shares of Common Stock
                may at
                any time thereafter be issuable pursuant to the terms of such convertible
                or exchangeable securities shall be less than the Bid Price in effect
                immediately prior to such issuance;

            

    

    
      	 	
              (e)
                

            	
              issues
                shares of Common Stock otherwise than as provided in the foregoing
                subsections (a) through (d), at a price per share less, or for other
                consideration lower, than the Bid Price in effect immediately prior
                to
                such issuance, or without consideration;

            

    

    
      	 	
              (f)

            	
              makes
                a distribution of its assets or evidences of indebtedness to the
                holders
                of Common Stock as a dividend in liquidation or by way of return
                of
                capital or other than as a dividend payable out of earnings or surplus
                legally available for dividends under applicable law or any distribution
                to such holders made in respect of the sale of all or substantially
                all of
                the Company’s assets (other than under the circumstances provided for in
                the foregoing subsections (a) through (e); or

            

    

    
      	 	
              (g)

            	
              takes
                any action affecting the number of Outstanding Common Stock, other
                than an
                action described in any of the foregoing subsections (a) through
                (f)
                hereof, inclusive, which in the opinion of the Company’s Board of
                Directors, determined in good faith, would have a materially adverse
                effect upon the rights of Investor at the time of a Put.
                

            

    

    

    
      
         

      

      
        -
          8
          -

        
          

        

      

      
         

      

    

    “VALUATION
      PERIOD” shall mean the period of ten (10) Trading Days immediately following the
      date on which the applicable Put Notice is deemed to be delivered and during
      which the Purchase Price of the Common Stock is valued; provided, however,
      that
      if a Valuation Event occurs during any Valuation Period, a new Valuation Period
      shall begin on the Trading Day immediately after the occurrence of such
      Valuation Event and end on the tenth (10th) Trading Day thereafter.

    

    “WEIGHTED
      AVERAGE VOLUME” shall mean the average of the Weighted Volume for the relevant
      days.

    

    “WEIGHTED
      VOLUME” shall mean the product of (a) the Closing Bid Price times (b) the volume
      on the Principal Market. 

    

    ARTICLE
      II

    PURCHASE
      AND SALE OF COMMON STOCK 

    

    Section
      2.1 INVESTMENTS.

    

    (a) PUTS.
      Upon the terms and conditions set forth herein (including, without limitation,
      the provisions of Article VII), on any Put Date the Company may exercise a
      Put
      by the delivery of a Put Notice. The number of Put Shares that Investor shall
      receive pursuant to such Put shall be determined by dividing the Investment
      Amount specified in the Put Notice by the Purchase Price with respect to such
      Put Date.

     

    (b)
      MINIMUM AMOUNT OF PUTS. The Company shall, in accordance with Section 2.2(a),
      deliver to Investor during the Commitment Period, Put Notices with an aggregate
      Investment Amount at least equal to the Minimum Commitment Amount. If the
      Company for any reason fails to issue and deliver such Put Shares during the
      Commitment Period, on the first Trading Day after the expiration of the
      Commitment Period, the Company shall wire to Investor a sum in immediately
      available funds equal to the product of (i) the Minimum Commitment Amount minus
      the aggregate Investment Amounts of the Put Notices delivered to Investor
      hereunder, and (ii) the Discount.

    

    (c)
      MAXIMUM AMOUNT OF PUTS. No more than 7,334,996 shares of Common Stock
      (representing approximately 30% of the shares of Common Stock outstanding on
      the
      date hereof) may be issued and sold to Investor pursuant to this Agreement.
      

    

    Section
      2.2 MECHANICS. 

    

    (a)
      PUT
      NOTICE. At any time during the Commitment Period, the Company may deliver a
      Put
      Notice to Investor, subject to the conditions set forth in Section 7.2;
      provided, however, the Investment Amount for each Put as designated by the
      Company in the applicable Put Notice shall be neither less than the Minimum
      Put
      Amount nor more than the Maximum Put Amount.

    

    
      
         

      

      
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          9
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    (b)
      DATE
      OF DELIVERY OF PUT NOTICE. A Put Notice shall be deemed delivered on (i) the
      Trading Day it is received by facsimile or otherwise by Investor if such notice
      is received on or prior to 12:00 noon New York time, or (ii) the immediately
      succeeding Trading Day if it is received by facsimile or otherwise after 12:00
      noon New York time on a Trading Day or at anytime on a day which is not a
      Trading Day. 

    

    Section
      2.3 CLOSINGS. On or prior to each Closing Date for a Put, (a) the Company shall
      deliver to Investor, one or more certificates, at Investor’s option,
      representing the Put Shares to be purchased by Investor pursuant to Section
      2.1
      herein, registered in the name of Investor and (b) Investor shall deliver to
      the
      Company the Investment Amount specified in the Put Notice by wire transfer
      of
      immediately available funds to an account designated by the Company within
      24
      hours after the Closing Date. In lieu of delivering physical certificates
      representing the Common Stock issuable in accordance with clause (a) of this
      Section 2.3, and provided that the Transfer Agent then is participating in
      the
      Depository Trust Company (“DTC”) Fast Automated Securities Transfer (“FAST”)
      program, upon request of Investor, the Company shall use its commercially
      reasonable efforts to cause the Transfer Agent to electronically transmit,
      prior
      to the Closing Date, the Put Shares by crediting the account of the Investor’s
      prime broker with DTC through its Deposit Withdrawal Agent Commission (“DWAC”)
      system, and provide proof satisfactory to the Investor of such delivery. In
      addition, on or prior to such Closing Date, each of the Company and Investor
      shall deliver all documents, instruments and writings required to be delivered
      or reasonably requested by either of them pursuant to this Agreement in order
      to
      implement and effect the transactions contemplated herein. Within 24 hours
      after
      the Closing Date and provided all conditions to Closing have been satisfied
      by
      the Company, the Investor shall wire transfer to the Company, the Investment
      Amount, less any applicable fees and expenses. 

     

    Section
      2.4 [INTENTIONALLY OMITTED]

    

    Section
      2.5 TERMINATION OF INVESTMENT OBLIGATION. The obligation of Investor pursuant
      to
      this Agreement to purchase shares of Common Stock shall terminate permanently
      (including with respect to a Closing Date that has not yet occurred) in the
      event that (a) there shall occur any stop order or suspension of the
      effectiveness of any Registration Statement for an aggregate of thirty (30)
      Trading Days during the Commitment Period, for any reason other than deferrals
      or suspension during a Blackout Period in accordance with the Registration
      Rights Agreement, as a result of corporate developments subsequent to the
      Subscription Date that would require such Registration Statement to be amended
      to reflect such event in order to maintain its compliance with the disclosure
      requirements of the Securities Act, or (b) the Company shall at any time fail
      to
      comply with the requirements of Section 6.3, 6.4, or 6.6 and such failure shall
      continue for more than thirty (30) days.

    

    
      
         

      

      
        -
          10
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    Section
      2.6 BLACKOUT SHARES. In the event that, (a) within fifteen (15) Trading Days
      following any Closing Date, the Company gives a Blackout Notice to Investor
      of a
      Blackout Period in accordance with the Registration Rights Agreement, and (b)
      the Bid Price on the Trading Day immediately preceding such Blackout Period
      (“OLD BID PRICE”) is greater than the Bid Price on the first Trading Day
      following such Blackout Period that Investor may sell its Registrable Securities
      pursuant to an effective Registration Statement (“NEW BID PRICE”), then the
      Company shall issue to Investor the number of additional shares of Registrable
      Securities (the “BLACKOUT SHARES”) equal to the difference between (i) the
      product of the number of Put Shares held by Investor immediately prior to the
      Blackout Period that were issued on the most recent Closing Date(the “REMAINING
      PUT SHARES”) multiplied by the Old Bid Price, divided by the New Bid Price, and
      (ii) the Remaining Put Shares that were issued on the most recent Closing Date.
      

    

    Section
      2.7 [INTENTIONALLY LEFT BLANK]

    

    Section
      2.8 LIQUIDATED DAMAGES. Each of the Company and Investor acknowledge and agree
      that the requirement to issue Blackout Shares under Section 2.6 shall give
      rise
      to liquidated damages and not penalties. Each of the Company and Investor
      further acknowledge that (a) the amount of loss or damages likely to be incurred
      is incapable or is difficult to precisely estimate, (b) the amount specified
      in
      such Section bears a reasonable proportion and is not plainly or grossly
      disproportionate to the probable loss likely to be incurred by Investor in
      connection with the failure by the Company to make Puts with aggregate Purchase
      Prices totaling at least the Minimum Commitment Amount or in connection with
      a
      Blackout Period under the Registration Rights Agreement, and (c) each of the
      Company and Investor are sophisticated business parties and have been
      represented by sophisticated and able legal and financial counsel and negotiated
      this Agreement at arm’s length.

     

    ARTICLE
      III

    

    REPRESENTATIONS
      AND WARRANTIES OF INVESTOR 

    

    Investor
      represents and warrants to the Company that: 

    

    Section
      3.1 INTENT.
      Investor is entering into this Agreement for its own account and Investor has
      no
      present arrangement (whether or not legally binding) at any time to sell the
      Common Stock to or through any person or entity; provided, however, Investor
      reserves the right to dispose of the Common Stock at any time in accordance
      with
      federal and state securities laws applicable to such disposition.

    

    Section
      3.2  SOPHISTICATED INVESTOR. Investor is a sophisticated investor (as
      described in Rule 506(b)(2)(ii) of Regulation D) and an accredited investor
      (as
      defined in Rule 501 of Regulation D), and Investor has such experience in
      business and financial matters that it is capable of evaluating the merits
      and
      risks of an investment in 

     

    
      
         

      

      
        -
          11
          -

        
          

        

      

      
         

      

    

    the
      Common Stock. Investor acknowledges that an investment in the Common Stock
      is
      speculative and involves a high degree of risk.

    

    Section
      3.3 AUTHORITY. (a) Investor has the requisite power and authority to enter
      into
      and perform its obligations under this Agreement and the transactions
      contemplated hereby in accordance with its terms; (b) the execution and delivery
      of this Agreement and the Registration Rights Agreement, and the consummation
      by
      it of the transactions contemplated hereby and thereby have been duly authorized
      by all necessary action and no further consent or authorization of Investor
      or
      its partners is required; and (c) this Agreement has been duly authorized and
      validly executed and delivered by Investor and is a valid and binding agreement
      of Investor enforceable against it in accordance with its terms, subject to
      applicable bankruptcy, insolvency, or similar laws relating to, or affecting
      generally the enforcement of, creditors’ rights and remedies or by other
      equitable principles of general application.

    

    Section
      3.4 NOT AN AFFILIATE. Investor is not an officer, director or “affiliate” (as
      that term is defined in Rule 405 of the Securities Act) of the
      Company.

    

    Section
      3.5 ORGANIZATION AND STANDING. Investor is a limited liability company duly
      organized, validly existing and in good standing under the laws of the Cayman
      Islands, and has all requisite power and authority to own, lease and operate
      its
      properties and to carry on its business as now being conducted. Investor is
      duly
      qualified as a foreign corporation to do business and is in good standing in
      every jurisdiction in which the nature of the business conducted or property
      owned by it makes such qualification necessary, other than those in which the
      failure so to qualify would not have a material adverse effect on
      Investor.

    

    Section
      3.6 ABSENCE OF CONFLICTS. The execution and delivery of this Agreement and
      any
      other document or instrument contemplated hereby, and the consummation of the
      transactions contemplated hereby and thereby, and compliance with the
      requirements hereof and thereof, will not (a) violate any law, rule, regulation,
      order, writ, judgment, injunction, decree or award binding on Investor, (b)
      violate any provision of any indenture, instrument or agreement to which
      Investor is a party or is subject, or by which Investor or any of its assets
      is
      bound, or conflict with or constitute a material default thereunder, (c) result
      in the creation or imposition of any lien pursuant to the terms of any such
      indenture, instrument or agreement, or constitute a breach of any fiduciary
      duty
      owed by Investor to any third party, or (d) require the approval of any
      third-party (that has not been obtained) pursuant to any material contract,
      instrument, agreement, relationship or legal obligation to which Investor is
      subject or to which any of its assets, operations or management may be
      subject.

    

    Section
      3.7 DISCLOSURE; ACCESS TO INFORMATION. Investor has received all documents,
      records, books and other information pertaining to Investor’s investment in the
      Company that has been requested by Investor. Investor has reviewed or received
      copies of the SEC Documents.

    

    
      
         

      

      
        -
          12
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    Section
      3.8 MANNER OF SALE. At no time was Investor presented with or solicited by
      or
      through any leaflet, public promotional meeting, television advertisement or
      any
      other form of general solicitation or advertising.

    

    Section
      3.9 FINANCIAL CAPABILITY. Investor presently has the financial capacity and
      the
      necessary capital to perform its obligations hereunder and shall and has
      provided to the Company such financial and other information that the Company
      has requested to demonstrate such capacity.

    

    ARTICLE
      IV 

    

    REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY 

    

    The
      Company represents and warrants to Investor that, except as disclosed in the
      SEC
      Documents: 

    

    Section
      4.1 ORGANIZATION OF THE COMPANY. The Company is a corporation duly organized
      and
      validly existing and in good standing under the laws of the State of Delaware,
      and has all requisite power and authority to own, lease and operate its
      properties and to carry on its business as now being conducted. The Company
      is
      duly qualified as a foreign corporation to do business and is in good standing
      in every jurisdiction in which the nature of the business conducted or property
      owned by it makes such qualification necessary, other than those in which the
      failure so to qualify would not have a Material Adverse Effect. 

    

    Section
      4.2 AUTHORITY. (a) The Company has the requisite corporate power and authority
      to enter into and perform its obligations under this Agreement and the
      Registration Rights Agreement and to issue the Put Shares and the Blackout
      Shares, if any; (b) the execution and delivery of this Agreement and the
      Registration Rights Agreement by the Company and the consummation by it of
      the
      transactions contemplated hereby and thereby have been duly authorized by all
      necessary corporate action and no further consent or authorization of the
      Company or its Board of Directors or stockholders is required; and (c) each
      of
      this Agreement and the Registration Rights Agreement has been duly executed
      and
      delivered by the Company and constitute valid and binding obligations of the
      Company enforceable against the Company in accordance with their respective
      terms, except as such enforceability may be limited by applicable bankruptcy,
      insolvency, or similar laws relating to, or affecting generally the enforcement
      of, creditors’ rights and remedies or by other equitable principles of general
      application. 

    

    Section
      4.3 CAPITALIZATION. As of March 31, 2005, the authorized capital stock of the
      Company consisted of the following: 

    

    Common
      stock, $.0001 par value, 300,000,000 shares authorized, 148,274,286 shares
      issued and outstanding at December 31, 2005

    

    
      
         

      

      
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          13
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    Redeemable
      Preferred stock, Series B, $.01 par value, 125 shares authorized; 0 shares
      at
      December 31,2005 (Retired).

     

    Preferred
      stock, Series C, $.01 par value, 175 shares authorized; 52.97 shares as of
      December 31, 2004; 10.99 shares outstanding at December 31, 2005.

    

    Preferred
      stock, Series D, $.01 par value, 75 shares authorized; 0 shares issued as of
      December 31, 2005 (Retired).

     

    Preferred
      stock, Series E, $.01 par value, 106.4 shares authorized, 106.4 shares
      outstanding at December 31, 2005. 

    

    Preferred
      Stock Series G, $.01 par value , 1069 shares authorized; 1069 shares outstanding
      at December 31, 2005.

    

    Preferred
      stock Series H, $.01 par value, 13,500 shares authorized, 12,582 shares are
      outstanding at December 31, 2005. 

    

    Preferred
      stock Series I, $.01 par value 1000 shares authorized; 490.5 shares issued
      and
      outstanding as of December 31, 2005.

    

    All
      of
      the outstanding shares of Common Stock of the Company have been duly and validly
      authorized and issued and are fully paid and nonassessable.

    

    Section
      4.4 COMMON STOCK. The Company has registered the Common Stock pursuant to
      Section 12(b) or 12(g) of the Exchange Act and is in full compliance with all
      reporting requirements of the Exchange Act, and the Company has maintained
      all
      requirements for the continued listing or quotation of the Common Stock, and
      such Common Stock is currently listed or quoted on the Principal Market. As
      of
      the date of this Agreement, the Principal Market is the OTC Bulletin Board.
      

    

    Section
      4.5 SEC DOCUMENTS. The Company has delivered or made available to Investor
      true
      and complete copies of the SEC Documents on file as of December 31, 2005. To
      the
      best of Company’s knowledge, the Company has not provided to Investor any
      information that, according to applicable law, rule or regulation, should have
      been disclosed publicly prior to the date hereof by the Company, but which
      has
      not been so disclosed. As of their respective dates, the SEC Documents complied
      in all material respects with the requirements of the Securities Act or the
      Exchange Act, as the case may be, and other federal, state and local laws,
      rules
      and regulations applicable to such SEC Documents, and none of the SEC Documents
      contained any untrue statement of a material fact or omitted to state a material
      fact required to be stated therein or necessary in order to make the statements
      therein, in light of the circumstances under which they were made, not
      misleading. The financial statements of the Company included in the SEC
      Documents comply as to form and substance in all material respects with
      applicable 

     

    
      
         

      

      
        -
          14
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    accounting
      requirements and the published rules and regulations of the SEC or other
      applicable rules and regulations with respect thereto. Such financial statements
      have been prepared in accordance with generally accepted accounting principles
      applied on a consistent basis during the periods involved (except (a) as may
      be
      otherwise indicated in such financial statements or the notes thereto or (b)
      in
      the case of unaudited interim statements, to the extent they may not include
      footnotes or may be condensed or summary statements) and fairly present in
      all
      material respects the financial position of the Company as of the dates thereof
      and the results of operations and cash flows for the periods then ended
      (subject, in the case of unaudited statements, to normal year-end audit
      adjustments). 

     

    Section
      4.6 EXEMPTION FROM REGISTRATION; VALID ISSUANCES. To the best of Company’s
      knowledge, the sale and issuance of the Put Shares and the Blackout Shares,
      if
      any, in accordance with the terms and on the bases of the representations and
      warranties set forth in this Agreement, may and shall be properly issued by
      the
      Company to Investor pursuant to an exemption from registration pursuant to
      the
      Securities Act and/or any applicable state law. When issued and paid for as
      herein provided, the Put Shares, and the Blackout Shares, if any, shall be
      duly
      and validly issued, fully paid, and nonassessable. Neither the sales of the
      Put
      Shares or the Blackout Shares, if any, pursuant to, nor the Company’s
      performance of its obligations under, this Agreement or the Registration Rights
      Agreement shall (a) result in the creation or imposition of any liens, charges,
      claims or other encumbrances upon the Put Shares or the Blackout Shares, if
      any,
      or any of the assets of the Company, or (b) entitle the holders of Outstanding
      Common Stock to preemptive or other rights to subscribe to or acquire the Common
      Stock or other securities of the Company. The Put Shares and the Blackout
      Shares, if any, shall not subject Investor to personal liability by reason
      of
      the ownership thereof.

    

    Section
      4.7 NO GENERAL SOLICITATION OR ADVERTISING IN REGARD TO THIS TRANSACTION.
      Neither the Company nor any of its affiliates nor any person acting on its
      or
      their behalf (a) has conducted or will conduct any general solicitation (as
      that
      term is used in Rule 502(c) of Regulation D) or general advertising with respect
      to any of the Put Shares or the Blackout Shares, if any, or (b) made any offers
      or sales of any security or solicited any offers to buy any security under
      any
      circumstances that would require registration of the Common Stock under the
      Securities Act. 

     

    Section
      4.8 CORPORATE DOCUMENTS. The Company has furnished or made available to Investor
      true and correct copies of the Company’s Certificate of Incorporation, as
      amended and in effect on the date hereof (the “CERTIFICATE”), and the Company’s
      By-Laws, as amended and in effect on the date hereof (the “BY-LAWS”).

    

    Section
      4.9 NO CONFLICTS. The execution, delivery and performance of this Agreement
      by
      the Company and the consummation by the Company of the transactions contemplated
      hereby, including without limitation the issuance of the Put Shares and the
      

     

    
      
         

      

      
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    Blackout
      Shares, if any, do not and will not (a) result in a violation of the Certificate
      or By-Laws or (b) conflict with, or constitute a material default (or an event
      that with notice or lapse of time or both would become a material default)
      under, or give to others any rights of termination, amendment, acceleration
      or
      cancellation of, any material agreement, indenture, instrument or any “lock-up”
or similar provision of any underwriting or similar agreement to which the
      Company is a party, or (c) result in a violation of any federal, state, local
      or
      foreign law, rule, regulation, order, judgment or decree (including federal
      and
      state securities laws and regulations)applicable to the Company or by which
      any
      property or asset of the Company is bound or affected (except for such
      conflicts, defaults, terminations, amendments, accelerations, cancellations
      and
      violations as would not, individually or in the aggregate, have a Material
      Adverse Effect) nor is the Company otherwise in violation of, conflict with
      or
      in default under any of the foregoing; provided, however, that for purposes
      of
      the Company’s representations and warranties as to violations of foreign law,
      rule or regulation referenced in clause (c), such representations and warranties
      are made only to the best of the Company’s knowledge insofar as the execution,
      delivery and performance of this Agreement by the Company and the consummation
      by the Company of the transactions contemplated hereby are or may be affected
      by
      the status of Investor under or pursuant to any such foreign law, rule or
      regulation. The business of the Company is not being conducted in violation
      of
      any law, ordinance or regulation of any governmental entity, except for possible
      violations that either singly or in the aggregate do not and will not have
      a
      Material Adverse Effect. The Company is not required under federal, state or
      local law, rule or regulation to obtain any consent, authorization or order
      of,
      or make any filing or registration with, any court or governmental agency in
      order for it to execute, deliver or perform any of its obligations under this
      Agreement or issue and sell the Common Stock in accordance with the terms
      hereof(other than any SEC, NASD or state securities filings that may be required
      to be made by the Company subsequent to any Closing, any registration statement
      that may be filed pursuant hereto, and any shareholder approval required by
      the
      rules applicable to companies whose common stock trades on the Over The Counter
      Bulletin Board); provided that, for purposes of the representation made in
      this
      sentence, the Company is assuming and relying upon the accuracy of the relevant
      representations and agreements of Investor herein. 

    

    Section
      4.10 NO MATERIAL ADVERSE CHANGE. Since December 31, 2005, no event has occurred
      that would have a Material Adverse Effect on the Company, except as disclosed
      in
      the SEC Documents on file on the date hereof.

    

    Section
      4.11 NO
      UNDISCLOSED LIABILITIES. The Company has no liabilities or obligations that
      are
      material, individually or in the aggregate, and that are not disclosed in the
      SEC Documents on file on the date hereof or otherwise publicly announced, other
      than those incurred in the ordinary course of the Company’s businesses since
      September 31, 2005 and which, individually or in the aggregate, do not or would
      not have a Material Adverse Effect on the Company.

    

    Section
      4.12 NO
      UNDISCLOSED EVENTS OR CIRCUMSTANCES. Since

     

    
      
         

      

      
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    September
      31, 2005, no event or circumstance has occurred or exists with respect to the
      Company or its businesses, properties, prospects, operations or financial
      condition, that, under applicable law, rule or regulation, requires public
      disclosure or announcement prior to the date hereof by the Company but which
      has
      not been so publicly announced or disclosed in the SEC Documents on file on
      the
      date hereof. 

    

    Section
      4.13 NO
      INTEGRATED OFFERING. Neither the Company, nor any of its affiliates, nor any
      person acting on its or their behalf has, directly or indirectly, made any
      offers or sales of any security or solicited any offers to buy any security,
      other than pursuant to this Agreement, under circumstances that would require
      registration of the Common Stock under the Securities Act.

    

    Section
      4.14 LITIGATION AND OTHER PROCEEDINGS. Except as may be set forth in the SEC
      Documents on file on the date hereof, there are no lawsuits or proceedings
      pending or to the best knowledge of the Company threatened, against the Company,
      nor has the Company received any written or oral notice of any such action,
      suit, proceeding or investigation, which would have a Material Adverse Effect.
      Except as set forth in the SEC Documents on file on the date hereof, no
      judgment, order, writ, injunction or decree or award has been issued by or,
      so
      far as is known by the Company, requested of any court, arbitrator or
      governmental agency which would have a Material Adverse Effect. 

    

    Section
      4.15 NO MISLEADING OR UNTRUE COMMUNICATION. The Company, any Person representing
      the Company, and, to the knowledge of the Company, any other Person selling
      or
      offering to sell the Put Shares or the Blackout Shares, if any, in connection
      with the transactions contemplated by this Agreement, have not made, at any
      time, any oral communication in connection with the offer or sale of the same
      which contained any untrue statement of a material fact or omitted to state
      any
      material fact necessary in order to make the statements, in the light of the
      circumstances under which they were made, not misleading.

    

    ARTICLE
      V

    

    COVENANTS
      OF INVESTOR

    

    Section
      5.1 COMPLIANCE WITH LAW. Investor’s trading activities with respect to shares of
      the Common Stock will be in compliance with all applicable state and federal
      securities laws, rules and regulations and the rules and regulations of the
      NASD
      and the Principal Market on which the Common stock is listed. 

    

    

    
      
         

      

      
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    ARTICLE
      VI

    

    COVENANTS
      OF THE COMPANY

    

    Section
      6.1 REGISTRATION RIGHTS. The Company shall cause the Registration Rights
      Agreement to remain in full force and effect and the Company shall comply in
      all
      respects with the terms thereof.

    

    Section
      6.2 RESERVATION OF COMMON STOCK. Not later than January 31, 2006, the Company
      shall have available and the Company shall reserve and keep available at all
      times, free of preemptive rights, shares of Common Stock for the purpose of
      enabling the Company to satisfy any obligation to issue the Put Shares and
      the
      Blackout Shares, if any; such amount of shares of Common Stock to be reserved
      shall be calculated based upon a minimum Purchase Price of $.05 for the Put
      Shares under the terms and conditions of this Agreement and a good faith
      estimate by the Company in consultation with Investor of the number of Blackout
      Shares, if any, that will need to be issued. The number of shares so reserved
      from time to time, as theretofore increased or reduced as hereinafter provided,
      may be reduced by the number of shares actually delivered
      hereunder.

    

    Section
      6.3 LISTING OF COMMON STOCK. The Company shall maintain the listing of the
      Common Stock on a Principal Market and, if applicable, will cause the Put Shares
      and the Blackout Shares, if any, to be listed on the Principal Market. The
      Company further shall, if the Company applies to have the Common Stock traded
      on
      any other Principal Market, include in such application the Put Shares and
      the
      Blackout Shares, if any, and shall take such other action as is necessary or
      desirable in the reasonable opinion of Investor to cause the Common Stock to
      be
      listed on such other Principal Market as promptly as possible. The Company
      shall
      use its commercially reasonable efforts to continue the listing and trading
      of
      the Common Stock on the Principal Market (including, without limitation,
      maintaining sufficient net tangible assets) and will comply in all respects
      with
      the Company’s reporting, filing and other obligations under the bylaws or rules
      of the NASD and the Principal Market.

    

    Section
      6.4 EXCHANGE ACT REGISTRATION. The Company shall take all commercially
      reasonable steps to cause the Common Stock to continue to be registered under
      Section 12(g) or 12(b) of the Exchange Act, will use its commercially reasonable
      efforts to comply in all material respects with its reporting and filing
      obligations under said Act, and will not take any action or file any document
      (whether or not permitted by said Act or the rules thereunder)to terminate
      or
      suspend such registration or to terminate or suspend its reporting and filing
      obligations under said Act.

    

    Section
      6.5 LEGENDS. The certificates evidencing the Put Shares and the Blackout Shares,
      if any, shall be free of legends, except as provided for in Article
      VIII.

    

    Section
      6.6 CORPORATE EXISTENCE. The Company shall take all commercially reasonable
      steps necessary to preserve and continue the corporate existence of the Company.
      

    

    Section
      6.7 [INTENTIONALLY OMITTED]

    

    
      
         

      

      
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    Section
      6.8 NOTICE OF CERTAIN EVENTS AFFECTING REGISTRATION; SUSPENSION OF RIGHT TO
      MAKE
      A PUT. The Company shall promptly notify 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 Registrable Securities: (a) 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; (b) 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;
      (c) receipt of any notification with respect to the suspension of the
      qualification or exemption from qualification of any of the Registrable
      Securities for sale in any jurisdiction or the initiation or threatening of
      any
      proceeding for such purpose; (d) 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 circumstances
      under which they were made, not misleading; and (e) 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 Investor any Put Notice during the continuation of any of the
      foregoing events.

    

    Section
      6.9 EXPECTATIONS REGARDING PUT NOTICES. Within fifteen (15) business days after
      the commencement of each calendar quarter occurring subsequent to the
      commencement of the Commitment Period, the Company undertakes to notify Investor
      as to its reasonable expectations as to the dollar amount it intends to raise
      during such calendar quarter, if any, through the issuance of Put Notices.
      Such
      notification shall constitute only the Company’s good faith estimate with
      respect to such calendar quarter and shall in no way obligate the Company to
      raise such amount during such calendar quarter or otherwise limit its ability
      to
      deliver Put Notices during such calendar quarter. The failure by the Company
      to
      comply with this provision can be cured by the Company’s notifying Investor at
      any time as to its reasonable expectations with respect to the current calendar
      quarter. 

    

    Section
      6.10 CONSOLIDATION; MERGER. The Company shall not, at any time after the date
      hereof, effect any merger or consolidation of the Company with or into, or
      a
      transfer of all or substantially all of the assets of the Company to, another
      entity unless the resulting successor or acquiring entity (if not the Company)
      assumes by written instrument the obligation to deliver to Investor such shares
      of Common Stock and/or 

     

    
      
         

      

      
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    securities
      as Investor is entitled to receive pursuant to this Agreement. 

    

    Section
      6.11 ISSUANCE OF PUT SHARES AND BLACKOUT SHARES. The sale of the Put Shares
      and
      the issuance of the Blackout Shares, if any, shall be made in accordance with
      the provisions and requirements of Regulation D (or shall otherwise be exempt
      from the registration requirements of the Securities Act) and any applicable
      state law.

    

    Section
      6.12 DILUTION. The number of shares of Common Stock issuable as Put Shares
      may
      increase substantially 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
      Commitment 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. The board
      of
      directors of the Company has concluded, in its good faith business judgment,
      that such issuance is in the best interests of the Company. The Company
      specifically acknowledges that its obligation to issue the Put Shares is binding
      upon the Company and enforceable regardless of the dilution such issuance may
      have on the ownership interests of other shareholders of the
      Company.

    

    ARTICLE
      VII

    

    CONDITIONS
      TO DELIVERY OF

    PUT
      NOTICES AND CONDITIONS TO CLOSING

    

    Section
      7.1 CONDITIONS PRECEDENT TO THE OBLIGATION OF THE COMPANY TO ISSUE AND SELL
      COMMON STOCK. The obligation hereunder of the Company to issue and sell the
      Put
      Shares to Investor incident to each Closing is subject to the satisfaction,
      at
      or before each such Closing, of each of the conditions set forth below.

    

    (a)
      ACCURACY OF INVESTOR’S REPRESENTATIONS AND WARRANTIES. The representations and
      warranties of Investor shall be true and correct in all material respects as
      of
      the date of this Agreement and as of the date of each such Closing as though
      made at each such time, except for changes which have not had a Material Adverse
      Effect. 

    

    (b)
      PERFORMANCE BY INVESTOR. Investor shall have performed, satisfied and complied
      in all respects with all covenants, agreements and conditions required by this
      Agreement to be performed, satisfied or complied with by Investor at or prior
      to
      such Closing.

    

    Section
      7.2 CONDITIONS PRECEDENT TO THE RIGHT OF THE COMPANY TO DELIVER A PUT NOTICE
      AND
      THE OBLIGATION OF INVESTOR TO 

     

    
      
         

      

      
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    PURCHASE
      PUT SHARES. The right of the Company to deliver a Put Notice and the obligation
      of Investor hereunder to acquire and pay for the Put Shares incident to a
      Closing is subject to the satisfaction, on (a) the date of delivery of such
      Put
      Notice and (b) the applicable Closing Date (each a “CONDITION SATISFACTION
      DATE”), of each of the following conditions: 

    

    (a)
      REGISTRATION OF REGISTRABLE SECURITIES WITH THE SEC. As set forth in the
      Registration Rights Agreement, the Company shall have filed with the SEC the
      Initial Registration Statement with respect to the resale of the Initial
      Registrable Securities by Investor and such Registration Statement shall have
      been declared effective by the SEC prior to the first Put Date. For the purposes
      of any Put Notice with respect to the Registrable Securities other than the
      Initial Registrable Securities, the Company shall have filed with the SEC a
      Registration Statement with respect to the resale of such Registrable Securities
      by Investor which shall have been declared effective by the SEC prior to the
      Put
      Date therefore. 

     

    (b)
      EFFECTIVE REGISTRATION STATEMENT. As set forth in the Registration Rights
      Agreement, a Registration Statement shall have previously become effective
      for
      the resale by Investor of the Registrable Securities subject to such Put Notice
      and such Registration Statement shall remain effective on each Condition
      Satisfaction Date and (i) neither the Company nor 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.

    

    (c)
      ACCURACY OF THE COMPANY’S REPRESENTATIONS AND WARRANTIES. The representations
      and warranties of the Company shall be true and correct in all material respects
      as of each Condition Satisfaction Date as though made at each such time (except
      for representations and warranties specifically made as of a particular date)
      with respect to all periods, and as to all events and circumstances occurring
      or
      existing to and including each Condition Satisfaction Date, except for any
      conditions which have temporarily caused any representations or warranties
      herein to be incorrect and which have been corrected with no continuing material
      impairment to the Company or Investor.

    

    (d)
      PERFORMANCE BY THE COMPANY. The Company shall have performed, satisfied and
      complied in all material respects with all covenants, agreements and conditions
      required by this Agreement and the Registration Rights Agreement to be
      performed, satisfied or complied with by the Company at or prior to each
      Condition Satisfaction Date.

    

    
      
         

      

      
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    (e)
      NO
      INJUNCTION. No statute, rule, regulation, executive order, decree, ruling or
      injunction shall have been enacted, entered, promulgated or adopted by any
      court
      or governmental authority of competent jurisdiction that prohibits or directly
      and materially adversely affects any of the transactions contemplated by this
      Agreement, and no proceeding shall have been commenced that may have the effect
      of prohibiting or materially adversely affecting any of the transactions
      contemplated by this Agreement.

    

    (f)
      [INTENTIONALLY OMITTED]

    

    (g)
      NO
      SUSPENSION OF TRADING IN OR DELISTING OF COMMON STOCK. The trading of the Common
      Stock shall not have been suspended by the SEC, the Principal Market or the
      NASD
      and the Common Stock shall have been approved for listing or quotation on and
      shall not have been delisted from the Principal Market.

    

    (h)
      LEGAL
      OPINION. The Company shall have caused to be delivered to Investor, within
      five
      (5) Trading Days of the effective date of the Initial Registration Statement
      and
      each subsequent Registration Statement, an opinion of the Company’s legal
      counsel in the form of Exhibit C hereto, addressed to Investor.

    

    (i)
      [INTENTIONALLY OMITTED]

    

    (j)
      Notwithstanding anything to the contrary contained herein, if, on any Closing
      Date, the number of Put Shares then to be purchased pursuant to a Put Notice
      by
      Investor would, when aggregated with all other shares of Common Stock then
      held
      by Investor (including, for the purposes of this Section 7.2(j), Common Stock
      issuable upon conversion, exercise or exchange, as applicable, of Common Stock
      Equivalents then held by Investor), cause Investor to beneficially own in excess
      of 9.999% of the total number of issued and outstanding shares of Common Stock
      after giving effect to the Put (the “Percentage Cap”), then the number of Put
      Shares shall be reduced to the extent necessary for Investor’s beneficial
      ownership of Common Stock, after giving effect to the Put, not to exceed the
      Percentage Cap. For such purposes, beneficial ownership shall be determined
      in
      accordance with Section 13(d) of the Exchange Act and the rules and regulations
      promulgated thereunder. In the event the number of Put Shares with respect
      to
      any Put are required to be reduced pursuant to this Section 7.2(j), Investor
      shall provide, via facsimile, as soon as possible on the Closing Date, and
      in no
      event later than 12:00 p.m. EST, a notice to the Company setting forth the
      maximum number of shares issuable pursuant to such put which would not result
      in
      Investor’s beneficial ownership exceeding the Percentage Cap.

    

    (k)
      NO
      KNOWLEDGE. The Company shall have no knowledge of any event more likely than
      not
      to have the effect of causing such Registration Statement to be suspended or
      otherwise ineffective (which event is more likely than not to occur within
      the
      fifteen Trading Days following the Trading Day on which such Notice is deemed
      delivered.

    

    
      
         

      

      
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    (l)
      SHAREHOLDER VOTE. The issuance of shares of Common Stock with respect to the
      applicable Closing, if any, shall not violate the shareholder approval
      requirements of the Principal Market.

    

    (m)
      OTHER. On each Condition Satisfaction Date, Investor shall have received a
      certificate in the form and substance of Exhibit D hereto, executed by an
      executive officer of the Company. 

    

    Section
      7.3 DUE DILIGENCE REVIEW; NON-DISCLOSURE OF NON-PUBLIC INFORMATION.

    

    (a)
      The
      Company shall make available for inspection and review by Investor, advisors
      to
      and representatives of Investor (who may or may not be affiliated with Investor
      and who are reasonably acceptable to the Company), and any Underwriter, any
      Registration Statement or amendment or supplement thereto or any blue sky,
      NASD
      or other filing, all financial and other records, all SEC Documents and other
      filings with the SEC, and all other corporate documents and properties of the
      Company as may be reasonably necessary for the purpose of such review, and
      cause
      the Company’s officers, directors and employees to supply all such information
      reasonably requested by Investor or any such representative, advisor or
      Underwriter in connection with such Registration Statement (including, without
      limitation, in response to all questions and other inquiries reasonably made
      or
      submitted by any of them), prior to and from time to time after the filing
      and
      effectiveness of such Registration. 

    

    (b)
      Each
      of the Company, its officers, directors, employees and agents shall in no event
      disclose non-public information to Investor, advisors to or representatives
      of
      Investor.

    

    (c)
      Nothing herein shall require the Company to disclose non-public information
      to
      Investor or its advisors or representatives, and the Company represents that
      it
      does not disseminate 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 shall, as hereinabove provided, immediately notify the
      advisors and representatives of Investor and 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
      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 a 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 7.3 shall be construed to mean that such
      persons or entities other than Investor (without the written consent of Investor
      prior to disclosure of such information) may not 

     

    
      
         

      

      
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    obtain
      non-public information in the course of conducting due diligence in accordance
      with the terms and conditions 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, any Registration
      Statement contains an untrue statement of a material fact or omits a material
      fact required to be stated in such Registration Statement or necessary to make
      the statements contained therein, in light of the circumstances in which they
      were made, not misleading.

    

    ARTICLE
      VIII 

    

    LEGENDS

    

    Section
      8.1 LEGENDS. (a) Except
      as
      otherwise provided below, each certificate representing Registrable Securities
      will bear the following legend (the “LEGEND”):

    

    The
      securities represented by this certificate have not been registered under the
      Securities Act of 1933 (the “Securities Act”) or qualified under applicable
      state securities laws. These securities may not be offered, sold, pledged,
      hypothecated, transferred or otherwise disposed of except pursuant to (i) an
      effective registration statement and qualification in effect with respect
      thereto under the Securities Act and under any applicable state securities
      law,
      (ii) to the extent applicable, Rule 144 under the Securities Act, or (iii)
      an
      opinion of counsel reasonably acceptable to the Company that such registration
      and qualification is not required under applicable federal and state securities
      laws.”

    

    (b) As
      soon
      as practicable after the execution and delivery hereof, the Company shall issue
      to the Transfer Agent the Transfer Agent Instructions. Such instructions shall
      be irrevocable by the Company from and after the date thereof or from and after
      the issuance thereof except as otherwise expressly provided in the Registration
      Rights Agreement. It is the intent and purpose of such instructions, as provided
      therein, to require the Transfer Agent to issue to Investor certificates
      evidencing shares of Common Stock incident to a Closing, free of the Legend,
      without consultation by the transfer agent with the Company or its counsel
      and
      without the need for any further advice or instruction or documentation to
      the
      Transfer Agent by or from the Company or its counsel or Investor; provided
      that
      (a) a Registration Statement shall then be effective, (b) Investor confirms
      to
      the Transfer Agent and the Company that it has or intends to sell such Common
      Stock to a third party which is not an affiliate of Investor or the Company
      and
      Investor agrees to redeliver the certificate representing such shares of Common
      Stock to the Transfer Agent to add the Legend in the event the Common Stock
      is
      not sold, and (c) Investor confirms to the transfer agent and the Company that
      Investor has complied with the prospectus delivery requirement under the
      Securities Act. At any time after the 

     

    
      
         

      

      
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    Effective
      Date, upon surrender of one or more certificates evidencing Common Stock that
      bear the Legend, to the extent accompanied by a notice requesting the issuance
      of new certificates free of the Legend to replace those
      surrendered.

    

    Section
      8.2 NO OTHER LEGEND OR STOCK TRANSFER RESTRICTIONS. No legend other than the
      one
      specified in Section 8.1 has been or shall be placed on the share certificates
      representing the Common Stock and no instructions or “stop transfers orders,” so
      called, “stock transfer restrictions,” or other restrictions have been or shall
      be given to the Company’s transfer agent with respect thereto other than as
      expressly set forth in this Article VIII.

    

    Section
      8.3 COVER. If the Company fails for any reason to deliver the Put Shares on
      such
      Closing Date and the holder of the Put Shares (a “Investor”) purchases, in an
      open market transaction or otherwise, shares of Common Stock (the “Covering
      Shares”) in order to make delivery in satisfaction of a sale of Common Stock by
      such Investor (the “Sold Shares”), which delivery such Investor anticipated to
      make using the Put Shares (a “Buy-In”), then the Company shall pay to such
      Investor, in addition to all other amounts contemplated in other provisions
      of
      the Transaction Documents, and not in lieu thereof, the Buy-In Adjustment Amount
      (as defined below). The “Buy-In Adjustment Amount” is the amount equal to the
      excess, if any, of (x) such Investor’s total purchase price (including brokerage
      commissions, if any) for the Covering Shares over (y) the net proceeds (after
      brokerage commissions, if any) received by such Investor from the sale of the
      Sold Shares. The Company shall pay the Buy-In Adjustment Amount to such Investor
      in immediately available funds immediately upon demand by such Investor. By
      way
      of illustration and not in limitation of the foregoing, if such Investor
      purchases Covering Shares having a total purchase price (including brokerage
      commissions) of $11,000 to cover a Buy-In with respect to shares of Common
      Stock
      that it sold for net proceeds of $10,000, the Buy-In Adjustment Amount that
      the
      Company will be required to pay to such Investor will be $1,000.

    

    Section
      8.4 INVESTOR’S COMPLIANCE. Nothing in this Article VIII shall affect in any way
      Investor’s obligations under any agreement to comply with all applicable
      securities laws upon resale of the Common Stock.

    

    ARTICLE
      IX

    

    NOTICES;
      INDEMNIFICATION

    

    Section
      9.1 NOTICES. All notices, demands, requests, consents, approvals, and other
      communications required or permitted hereunder shall be in writing and, unless
      otherwise specified herein, shall be (a) personally served,(b) deposited in
      the
      mail, registered or certified, return receipt requested, postage prepaid, (c)
      delivered by reputable air courier service with charges prepaid, or (d)
      transmitted by hand delivery, telegram, or facsimile, addressed as set forth
      below or to such other address as such party shall have specified most recently
      by written notice given in accordance herewith. Any 

     

    
      
         

      

      
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    notice
      or
      other communication required or permitted to be given hereunder shall be deemed
      effective (i) upon hand delivery or delivery by facsimile, with accurate
      confirmation generated by the transmitting facsimile machine, at the address
      or
      number designated below (if delivered on a business day during normal business
      hours where such notice is to be received), or the first business day following
      such delivery (if delivered other than on a business day during normal business
      hours where such notice is to be received) or (ii) on the second business day
      following the date of mailing by express courier service or on the fifth
      business day after deposited in the mail, in each case, fully prepaid, addressed
      to such address, or upon actual receipt of such mailing, whichever shall first
      occur. The addresses for such communications shall be: 

    

    If
      to the
      Company:     Global
      Matrechs, Inc.

    90
      Grove
      Street, Suite 201

    Ridgefield,
      CT 06877

    Telephone
      No.: (203) 431-6665

    Telecopier
      No.: (203) 431-8304

    

    if
      to
      Investor:      
Brittany
      Capital Management Ltd.

    Cumberland
      House

    27
      Cumberland Street

    PO
      Box
      N-10818

    Nassau,
      New Providence

    Bahamas

     

    

    Either
      party hereto may from time to time change its address or facsimile number for
      notices under this Section 9.1 by giving at least ten (10) days’ prior written
      notice of such changed address or facsimile number to the other party hereto.
      

    

    Section
      9.2 INDEMNIFICATION.

    

    The
      Company agrees to indemnify and hold harmless Investor and its officers,
      directors, employees, and agents, and each Person or entity, if any, who
      controls Investor within the meaning of Section 15 of the Securities Act or
      Section 20 of the Exchange Act, together with the Controlling Persons (as
      defined in the Registration Rights Agreement) from and against any Damages,
      joint or several, and any action in respect thereof to which Investor, its
      partners, affiliates, officers, directors, employees, and duly authorized
      agents, and any such Controlling Person becomes subject to, resulting from,
      arising out of or relating to any misrepresentation, breach of warranty or
      nonfulfillment of or failure to perform any covenant or agreement on the part
      of
      Company contained in this Agreement, as such Damages are incurred, except to
      the
      extent such Damages result primarily from Investor’s failure to perform any
      covenant or agreement contained in this Agreement or Investor’s or its
      officer’s, director’s, employee’s, agent’s or Controlling Person’s negligence,
      recklessness or bad faith in performing its obligations under this Agreement.
      

    

    
      
         

      

      
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    Section
      9.3 METHOD OF ASSERTING INDEMNIFICATION CLAIMS. All claims for indemnification
      by any Indemnified Party (as defined below) under Section 9.2 shall be asserted
      and resolved as follows:

    

    (a)
      In
      the event any claim or demand in respect of which any person claiming
      indemnification under any provision of this Article (an “INDEMNIFIED PARTY”)
      might seek indemnity under this Article is asserted against or sought to be
      collected from such Indemnified Party by a person other than a party hereto
      or
      an affiliate thereof (a “THIRD PARTY CLAIM”), the Indemnified Party shall
      deliver a written notification, enclosing a copy of all papers served, if any,
      and specifying the nature of and basis for such Third Party Claim and for the
      Indemnified Party’s claim for indemnification that is being asserted under any
      provision of this Article against any person (the “INDEMNIFYING PARTY”),
      together with the amount or, if not then reasonably ascertainable, the estimated
      amount, determined in good faith, of such Third Party Claim (a “CLAIM NOTICE”)
      with reasonable promptness to the Indemnifying Party. If the Indemnified Party
      fails to provide the Claim Notice with reasonable promptness after the
      Indemnified Party receives notice of such Third Party Claim, the Indemnifying
      Party shall not be obligated to indemnify the Indemnified Party with respect
      to
      such Third Party Claim to the extent that the Indemnifying Party’s ability to
      defend has been prejudiced by such failure of the Indemnified Party. The
      Indemnifying Party shall notify the Indemnified Party as soon as practicable
      within the period ending thirty (30) calendar days following receipt by the
      Indemnifying Party of either a Claim Notice or an Indemnity Notice (as defined
      below) (the “DISPUTE PERIOD”) whether the Indemnifying Party disputes its
      liability or the amount of its liability to the Indemnified Party under this
      Article and whether the Indemnifying Party desires, at its sole cost and
      expense, to defend the Indemnified Party against such Third Party Claim.(i)If
      the Indemnifying Party notifies the Indemnified Party within the Dispute Period
      that the Indemnifying Party desires to defend the Indemnified Party with respect
      to the Third Party Claim pursuant to this Section 9.3(a), then the Indemnifying
      Party shall have the right to defend, with counsel reasonably satisfactory
      to
      the Indemnified Party, at the sole cost and expense of the Indemnifying Party,
      such Third Party Claim by all appropriate proceedings, which proceedings shall
      be vigorously and diligently prosecuted by the Indemnifying Party to a final
      conclusion or will be settled at the discretion of the Indemnifying Party (but
      only with the consent of the Indemnified Party in the case of any settlement
      that provides for any relief other than the payment of monetary damages or
      that
      provides for the payment of monetary damages as to which the Indemnified Party
      shall not be indemnified in full pursuant to this Article). The Indemnifying
      Party shall have full control of such defense and proceedings, including any
      compromise or settlement thereof; provided, however, that the Indemnified Party
      may, at the sole cost and expense of the Indemnified Party, at any time prior
      to
      the Indemnifying Party’s delivery of the notice referred to in the first
      sentence of this clause (i), file any motion, answer or other pleadings or
      take
      any other action that the Indemnified Party reasonably believes to be necessary
      or appropriate to protect its interests; and provided further, that if requested
      by the Indemnifying Party, the Indemnified Party will, at the sole cost and
      

     

    
      
         

      

      
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    expense
      of the Indemnifying Party, provide reasonable cooperation to the Indemnifying
      Party in contesting any Third Party Claim that the Indemnifying Party elects
      to
      contest. The Indemnified Party may participate in, but not control, any defense
      or settlement of any Third Party Claim controlled by the Indemnifying Party
      pursuant to this clause (i), and except as provided in the preceding sentence,
      the Indemnified Party shall bear its own costs and expenses with respect to
      such
      participation. Notwithstanding the foregoing, the Indemnified Party may takeover
      the control of the defense or settlement of a Third Party Claim at any time
      if
      it irrevocably waives its right to indemnity under this Article with respect
      to
      such Third Party Claim. (ii) If the Indemnifying Party fails to notify the
      Indemnified Party within the Dispute Period that the Indemnifying Party desires
      to defend the Third Party Claim pursuant to Section 9.3(a), or if the
      Indemnifying Party gives such notice but fails to prosecute vigorously and
      diligently or settle the Third Party Claim, or if the Indemnifying Party fails
      to give any notice whatsoever within the Dispute Period, then the Indemnified
      Party shall have the right to defend, at the sole cost and expense of the
      Indemnifying Party, the Third Party Claim by all appropriate proceedings, which
      proceedings shall be prosecuted by the Indemnified Party in a reasonable manner
      and in good faith or will be settled at the discretion of the Indemnified
      Party(with the consent of the Indemnifying Party, which consent will not be
      unreasonably withheld). The Indemnified Party will have full control of such
      defense and proceedings, including any compromise or settlement thereof;
      provided, however, that if requested by the Indemnified Party, the Indemnifying
      Party will, at the sole cost and expense of the Indemnifying Party, provide
      reasonable cooperation to the Indemnified Party and its counsel in contesting
      any Third Party Claim which the Indemnified Party is contesting. Notwithstanding
      the foregoing provisions of this clause (ii), if the Indemnifying Party has
      notified the Indemnified Party within the Dispute Period that the Indemnifying
      Party disputes its liability or the amount of its liability hereunder to the
      Indemnified Party with respect to such Third Party Claim and if such dispute
      is
      resolved in favor of the Indemnifying Party in the manner provided in clause
      (iii) below, the Indemnifying Party will not be required to bear the costs
      and
      expenses of the Indemnified Party’s defense pursuant to this clause (ii) or of
      the Indemnifying Party’s participation therein at the Indemnified Party’s
      request, and the Indemnified Party shall reimburse the Indemnifying Party in
      full for all reasonable costs and expenses incurred by the Indemnifying Party
      in
      connection with such litigation. The Indemnifying Party may participate in,
      but
      not control, any defense or settlement controlled by the Indemnified Party
      pursuant to this clause (ii), and the Indemnifying Party shall bear its own
      costs and expenses with respect to such participation. (iii) If the Indemnifying
      Party notifies the Indemnified Party that it does not dispute its liability
      or
      the amount of its liability to the Indemnified Party with respect to the Third
      Party Claim under this Article or fails to notify the Indemnified Party within
      the Dispute Period whether the Indemnifying Party disputes its liability or
      the
      amount of its liability to the Indemnified Party with respect to such Third
      Party Claim, the amount of Damages specified in the Claim Notice shall be
      conclusively deemed a liability of the Indemnifying Party under this Article
      and
      the Indemnifying Party shall pay the amount of such Damages to the Indemnified
      Party on demand. If the Indemnifying Party has timely disputed its liability
      or
      the amount of its liability with respect to such claim, the Indemnifying Party
      and the Indemnified Party shall proceed

     

    
      
         

      

      
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    in
      good
      faith to negotiate a resolution of such dispute; provided, however, that if
      the
      dispute is not resolved within thirty (30) days after the Claim Notice, the
      Indemnifying Party shall be entitled to institute such legal action as it deems
      appropriate. 

    

    (b)
      In
      the event any Indemnified Party should have a claim under this Article against
      the Indemnifying Party that does not involve a Third Party Claim, the
      Indemnified Party shall deliver a written notification of a claim for indemnity
      under this Article specifying the nature of and basis for such claim, together
      with the amount or, if not then reasonably ascertainable, the estimated amount,
      determined in good faith, of such claim (an “INDEMNITY NOTICE”) with reasonable
      promptness to the Indemnifying Party. The failure by any Indemnified Party
      to
      give the Indemnity Notice shall not impair such party’s rights hereunder except
      to the extent that the Indemnifying Party demonstrates that it has been
      irreparably prejudiced thereby. If the Indemnifying Party notifies the
      Indemnified Party that it does not dispute the claim or the amount of the claim
      described in such Indemnity Notice or fails to notify the Indemnified Party
      within the Dispute Period whether the Indemnifying Party disputes the claim
      or
      the amount of the claim described in such Indemnity Notice, the amount of
      Damages specified in the Indemnity Notice will be conclusively deemed a
      liability of the Indemnifying Party under this Article and the Indemnifying
      Party shall pay the amount of such Damages to the Indemnified Party on demand.
      If the Indemnifying Party has timely disputed its liability or the amount of
      its
      liability with respect to such claim, the Indemnifying Party and the Indemnified
      Party shall proceed in good faith to negotiate a resolution of such dispute;
      provided, however, that if the dispute is not resolved within thirty (30) days
      after the Claim Notice, the Indemnifying Party shall be entitled to institute
      such legal action as it deems appropriate. 

    

    (c) The
      indemnity agreements contained herein shall be in addition to (i) any cause
      of
      action or similar rights of the Indemnified Party against the Indemnifying
      Party
      or others, and (ii) any liabilities the Indemnifying Party may be subject
      to.

    

    Section
      9.4 REIMBURSEMENT. (i) any Investor, other than by reason of its gross
      negligence or willful misconduct, becomes involved in any capacity in any
      action, proceeding or investigation brought by any stockholder of the Company,
      in connection with or as a result of the consummation of the transactions
      contemplated by the Transaction Agreements, or if such Investor is impleaded
      in
      any such action, proceeding or investigation by any Person, or (ii) any
      Investor, other than by reason of its gross negligence or willful misconduct
      or
      by reason of its trading of the Common Stock in a manner that is illegal under
      the federal securities laws, becomes involved in any capacity in any action,
      proceeding or investigation brought by the SEC against or involving the Company
      or in connection with or as a result of the consummation of the transactions
      contemplated by the Transaction Agreements, or if such Investor is impleaded
      in
      any such action, proceeding or investigation by any Person, then in any such
      case, the Company will reimburse such Investor for its reasonable legal and
      other expenses (including the cost of any investigation and preparation)
      incurred in connection therewith, as such expenses are incurred. In addition,
      other than with respect to any 

     

    
      
         

      

      
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    matter
      in
      which such Investor is a named party, the Company will pay such Investor the
      charges, as reasonably determined by such Investor, for the time of any officers
      or employees of such Investor devoted to appearing and preparing to appear
      as
      witnesses, assisting in preparation for hearings, trials or pretrial matters,
      or
      otherwise with respect to inquiries, hearing, trials, and other proceedings
      relating to the subject matter of this Agreement. The reimbursement obligations
      of the Company under this paragraph shall be in addition to any liability which
      the Company may otherwise have, shall extend upon the same terms and conditions
      to any Affiliates of the Investor who are actually named in such action,
      proceeding or investigation, and partners, directors, agents, employees and
      controlling persons (if any), as the case may be, of the Investor and any such
      Affiliate, and shall be binding upon and inure to the benefit of any successors,
      assigns, heirs and personal representatives of the Company, the Investor and
      any
      such Affiliate and any such Person. The Company also agrees that neither any
      Investor nor any such Affiliate, partners, directors, agents, employees or
      controlling persons shall have any liability to the Company or any person
      asserting claims on behalf of or in right of the Company in connection with
      or
      as a result of the consummation of the Transaction Agreements except to the
      extent that any losses, claims, damages, liabilities or expenses incurred by
      the
      Company result from the gross negligence or willful misconduct of such
      Investor.

    

     

    ARTICLE
      X

    

    MISCELLANEOUS

    

    Section
      10.1 GOVERNING LAW; JURISDICTION. This Agreement shall be governed by and
      interpreted in accordance with the laws of the State of New York without regard
      to the principles of conflicts of law. Each of the Company and Investor hereby
      submit to the exclusive jurisdiction of the United States Federal and state
      courts located in New York with respect to any dispute arising under this
      Agreement, the agreements entered into in connection herewith or the
      transactions contemplated hereby or thereby.

    

    Section
      10.2 JURY
      TRIAL WAIVER. The Company and the Investor hereby waive a trial by jury in
      any
      action, proceeding or counterclaim brought by either of the parties hereto
      against the other in respect of any matter arising out of or in connection
      with
      the Transaction Documents. 

     

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

     

    
      
         

      

      
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    Section
      10.4 ASSIGNMENT. Neither this Agreement nor any rights of Investor or the
      Company hereunder may be assigned by either party to any other person.

    

    Section
      10.5 THIRD PARTY BENEFICIARIES. This Agreement is intended for the benefit
      of
      the Company and Investor, and is not for the benefit of, nor may any provision
      hereof be enforced by, any other person. 

    

    Section
      10.6 TERMINATION. This Agreement shall terminate at the end of the Commitment
      Period or as otherwise provided herein(unless extended by the agreement of
      the
      Company and Investor); provided, however, that the provisions of Article VI,
      VIII, IX and Sections 10.2, 10.3 and 10.4 shall survive the termination of
      this
      Agreement. 

    

    Section
      10.7 ENTIRE AGREEMENT. This Agreement and the instruments referenced herein
      contain the entire understanding of the Company and Investor with respect to
      the
      matters covered herein and therein and, except as specifically set forth herein
      or therein, neither the Company nor Investor makes any representation, warranty,
      covenant or undertaking with respect to such matters. 

    

    Section
      10.8 FEES AND EXPENSES. Except as otherwise provided in this Agreement or any
      of
      the Exhibits thereto, each of the Company and Investor agrees to pay its own
      expenses in connection with the preparation of this Agreement and performance
      of
      its obligations hereunder. The Company shall pay all stamp or other similar
      taxes and duties levied in connection with issuance of the Shares pursuant
      hereto.

    

    Section
      10.9 NO BROKERS. Each of the Company and Investor represents that it has had
      no
      dealings in connection with this transaction with any finder or broker who
      will
      demand payment of any fee or commission from the other party, except that the
      company agrees to pay the consultant, Greenfield Capital Partners, LLC., a
      fee
      in the amount of 1% of any money funded pursuant to a Put Notice. The Company
      on
      the one hand, and Investor, on the other hand, agree to indemnify the other
      against and hold the other harmless from any and all liabilities to any persons
      claiming brokerage commissions or finder’s fees on account of services purported
      to have been rendered on behalf of the indemnifying party in connection with
      this Agreement or the transactions contemplated hereby. 

    

    Section
      10.10 COUNTERPARTS. This Agreement may be executed in multiple counterparts,
      each of which may be executed by less than all of the Company and shall be
      deemed to be an original instrument which shall be enforceable against the
      parties actually executing such counterparts and all of which together shall
      constitute one and the same instrument. This Agreement, once executed by a
      party, may be delivered to the other parties hereto by facsimile transmission
      of
      a copy of this Agreement bearing the signature of the parties so delivering
      this
      Agreement. 

    

    Section
      10.11 SURVIVAL; SEVERABILITY. The representations, warranties, 

     

    
      
         

      

      
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    covenants
      and agreements of the Company hereto shall survive each Closing hereunder for
      a
      period of one (1) year thereafter. In the event that any provision of this
      Agreement becomes or is declared by a court of competent jurisdiction to be
      illegal, unenforceable or void, this Agreement shall continue in full force
      and
      effect without said provision; provided that such severability shall be
      ineffective if it materially changes the economic benefit of this Agreement
      to
      any party. 

    

    Section
      10.12 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. 

    

    Section
      10.13 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. 

    

    Section
      10.14 TITLE AND SUBTITLES. The titles and subtitles used in this Agreement
      are
      used for the convenience of reference and are not to be considered in construing
      or interpreting this Agreement. 

    

    Section
      10.15 REPORTING ENTITY FOR THE COMMON STOCK. The reporting entity relied upon
      for the determination of the trading price of the Common Stock on any given
      Trading Day for the purposes of this Agreement shall be Bloomberg L.P. or any
      successor thereto. 

    

    Section
      10.16 PUBLICITY.
      The Company and 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 written consent of the other
      parties, which consent shall not be unreasonably withheld 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 parties with
      prior notice of such public statement. Notwithstanding the foregoing, the
      Company shall not publicly disclose the name of Investor without the prior
      written consent of such Investor, except to the extent required by law. Investor
      acknowledges that this Agreement and all or part of the 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 Securities Act or the Exchange Act. 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.

    

    

    [REMAINDER
      OF PAGE LEFT BLANK]

    
 

    
 

    
      
         

      

      
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    IN
      WITNESS WHEREOF, the parties hereto have caused this Private Equity Credit
      Agreement to be executed by the undersigned, thereunto duly authorized, as
      of
      the date first set forth above.    

     

     

    
      	 	 	 
	 	GLOBAL
              MATRECHS, INC.
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
              
Name:
              Michael Sheppard
	 	Title:  
              President 

      

      	 	 	 
	 	BRITTANY
              CAPITAL MANAGEMENT LTD.
	 
 	 
 	 
 
	 	By:  	/s/ 
	 	
              
Name:
	 	Title: 
              Director 

    

    

     

     

     

    
 

     

    

    

    
 

    

 

    
      
         

      

      
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      EXHIBIT
        10.1

    

    

    EXHIBITS

    

    

    

    EXHIBIT
      A    Registration
      Rights Agreement

    

    EXHIBIT
      B    Put
      Notice

    

    EXHIBIT
      C    Opinion

    

    EXHIBIT
      D    Closing
      Certificate

    

    EXHIBIT
      E    Transfer
      Agent Instructions

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