Document:

EMCORE: WORLDWATER INVESTMENT AGREEMENT

    

       

      
        

        

      

      EXHIBIT
        10.1

      

      

      
        	
                 

                 

                 

                 

                INVESTMENT
                  AGREEMENT

                 

                BY
                  AND BETWEEN

                 

                WORLDWATER
                  AND POWER CORP.

                 

                AND

                 

                EMCORE
                  CORPORATION

                 

                 

                 

                 

                 

                Dated
                  as of November 29, 2006

                 

                 

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      TABLE
        OF CONTENTS

       

      

      
        	
                1.

              	
                Definitions

              	 

      

      
        	
                2.

              	
                General
                  Rules of Interpretation

              	 

      

      
        	
                3.

              	
                Authorization
                  of the Shares

              	 

      

      
        	
                4.

              	
                Sale
                  and Purchase

              	 

      

      
        	
                5.

              	
                Closing

              	 

      

      
        	
                6.

              	
                Representations
                  and Warranties by the Company

              	 

      

      
        	 	
                6.1

              	
                Organization

              	 

      

      
        	 	
                6.2

              	
                Authorization
                  and Enforceability

              	 

      

      
        	 	
                6.3

              	
                Capitalization

              	 

      

      
        	 	
                6.4

              	
                Due
                  Issuance and Authorization of Capital Stock

              	 

      

      
        	 	
                6.5

              	
                Consents

              	 

      

      
        	 	
                6.6

              	
                Financial
                  Statements

              	 

      

      
        	 	
                6.7

              	
                SEC
                  Documents.

              	 

      

      
        	 	
                6.8

              	
                No
                  Conflicts

              	 

      

      
        	 	
                6.9

              	
                Intellectual
                  Property

              	 

      

      
        	 	
                6.10

              	
                Material
                  Contracts

              	 

      

      
        	 	
                6.11

              	
                Right
                  of First Refusal; Voting and Registration Rights

              	 

      

      
        	 	
                6.12

              	
                Intentionally
                  Omitted

              	 

      

      
        	 	
                6.13

              	
                No
                  Integrated Offering; Private Placement

              	 

      

      
        	 	
                6.14

              	
                Absence
                  of Certain Developments

              	 

      

      
        	 	
                6.15

              	
                Undisclosed
                  Liabilities

              	 

      

      
        	 	
                6.16

              	
                Litigation

              	 

      

      
        	 	
                6.17

              	
                Compliance
                  with Laws

              	 

      

      
        	 	
                6.18

              	
                Taxes

              	 

      

      
        	 	
                6.19

              	
                Employee
                  and Benefit Plans

              	 

      

      
        	 	
                6.20

              	
                Brokers

              	 

      

      
        	 	
                6.21

              	
                Related-Party
                  Transactions

              	 

      

      
        	 	
                6.22

              	
                Insurance

              	 

      

      
        	 	
                6.23

              	
                Title
                  to Properties

              	 

      

      
        	 	
                6.24

              	
                Environmental
                  Matters

              	 

      

      
        	 	
                6.25

              	
                Books
                  and Records

              	 

      

      
        	 	
                6.26

              	
                Listing
                  and Maintenance Requirements.

              	 

      

      
        	 	
                6.27

              	
                Solvency.

              	 

      

      
        	 	
                6.28

              	
                Foreign
                  Corrupt Practices

              	 

      

      
        	 	
                6.29

              	
                Business
                  Practices.

              	 

      

      
        	 	
                6.30

              	
                Disclosure

              	 

      

      
        	
                7.

              	
                Representations
                  and Warranties of the Investor

              	 

      

      
        	 	
                7.1

              	
                Organization

              	 

      

      
        	 	
                7.2

              	
                Authorization;
                  Enforceability

              	 

      

      
        	 	
                7.3

              	
                No
                  Conflicts

              	 

      

      
        	 	
                7.4

              	
                Litigation

              	 

      

      
        	 	
                7.5

              	
                Available
                  Funds

              	 

      

      
        	 	
                7.6

              	
                Brokers

              	 

      

      
        	
                8.

              	
                Covenants

              	 

      

      
        	 	
                8.1

              	
                Continuing
                  Covenants of the Company

              	 

      

      
        	 	
                8.2

              	
                Auditors

              	 

      

      
        	 	
                8.3

              	
                Composition
                  of Board of Directors; Directors and Officers Insurance
                  Policy

              	 

      

      
        	 	
                8.4

              	
                Use
                  of Proceeds

              	 

      

      
        	 	
                8.5

              	
                Reservation
                  of Common Stock

              	 

      

      
        	 	
                8.6

              	
                Filings

              	 

      

      
        	 	
                8.7

              	
                Financial
                  Statements and Other Information

              	 

      

      
        	 	
                8.8

              	
                Inspection
                  of Property

              	 

      

      
        	 	
                8.9

              	
                Further
                  Assurances

              	 

      

      
        	 	
                8.10

              	
                Financing
                  for Entech Acquisition

              	 

      

      
        	 	
                8.11

              	
                Strategic
                  Agreement

              	 

      

      
        	 	
                8.12

              	
                Right
                  to Participate Pro-Rata in Future Financing

              	 

      

      
        	 	
                8.13

              	
                Restrictive
                  Legend

              	 

      

      
        	 	
                8.14

              	
                Public
                  Statements.

              	 

      

      
        	
                9.

              	
                Conditions
                  to the Parties' Obligations

              	 

      

      
        	 	
                9.1

              	
                Conditions
                  to Each Party's Obligations

              	 

      

      
        	 	
                9.2

              	
                Conditions
                  to the Investor’s Obligations

              	 

      

      
        	 	
                9.3

              	
                Conditions
                  to the Company's Obligations

              	 

      

      
        	
                10.

              	
                Indemnification

              	 

      

      
        	 	
                10.1

              	
                Survival
                  of Representations and Warranties

              	 

      

      
        	 	
                10.2

              	
                Indemnification

              	 

      

      
        	 	
                10.3

              	
                Limits
                  on Indemnification

              	 

      

      
        	 	
                10.4

              	
                Effect
                  of Investigation

              	 

      

      
        	
                11.

              	
                Miscellaneous

              	 

      

      
        	 	
                11.1

              	
                Notices

              	 

      

      
        	 	
                11.2

              	
                Termination
                  of Agreement

              	 

      

      
        	 	
                11.3

              	
                Effect
                  of Termination

              	 

      

      
        	 	
                11.4

              	
                Successors
                  and Assigns

              	 

      

      
        	 	
                11.5

              	
                Headings

              	 

      

      
        	 	
                11.6

              	
                Governing
                  Law

              	 

      

      
        	 	
                11.7

              	
                Expenses

              	 

      

      
        	 	
                11.8

              	
                Jurisdiction

              	 

      

      
        	 	
                11.9

              	
                Waiver
                  of Jury Trial

              	 

      

      
        	 	
                11.10

              	
                Counterparts;
                  Effectiveness

              	 

      

      
        	 	
                11.11

              	
                Entire
                  Agreement

              	 

      

      
        	 	
                11.12

              	
                Severability

              	 

      

      
        	 	
                11.13

              	
                Change;
                  Waiver

              	 

      

      

      
        
          
            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      

      INVESTMENT
        AGREEMENT

       

      This
        INVESTMENT AGREEMENT (this "Agreement"), dated as of November 29, 2006, by
        and
        between WorldWater and Power Corp., a Delaware corporation (the "Company"),
        and
        EMCORE Corporation, a New Jersey corporation (the "Investor"). Certain terms
        used and not otherwise defined in the text of this Agreement are defined
        in
        Section 1 of this Agreement.

       

      W
        I T
        N E S S E T H

       

      WHEREAS,
        the Company desires to issue and to sell to the Investor, and the Investor
        desires to purchase from the Company, the Securities (as hereinafter defined)
        in
        accordance with the terms and provisions of this Agreement;

       

      NOW,
        THEREFORE, in consideration of the foregoing and the mutual representations,
        warranties and covenants herein contained, the parties hereto hereby agree
        as
        follows:

       

      	1.  	
              Definitions

            

       

      .
        Unless
        the context otherwise requires, the terms defined in this Section 1 shall
        have
        the meanings specified for all purposes of this Agreement.

       

      "Affiliate"
        means, with respect to any Person, any other Person that directly or indirectly,
        through one or more intermediaries, controls, or is controlled by or, is
        under
        common control with, such Person. For purposes of this definition, the term
        "control" (including the terms "controlling", "controlled by" and "under
        common
        control with") as used with respect to any Person means the possession, direct
        or indirect, of the power to direct or cause the direction of the management
        and/or policies of such Person, whether through ownership of voting securities,
        by Contract or otherwise.

       

      "Agreed
        Allocation" has the meaning assigned to it in Section 4(c) hereof.

       

      "Balance
        Sheet" has the meaning assigned to it in Section 6.6 hereof.

       

      "Benefit
        Plans" has the meaning assigned to it in Section 6.19(a) hereof.

       

      "Board
        of
        Directors" means the board of directors of the Company.

       

      "Business
        Day" means any day, except a Saturday or Sunday or legal holiday on which
        banking institutions in The City of New York are authorized or obligated
        by Law
        or executive order to close.

       

      "Business
        Premises" has the meaning assigned to it in Section 6.24(c) hereof.

       

      "Certificate
        of Designation" has the meaning assigned to it in Section 3 hereof.

       

      "Certificate
        of Incorporation" means the Company's Certificate of Incorporation, as
        amended.

       

      "Certifications"
        has the meaning assigned to it in Section 6.7 hereof.

       

      "Code"
        means the Internal Revenue Code of 1986, as amended.

       

      "Common
        Stock" means common stock, par value $0.001 per share, of the
        Company.

       

      "Company"
        has the meaning assigned to it in the introductory paragraph of this
        Agreement.

       

      "Company
        Loss" has the meaning assigned to it in Section 10.2(b) hereof.

       

      "Company
        Permit" means all licenses, registrations, franchises, permits, certificates
        and
        approvals granted by or obtained from any Governmental Entity and used by
        the
        Company or any of its Subsidiaries in connection with the conduct of their
        businesses.

       

      "Company
        Stock Option Plan" has the meaning assigned to it in Section 6.3(b)
        hereof.

       

      "Confidentiality
        Agreement" means the Confidentiality Agreement dated October 9, 2006 between the
        Company and the Investor.

       

      "Contract"
        means, with respect to any Person, any agreement, arrangement, undertaking,
        contract, commitment, obligation, promise, indenture, deed of trust or other
        instrument, document or agreement (whether written or oral) by which that
        Person, or any amount of its present or future properties or assets, is bound
        or
        subject.

       

      "Conversion
        Shares" has the meaning assigned to it in Section 3 hereof.

       

      "Disclosure
        Schedule" means the disclosure schedule hereto delivered by the Company to
        the
        Investor.

       

      "Entech"
        has the meaning assigned to in Section 8.10 hereof.

       

      "Entech
        Financing" has the meaning assigned to it in Section 8.10 hereof.

       

      "Environmental
        Condition" means the presence of any Hazardous Material or of any wetland
        or
        endangered or threatened species or habitat. However, the presence in the
        ordinary course of business of solid waste at the location of its generation
        pending its proper disposal to an appropriately licensed third-party site
        in the
        ordinary course of business consistent with all applicable Law does not,
        without
        more, constitute an "Environmental Condition."

       

      "Environmental
        Requirement" means any federal, state, local or foreign statute, treaty,
        ordinance, rule, regulation, policy, common Law, permit or order relating
        to any
        Environmental Subject Matter.

       

      "Environmental
        Subject Matter" means (a) any Hazardous Material, (b) any release or threatened
        Release of a Hazardous Material from, to or through any location, (c) the
        generation, treatment, storage, presence, disposal, use, handling,
        manufacturing, transporting or shipment by any Person of any Hazardous Material,
        (d) natural resources, (e) wetlands, (f) an endangered or threatened species
        or
        habitat, (g) odor, noise, air, water or soil or (h) any OSHA and similar
        state
        Law requirements.

       

      "Environmental
        Laws" has the meaning assigned to it in Section 6.24(a) hereof.

       

      "ERISA"
        has the meaning assigned to it in Section 6.19(a) hereof.

       

      "ERISA
        Affiliate" has the meaning assigned to it in Section 6.19(a)
        hereof.

       

      "Exchange
        Act" means the Securities Exchange Act of 1934, as amended, and the rules
        and
        regulations promulgated thereunder.

       

      "Financial
        Statement Losses" means any adverse impact to the Investor's financial
        statements, including, without limitation, any increase in costs, expenses,
        charges, reserves or liabilities or decrease in profits or assets (not giving
        effect to any positive impact arising from matters unrelated to the Investor
        Losses); it being the intent of the Parties that if an indemnifiable event
        occurs which negatively impacts the Company with the result that the financial
        statements of the Investor are adversely impacted, the Company shall indemnify
        the Investor for such Financial Statement Losses. 

       

      "Financial
        Statements" has the meaning assigned to it in Section 6.6 hereof.

       

      "Fully-Diluted
        Basis" has the meaning assigned to it in Section 8.12(d) hereof.

       

      "GAAP"
        means United States generally accepted accounting principles consistently
        applied.

       

      "Governmental
        Entity" means any national, federal, state, municipal, local, territorial,
        foreign or other government or any department, commission, board, bureau,
        agency, regulatory authority or instrumentality thereof, or any court, judicial,
        administrative or arbitral body or public or private tribunal.

       

      "Hazardous
        Material" means any hazardous material, hazardous substance, hazardous waste,
        toxic substance, toxic pollutant, contaminant, petroleum (including crude
        oil
        and any fractions thereof), natural or synthetic gas or any mixture thereof,
        asbestos, asbestos containing material, PCB or materials or objects containing
        PCB, medical waste, infectious waste, lead containing paint, radioactive
        material and any material or substance defined as a "hazardous material"
        or
        "hazardous substance" or similar term in any Environmental
        Requirement.

       

      "Indebtedness"
        means, with respect to any Person, without duplication, (i) all obligations
        of
        such Person for borrowed money (whether or not the recourse of the lender
        is to
        the whole of the assets of such Person or only to a portion thereof, but
        if not
        to the whole of the assets, a pro rata amount of such obligations equal to
        such
        portion thereof); (ii) all obligations of such Person evidenced by bonds,
        debentures, notes or other similar instruments; (iii) all reimbursement
        obligations of such Person in respect of letters of credit, letters of guaranty,
        bankers' acceptances and similar credit transactions; (iv) all obligations
        of
        such Person to pay the deferred and unpaid purchase price of property or
        services; (v) the capitalized portion of any obligations of such Person to
        pay
        rent or other amounts under a lease that is required to be capitalized for
        financial reporting purposes in accordance with GAAP, (vi) all obligations
        of a
        Person other than the Company or one of its Subsidiaries that is secured
        by a
        Lien on any asset of the Company or one of its Subsidiaries; (vii) all
        Indebtedness of others guaranteed by such Person to the extent of such
        guarantee; (viii) all obligations of such Person pursuant to hedging agreements,
        swap agreements, collar agreements, forward Contracts, commodity swap and
        option
        agreements; (ix) all obligations of such Person under conditional sale or
        other
        title retention agreements relating to assets purchased by such Person; and
        (x)
        any off-balance sheet receivables financing arrangements. 

       

      "Indemnified
        Party" has the meaning assigned to it in Section 10.2(c) hereof.

       

      "Indemnifying
        Party" has the meaning assigned to it in Section 10.2(a) hereof.

       

      "Intellectual
        Property" shall mean all intellectual property and industrial property rights
        of
        any kind or nature, including all U.S. and foreign (i) patents, patent
        applications, patent disclosures, and all related continuations,
        continuations-in-part, divisionals, reissues, re-examinations, substitutions,
        and extensions thereof ("Patents"), (ii) trademarks, service marks, names,
        corporate names, trade names, domain names, logos, slogans, trade dress,
        and
        other similar designations of source or origin, together with the goodwill
        symbolized by any of the foregoing ("Trademarks"), (iii) copyrights,
        copyrightable subject matter and mask works ("Copyrights"), (iv) rights of
        publicity, (v) moral rights and rights of attribution and integrity, (v)
        computer programs (whether in source code, object code, or other form),
        algorithms, databases, compilations and data, technology supporting the
        foregoing, and all documentation, including user manuals and training materials,
        related to any of the foregoing ("Software"), (vi) trade secrets and all
        other
        confidential information, know-how, inventions, proprietary processes, formulae,
        models, and methodologies ("Trade Secrets"), (vii) rights of privacy and
        rights
        to personal information, (viii) telephone numbers and Internet protocol
        addresses, (ix) all rights in the foregoing and in other similar intangible
        assets, (x) all applications and registrations for the foregoing, and (xi)
        all
        rights and remedies against past, present, and future infringement,
        misappropriation, or other violation thereof.

       

      "Investor"
        has the meaning assigned to it in the introductory paragraph of this
        Agreement.

       

      "Investor
        Loss" has the meaning assigned to it in Section 10.2(a) hereof.

       

      "IP
        Contracts" has the meaning assigned to it in Section 6.9(b) hereof.

       

      "Law"
        means any law (including common law), ordinance, writ, directive, judgment,
        order, decree, injunction, statute, treaty, rule or regulation or determination
        of (or an agreement with) an arbitrator or a Governmental Entity.

       

      "Liability"
        means any debt, liability, commitment, obligation, claim or cause of action
        of
        any kind whatsoever, whether due or to become due, known or unknown, accrued
        or
        fixed, absolute or contingent, or otherwise.

       

      "Lien"
        means, with respect to any asset or security, any mortgage, lien, pledge,
        charge, understanding or arrangement imposing a restriction on title or use,
        security interest, encumbrance or restriction on title or transfer of any
        kind
        in respect of such asset or security.

       

      "Loss"
        has the meaning assigned to it in Section 10.2 (b) hereof.

       

      "Material
        Adverse Effect" means, with respect to the Company, any fact, event,
        circumstance, change, condition or effect that, individually or together
        with
        other facts, events, circumstances, changes, conditions or effects (i) has
        been
        or could reasonably be expected to be material and adverse to the business,
        assets, value, properties, liabilities, prospects, condition (financial or
        otherwise) or results of operations of the Company and its Subsidiaries,
        taken
        as a whole, whether related specifically to the Company and its Subsidiaries
        or
        to more generally applicable facts, events, changes or effects or (ii) has
        or
        could reasonably be expected to materially delay the consummation of the
        transactions contemplated hereby or by the Transaction Documents or materially
        and adversely affect the ability of the Company and its Subsidiaries, taken
        as a
        whole, to perform timely its obligations under this Agreement or under any
        of
        the Transaction Documents.

       

      "Material
        Contract" has the meaning assigned to it in Section 6.10(a) hereof.

       

      "Permitted
        Transferee" has the meaning assigned to it in Section 11.4 hereof.

       

      "Person"
        means any individual, sole proprietorship, partnership, limited liability
        company, joint venture, trust, incorporated organization, association,
        corporation, institution, Governmental Entity or any other entity.

       

      "Preemptive
        Rights Notice" has the meaning assigned to it in Section 8.12(a)
        hereof.

       

      "Preemptive
        Rights Offer" has the meaning assigned to it in Section 8.12(a)
        hereof.

       

      "Preferred
        Shares" has the meaning assigned to it in Section 3 hereof.

       

      "Purchase
        Price" has the meaning assigned to it in Section 4(b) hereof.

       

      "Real
        Property" has the meaning assigned to it in Section 6.23(a) hereof.

       

      "Registration
        Rights Agreement" means the Registration Rights Agreement in the form attached
        hereto as Exhibit
        A.

       

      "Release"
        means any spilling, leaking, pumping, pouring, emitting, emptying, discharging,
        injecting, escaping, migration, leaching, placing, discarding, dumping or
        disposing of any Hazardous Material into the environment. However, the act
        of
        disposing of Hazardous Materials in accordance with applicable Environmental
        Requirements to a third-party site licensed to accept such Hazardous Materials
        for disposal does not, without more, constitute a "Release."

       

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

       

      "SEC
        Documents" has the meaning assigned to it in Section 6.7 hereof.

       

      "Securities"
        means the Tranche A Securities and the Tranche B Securities.

       

      "Securities
        Act" means the Securities Act of 1933, as amended, and the rules and regulations
        promulgated thereunder.

       

      "Series
        D
        Preferred Stock" means Series D preferred stock, par value $0.01, of the
        Company.

       

      "SPV"
        has
        the meaning assigned to it in Section 8.10 hereof.

       

      "Strategic
        Agreement" means the Strategic Agreement to be entered into by the Company
        and
        the Investor with respect to the matters set forth on Exhibit
        B.

       

      "Subsidiary"
        means, with respect to any Person, any corporation, association trust, limited
        liability company, partnership, joint venture or other business association
        or
        entity (i) at least 50% of the outstanding voting securities of which are
        at the
        time owned or controlled directly or indirectly by such Person or (ii) with
        respect to which the Company possesses, directly or indirectly, the power
        to
        direct or cause the direction of the affairs or management of such
        Person.

       

      "Tax"
        or
        "Taxes" means any federal, state, local or foreign income, gross receipts,
        license, payroll, employment, excise, severance, stamp, occupation, premium,
        windfall profits, environmental (including taxes under Code §59A), customs
        duties, capital stock, franchise, profits, withholding, social security (or
        similar), unemployment, disability, real property, personal property, sales,
        use, transfer, registration, value added, alternative or add-on minimum,
        estimated or other tax of any kind whatsoever, including any interest, penalties
        or additions thereto, whether disputed or not and including any obligations
        to
        indemnify or otherwise assume or succeed to the Tax liability of any other
        Person.

       

      "Tax
        Return" means any return, declaration, report, claim for refund or information
        return or statement relating to Taxes, including any schedule or attachment
        thereto, and including any amendment thereof.

       

      "Third
        Party Claims" has the meaning assigned to it in Section 10.2(c) hereof.

       

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

       

      "Trading
        Market" means the following markets or exchanges on which the Common Stock
        is
        listed or quoted for trading on the date in question: the Nasdaq SmallCap
        Market, the American Stock Exchange, the New York Stock Exchange, the Nasdaq
        National Market or the OTC Bulletin Board.

       

      "Tranche
        A Closing" has the meaning assigned to it in Section 5(a) hereof.

       

      "Tranche
        A Closing Date" has the meaning assigned to it in Section 5(b)
        hereof.

       

      "Tranche
        A Purchase Price" has the meaning assigned to it in Section 4(a)
        hereof.

       

      "Tranche
        A Securities" has the meaning assigned to it in Section 4(a)
        hereof.

       

      "Tranche
        A Shares" has the meaning assigned to it in Section 4(a) hereof.

       

      "Tranche
        A Warrants" has the meaning assigned to it in Section 4(a) hereof.

       

      "Tranche
        B Closing" has the meaning assigned to it in Section 5(a) hereof.

       

      "Tranche
        B Closing Date" has the meaning assigned to it in Section 6 hereof.

       

      "Tranche
        B Purchase Price" has the meaning assigned to it in Section 4(b)
        hereof.

       

      "Tranche
        B Securities" has the meaning assigned to it in Section 4(b)
        hereof.

       

      "Tranche
        B Shares" has the meaning assigned to it in Section 4(b) hereof.

       

      "Tranche
        B Warrants" has the meaning assigned to it in Section 4(b) hereof.

       

      "Transaction
        Documents" means this Agreement, the Warrant Instrument, the Registration
        Rights
        Agreement, and the Strategic Agreement.

       

              
"Unaudited
        Balance Sheets" has
        the meaning assigned to it in Section 6.6 hereof. 

       

      "Unaudited
        Financial Statements" has the meaning assigned to it in Section 6.6 hereof.
        

       

      "Underlying
        Shares" means the shares of Common Stock issuable upon conversion of the
        shares
        of Series D Preferred Stock. 

       

      "VWAP"
        means, for any date, the price determined by the first of the following clauses
        that applies: (a) if the Common Stock is then listed or quoted on a Trading
        Market, the daily volume weighted average price of the Common Stock for such
        date (or the nearest preceding date) on the primary Trading Market on which
        the
        Common Stock is then listed or quoted as reported by Bloomberg Financial
        L.P.
        (based on a Trading Day from 9:30 a.m. EST to 4:02 p.m. Eastern Time) using
        the
        VAP function; (b) if the Common Stock is not then listed or quoted on the
        Trading Market and if prices for the Common Stock are then reported in the
        "Pink
        Sheets" published by the Pink Sheets, LLC (or a similar organization or agency
        succeeding to its functions of reporting prices), the most recent bid price
        per
        share of the Common Stock so reported; or (c) in all other cases, the fair
        market value of a share of Common Stock as determined by a nationally
        recognized-independent appraiser selected in good faith by the
        Investor.

       

      "Warrant
        Instrument" has the meaning assigned to it in Section 3 hereof.

       

      "Warrants"
        has the meaning assigned to it in Section 3 hereof.

       

       

      	2.  	
              General
                Rules of Interpretation

            

       

      (a)  When
        a
        reference is made in this Agreement to “recitals,” “Sections,” “Exhibits” or
“Disclosure Schedule,” such reference shall be to a recital or Section of, or
        Exhibits or Disclosure Schedule to, this Agreement unless otherwise
        indicated.

       

      (b)  Whenever
        the words “include,” “includes” or “including” are used in this Agreement, they
        shall be deemed followed by the words “without limitation.”

       

      (c)  References
        herein to “transactions contemplated by this Agreement” or to “transactions
        contemplated hereby” shall be deemed to include a reference to each transaction
        contemplated by or provided for in this Agreement and any instruments,
        certificates, documents or agreements, including the Transaction Documents,
        entered into or contemplated to be entered into in connection
        herewith.

       

      (d)  Except
        as
        otherwise expressly provided, all accounting terms used in this Agreement
        shall
        be construed in accordance with GAAP.

       

      (e)  The
        Company and the Investor acknowledge that they have been represented by counsel
        in connection with this Agreement and the transactions contemplated by this
        Agreement. Accordingly, any rule of Law, or any legal decision that would
        require interpretation of any claimed ambiguities in this Agreement against
        the
        party that drafted it, has no application and is expressly waived. The
        provisions of this Agreement shall be interpreted in a reasonable manner
        to
        affect the intent of the Investor and the Company.

       

      (f)  Whenever
        this Agreement shall require a party to take an action, such requirement
        shall
        be deemed to include an undertaking by such party to use its reasonable best
        efforts to cause its representatives to take all necessary and appropriate
        action in connection therewith.

       

      (g)  A
        reference to a statute, listing rule, rule, standard, regulation or other
        Law
        includes a reference to the corresponding rules and regulations and includes
        a
        reference to each of them as amended, consolidated, replaced or rewritten
        from
        time to time.

       

      (h)  The
        singular includes the plural and conversely.

       

      (i)  If
        a word
        or phrase is defined, its other grammatical forms have a corresponding
        meaning.

       

      (j)  A
        reference to a party to this Agreement or another agreement or document includes
        the party’s successors, permitted substitutes and permitted assigns (and, where
        applicable, the party’s legal personal representatives).

       

      (k)  A
        reference to the “knowledge” of Investor means the actual knowledge of any of
        the "officers" (as such term is defined in Rule 16(a)-1(f) promulgated under
        the
        Exchange Act) or directors of the Investor. A reference to the “knowledge” of
        the Company means the actual knowledge that was or would reasonably be expected
        to be obtained after due inquiry of any employees, officers or directors
        of the
        Company.

       

      (l)  The
        use
        of “or” is not intended to be exclusive unless expressly so
        indicated.

       

       

      	3.  	
              Authorization
                of the Shares

            

       

      .
        On or
        prior to the Tranche A Closing, the Company shall have authorized (a) the
        initial sale and issuance to the Investor of six million, five hundred and
        twenty-three thousand, eight hundred and ten (6,523,810) shares of Series
        D
        Preferred Stock (the "Preferred Shares"), (b) the issuance of six hundred
        and
        sixty-eight thousand, one hundred and thirty-nine (668,139) warrants to purchase
        an aggregate of up to six hundred and sixty-eight thousand, one hundred and
        thirty-nine (668,139) shares of Series D Preferred Stock (the "Warrants")
        and
        (c) the reservation for issuance of shares of Common Stock upon exercise
        and
        conversion of the Warrants and conversion of the Preferred Shares of up to
        seventy-one million, nine hundred and nineteen thousand, four hundred and
        ninety
        (71,919,490) shares of Common Stock (the "Conversion Shares") based on the
        current conversion ratio of 10 shares of Common Stock for each share of Series
        D
        Preferred Stock. The Preferred Shares shall have the rights, preferences,
        privileges and restrictions set forth in the Certificate of Designation of
        the
        Series D Preferred Stock of the Company in the form attached hereto as
Exhibit
        C
        (the
        "Certificate of Designation"). The Warrants shall have the rights, preferences,
        privileges and restrictions set forth in the form attached hereto as
Exhibit
        D
        (the
        "Warrant Instrument"). The Conversion Shares shall have the rights, preferences,
        privileges and restrictions set forth in the Certificate of
        Incorporation.

       

       

      	4.  	
              Sale
                and Purchase

            

       

      (a)  Subject
        to the terms and conditions hereof, at the Tranche A Closing the Company
        shall
        issue and sell to the Investor, and the Investor shall purchase from the
        Company
        four million, eight hundred and ninety two thousand, eight hundred and fifty
        seven (4,892,857) shares of Series D Preferred Stock (the "Tranche A Shares")
        at
        a price of $2.76 per share and five hundred and five thousand and forty-four
        (505,044) Warrants (the "Tranche A Warrants", and together with the Tranche
        A
        Shares, the "Tranche A Securities") for no additional consideration for an
        aggregate consideration of thirteen million five hundred thousand dollars
        ($13,500,000) (the "Tranche A Purchase Price"). The parties agree that five
        hundred thousand dollars ($500,000) of the Tranche Purchase Price has already
        been paid by the Investor to the Company. As such at the Tranche A Closing
        the
        Investor needs to deliver thirteen million dollars ($13,000,000) (the "Remaining
        Tranche A Purchase Price").

       

      (b)  Subject
        to the terms and conditions hereof, at the Tranche B Closing the Company
        shall
        issue and sell to the Investor and the Investor shall purchase from the Company
        one million, six hundred and thirty thousand, nine hundred and fifty-two
        (1,630,952) shares of Series D Preferred Stock (the "Tranche B Shares") at
        a
        price per share of $2.76 per share and one hundred and sixty-three thousand
        and
        ninety-five (163,095) Warrants (the "Tranche B Warrants", and together with
        the
        Tranche B Shares, the "Tranche B Securities") for no additional consideration
        for an aggregate consideration of four million five hundred thousand dollars
        ($4,500,000) (the "Tranche B Purchase Price", and together with the Tranche
        A
        Purchase Price, the "Purchase Price").

       

      (c)  The
        Company will not make any allocation of the Purchase Price paid by the Investor
        between the Preferred Shares and the Warrants without the Investor's concurrence
        thereto in writing (the "Agreed Allocation") and shall prepare and file all
        Tax
        Returns on a basis consistent with the Agreed Allocation and shall take no
        position inconsistent with the Agreed Allocation in any proceeding before
        any
        taxing authority or for any other Tax purpose, unless otherwise required
        to do
        so by applicable Law. 

       

       

      	5.  	
              Closing

            

       

      (a)  Closing.
        The
        delivery of the certificates representing the Tranche A Securities, payment
        by
        the Investor of the Remaining Tranche A Purchase Price and all other instruments
        required by this Agreement (the "Tranche A Closing") shall take place at
        10:00
        a.m. on the date of execution of the Agreement at the offices of Skadden,
        Arps,
        Slate, Meagher & Flom LLP, Four Times Square, New York, NY 10036, or at such
        other time or place as the Company and the Investor may mutually agree. The
        delivery of the certificates representing the Tranche B Securities, payment
        by
        the Investor of the Tranche B Purchase Price and all other instruments required
        by this Agreement (the "Tranche B Closing") will occur on the second Business
        Day following the satisfaction or waiver of the conditions set forth in Section
        9 hereof or such other date as is mutually agreed upon by the parties at
        the
        offices of Skadden, Arps, Slate, Meagher & Flom LLP, Four Times Square, New
        York, NY 10036, or at such other time or place as the Company and the Investor
        may mutually agree. 

       

      (b)  Delivery.
        

       

      	(1)  	
              At
                the Tranche A Closing, subject to the terms and conditions hereof,
                the
                Company will deliver to the Investor the Tranche A Securities, by
                delivery
                of a certificate or certificates evidencing the Tranche A Shares
                and
                Tranche A Warrants, free and clear of any Liens, and the Investor
                will
                make payment to the Company of the Remaining Tranche A Purchase Price
                by
                wire transfer of immediately available funds to an account designated
                by
                the Company. 

            

       

       

      	(2)  	
              At
                the Tranche A Closing the Company shall also deliver to the Investor
                (i) a
                true and complete copy, certified by the Secretary of the Company,
                of the
                resolutions duly and validly adopted by the Board of Directors evidencing
                its authorization of the execution and delivery of this Agreement,
                the
                Transaction Documents and the consummation of the transactions
                contemplated hereby and thereby, including the filing of the Certificate
                of Designation with the Secretary of State of the State of Delaware
                and
                the issuance of the Securities, (ii) a duly executed copy of the
                Registration Rights Agreement, (iii) a duly executed copy of the
                Certificate of Designation filed with and certified by the Secretary
                of
                State of the State of Delaware, (iv) a good standing certificate
                from the
                Secretary of State of the state of Delaware and each state in which
                the
                Company is qualified as a foreign corporation to do business, (v)
                a legal
                opinion from Salvo, Landau, Gruen & Rogers in the form attached hereto
                as Exhibit
                H
                and (vi) an officer's certificate executed by its chief executive
                officer
                certifying that (a) the Company shall have performed in all material
                respects each of its obligations hereunder and under each of the
                Transaction Documents required to be performed by it at or prior
                to the
                date of the Tranche A Closing (the "Tranche A Closing Date"), and
                shall
                have obtained all consents and approvals required for the consummation
                of
                the transactions contemplated to be consummated at the Tranche A
                Closing,
                and (b) the representations and warranties of the Company contained
                in
                this Agreement and in any certificate or other writing delivered
                by the
                Company pursuant hereto shall be true and correct (without giving
                effect
                to any limitation as to "materiality" or “Material Adverse Effect” set
                forth therein) at and as of the Tranche A Closing Date as if made
                at and
                as of the Tranche A Closing Date, except where the failure of such
                representations and warranties to be true and correct (without giving
                effect to any limitation as to "materiality" or “Material Adverse Effect”
                set forth therein) would not, individually or in the aggregate, have
                a
                Material Adverse Effect.

            

       

       

      	(3)  	
              At
                the Tranche A Closing the Investor shall also deliver to the Company
                a
                duly executed copy of the Registration Rights
                Agreement.

            

       

       

      	(4)  	
              At
                the Tranche B Closing, subject to the terms and conditions hereof,
                the
                Company will deliver to the Investor the Tranche B Securities, by
                delivery
                of a certificate or certificates evidencing the Tranche B Shares
                and the
                Tranche B Warrants, free and clear of any Liens, and the Investor
                will
                make payment to the Company of the Tranche B Purchase Price by wire
                transfer of immediately available funds to an account designated
                by the
                Company. 

            

       

       

      	(5)  	
              At
                the Tranche B Closing the Company shall also deliver to the Investor
                (i) a
                duly executed copy of the Strategic Agreement, (ii) a good standing
                certificate from the Secretary of State of the state of Delaware
                and each
                state in which the Company is qualified as a foreign corporation
                to do
                business, (iii) a legal opinion from Salvo, Landau, Gruen & Rogers in
                the form attached hereto as Exhibit
                I
                and (iv) the certificate referred to in Section 9.2(c)
                hereof.

            

       

       

      	(6)  	
              At
                the Tranche B Closing the Investor shall also deliver to the Company
                a
                duly executed copy of the Strategic Agreement and the certificate
                referred
                to in Section 9.3(b) hereof.

            

       

       

      	6.  	
              Representations
                and Warranties by the Company

            

       

      .
        Except
        as specifically set forth in the Disclosure Schedule, the Company represents
        and
        warrants to the Investor that all of the statements contained in this Section
        6
        are true and complete as of the date of this Agreement and that all of the
        statements contained in this Section 6 will be true and complete as of the
        date
        of the Tranche B Closing (the "Tranche B Closing Date") as though made on
        the
        Tranche B Closing Date (except to the extent expressly made only as of the
        earlier date, in which case as of such earlier date).

       

      6.1  Organization

       

      .
        The
        Company and each of its Subsidiaries (a) is a corporation, limited liability
        company or other legal entity duly organized, validly existing and in good
        standing under the Laws of its jurisdiction of organization or formation,
        (b) is
        duly qualified to do business as a foreign corporation and is in good standing
        in each jurisdiction where the nature of the property owned or leased by
        it or
        the nature of the business conducted by it makes such qualification necessary,
        except where the failure to be so qualified and in good standing would not,
        individually or in the aggregate, reasonably be likely to have a Material
        Adverse Effect, (c) has its principal place of business and chief executive
        office at 55 Route 31 South, Pennington, New Jersey, NJ 08534, and (d) has
        the
        requisite corporate power and authority to own or lease and operate its assets
        and carry on its business as presently being conducted. 

       

      6.2  Authorization
        and Enforceability

       

      .
        The
        Company has all requisite corporate power and authority to enter into this
        Agreement, the Transaction Documents and to consummate all of the transactions
        contemplated hereby and thereby. The execution, delivery and performance
        by the
        Company of this Agreement and each of the other Transaction Documents to
        which
        it is a party, and the consummation by the Company of the transactions
        contemplated hereby and thereby, have been duly authorized by all necessary
        corporate action on the part of the Company. This Agreement has been duly
        and
        validly executed and delivered by the Company and, when executed, each other
        Transaction Document to which it is a party will be duly and validly executed
        and delivered by the Company, and, assuming due and valid execution and delivery
        by the Investor, will constitute the legal, valid and binding obligation
        of the
        Company, each enforceable against the Company in accordance with their
        respective terms, subject to Laws of general application relating to bankruptcy,
        insolvency, and the relief of debtors and other Laws of general application
        affecting enforcement of creditors' rights generally, rules of Law governing
        specific performance, injunctive relief and other equitable remedies. The
        execution, delivery and performance of this Agreement, and the Transaction
        Documents to which the Company is a party and all other instruments, agreements,
        certificates and documents contemplated hereby and thereby by the Company
        and
        the performance of the transactions contemplated hereby and thereby will
        not
        result in the creation or imposition of any Lien upon the Common Stock, the
        Securities or any other security of the Company or any of its
        Subsidiaries.

       

      6.3  Capitalization

       

      (a)  The
        authorized capital of the Company consists of (i) two hundred seventy-five
        million (275,000,000) shares of Common Stock, $.001 par value per share;
        (ii)
        ten million (10,000,000) shares of Preferred Stock, $.01 par value per share,
        of
        which (A) no shares are designated Series A Preferred Stock, (B) six hundred
        eleven thousand, one hundred and eleven (611,111) shares are designated Series
        B
        Convertible Preferred Stock and (C) seven hundred fifty thousand (750,000)
        shares are designated Series C Convertible Preferred Stock. As of the date
        hereof, without giving effect to the consummation of the transactions
        contemplated herein, there are outstanding one hundred forty-six million,
        five
        hundred forty-seven thousand, two hundred seventy-five (146,547,275) shares
        of
        Common Stock, zero (0) shares of Series A Preferred Stock, six hundred eleven
        thousand, one hundred and eleven (611,111) shares of Series B Preferred Stock
        and seven hundred fifty thousand (750,000) shares of Series C Preferred Stock,
        and the Company has no other shares of capital stock authorized, issued or
        outstanding.

       

      (b)  As
        of
        close of business on the date prior to the date hereof: (i) thirteen million,
        three hundred thirty-nine thousand, three hundred thirty-one (13,339,331)
        shares
        of Common Stock are issuable upon the exercise of outstanding options to
        purchase Common Stock under the 1999 Incentive Stock Option Plan, as amended
        (the "Company Stock Option Plan", each option a "Company Option"), (ii) eleven
        million, four hundred seventy-nine thousand, five hundred and fifty (11,479,550)
        shares of Common Stock are vested and exercisable as of the date hereof,
        (iii)
        six million, nine hundred sixty-five thousand, two hundred ninety-two
        (6,965,292) shares of Common Stock are available for future grants under
        the
        Company Stock Option Plan, (iv) twenty-one million, six hundred eighty thousand,
        seven hundred four (21,680,704) shares of Common Stock are issuable upon
        the
        exercise of any company warrants (each a "Company Warrant"), and (v) five
        million, six hundred eighty-eight thousand, one hundred thirty-six (5,688,136)
        shares of Common Stock are issuable upon the exercise of convertible loans
        or
        other debts or similar instruments (each, a "Company Debt Instrument"). Section
        6.3(b) of the Company Disclosure Schedule sets forth a list of each outstanding
        Company Option, Company Warrant and Company Debt Instrument, stating: (a)
        the
        name of the holder of such Company Option, Company Warrant or Company Debt
        Instrument, (b)
        the
        number of shares of Common Stock subject to such Company Option, Company
        Warrant
        or Company Debt Instrument, (c) the exercise price of such Company Option,
        Company Warrant or Company Debt Instrument, (d) the date on which such Company
        Option, Company Warrant or Company Debt Instrument was granted or issued,
        (e)
        the extent to which such Company Option, Company Warrant or Company Debt
        Instrument is vested and exercisable as of the date hereof, and (f) the
        date on which such Company Option, Company Warrant or Company Debt Instrument
        expires. 

       

      (c)  A
        correct
        and complete list of all Subsidiaries of the Company, their respective
        jurisdictions of organization and the jurisdictions in which each is qualified
        and is required to be qualified to do business is set forth in Section 6.3
        (c)
        of the Disclosure Schedule. Except as set forth in Section 6.3 (c) of the
        Disclosure Schedule, (a) each of the Subsidiaries of the Company is wholly-owned
        by the Company, directly or indirectly, free and clear of any Liens and
        (b) the Company does not own, directly or indirectly, any capital stock of,
        or any other securities convertible or exchangeable into or exercisable for
        capital stock of, any Person other than the Subsidiaries of the
        Company.

       

      (d)  Except
        as
        set forth in Section 6.3(b) of the Disclosure Schedule, (i) there are no
        outstanding options, warrants, convertible loans, debt or similar instruments,
        scrip, rights to subscribe to, calls or commitments of any character whatsoever
        relating to, or securities or rights convertible into or exercisable or
        exchangeable for, any shares of capital stock of the Company or any of its
        Subsidiaries, or arrangements by which the Company or any of its Subsidiaries
        is
        or may become bound to issue additional shares of capital stock, nor are
        any
        such issuances or arrangements contemplated, (ii) there are no securities
        or
        instruments containing antidilution or similar provisions that will be triggered
        by the issuance of the Securities in accordance with the terms of this Agreement
        or the issuance of the Warrant Shares in accordance with the Warrants, (iii)
        neither the Company nor any of its Subsidiaries has any obligation (contingent
        or otherwise) to purchase, redeem or otherwise acquire any of its equity
        securities or any interests therein or to pay any dividend or make any
        distribution in respect thereof and (iv) neither the Company nor any of its
        Subsidiaries has reserved any shares of capital stock for issuance pursuant
        to
        any stock option plan or similar arrangement. The capitalization of the Company,
        including, without limitation, the authorized capital stock, the number of
        shares issued and outstanding, the number of shares issuable and reserved
        for
        issuance pursuant to the Company's stock option plans, the number of shares
        issuable and reserved for issuance pursuant to securities (other than the
        Tranche A Securities and the Tranche B Securities) exercisable for, or
        convertible into or exchangeable for any shares of capital stock and the
        number
        of shares that have been reserved for issuance at the Tranche A Closing and
        the
        Tranche B Closing is set forth in Section 6.3(b) of the Disclosure Schedule.
        Except as set forth in Section 6.3(b) of the Disclosure Schedule, there are
        no
        voting trusts, stockholder agreements, proxies or other agreements or
        understandings in effect with respect to the voting or transfer of any of
        the
        issued and outstanding securities of the Company or any of its
        Subsidiaries.

       

      (e)  As
        of the
        date hereof, no Indebtedness or other equity of the Company is senior to,
        or
        pari passu with, the Securities in right of payment, whether with respect
        to
        interest or upon liquidation or dissolution, or otherwise, other than
        Indebtedness secured by purchase money security interests (which is senior
        only
        as to underlying assets covered thereby) and capital lease obligations (which
        is
        senior only as to the property covered thereby).

       

      (f)  Except
        as
        provided in the final sentence of this subparagraph (f), since January 1,
        2003,
        the exercise price of each Company Option has been no less than the fair
        market
        value of a share of Common Stock as determined on the date of grant of such
        Company Option. Since January 1, 2003, all grants of Company Options were
        validly issued and properly approved by the Board of Directors (or a duly
        authorized committee or subcommittee thereof) in compliance with all applicable
        legal requirements and recorded on the Financial Statements (as defined in
        Section 6.6) in accordance with GAAP, and to the extent any such grants involved
        any "back dating," "forward dating" or similar practices with respect to
        the
        effective date of grant (collectively "Violative Actions"), such Violative
        Actions were unintentional and are not material in the aggregate. As of the
        date
        hereof, each Company Option has the exercise price and is held by the holder
        set
        forth on Section 6.3(f) of the Disclosure Schedule.

       

      (g)  All
        of
        the holders of the Series B Convertible Preferred Stock have failed to convert
        such shares of preferred stock into shares of Common Stock in accordance
        with
        the terms of their issuance. The right to convert the shares of Series B
        Convertible Preferred Stock into shares of Common Stock expired on September
        8,
        2003. The total amount payable by the Company with respect to the Series
        B
        Convertible Preferred Stock is six hundred and seventy-four thousand and
        forty-four dollars ($674,044), which includes accrued dividends as of the
        date
        hereof of one hundred and twenty-four thousand and forty-four dollars
        ($124,044).

       

      6.4  Due
        Issuance and Authorization of Capital Stock

       

      .
        All of
        the outstanding shares of capital stock of the Company and each of its
        Subsidiaries have been duly authorized, validly issued and are fully paid
        and
        nonassessable. The Securities have been duly authorized and upon issuance
        in
        accordance with the terms of this Agreement or the Warrants (as applicable),
        all
        such Securities will be duly authorized, validly issued, fully paid and
        nonassessable. The sale and delivery of the Preferred Shares and the Warrants
        to
        the Investor pursuant to the terms hereof, and the issuance of the shares
        of
        Series D Preferred Stock to the Investor upon exercise of the Warrants, will
        vest in the Investor legal and valid title to such securities, free and clear
        of
        any Lien.

       

      6.5  Consents

       

      .
        Neither
        the execution, delivery or performance of this Agreement or any other
        Transaction Document by the Company, nor the consummation by it of the
        obligations and transactions contemplated hereby or thereby (including, without
        limitation, the issuance, the reservation for issuance and the delivery of
        the
        Securities and the Conversion Shares) requires any consent of, authorization
        by,
        exemption from, filing with or notice to any Governmental Entity, the
        shareholders of the Company or any other Person, other than the filings under
        applicable securities Laws required to comply with the Company's registration
        obligations under the Registration Rights Agreement.

       

      6.6  Financial
        Statements

       

      .
        The
        audited consolidated balance sheet of the Company as of December 31, 2005
        (the
        "Balance Sheet"), and audited consolidated statements of income and retained
        earnings and cash flows of the Company for the year ended December 31, 2005
        (collectively with the Balance Sheet, the "Financial Statements"), together
        with
        an unqualified opinion thereon from the Company's independent accountants,
        are
        contained in the Company's SEC Documents (as defined below). The Company
        has
        caused to be delivered to the Investor unaudited consolidated balance sheets
        of
        the Company as of March 31, 2006, as of June 30, 2006 and as of September
        30,
        2006 (the "Unaudited Balance Sheets") and unaudited consolidated statements
        of
        income and retained earnings and cash flows of the Company for the three
        months
        ended March 31, 2006, the six months ended June 30, 2006 and the nine months
        ended September 30, 2006 (collectively with the Unaudited Balance Sheet,
        the
        "Unaudited Financial Statements"). The Financial Statements and Unaudited
        Financial Statements have been prepared from, are in accordance with and
        accurately reflect, the books and records of the Company and have been prepared
        in accordance with GAAP applied on a consistent basis during the periods
        involved (except (x) as may be otherwise indicated in such financial statements
        or the notes thereto, or (y) 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 consolidated financial position
        of the Company as of the dates thereof and its consolidated results of
        operations and cash flows for the periods then ended (subject, in the case
        of
        Unaudited Financial Statements, to immaterial year-end audit
        adjustments).

       

      6.7  SEC
        Documents. 

       

      (a)  Except
        as
        set forth in Section 6.7 of the Disclosure Schedule, since January 1, 2003,
        the
        Company has timely filed all reports, schedules, forms, statements and other
        documents required to be filed by it with the SEC pursuant to the reporting
        requirements of the Exchange Act (all of the foregoing filed prior to the
        date
        hereof and after January 1, 2003, and all exhibits included therein and
        financial statements and schedules thereto and documents incorporated by
        reference therein, being hereinafter referred to herein as the "SEC Documents").
        The Company has delivered or otherwise made available to the Investor true
        and
        complete copies of the SEC Documents, except the exhibits and schedules thereto
        and the documents incorporated therein. As of their respective dates, the
        SEC
        Documents complied in all material respects with the requirements of the
        Exchange Act or the Securities Act, as the case may be, applicable to the
        SEC
        Documents, and none of the SEC Documents, at the time they were filed with
        the
        SEC, contained any untrue statement of a material fact or omitted to state
        a
        material fact required to be stated therein or necessary in order to make
        the
        statements therein, in light of the circumstances under which they were made,
        not misleading. The chief executive officer and the chief financial officer
        of
        the Company has each signed, and the Company has furnished to the SEC, all
        certifications required by Sections 302 and 906 of the Sarbanes-Oxley Act
        of
        2002 (the "Certifications"). Such Certifications contain no qualifications
        or
        exceptions to the matters certified therein and have not been modified or
        withdrawn, and neither the Company nor any of its officers have received
        notice
        from any Governmental Entity questioning or challenging the accuracy,
        completeness, content, form or manner of filing or submission of such
        Certifications. Since the adoption of the Sarbanes-Oxley Act, the Company
        has
        complied in all material respects with the Laws, rules and regulations
        thereunder. As of their respective dates, the financial statements of the
        Company included in the SEC Documents complied as to form in all material
        respects with applicable accounting requirements and the published rules
        and
        regulations of the SEC applicable with respect thereto. 

       

      (b)  The
        Company and each of its Subsidiaries maintain a system of internal accounting
        controls sufficient to comply with all legal and accounting requirements
        applicable to the Company and such Subsidiary. The Company has disclosed
        in the
        SEC Documents, based on its most recent evaluation thereof, any significant
        deficiencies in its internal accounting controls which would reasonably be
        expected to adversely affect in any material respect the Company’s ability to
        record, process, summarize and report financial data and neither the Company
        nor
        any of its Subsidiaries nor, to the knowledge of the Company, any representative
        of the Company or any of its Subsidiaries has received or otherwise had or
        obtained knowledge of any material complaint, allegation, assertion or claim,
        whether written or oral, regarding the accounting or auditing practices,
        procedures, methodologies or methods of the Company or any of its Subsidiaries
        or their respective internal accounting controls, including any material
        complaint, allegation, assertion or claim that the Company or any of its
        Subsidiaries has engaged in questionable accounting or auditing
        practices.

       

      6.8  No
        Conflicts

       

      .
        The
        execution, delivery and performance of this Agreement and each other Transaction
        Document, and the consummation of the transactions contemplated hereby and
        thereby (including, without limitation, the issuance and reservation for
        issuance, as applicable, of the Securities and the Conversion Shares) will
        not
        (a) result in a violation of the certificate of incorporation or by-laws
        of the
        Company or any of its Subsidiaries, (b) except as set forth in Section 6.8
        of
        the Disclosure Schedule, materially conflict with or result in the material
        breach of the terms, conditions or provisions of or constitute a material
        default (or an event which with notice or lapse of time or both would become
        a
        material default) under, or give rise to any right of termination, acceleration
        or cancellation under, any Contract to which the Company or any of its
        Subsidiaries is a party, (c) result in a material violation of any Law, rule,
        regulation, order, judgment or decree (including, without limitation, U.S.
        federal and state securities Laws and regulations) applicable to the Company
        or
        any of its Subsidiaries or by which any property or asset of the Company
        or any
        of its Subsidiaries is bound or affected, or (d) result in the creation of
        any
        material Lien upon any of the assets of the Company or any of its Subsidiaries.
        Neither the Company nor any of its Subsidiaries is in violation of the
        certificate of incorporation or by-laws, and neither the Company nor any
        of its
        Subsidiaries is in default (and no event has occurred which, with notice
        or
        lapse of time or both, would cause the Company or any of its Subsidiaries
        to be
        in material default) under, nor has there occurred any event giving others
        (with
        notice or lapse of time or both) any rights of termination, amendment,
        acceleration or cancellation of, any material agreement, indenture or instrument
        to which the Company or any of its Subsidiaries is a party. 

       

      6.9  Intellectual
        Property

       

      (a)  Section
        6.9(a) of the Disclosure Schedule sets forth a true, correct, and complete
        list
        of all U.S. and foreign (i) issued Patents and Patent applications, (ii)
        Trademark registrations and applications and material unregistered trademarks,
        (iii) copyright registrations and applications and material unregistered
        copyrights, and (iv) material Software, in each case which is owned or purported
        to be owned by the Company or any of its Subsidiaries. The Company or one
        of its
        Subsidiaries is the sole and exclusive beneficial and record owner of all
        of the
        Intellectual Property items set forth in Section 6.9(a) of the Disclosure
        Schedule, and all such Intellectual Property is subsisting, valid, and
        enforceable. 

       

      (b)  Section
        6.9(b) of the Disclosure Schedule sets forth a true, correct, and complete
        list
        of all Contracts to which the Company or one of its Subsidiaries is a party
        or
        otherwise bound (i) granting or obtaining any right to use any material
        Intellectual Property (other than Contracts granting rights to use readily
        available commercial Software that is generally available on nondiscriminatory
        pricing terms and having an acquisition price of less than $20,000 in the
        aggregate for all such related Contracts) or (ii) restricting the Company's
        or its Subsidiaries' rights, or permitting other Persons, to use or register
        any
        material Intellectual Property (collectively, the "IP Contracts"). Each IP
        Contract is valid, binding upon, and enforceable by or against the parties
        thereto in accordance with its terms. The Company and its Subsidiaries have
        complied in all material respects with, and is not in breach nor has received
        any asserted or threatened claim of breach of, any IP Contract, and the Company
        has no knowledge of any breach or anticipated breach by any other Person
        to any
        IP Contract.

       

      (c)  Except
        as
        set forth in Section 6.9(c) of the Disclosure Schedule: (i) the Company or
        one
        of its Subsidiaries owns, or has a valid right to use, free and clear of
        all
        Liens, all Intellectual Property used or held for use in, or necessary to
        conduct, the business of the Company or its Subsidiaries as currently conducted
        and as currently proposed to be conducted, (ii) the conduct of the business
        of
        the Company or its Subsidiaries (including the products and services of the
        Company) to the knowledge of the Company does not infringe, misappropriate,
        or
        otherwise violate any Person's Intellectual Property rights, and the Company
        has
        not had such a claim asserted or threatened against it in the past three
        years
        and (iii) to the knowledge of the Company, no Person is infringing,
        misappropriating, or otherwise violating any Intellectual Property owned,
        used,
        or held for use by the Company in the conduct of the business of the Company
        or
        its Subsidiaries, and no such claims have been asserted or threatened against
        any Person by the Company in the past three years.

       

      (d)  The
        Company and its Subsidiaries take reasonable measures to protect the
        confidentiality of Trade Secrets, including requiring all Persons having
        access
        thereto to execute written non-disclosure agreements. Such Persons who have
        not
        executed a non-disclosure agreement shall, prior to the Tranche B Closing,
        do
        so, in a form reasonably acceptable to the Investor. Prior to the Tranche
        B
        Closing, all such persons have or will have executed a proprietary rights
        assignment, in a form reasonably acceptable to the Investor.

       

      (e)  No
        Affiliate or current or former partner, director, stockholder, officer, or
        employee of the Company owns or retains any rights to use any of the
        Intellectual Property owned, used, or held for use by the Company in the
        conduct
        of the business of the Company or any of its Subsidiaries.

       

      (f)  No
        funding, facilities or personnel of any Governmental Entity were used, directly
        or indirectly, to develop or create, in whole or in part, any Intellectual
        Property rights of the Company.

       

      6.10  Material
        Contracts

       

      (a)  Sections
        6.10(a)(i) through (ix) of the Disclosure Schedule contains lists of each
        of the
        following types of Contracts (such Contracts, "Material Contracts"):

       

      (i)  each
        Contract that involved aggregate payments by or to the Company or one of
        its
        Subsidiaries of more than $100,000 during the year ended September 30, 2006
        and
        that is not cancelable by the Company without liability on thirty (30) or
        less
        days' notice to the other party thereto;

       

      (ii)  each
        Contract for the lease of personal property by or from the Company or one
        of its
        Subsidiaries that involved payments in excess of $100,000 during the year
        ended
        September 30, 2006 and that is not cancelable by the Company or one of its
        Subsidiaries without liability on thirty (30) or less days' notice to the
        other
        party thereto;

       

      (iii)  each
        Contract that by its express terms limits the ability of Company or one of
        its
        Subsidiaries to engage in any line of business or compete with any Person
        or
        otherwise conduct its business in any geographic area or during any period
        of
        time;

       

      (iv)  all
        Contracts of the Company or one of its Subsidiaries evidencing
        Indebtedness;

       

      (v)  all
        Contracts under which any Person has directly or indirectly guaranteed the
        Indebtedness, liabilities or obligations of the Company or one of its
        Subsidiaries, or the Company or one of its Subsidiaries has directly or
        indirectly guaranteed the Indebtedness, liabilities or obligations of any
        Person;

       

      (vi)  all
        Contracts of the Company or one of its Subsidiaries which are joint venture
        or
        partnership agreements;

       

      (vii)  all
        Contracts granting or obtaining Intellectual Property rights that are material
        to the Company or one of its Subsidiaries, other than Contracts relating
        to
        computer software, systems or equipment that involved payments by or to the
        Company or one of its Subsidiaries of less than $100,000 during the year
        ended
        September 30, 2006;

       

      (viii)  all
        Contracts between the Company or one of its Subsidiaries and the officers
        or
        directors of the Company; and

       

      (ix)  all
        Contracts of the Company or one of its Subsidiaries with any Governmental
        Entity.

       

      (b)  Each
        such
        Contract is a legal, valid and binding obligation of the Company, enforceable
        against the Company and/or such Subsidiary, as the case may be, in accordance
        with its terms, subject to Laws of general application relating to bankruptcy,
        insolvency, and the relief of debtors and other Laws of general application
        affecting enforcement of creditors' rights generally, rules of Law governing
        specific performance, injunctive relief and other equitable remedies. There
        has
        not occurred any breach, violation or default or any event that, with the
        lapse
        of time, the giving of notice or the election of any Person, or any combination
        thereof, would constitute a material breach, violation or default by the
        Company
        or a Subsidiary, as the case may be, under any such Contract or, to the
        knowledge of the Company, by any other Person to any such Contract. Neither
        the
        Company nor any of its Subsidiaries has been notified that any party to any
        Material Contract intends to cancel, terminate, not renew or exercise an
        option
        under any Material Contract, whether in connection with the transactions
        contemplated hereby or otherwise. 

       

      6.11  Right
        of First Refusal; Voting and Registration Rights

       

      .
        Other
        than as provided for herein or in any other of the Transaction Documents,
        no
        Person has any right of first refusal, preemptive right, right of first offer,
        right of co-sale or other similar right regarding any of the Company's
        securities or those of any of its Subsidiaries. There are no provisions in
        the
        certificate of incorporation or the by-laws of the Company or any of its
        Subsidiaries, no agreements to which the Company or any of its Subsidiaries
        is a
        party and no agreements by which the Company, any of its Subsidiaries or
        the
        Securities are bound, which (i) may affect or restrict the voting rights
        of the
        Investor with respect to the Securities in its capacity as a stockholder
        of the
        Company, (ii) restrict the ability of the Investor, or any successor thereto
        or
        assignee or transferee thereof, to transfer the Securities, (iii) require
        the
        vote of more than a majority of the Company's issued and outstanding Common
        Stock, voting together as a single class, to take or prevent any corporate
        action, other than those matters requiring a class vote under Delaware Law,
        or
        (iv) entitle any party to nominate or elect any director of the Company or
        require any of the Company's stockholders to vote for any such nominee or
        other
        Person as a director of the Company in each case, except as provided for
        in or
        contemplated by this Agreement. Except as disclosed on Section 6.11 of the
        Disclosure Schedule or pursuant to the Registration Rights Agreement, the
        Company is not under any obligation, contractual or otherwise, to register
        for
        sale any of its securities under the Securities Act.
        The
        Company has complied with its obligations under Section 4.16 of the Securities
        Purchase Agreement (the "Camofi Agreement") dated as of July 21, 2005 between
        the Company and Camofi Master LDC ("Camofi")
        by
        giving notice to Camofi of the transactions contemplated hereby. Camofi has,
        in
        writing, fully waived its right to participate in the transactions contemplated
        hereby pursuant to Section 4.16 of the Camofi Agreement.

       

      6.12  Intentionally
        Omitted

       

      6.13  No
        Integrated Offering;
        Private
        Placement

       

      .
        Neither
        the Company, nor any of its Affiliates or any other Person acting on the
        Company's behalf, has directly or indirectly engaged in any form of general
        solicitation or general advertising with respect to the Securities nor have
        any
        of such Persons made any offers or sales of any security or solicited any
        offers
        to buy any security under circumstances that would require registration of
        the
        Securities under the Securities Act or cause this offering of Securities
        to be
        integrated with any prior offering of securities of the Company for purposes
        of
        the Securities Act or any applicable stockholder approval provisions. No
        registration under the Securities Act is required for the offer and sale
        of the
        Securities by the Company to the Investor as contemplated hereby. The issuance
        and sale of the Securities hereunder does not contravene the rules and
        regulations of any trading market in which the Company's securities trade..
        

       

      6.14  Absence
        of Certain Developments

       

      .
        Except
        as disclosed in Section 6.14 of the Disclosure Schedule, since December 31,
        2005, (a) each of the Company and its Subsidiaries has conducted its business
        and operations consistent with past practice only in the ordinary and usual
        course thereof, (b) there has not occurred any facts, events, circumstances,
        changes, conditions or effects (including the incurrence of any Liabilities
        of
        any nature, whether or not accrued, contingent or otherwise) that have had,
        or
        would reasonably be expected to have, individually or in the aggregate, a
        Material Adverse Effect, (c) neither the Company nor any of its Subsidiaries
        has
        made any material change in its accounting methods, principles or practices,
        (d)
        neither the Company nor any of its Subsidiaries has declared or made any
        dividend or distribution of cash or other property to its stockholders or
        purchased, redeemed or made any agreements to purchase or redeem any shares
        of
        its capital stock and (v) neither the Company nor any of its Subsidiaries
        has
        issued any equity securities to any officer, director or Affiliate, except
        pursuant to existing Company stock option plans

       

      6.15  Undisclosed
        Liabilities

       

      .
        Except
        as set forth in Section 6.15 of the Disclosure Schedule, neither the Company
        nor
        any of its Subsidiaries has any Liabilities other than (a) set forth on the
        Financial Statements, (b) Liabilities incurred in the ordinary course of
        business consistent with past practice since December 31, 2005, (c) any
        Liabilities incurred other than in the ordinary course of business not in
        excess
        of $100,000 individually or (d) Liabilities incurred in connection with this
        Agreement or the Transaction Documents or the transactions contemplated hereby
        or thereby

       

      6.16  Litigation

       

      .
        Except
        as set forth on Section 6.16 of the Disclosure Schedule and except as would
        not
        be material to the Company or any of its Subsidiaries as of the date hereof,
        there is no action, suit, claim or proceeding pending or to the knowledge
        of the
        Company, threatened or reasonably anticipated against the Company or any
        of its
        Subsidiaries. As of the date hereof, there is no material investigation or
        other
        proceeding pending or, to the knowledge of the Company or threatened or
        reasonably anticipated against the Company, any of its Subsidiaries or any
        of
        their respective properties (tangible or intangible) by or before any
        Governmental Entity. There has not been since January 1, 2003, nor are there
        currently, any internal investigations or inquiries being conducted by the
        Company or any of its Subsidiaries, the Company's Board of Directors (or
        any
        committee thereof) or any third party, either at the request of any of the
        foregoing or otherwise concerning any financial, accounting, tax, conflicts
        of
        interest, illegal activity, fraudulent or deceptive conduct or other misfeasance
        or malfeasance issues. As of the date hereof, there is no action, suit,
        proceeding, arbitration or, to the knowledge of the Company, investigation
        involving the Company or any of its Subsidiaries or that the Company or any
        of
        its Subsidiaries presently intends to initiate.

       

      6.17  Compliance
        with Laws

       

      .
        Neither
        the Company nor any of its Subsidiaries has received notification from any
        Governmental Entity (a) asserting a material violation of any Law or the
        terms
        of any judgment, order, decree, injunction or writ applicable to the conduct
        of
        its business, (b) threatening to revoke any material, Company Permit, or
        (c)
        restricting or in any way limiting its business as currently conducted. The
        Company and each of its Subsidiaries has in all material respects been operated
        since January 1, 2003 in compliance with all Laws. The Company and each of
        its
        Subsidiaries is in compliance in all material respects with all Company Permits
        and each material Company Permit is in full force and effect.

       

      6.18  Taxes

       

      (a)  Filing
        of Tax Returns and Payment of Taxes.
        The
        Company and each of its Subsidiaries has duly and timely filed (or has had
        duly
        and timely filed on its behalf) with the appropriate taxing authorities all
        Tax
        Returns required to be filed under applicable law and regulations through
        the
        date hereof, and all such Tax Returns are true, correct and complete in all
        respects. The Company and each of its Subsidiaries have paid on a timely
        basis
        all Taxes due and payable (whether or not shown on any Tax Return). Neither
        the
        Company nor any of its Subsidiaries is currently the beneficiary of any
        extension of time within which to file any Tax Return, and no written claim
        has
        been made by an authority in a jurisdiction where the Company or any of its
        Subsidiaries does not file Tax Returns that it is or may be subject to taxation
        by that jurisdiction. There are no Liens for Taxes (other than Taxes not
        yet due
        and payable) upon any of the assets of The Company or any of its
        subsidiaries.

       

      (b)  Audits,
        Investigations, Disputes or Claims.
        No
        deficiencies for Taxes of the Company or any of its Subsidiaries have been
        claimed, proposed or assessed in writing against the Company or any of its
        Subsidiaries by any taxing or other governmental authority that have not
        been
        fully paid or finally settled. No Seller or director or officer (or employee
        responsible for Tax matters) of the Company or any of its Subsidiaries expects
        any authority to assess any additional Taxes for any period for which Tax
        Returns have been filed. An adequate reserve in accordance with GAAP has
        been
        established in the books of the Company and its Subsidiaries with respect
        to any
        unpaid Taxes. No foreign, federal, state, or local tax audits, investigations,
        disputes or claims relating to the Taxes or Tax Returns of the Company or
        any of
        its Subsidiaries or administrative or judicial Tax proceedings currently
        are
        pending or being conducted with respect to the Company or any of its
        Subsidiaries. 

       

      (c)  No
        Waiver of Statute of Limitations.
        Neither
        the Company nor any of its Subsidiaries has executed a waiver with respect
        to
        any statute of limitations relating to the assessment or collection of any
        Taxes.

       

      (d)  Tax
        Sharing Agreements.
        Neither
        the Company nor any of its Subsidiaries is a party to any Tax sharing
        agreements, or similar arrangements (including indemnity arrangements), or
        contracts or plans. 

       

      (e)  No
        Withholding.
        The
        Company and each of its Subsidiaries has, in all respects, withheld and paid
        all
        Taxes required to have been withheld and paid in connection with any amounts
        paid or owing to any employee, independent contractor, creditor, stockholder
        or
        other third party and has filed all Tax Returns required to be filed with
        respect thereto.

       

      (f)  Net
        Operating Losses.
        As of
        the date hereof, the Company and each of its Subsidiaries has net operating
        losses of approximately US$ fifty-six million ($56,000,000) and no net capital
        losses and is not subject to limitation under § 3382 (or any other provision of
        state, local or foreign Tax law.

       

      (g)  Inclusion
        of Income.
        Neither
        the Company nor any of its Subsidiaries will be required to include any material
        item of income in, or exclude any material item of deduction from, taxable
        income for any taxable period (or portion thereof) ending after the Closing
        Date
        that arises as a result of a transaction that occurred prior to the Closing
        Date.

       

      (h)  Stock
        Distributions.
        Neither
        the Company nor any of its Subsidiaries has distributed stock of another
        Person,
        or has had its stock distributed by another Person, in a transaction that
        was
        purported or intended to be governed in whole or in part by Code §355 or Code
§361.

       

      6.19  Employee
        and Benefit Plans

       

      (a)  "Benefit
        Plan" means each deferred compensation and each incentive compensation, stock
        purchase, stock option and other equity compensation plan, program, agreement
        or
        arrangement; each severance or termination pay, medical, surgical,
        hospitalization, life insurance and other "welfare" plan, fund or program
        (within the meaning of section 3(1) of the Employee Retirement Income Security
        Act of 1974, as amended ("ERISA")); each profit-sharing, stock bonus or other
        "pension" plan, fund or pro-gram
        (within the meaning of section 3(2) of ERISA);
        employment, termination or severance agreement; and each other material employee
        benefit plan, fund, program, agreement or arrangement, in each case, that
        is
        sponsored, maintained or contributed to or required to be contributed to
        by the
        Company, any of its Subsidiaries or by any trade or business, whether or
        not
        incorporated (an "ERISA Affiliate"), that together with the Company or any
        of
        its Subsidiaries would be deemed a "single employer" within the meaning of
        Section 4001(b) of ERISA, or to which the Company, any of its Subsidiaries
        or an
        ERISA Affiliate would reasonably be expected to have any liability, for the
        benefit of any current or former employee or director of the Company or any
        of
        its Subsidiaries. Each
        Benefit Plan is sponsored or maintained in the United States.
        No
        Benefit Plan has terms requiring assumption or any guarantee by the
        Investor.

       

      (b)  Each
        Benefit Plan intended to be "qualified" within the meaning of Section 401(a)
        of
        the Code has received a favorable determination letter from the Internal
        Revenue
        Service that it is so qualified and the trust maintained thereunder is exempt
        from taxation under Section 501(a) of the Code and to the Company's knowledge
        no
        event has occurred that could reasonably be expected to cause a loss of such
        qualification.

       

      (c)  Each
        Benefit Plan has been operated and administered in all material respects
        in
        accordance with the terms of such Benefit Plan and with applicable Laws,
        including but not limited to ERISA and the Code.

       

      (d)  No
        Benefit Plan is subject to Title IV or Section 302 of ERISA and, in the last
        six
        years immediately preceding each Closing Date, none of the Company, any of
        its
        subsidiaries or any ERISA Affiliates has sponsored, maintained, contributed
        or
        been required to contribute to any employee benefit plan which was subject
        to
        Title IV of ERISA.

       

      (e)  There
        are
        no pending, threatened or anticipated material claims by or on behalf of
        any
        Benefit Plan, by any employee or beneficiary covered under any such Benefit
        Plan, or otherwise involving any such Benefit Plan (other than routine claims
        for benefits).

       

      (f)  The
        consummation of the transactions contemplated by this Agreement will not,
        either
        alone or in combination with any other event, (i) entitle any current or
        former
        employee, officer, director or consultant of the Company, any of its
        Subsidiaries or any ERISA Affiliate to severance pay, unemployment compensation
        or any other similar termination payment, or (ii) accelerate the time of
        payment
        or vesting, or increase the amount of, or otherwise enhance, any benefit
        due to
        any such employee, officer, director or consultant. 

       

      (g)  The
        Company and its Subsidiaries are in material compliance with all applicable
        U.S.
        federal, state and local and foreign Laws, rules and regulations respecting
        employment and employment practices, labor, terms and conditions of employment,
        wages, hours of work and occupational safety and health, and are not engaged
        in
        any unfair labor practices as defined in the National Labor Relations Act
        or
        other applicable Law. Neither the Company nor any of its Subsidiaries is
        bound
        by or subject to any written or oral, express or implied, commitment or
        arrangement, collective bargaining or similar agreement with any labor union,
        and, to the knowledge of the Company, no labor union has requested or has
        sought
        to represent any of the employees, representatives or agents of the Company
        or
        any of its Subsidiaries and to the knowledge of the Company, there is no
        current
        union organizing activities among such employees, representatives or
        agents.

       

      (h)  No
        Benefit Plan provides medical, surgical, hospitalization, death or similar
        bene-fits (whether or not insured) for employees or former employees of the
        Company or any of its Subsidiaries for periods extending beyond their retirement
        or other termination of service, other than (i) coverage mandated by applicable
        law, (ii) death benefits under any "pen-sion plan," or (iii) benefits the
        full
        cost of which is borne by the current or former employee (or his
        beneficiary).

       

      6.20  Brokers

       

      .
        Except
        as set forth in Section 6.20 of the Disclosure Schedule, no broker, investment
        banker, financial advisor, finder or other Person has been retained by or
        is
        authorized to act on behalf of the Company who might be entitled to any fee
        or
        commission in connection with this Agreement or any of the Transaction
        Documents.

       

      6.21  Related-Party
        Transactions

       

      .
        Except
        as set forth in Section 6.21 of the Disclosure Schedule, no employee, officer,
        director, or Affiliate of the Company or any of its Subsidiaries or member
        of
        his or her immediate family is currently indebted to the Company or any of
        its
        Subsidiaries, nor is the Company or any of its Subsidiaries indebted (or
        committed to make loans or extend or guarantee credit) to any of such
        individuals. Except as set forth in Section 6.21 of the Disclosure Schedule,
        none of such Persons has any direct or indirect ownership interest in any
        firm
        or corporation which is an Affiliate of the Company or with which the Company
        or
        any of its Subsidiaries has a business relationship, or any firm or corporation
        that competes with the Company, except that employees, officers, or directors
        of
        the Company and members of their immediate families may own stock in an amount
        not to exceed 5% of the outstanding capital stock of publicly traded companies
        that may compete with the Company or with which the Company or one of its
        Subsidiaries may have a business relationship.

       

      6.22  Insurance

       

      (a)
        Except as set forth in Section 6.22 of the Disclosure Schedule, the Company
        and
        its Subsidiaries have policies of property and casualty insurance and bonds
        of
        the type and in amounts customarily carried by persons conducting business
        or
        owning assets similar to those of the Company and its Subsidiaries. There
        is no
        material claim pending under any of such policies or bonds as to which coverage
        has been, nor any basis for the Company to reasonably believe that a material
        claim will be, questioned, denied or disputed by the underwriters of such
        policies or bonds. All premiums due and payable under all such policies and
        bonds have been paid and the Company and its Subsidiaries are otherwise in
        compliance in all material respects with the terms of such policies and
        bonds.

       

      (b)
        The
        Company has a directors' and officers' liability insurance policy that is
        in
        full force and effect in the amount of $3,000,000. 

       

      6.23  Title
        to Properties

       

      (a)
        Neither the Company nor any of its Subsidiaries owns or has owned any real
        property. Section 6.23(a) of the Disclosure Schedule sets forth a list of
        all
        material real property currently leased, licensed or subleased by the Company
        or
        any of its Subsidiaries or otherwise used or occupied by the Company or any
        of
        its Subsidiaries (the "Real Property"). All current leases set forth in Section
        6.23(a) of the Disclosure Schedule are in full force and effect, are valid
        and
        effective in accordance with their respective terms there is not, under any
        of
        such leases, any existing material breach, default or event of default (or
        event
        which with notice or lapse of time, or both, would constitute a material
        default) by the Company or its Subsidiaries or, to the knowledge of the Company,
        any third Person under such leases, in each case subject to applicable
        bankruptcy, insolvency, reorganization, moratorium or other Laws relating
        to or
        affecting the rights and remedies of creditors generally. To the knowledge
        of
        the Company, no parties other than the Company or any of its Subsidiaries
        have a
        right to occupy any material Real Property and the Real Property is used
        only
        for the operation of the business of the Company or its Subsidiaries.

       

      (b)The
        Company and each of its Subsidiaries have good and valid leasehold interests
        in,
        all of their material tangible properties and assets, real, personal and
        mixed,
        used or held for use in its business, free and clear of any Liens except
        (i) Liens for Taxes not yet due and payable and (ii) such
        imperfections of title and Liens, if any, which do not in any material respect
        detract from the value or interfere with the present use of the property
        subject
        thereto or affected thereby. The rights, properties and assets presently
        owned,
        leased or licensed by the Company and its Subsidiaries include all rights,
        properties and assets necessary to permit the Company and its Subsidiaries
        to
        conduct their business in all material respects in the same manner as their
        businesses have been conducted prior to the date hereof.

       

      6.24  Environmental
        Matters

       

      (a)  The
        Company and each of its Subsidiaries is, and has been since January 1, 2003,
        in
        compliance in all material respects with all applicable federal, state and
        local
        Laws relating to protection of the environment (collectively, "Environmental
        Laws").

       

      (b)  Since
        January 1, 2003 neither the Company nor any of its Subsidiaries has received
        written notice of, and, to the knowledge of the Company, it is not subject
        of,
        any actions, claims, investigations, demands, or notices by any Person alleging
        liability under or non-compliance with any Environmental Law. 

       

      (c)  To
        the
        knowledge of the Company, there has not been, and there is no Environmental
        Condition, on or under the Business Premises. As to each location where the
        Company or any of its Subsidiaries conducts its business or performs services
        (collectively, the "Business Premises"), (i) no Hazardous Materials have
        been
        Released in, on, under, from, to or through the Business Premises, either
        by the
        Company or one of its Subsidiaries or at the request of the Company or one
        of
        its Subsidiaries, or by an agent, employee or contractor of the Company or
        one
        of its Subsidiaries, except in accordance with applicable Law; (ii) none
        of the
        Material Contracts, directly or indirectly, requires the Company or one of
        its
        Subsidiaries to conduct environmental remediation or to remove Hazardous
        Materials from the Business Premises in connection with any such environmental
        remediation; and (iii) to the knowledge of the Company each Business Premises
        is
        in compliance with all health and safety Environmental Requirements pertaining
        to employee safety at job sites and otherwise.

       

      (d)  True
        and
        complete copies of material reports and investigations (including sample
        reports
        or similar information) conducted at the request of the Company or one of
        its
        Subsidiaries with respect to any Environmental Subject Matter that relates
        to
        the Business Premises, including those related to the emission or disposition
        of
        radioactive materials used in connection with the practice of dentistry,
        have
        been provided to the Investor. 

       

      6.25  Books
        and Records

       

      (a)  The
        books
        of account, minute books, shareholder record books, and other records of
        the
        Company, all of which have been made available to the Investor, are complete
        and
        correct and have been maintained in accordance with sound business practices.
        The minute books of the Company contain accurate and complete records of
        all
        meetings held of and corporate action taken by the shareholders of the Company,
        the Board of Directors and the committees of the Board of
        Directors.

       

      6.26  Listing
        and Maintenance Requirements. 

       

      (a)  The
        Company's Common Stock is registered pursuant
        to
        Section 12(g) of the Exchange Act, and the Company has taken no action designed
        to, or which to its knowledge is likely to have the effect of, terminating
        the
        registration of the Common Stock under the Exchange Act nor has the Company
        received any notification that the SEC is contemplating terminating such
        registration. The Company has not, in the 12 months preceding the date hereof,
        received notice from any trading market on which the Common Stock is or has
        been
        listed or quoted to the effect that the Company is not in compliance with
        the
        listing or maintenance requirements of such trading market. The Company is,
        and
        has no reason to believe that it will not in the foreseeable future continue
        to
        be, in compliance with all such listing and maintenance requirements.

       

      6.27  Solvency.

       

      (a)  
        On and
        as of the date hereof, on a pro forma basis after giving effect to the
        transactions contemplated by this Agreement occurring on the date hereof,
        (x)
        the sum of the assets, at a fair valuation, of the Company and its Subsidiaries
        (on a consolidated basis) will exceed its debts, (y) the Company (on a
        consolidated basis) has not incurred and does not intend to incur, and does
        not
        believe that it will incur, debts beyond its ability to pay such debts as
        such
        debts mature and (z) the Company (on a consolidated basis) has sufficient
        capital with which to conduct its business. For purposes of this Section
        6.27,
        "debt" means any liability on a claim, and "claim" means any (i) right to
        payment whether or not such a right is reduced to judgment, liquidated,
        unliquidated, fixed, contingent, matured, unmatured, disputed, undisputed,
        legal, equitable, secured or unsecured or (ii) any right to an equitable
        remedy
        for breach of performance if such breach gives rise to a payment, whether
        or not
        such right to an equitable remedy is reduced to judgment, fixed, contingent,
        matured, unmatured, disputed, undisputed, secured or unsecured.

       

      6.28  Foreign
        Corrupt Practices

       

      (a)  .
        Neither
        the Company nor any of its Subsidiaries, nor to the knowledge of the Company,
        any agent or other person acting on behalf of the Company, has (i) directly
        or
        indirectly, used any corrupt funds for unlawful contributions, gifts,
        entertainment or other unlawful expenses related to foreign or domestic
        political activity, (ii) made any unlawful payment to foreign or domestic
        government officials or employees or to any foreign or domestic political
        parties or campaigns from corporate funds, (iii) failed to disclose fully
        any
        contribution made by the Company or any of its Subsidiaries (or made by any
        person acting on its behalf of which the Company is aware) which is in violation
        of law, or (iv) violated in any material respect any provision of the Foreign
        Corrupt Practices Act of 1977, as amended 

       

      6.29  Business
        Practices.

       

      (a)  
        No
        officer, director, employee, agent or representative of the Company nor any
        of
        its Subsidiaries or Affiliates has engaged in any financial, accounting,
        tax,
        conflicts of interest, illegal or unethical activity, fraudulent or deceptive
        conduct on behalf of, or for the benefit of, the Company or any of its
        Subsidiaries or Affiliates. None of the Company nor any of its Subsidiaries
        or
        Affiliates, nor any of their respective officers, directors, employees, agents
        or representatives on behalf of, or for the benefit of, the Company or any
        of
        its Subsidiaries or Affiliates, has used any corporate or other funds for
        unlawful contributions, payments, gifts, or entertainment, or made any unlawful
        expenditures relating to political or business activity or established or
        maintained any unlawful or unrecorded funds in violation of applicable Law.
        None
        of the Company nor any of its Subsidiaries or Affiliates, nor any of their
        respective officers, director, employees, agents or representatives on behalf
        of
        the Company or any of its Subsidiaries or Affiliates, has accepted or received
        any unlawful contributions, payments, gifts, or expenditures in violation
        of
        applicable Law. 

       

      6.30  Disclosure

       

      (a)  
        The
        Company has not failed to disclose to the Investor any facts material to
        the
        business, results of operations, assets, Liabilities, financial condition
        or
        prospects of the Company or any of its Subsidiaries. No representation or
        warranty by the Company or any of its Subsidiaries contained in this Agreement
        or the Transaction Documents and no statement contained in any document
        (including financial statements and the Disclosure Schedule), certificate,
        or
        other writing furnished or to be furnished by the Company or any of its
        Subsidiaries to the Investor or any of its representatives pursuant to the
        provisions hereof or in connection with the transactions contemplated hereby,
        contains or will contain any untrue statement of material fact of omits or
        will
        omit to state any material fact necessary, in light of the circumstances
        under
        which it was made, in order to make the statements herein or therein not
        misleading.

       

       

      	7.  	
              Representations
                and Warranties of the Investor

            

       

      .
        The
        Investor represents and warrants to the Company as follows:

       

      7.1  Organization

       

      The
        Investor is a corporation duly organized, validly existing and in good standing
        under the Laws of the State of New Jersey and has its principal place of
        business and chief executive office at 145 Belmont Drive, Somerset, NJ
        08873.

       

      7.2  Authorization;
        Enforceability

       

      The
        Investor has the requisite corporate power and authority to enter into this
        Agreement and the other Transaction Documents to which it is a party. The
        execution, delivery and performance by the Investor of this Agreement and
        each
        of the other Transaction Documents to which it is a party, and the consummation
        by the Investor of the transactions contemplated hereby and thereby, have
        been
        duly authorized by all necessary corporate action on the part of the Investor.
        This Agreement has been duly and validly executed and delivered by the Investor
        and, each other Transaction Document to which it is a party will be duly
        and
        validly executed and delivered, on Closing, by the Investor, and, assuming
        due
        and valid execution and delivery by the Company, constitute valid and binding
        obligations of the Investor, enforceable against the Investor in accordance
        with
        their respective terms, subject to Laws of general application relating to
        bankruptcy, insolvency, and the relief of debtors and other Laws of general
        application affecting enforcement of creditors' rights generally, rules of
        Law
        governing specific performance, injunctive relief and other equitable
        remedies.

       

      7.3  No
        Conflicts

       

      The
        execution, delivery and performance of this Agreement and each of the
        Transaction Documents, when executed and delivered at Closing or thereafter
        as
        specified herein, and the consummation of the transactions contemplated hereby
        and thereby will not (a) violate or conflict with any Law that is applicable
        to
        or binding on the Investor or (b) violate or conflict with, or result in
        a
        material breach of, or constitute a material default (or an event which with
        notice or lapse of time or both would become a material default) under, or
        permit cancellation of any material Contract to which the Investor is a party
        or
        by which the Investor is bound.

       

      7.4  Litigation

       

      There
        are
        no actions, suits, claims or legal, administrative or arbitratorial proceedings
        pending against, or, to the Investor's knowledge, threatened against the
        Investor which would adversely affect the Investor's performance under this
        Agreement or the Transaction Documents or the consummation of the transactions
        contemplated hereby or thereby. 

       

      7.5  Available
        Funds

       

      Investor
        has the funds on hand necessary to satisfy its obligation to pay for the
        Tranche
        A Securities on the date hereof. Investor has, or will have on the Tranche
        B
        Closing Date, the funds on hand necessary to satisfy its obligation to pay
        for
        the Tranche B Securities on the Tranche B Closing Date.

       

      7.6  Brokers

       

      No
        broker, investment banker, financial advisor, finder or other Person was
        retained by or is authorized to act on behalf of the Investor who is entitled
        to
        any fee or commission in connection with the execution of this
        Agreement.

       

       

      	8.  	
              Covenants

            

       

      8.1  Continuing
        Covenants of the Company

       

      The
        Company (and each of its Subsidiaries) hereby covenants from the date of
        this
        Agreement until the Tranche B Closing or the termination of this Agreement
        in
        accordance with its terms, except to the extent expressly permitted by this
        Agreement or otherwise consented to by an instrument in writing signed by
        the
        Investor, the Company shall (i) keep the Company's business, as it is currently
        being conducted, and organization intact and shall not take or permit to
        be
        taken or do or suffer to be done anything other than in the ordinary course
        of
        its business as the same is currently being conducted, (ii) use its reasonable
        best efforts to keep available the services of its directors, officers,
        employees, independent contractors and agents and retain and maintain good
        relationships with its clients and maintain its facilities in good condition
        and
        (iii) maintain the goodwill and reputation associated with its business,
        as it
        is currently being conducted.

       

      8.2 Auditors

       

      The
        Company shall have as its auditors an accounting firm of national reputation.
        The parties hereto acknowledge and agree that, for purposes of this Section
        8.2,
        Amper, Politziner & Mattia is an accounting firm of national
        reputation.

       

      8.3  Composition
        of Board of Directors; Directors and Officers Insurance Policy

       

      (a)  No
        later
        than fifteen days from the date hereof, the Company shall increase the size
        of
        the Board of Directors by two directors designated by the Investor (the
        "Investor Directors"). The Board of Directors may, without the consent of
        the
        Investor, appoint one additional director by majority vote so that upon such
        increase the Board shall consist of seven directors. Other than with respect
        to
        vacancies in the positions in the Board of Directors held by either of the
        Investor Directors or their successors, vacancies on the Board of Directors
        shall be filled by a majority vote of the Board of Directors. Vacancies in
        the
        positions in the Board of Directors held by either of the Investor Directors
        or
        their successors shall be filled at the sole discretion of the Investor.
        The
        Board of Directors shall meet at least once every fiscal quarter, unless
        otherwise agreed to by a majority of directors.

       

      (b)  If
        the
        Company desires to increase the number of directors to more than seven, the
        Company shall (i) obtain the Investor's consent to any such increase in the
        Board of Directors, and (ii) present any proposed director to the Investor
        for
        approval, with respect to (ii) hereto such approval not to be unreasonably
        withheld.

       

      (c)  The
        Investor shall have rights with respect to representation on the Board of
        Directors as set forth in the Certificate of Designation. 

       

      (d)  Promptly
        following the date hereof, the Company shall appoint at least one of the
        directors designated by the Investor to the compensation committee of the
        Board
        of Directors.

       

      (e)  The
        Company shall maintain in full force and effect a policy or policies of
        insurance, including, without limitation, a directors and officers liability
        insurance policy, issued by insurers of recognized responsibility, insuring
        it,
        its directors and officers, its properties and its business against such
        losses
        and risks, and in such amounts, as are customary in the case of corporations
        of
        established reputation engaged in the same or a similar business and in an
        amount acceptable to the Board of Directors.

       

      (f)  In
        the
        event that the Company or any of its respective successors or assigns (i)
        consolidates with or merges into any other Person and is not the continuing
        or
        surviving corporation or entity of such consolidation or merger or (ii)
        transfers or conveys all or substantially all its properties and assets to
        any
        Person, then, and in each such case, the Company shall cause proper provisions
        to be made so that the successors and assigns of the Company, may assume
        the
        obligations set forth in this Section 8.3. The obligations of the Company
        under
        this Section 8.3 shall not be terminated or modified in such a manner as
        to
        adversely affect any indemnitee to whom this Section 8.3 applies without
        the
        express written consent of such affected indemnitee (it being expressly agreed
        that the indemnitees to whom this Section 8.3 applies shall be third party
        beneficiaries of this Section 8.3).

       

      8.4  Use
        of
        Proceeds

       

      The
        Company shall use the proceeds from the transaction contemplated hereby solely
        to pay off certain obligations relating to its securities as set forth on
        Exhibit E hereof, to fund the Company's working capital needs as set forth
        on
        Exhibit F hereof and to pay $1.2 million dollars of existing accounts payable
        of
        the Company as set forth on Exhibit G hereof. THE COMPANY EXPRESSLY AGREES
        THAT
        NONE OF THE PROCEEDS FROM THE TRANSACTION CONTEMPLATED HEREBY SHALL BE USED
        TO
        FINANCE THE COMPANY'S PENDING ACQUISITION OF ENTECH.

       

      8.5  Reservation
        of Common Stock

       

      The
        Company will at all times reserve and keep available out of its authorized
        Common Stock, solely for the purpose of issuance upon the conversion of Series
        D
        Preferred Stock as provided in the Certificate of Designation and the issuance
        and conversion of Warrants as provided in the form of Warrant, such number
        of
        shares of Common Stock as shall then be issuable upon the conversion of all
        outstanding shares of Series D Preferred Stock and the issuance and conversion
        of the Warrants. The Company covenants that all shares of Common Stock which
        shall be so issued shall be duly and validly issued and fully paid and
        nonassessable and free from all taxes, Liens and charges with respect to
        the
        issue thereof. The Company will use its best efforts to assure that all such
        shares of Common Stock may be so issued without violation of any applicable
        Law
        or regulation, or of any requirement of any national securities exchange
        or
        other market upon which the Common Stock may be listed. The Board of Directors
        agrees to submit for shareholder approval at the next meeting of the
        shareholders of the Company a proposal to increase the number of authorized
        shares of Common Stock of the Company to at least 300,000,000 . The Board
        of
        Directors agrees to recommend shareholder approval of such proposal.

       

      8.6  Filings

       

      The
        Company shall promptly provide to the Investor (or its counsel) copies of
        all
        filings made by the Company or any Affiliate with any Governmental Entity
        in
        connection with this Agreement, the Transaction Documents and the transactions
        contemplated hereby and thereby.

       

      8.7  Financial
        Statements and Other Information

       

      The
        reports required to be prepared pursuant to this Section 8.7 are to be prepared
        solely for internal purposes and are independent of any reports that must
        be
        prepared to satisfy any legal requirements or obligations of the Company
        or its
        Subsidiaries.

       

      (a)  Quarterly
        Reports.
        The
        Company shall deliver to the Investor, as soon as available but in any event
        within forty-five (45) days after the end of each quarterly accounting period
        in
        each fiscal year, unaudited consolidating and consolidated statements of
        income
        and cash flows of the Company and its Subsidiaries for such quarterly period
        and
        for the period from the beginning of the fiscal year to the end of such quarter,
        and unaudited consolidating and consolidated balance sheets of the Company
        and
        its Subsidiaries as of the end of such quarterly period, setting forth in
        each
        case comparisons to the Company's annual budget and to the corresponding
        period
        in the preceding fiscal year, and all such statements shall be prepared in
        accordance with GAAP, consistently applied, subject to the absence of footnote
        disclosures and to normal year-end adjustments for recurring accruals, and
        shall
        be certified by the Company's chief financial officer. The Company shall
        include
        with each such report an up-to-date capitalization table, certified by Company’s
        chief financial officer. Additionally, the Company shall include a brief
        summary
        of any significant events, developments or trends that transpired during
        the
        quarterly period.

       

      (b)  Fiscal
        Reports.
        The
        Company shall deliver to the Investor within ninety (90) days after the end
        of
        each fiscal year, statements of income and cash flows for the Company and
        its
        Subsidiaries for such fiscal year, and audited consolidating and audited
        consolidated balance sheets of the Company and its Subsidiaries as of the
        end of
        such fiscal year, together with, in each case, comparisons to the Company's
        annual budget and to the preceding fiscal year, all prepared in accordance
        with
        GAAP, consistently applied, and accompanied by (i) with respect to consolidated
        portion of such statements, an audit opinion containing no exceptions or
        qualifications (except for qualifications regarding specified contingent
        liabilities and except as set forth on Section 8.7(b) of the Disclosure
        Schedule) of the Company's auditors or another independent auditing firm
        of
        recognized national standing and (ii) a copy of such firm's annual management
        letter, if any, to the Board of Directors.

       

      (c)  Additional
        Accountants' Reports.
        As
        determined by the Board of Directors, the Company shall deliver to the Investor
        promptly upon receipt thereof, any additional reports, management letters
        or
        other detailed information concerning significant aspects of the Company's
        operations or financial affairs given to the Company by its independent
        accountants (and not otherwise contained in other materials provided hereunder
        ).

       

      (d)  Annual
        Budget.
        For
        2007 the Company shall deliver to the Investor no later than December 15,
        2006
        and thereafter the Company shall deliver to the Investor at least thirty
        (30)
        days prior to the beginning of each fiscal year, an annual budget for the
        Company and its Subsidiaries for such fiscal year and, promptly upon preparation
        thereof, any other significant budgets prepared by the Company and any revisions
        of such annual or other budgets, and, within forty-five (45) days after any
        quarterly period in which there is a material adverse deviation from the
        annual
        budget, a letter from the Company's chief financial officer explaining the
        deviation and what actions the Company has taken and proposes to take with
        respect thereto. Each annual budget delivered pursuant to this Section 8.7
        shall
        be prepared in a manner that is consistent with GAAP.

       

      (e)  Other
        Matters.
        The
        Company shall deliver to the Investor promptly (but in any event within five
        (5)
        Business Days) after the discovery or receipt of (i) notice of any default
        under
        any material Contract to which it or any of its Subsidiaries is a party or
        any
        other material adverse change, event or circumstance affecting the Company
        or
        any Subsidiary thereof (including, without limitation, the filing of any
        material litigation against the Company or any Subsidiary thereof or the
        existence of any dispute with any Person which involves a reasonable likelihood
        of such litigation being commenced). The Company shall deliver to the Investor
        with reasonable promptness, such other information and financial data concerning
        the Company and its Subsidiaries as it may reasonably request.

       

      8.8  Inspection
        of Property

       

       The
        Company and its Subsidiaries shall permit any authorized representative of
        the
        Investor upon reasonable notice and during normal business hours to (a) visit
        and inspect any of the properties or operations of the Company and its
        Subsidiaries, (b) examine the corporate and financial records of the Company
        and
        its Subsidiaries and make copies thereof and (c) discuss the affairs, finances
        and accounts with the directors, officers, key employees and independent
        accountants of the Company and its Subsidiaries.

       

      8.9  Further
        Assurances

       

      The
        Company will cure promptly any defects in the creation and issuance of the
        Securities and the execution and delivery of the Transaction Documents. The
        Company at its expense will promptly execute and deliver to the Investor,
        upon
        request, all such other documents, agreements and instruments to correct
        any
        omissions in the Transaction Documents or to make any recordings, to file
        any
        notices or obtain any consents, all as may reasonably be necessary or
        appropriate in connection therewith.

       

      8.10  Financing
        for Entech Acquisition

       

      The
        Company shall raise all the financing (the "Entech Financing") for the
        acquisition of Entech Environmental Technologies, Inc. ("Entech") through
        a
        special purpose vehicle (the "SPV"). None of the securities issued by the
        SPV in
        connection with such acquisition shall be convertible into either the Company's
        Common Stock, Series B Preferred Stock, Series C Preferred Stock, Series
        D
        Preferred Stock or any other class of capital stock which the Company may
        authorize or issue in the future. The Company further agrees not to provide
        any
        form of guarantee or surety to the SPV in relation to the Entech Financing
        or to
        secure the Entech Financing with any of its assets or capital
        stock.

       

      8.11  Strategic
        Agreement

       

      Between
        the date hereof and the Tranche B Closing Date, the Company and the Investor
        shall negotiate in good faith and use commercially reasonable efforts to
        enter
        into the Strategic Agreement as soon as practicable, but no later than January
        31, 2007.

       

      8.12  Right
        to Participate Pro-Rata in Future Financing

       

      (a)  The
        Company hereby grants to the Investor a right of first refusal to purchase,
        with
        respect to the issuance by the Company of new or additional debt or equity
        securities for cash, that portion of such new or additional debt or equity
        securities as may be necessary in order to permit the Investor to maintain
        its
        relative ownership of the aggregate amount of the Company's total common
        equity
        (calculated on a Fully-Diluted Basis). Such right shall be offered to the
        Investor (such offer, the "Preemptive Rights Offer") pursuant to a written
        notice from the Company offering the Investor such securities on the same
        terms
        and conditions as offered to the other Offeree(s) (such written notice, the
        "Preemptive Rights Notice"). The Investor shall have 20 days from the date
        of
        the Company's delivery of the Preemptive Rights Notice to notify the Company
        in
        writing of its binding acceptance of such Preemptive Rights Offer with respect
        some or all of the debt or equity securities which are offered to the Investor
        pursuant to such Preemptive Rights Offer.

       

      (b)  If
        the
        Investor accepts the Preemptive Rights Offer in accordance with the provisions
        of the preceding sentence, the Company and the Investor shall have 30 days
        in
        which to consummate such binding agreement. In the event that the Investor
        does
        not accept the Preemptive Rights Offer within such 20 day period in accordance
        with the provisions of the preceding sentence or fails to consummate any
        such
        purchase within such 30 day period, the Company would have the right, but
        not
        the obligation, to issue such securities on terms and conditions in the
        aggregate no more favorable to the other offeree(s) than those set forth
        in the
        Preemptive Rights Notice, pursuant to a definitive agreement to be entered
        into
        no later than 90 days after such date.

       

      (c)  Notwithstanding
        anything to the contrary contained herein, no rights of first refusal pursuant
        to this Section 8.12 would apply in the event of (i) the exercise of any
        employee or director options or the exercise or conversion of any options,
        warrants or convertible securities in existence as of the date hereof, (ii)
        an
        issuance of Common Stock by the Company in connection with a registered public
        offering, or (iii) the distribution by the Company of its securities to all
        of
        its stockholders on a pro rata basis.

       

      (d)  "Fully-Diluted
        Basis" shall mean, with respect to any calculation of the outstanding number
        of
        shares of the Company's capital stock or the outstanding amount of common
        equity
        of the Company (as the case may be pursuant to this Section 8.12), an amount
        equal to the total outstanding number of shares of Company capital stock,
        calculated without duplication and assuming the conversion of all outstanding
        shares of convertible stock and securities of the Company and the exercise
        of
        all warrants, options and other rights to purchase Common Stock.

       

      8.13  Restrictive
        Legend

       

      (a)  The
        Investor acknowledges that each certificate evidencing the Securities shall
        be
        stamped or otherwise imprinted with a legend in substantially the following
        form, unless prior to exercise of the Warrants or the Series D Preferred
        Stock,
        the Common Stock issuable upon conversion or exercise thereof shall have
        been
        registered under the Securities Act:

       

      "THE
        SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
        SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE TRANSFERRED IN THE ABSENCE
        OF
        SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SUCH ACT."

       

      (b)  Certificates
        evidencing the Underlying Shares shall not contain any legend (including
        the
        legend set forth in Section 8.13(a) hereof): (i) while a registration statement
        covering the resale of such security is effective under the Securities Act,
        or
        (ii) following any sale of such Underlying Shares pursuant to Rule 144, or
        (iii)
        if such Underlying Shares are eligible for sale under Rule 144(k), or (iv)
        if
        such legend is not required under applicable requirements of the Securities
        Act.
        The Company agrees that at such time as such legend is no longer required
        under
        this Section 8.13(b), it will, no later than three Trading Days following
        the
        delivery by a Investor to the Company or the Company's transfer agent of
        a
        certificate representing Underlying Shares, as applicable, issued with a
        restrictive legend (such third Trading Day, the "Legend Removal Date"), deliver
        or cause to be delivered to the Investor a certificate representing such
        shares
        that is free from all restrictive and other legends. 

       

      (c)  In
        addition to the Investor's other available remedies, the Company shall pay
        to
        the Investor, in cash, as partial liquidated damages and not as a penalty,
        for
        each $1,000 of Underlying Shares (based on the VWAP of the Common Stock on
        the
        date such Securities are submitted to the Company's transfer agent) delivered
        for removal of the restrictive legend and subject to Section 8.13(b), $5
        per
        Trading Day (increasing to $10 per Trading Day 5 Trading Days after such
        damages
        have begun to accrue) for each Trading Day after the Legend Removal Date
        until
        such certificate is delivered without a legend. Such liquidated damages shall
        not be incurred during any period in which the delay is occasioned by the
        Company's transfer agent or other independent party not acting at the Company's
        direction to delay the issuance and not as a result of an negligence or
        wrongdoing on the Company's part. Nothing herein shall limit the Investor's
        right to pursue actual damages for the Company's failure to deliver certificates
        representing any Securities as required by the Transaction Documents, and
        the
        Investor shall have the right to pursue all remedies available to it at law
        or
        in equity including, without limitation, a decree of specific performance
        and/or
        injunctive relief. 

       

      8.14  Public
        Statements.

       

      8.15   The
        initial press release with respect to this Agreement, the Transaction Documents
        and the transactions contemplated hereby and thereby shall be agreed upon
        by the
        Company and the Investor. Thereafter, the Company shall consult with the
        Investor before issuing any press release or making any public statement
        (including any filing with the SEC) with respect to this Agreement, the
        Transaction Documents and the transactions contemplated hereby and thereby
        and
        shall not issue any such press release or make any such public statement
        without
        the prior consent of the Investor.

       

       

      	9.  	
              Conditions
                to the Parties' Obligations

            

       

      9.1  Conditions
        to Each Party's Obligations

       

      The
        respective obligations of each party to consummate the transactions contemplated
        hereunder to be consummated at the Tranche B Closing are subject to the
        fulfillment prior to or on the Tranche B Closing Date of all of the following
        conditions, which may be waived in whole or in part by the Investor to the
        extent permitted by Law:

       

      (a)  No
        Statute, Etc.
        No
        statute, rule, regulation, executive or other order, decree, ruling or
        injunction shall have been enacted, entered, promulgated or enforced by any
        Governmental Entity which prohibits, restrains, enjoins or restricts the
        transactions contemplated by this Agreement or any of the Transaction Documents.
        

       

      9.2  Conditions
        to the Investor’s Obligations

       

      The
        obligations of the Investor to consummate the transactions contemplated
        hereunder to be consummated at the Tranche B Closing are subject to the
        fulfillment prior to or on the Tranche B Closing Date of all of the following
        conditions, which may be waived in whole or in part by the Investor to the
        extent permitted by Law:

       

      (a)  Covenants;
        Representations and Warranties.
        (i)  The Company shall have performed in all material respects each of its
        obligations hereunder and under each of the Transaction Documents required
        to be
        performed by it at or prior to the Tranche B Closing Date, and shall have
        obtained all consents and approvals required for the consummation of the
        transactions contemplated hereby and by each of the Transaction Documents,
        and
        (ii) the representations and warranties of the Company contained in this
        Agreement and in any certificate or other writing delivered by the Company
        pursuant hereto shall be true and correct (without giving effect to any
        limitation as to "materiality" or “Material Adverse Effect” set forth therein)
        at and as of the Tranche B Closing Date as if made at and as of the Tranche
        B
        Closing Date, except where the failure of such representations and warranties
        to
        be true and correct (without giving effect to any limitation as to "materiality"
        or “Material Adverse Effect” set forth therein) would not, individually or in
        the aggregate, have a Material Adverse Effect.

       

      (b)  Laws;
        Injunctions.
        No
        statute, rule, regulation, executive or other order, decree, ruling or
        injunction shall have been enacted, entered, promulgated or enforced by any
        Governmental Entity that would, or would reasonably be likely to, have a
        Material Adverse Effect.

       

      (c)  Certificate
        of Officer.
        The
        Company shall have delivered to the Investor a certificate dated the date
        of the
        Tranche B Closing Date, executed by its chief executive officer, certifying
        the
        satisfaction of the conditions specified in paragraph (a) of this Section
        9.2.

       

      (d)  Strategic
        Agreement.
        The
        Company shall have executed and delivered the Strategic Agreement.

       

      (e)  No
        Material Adverse Effect.
        There
        shall have been no Material Adverse Effect from and after the date of this
        Agreement.

       

      (f)  Default.
        The
        Company shall not be in default in any material respect under any Contract
        evidencing Indebtedness of the Company.

       

      (g)  Legal
        Opinion.
        The
        Investor shall have received the legal opinion from Salvo, Landau, Gruen
&
Rogers in the form attached hereto as Exhibit
        I.
        

       

      9.3  Conditions
        to the Company's Obligations

       

      The
        obligations of the Company to consummate the transactions contemplated hereunder
        to be consummated at the Tranche B Closing are subject to the fulfillment
        prior
        to or on the Tranche B Closing Date of all of the following conditions, which
        may be waived in whole or in part by the Company to the extent permitted
        by
        Law:

       

      (a)  Covenants;
        Representations and Warranties.
        (i) The
        Investor shall have performed in all material respects each of its obligations
        hereunder and under each of the Transaction Documents required to be performed
        by it at or prior to the Tranche B Closing Date, and shall have obtained
        all
        consents and approvals required for the consummation of the transactions
        contemplated hereby and by each of the Transaction Documents, and (ii) the
        representations and warranties of the Investor contained in this Agreement
        and
        in any certificate or other writing delivered by the Investor pursuant hereto
        shall be true and correct (without giving effect to any limitation as to
        "materiality" set forth therein) at and as of the Tranche B Closing Date
        as if
        made at and as of the Tranche B Closing Date, except where the failure of
        such
        representations and warranties to be true and correct (without giving effect
        to
        any limitation as to "materiality" or “Material Adverse Effect” set forth
        therein) would not, individually or in the aggregate, have a material adverse
        effect on the ability of the Investor to perform its obligations under this
        Agreement and the Transaction Documents.

       

      (b)  Certificate
        of Officer.
        The
        Investor shall have delivered to the Company a certificate dated as of the
        date
        of such Closing Date, executed by an authorized officer of the Investor ,
        certifying the satisfaction of the conditions specified in paragraph (a)
        of this
        Section 9.3.

       

      (c)  Strategic
        Agreement.
        The
        Investor shall have executed and delivered the Strategic Agreement.

       

       

      	10.  	
              Indemnification

            

       

      10.1  Survival
        of Representations and Warranties

       

                The
        representations and
        warranties of the Company and the Investor contained in this Agreement shall
        survive until 18 months after the date hereof, except that (i) all
        representations and warranties contained in Sections 6.1, 6.2, 6.3, and 6.4
        shall survive indefinitely; and (ii) all representations and warranties of
        the
        Company set forth in Section 6.18 and 6.24 shall survive until ninety (90)
        days
        after their applicable statutes of limitation (taking into account any
        applicable waivers or extensions). The covenants and agreements of the Investor
        and the Company contained in this Agreement and the Transaction Documents
        or in
        any certificate or other writing delivered pursuant hereto or thereto or
        in
        connection herewith or therewith shall survive indefinitely unless otherwise
        set
        forth herein or therein. The covenants and agreements of the Company contained
        in Sections 8.1, 8.3, 8.6, 8.7, 8.8 and 8.12 of this Agreement shall terminate
        if the Investor's beneficial ownership of the Company's capital stock on
        a
        fully-diluted basis falls below five percent (5%) of the then outstanding
        shares
        of Common Stock. If written notice of a claim has been given prior to the
        expiration of the applicable representations and warranties by the Company
        or
        the Investor, then the relevant representations and warranties of the other
        party shall survive as to such claim, until such claim has been finally
        resolved.

       

      10.2  Indemnification

       

      .
        (a)
        The
        Investor, its Affiliates and its successors and assigns and the officers,
        directors, employees and agents of the Investor, its Affiliates and its
        successors and assigns shall be indemnified and held harmless by the Company
        for
        any and all Liabilities, Financial Statement Losses, losses, damages, claims,
        costs and expenses, interest, awards, judgments and penalties (including,
        without limitation, reasonable attorneys' fees and expenses) actually suffered
        or incurred by them (including, without limitation, any action, claim or
        proceeding brought or otherwise initiated by any of them) (hereinafter, an
        "Investor Loss") arising out of, or resulting from or based upon:

       

      (i) the
        breach of any representation or warranty made by the Company contained in
        this
        Agreement or in any Transaction Document provided,
        however,
        that,
        in the case of any representation or warranty that is limited by “knowledge,”
“material” "Material Adverse Effect" or by any similar term or limitation, the
        occurrence of a breach or inaccuracy of such representation or warranty,
        as the
        case may be, and the amount of Losses shall be determined as if “knowledge,”
“material” "Material Adverse Effect" or by any similar term or limitation were
        not included therein;

      

      (ii) the
        breach of or failure to perform any covenant or agreement by the Company
        contained in this Agreement or in any Transaction Document;

      

      (iii)
         any
        action instituted against the Investor, or any of its Affiliates, by any
        shareholder of the Company who is not an Affiliate of the Investor, with
        respect
        to any of the transactions contemplated by this Agreement or any of the
        Transaction Documents; or

      

      (iv) any
        Violative Actions.

      

      The
        amounts of any indemnification pursuant to this Section 10.2(a) shall be
        increased by an additional amount to reflect an appropriate gross-up to
        compensate the Investor for its indirect participation as a holder of capital
        stock of the Company in any indemnification payment made pursuant to this
        Section 10.2(a).

      

      (b)  The
        Company, its Affiliates and its successors and assigns and the officers,
        directors, employees and agents of the Company, its Affiliates and its
        successors and assigns shall be indemnified and held harmless by the Investor
        for any and all Liabilities, losses, damages, claims, costs and expenses,
        interest, awards, judgments and penalties (including, without limitation,
        reasonable attorneys' fees and expenses) actually suffered or incurred by
        them
        (including, without limitation, any action, claim or proceeding brought or
        otherwise initiated by any of them) (hereinafter, a "Company Loss", and each
        of
        a Company Loss and an Investor Loss is hereinafter referred to as a "Loss"
        with
        respect to such party) arising out of, resulting from or based
        upon:

       

      (i) the
        breach of any representation or warranty made by the Investor contained in
        this
        Agreement or in any Transaction Document provided,
        however,
        that,
        in the case of any representation or warranty that is limited by “knowledge,”
“material” "Material Adverse Effect" or by any similar term or limitation, the
        occurrence of a breach or inaccuracy of such representation or warranty,
        as the
        case may be, and the amount of Losses shall be determined as if “knowledge,”
“material” "Material Adverse Effect" or by any similar term or limitation were
        not included therein; or

      

      (ii) the
        breach of or any failure to perform any covenant or agreement by the Investor
        contained in this Agreement or in any Transaction Document.

      

      (c)  Whenever
        a claim shall arise for indemnification under this Section 10, the party
        entitled to indemnification (the "Indemnified Party") shall give notice to
        the
        other party (the "Indemnifying Party") of any matter that the Indemnified
        Party
        has determined has given or could give rise to a right of indemnification
        under
        this Agreement promptly stating the amount of the Loss, if known. The
        obligations and Liabilities of the Indemnifying Party under this Section
        10 with
        respect to Losses arising from claims of any third party which are subject
        to
        the indemnification provided for in this Section 10 ("Third Party Claims")
        shall
        be governed by and contingent upon the following additional terms and
        conditions: if an Indemnified Party shall receive notice of any Third Party
        Claim, the Indemnified Party shall give the Indemnifying Party notice of
        such
        Third Party Claim following receipt by the Indemnified Party of such notice
        in
        the time frame provided above; provided,
        however,
        that
        the failure to provide such notice shall not release the Indemnifying Party
        from
        any of its obligations under this Section 10 and shall not relieve the
        Indemnifying Party from any other obligation or Liability that it may have
        to
        any Indemnified Party otherwise than under this Section 10. The Indemnifying
        Party shall be entitled to assume and control the defense of such Third Party
        Claim at its expense and through counsel of its choice if it gives notice
        of its
        intention to do so to the Indemnified Party within ten days of the receipt
        of
        such notice from the Indemnified Party; provided,
        however,
        that,
        if in the opinion of the Indemnified Party there exists or is reasonably
        likely
        to exist a conflict of interest that would prevent the same counsel from
        representing both the Indemnified Party and the Indemnifying Party, then
        the
        Indemnified Party shall be entitled to retain its own counsel at the expense
        of
        the Indemnifying Party. In the event the Indemnifying Party exercises the
        right
        to undertake any such defense against any such Third Party Claim as provided
        above, the Indemnified Party shall cooperate with the Indemnifying Party
        in such
        defense and make available to the Indemnifying Party, at the Indemnifying
        Party's expense, all witnesses, pertinent records, materials and information
        in
        the Indemnified Party's possession or under the Indemnified Party's control
        relating thereto as is reasonably required by the Indemnifying Party. Similarly,
        in the event the Indemnified Party is, directly or indirectly, conducting
        the
        defense against any such Third Party Claim, the Indemnifying Party shall
        cooperate with the Indemnified Party in such defense and make available to
        the
        Indemnified Party, at the Indemnifying Party's expense, all such witnesses,
        records, materials and information in the Indemnifying Party's possession
        or
        under the Indemnifying Party's control relating thereto as is reasonably
        required by the Indemnified Party. No such Third Party Claim may be settled
        by
        the Indemnifying Party without the prior written consent of the Indemnified
        Party. No party shall be entitled to indemnification under this Section 10.2
        if
        such party receives reasonable express written notice of a breach of any
        representation, warranty, covenant or agreement and such party would be entitled
        to terminate this Agreement pursuant to the terms hereof in respect of such
        breach and fails to do so.

       

      10.3  Limits
        on Indemnification

       

       Notwithstanding
        anything to the
        contrary contained in this Agreement, no claim may be made against the Company
        for indemnification unless the aggregate of all Investor Losses shall exceed
        $250,000 (the "Basket"), in which case the Company shall then be required
        to pay
        or be liable for the full amount of Investor Losses; provided,
        however,
        that
        the Basket shall not apply to or limit Investor Losses relating to breaches
        of
        the representations contained in Sections 6.1, 6.2, 6.3, 6.4, 6.11, 6.12,
        6.20,
        6.28 and 6.29 or to any Violative Actions.

       

      10.4  Effect
        of Investigation

       

      The
        right
        to indemnification and all other remedies based on any representation, warranty,
        covenant or obligation contained in or made pursuant to this Agreement shall
        not
        be affected by any investigation conducted with respect to, or any knowledge
        acquired (or capable of being acquired) at any time, whether before or after
        the
        date hereof or the Tranche B Closing Date, with respect to the accuracy or
        inaccuracy of or compliance with, any such representation, warranty, covenant
        or
        obligation.

       

       

      	11.  	
              Miscellaneous

            

       

      11.1  Notices

       

      All
        notices, requests, consents and other communications required or permitted
        hereunder shall be in writing and shall be hand delivered or mailed postage
        prepaid by registered or certified mail or transmitted by facsimile transmission
        (with immediate telephonic confirmation thereafter), 

       

      (a)  If
        to the
        Investor:

       

      EMCORE
        Corporation

      145
        Belmont Drive

      Somerset,
        New Jersey 08873

      Attention:
        Howard W. Brodie, Esq.

      Facsimile
        No.: (732) 302-9783

       

      with
        a
        copy to (which shall not constitute notice):

       

      Skadden,
        Arps, Slate, Meagher & Flom LLP

      Four
        Times Square

      New
        York,
        New York 10036-6522

      Attention:
        Thomas
        H.
        Kennedy, Esq.

      Facsimile
        No.: (917) 777-2526

       

      (b)  If
        to the
        Company:

      

      WorldWater
        and Power Corp.

      Pennington
        Business Park

      55
        Route
        31 South

      Pennington,
        NJ 08534

      Attention:
         Quentin
        T. Kelly

      Facsimile
        No.: (609) 818-0720

       

                  with
        a copy to (which
        shall not constitute notice):

       

                  Salvo
        Landau Gruen
& Rogers

              501
        Township Line Road, Suite 150

              Blue
        Bell, Pennsylvania 19422

                  Attention:
         Stephen
        A. Salvo, Esq.

                  Facsimile
        No.: (212)
        653-0383

       

      or
        at
        such other address as the Company or the Investor may specify by written
        notice
        to the other, and each such notice, request, consent and other communication
        shall for all purposes of the Agreement be treated as being effective or
        having
        been given when delivered if delivered personally, upon receipt of facsimile
        confirmation if transmitted by facsimile, or, if sent by mail, at the earlier
        of
        its receipt or 72 hours after the same has been deposited in a regularly
        maintained receptacle for the deposit of United States mail, addressed and
        postage prepaid as aforesaid.

       

      11.2  Termination
        of Agreement

       

      This
        Agreement may be terminated as follows:

       

      (a)  by
        mutual
        written consent of the Investor and the Company;

       

      (b)  by
        the
        Investor, if the Company has breached any representation, warranty, covenant
        or
        agreement contained in this Agreement such that the condition set forth in
        Section 9.2(a) hereof is not capable of being fulfilled; provided,
        that if
        such breach is capable of being cured, the Company has not cured such breach
        within twenty (20) Business Days after notice by the Investor to the Company
        thereof;

       

      (c)  by
        the
        Company, if the Investor has breached any representation, warranty, covenant
        or
        agreement contained in this Agreement such that the condition set forth in
        Section 9.3(a) hereof is not capable of being fulfilled; provided,
        that if
        such breach is capable of being cured, the Investor has not cured such breach
        within twenty (20) Business Days after notice by the Company to the Investor
        thereof; or

       

      (d)  by
        the
        Investor, if the Tranche B Closing have not occurred by February 1,
        2007.

       

      11.3  Effect
        of Termination

       

      In
        the
        event of the termination and abandonment of this Agreement pursuant to Section
        11.2, this Agreement shall forthwith become void and have no effect, without
        any
        liability on the part of either party hereto other than the provisions of
        this
        Section 11.3 and Sections 8.1 through 8.14; provided,
        however,
        that
        such termination and abandonment shall not result in the prior sale of any
        Securities hereunder being rescinded; provided,
        further,
        that a
        party that has committed fraud or willfully breached its representations,
        warranties, covenants or agreements shall be liable for such fraud or
        breach.

       

      11.4  Successors
        and Assigns

       

      This
        Agreement shall inure to the benefit of and be binding upon the successors
        and
        assigns of each of the parties. The Investor's rights under this Agreement
        may
        be assigned, in whole or in part, to any Permitted Transferee, and any Permitted
        Transferee shall be deemed to be a Investor for all purposes hereunder. A
        "Permitted Transferee" is (i) any Affiliate of the Investor, including, without
        limitation, directors, executives and officers of the Investor, (ii) any
        member
        of the family of any Affiliate of the Investor, including any such Person's
        spouse and descendants and any trust, partnership, corporation, limited
        liability company or other entity for the benefit of such spouse and/or
        descendants to whom or which any of the Securities have been transferred
        by any
        such Person for estate or tax planning purposes, (iii) any charity or foundation
        to which the Securities have been transferred by the Investor or any Person
        or
        entity described in clause (i) or (ii) above for estate or tax planning or
        charitable purposes, or (iv) the beneficiary of any bona fide pledge by the
        Investor of any of the Securities. Other than Sections 8.3(d) and 8.3(e)
        hereof,
        neither this Agreement nor any provision hereof is intended to confer upon
        any
        Person other than the parties hereto and any Permitted Transferee any rights
        or
        remedies hereunder.

       

      11.5  Headings

       

      The
        headings of the Sections and paragraphs of this Agreement have been inserted
        for
        convenience of reference only and do not constitute a part of this
        Agreement.

       

      11.6  Governing
        Law

       

      This
        Agreement, including all matters of construction, validity and performance,
        shall be construed in accordance with and governed by the Laws of the State
        of
        New York (without regard to principles of conflicts of Laws).

       

      11.7  Expenses

       

      Other
        than as required by applicable Law, all costs and expenses incurred in
        connection with this Agreement, the Transactions Documents and the transactions
        contemplated hereby and thereby shall be paid by the party incurring such
        costs
        or expenses.

       

      11.8  Jurisdiction

       

      Each
        of
        the parties hereto: (a) irrevocably consents to submit itself to the exclusive
        jurisdiction and venue of the state courts located in New York County, in
        the
        State of New York and the Federal courts located in the Southern District
        of the
        State of New York, for the purpose of any action or proceeding arising out
        of
        this Agreement or any of the transactions contemplated by this Agreement,
        (b)
        agrees that it will not attempt to deny or defeat such personal jurisdiction
        by
        motion or other request for leave from any such court and (c) agrees that
        it
        will not bring any action relating to this Agreement or any of the transactions
        contemplated hereby in any court other than a state or federal court of
        competent jurisdiction located in New York, New York, except for the purpose
        of
        enforcing any award or decision.

       

      11.9  Waiver
        of Jury Trial

       

      EACH
        OF
        THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY
        JURY
        IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE
        TRANSACTIONS CONTEMPLATED HEREBY.

       

      11.10  Counterparts;
        Effectiveness

       

      This
        Agreement may be executed in any number of counterparts and by a different
        party
        hereto in separate counterparts, with the same effect as if each party had
        signed the same document. All such counterparts shall be deemed an original,
        shall be construed together and shall constitute one and the same instrument.
        This Agreement shall become effective when each party hereto shall have received
        counterparts hereof signed by each of the parties hereto.

       

      11.11  Entire
        Agreement

       

      This
        Agreement, the Transaction Documents, and the Confidentiality Agreement contain
        the entire agreement among the parties hereto with respect to the subject
        matter
        hereof and supersede and replace all other prior agreements, written or oral,
        among the parties hereto with respect to the subject matter hereof.

       

      11.12  Severability

       

      If
        any
        term, provision, covenant or restriction of this Agreement is held by a court
        of
        competent jurisdiction or other authority to be invalid, void or unenforceable,
        the remainder of the terms, provisions, covenants and restrictions of this
        Agreement shall remain in full force and effect and shall in no way be affected,
        impaired or invalidated so long as the economic or legal substance of the
        transactions contemplated hereby is not affected in any manner materially
        adverse to any party. Upon such a determi-nation, the parties shall negotiate
        in
        good faith to modify this Agreement so as to effect the original intent of
        the
        parties as closely as possible in an acceptable manner in order that the
        transactions contemplated hereby be consummated as originally contemplated
        to
        the fullest extent possible.

       

      11.13  Change;
        Waiver

       

      No
        change
        or modification of this Agreement shall be valid unless the same is in writing
        and signed by all of the parties hereto. No waiver of any provision of this
        Agreement shall be valid unless in writing and signed by the party waiving
        its
        rights. No failure or delay by any party in exercising any right, power or
        privilege hereunder shall operate as a waiver thereof nor shall any single
        or
        partial exercise thereof preclude any other or further exercise thereof or
        the
        exercise of any other right, power or privilege. The rights and remedies
        herein
        provided shall be cumulative and not exclusive of any rights or remedies
        provided by Law.

       

      [Execution
        Page Follows]

       

      
        
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      IN
        WITNESS WHEREOF, the parties hereto have caused this Investment Agreement
        to be
        duly executed as of the day and year first above written.

       

      WorldWater
        and Power Corp.

      

      

      By:
        /s/
        Quentin T. Kelly 

      Name:
        Quentin T. Kelly

      Title:
        Chairman

     

     

    
      

      EMCORE
        Corporation

      

      

       

      By:_/s/_Howard
        W. Brodie_________

                              
Name:
        Howard W. Brodie

                           
 Title:
        Chief Legal Officer and Executive
        Vice PresidentEMCORE: WORLDWATER REGISTRATION RIGHTS AGREEMENT

     

    
      

      

    

    EXHIBIT
      10.2

    

    

    

    

    

    

    

    REGISTRATION
      RIGHTS AGREEMENT

    

    by
      and between

    

    EMCORE
      CORPORATION

    

    and

    

    WORLDWATER
      AND POWER CORP.

    

    

    

    ___________________

    

    Dated
      as
      of November 29, 2006

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Table
      of
      Contents

     

    1. Certain
      Definitions.

     

    2. Shelf
      Registration Statements.

     

    3. Additional
      Demand Registrations.

     

    4. Piggyback
      Registrations.

     

    5. Other
      Registrations

     

    6. Selection
      of Underwriters.

     

    7. Holdback
      Agreements.

     

    8. Lock
      -
      Up

     

    9. Procedures.

     

    10. Registration
      Expenses.

     

    11. Indemnification.

     

    12. Liquidated
      Damages.

     

    13. Rule
      144.

     

    14. Transfer
      of Registration Rights.

     

    15. Conversion
      or Exchange of Other Securities.

     

    16. Miscellaneous.

    

    REGISTRATION
      RIGHTS AGREEMENT dated as of November
      29, 2006,
      by and
      between WorldWater
      and Power Corp.,
      a
Delaware
      corporation (the "Company"), and EMCORE
      Corporation,
      a New
      Jersey corporation (the
      "Investor").

     

    In
      consideration of the mutual covenants and agreements herein contained and other
      good and valid consideration, the receipt and sufficiency of which are hereby
      acknowledged, the parties to this Agreement hereby agree as
      follows:

     

    1.  Certain
      Definitions.

     

    In
      addition to the terms defined elsewhere in this Agreement, the following terms
      shall have the following meanings:

     

    "Affiliate"
      of any
      Person means any other Person that directly, or indirectly through one or more
      intermediaries, controls, or is controlled by, or is under common control with,
      such Person. The term "control" (including the terms "controlling," "controlled
      by" and "under common control with") as used with respect to any Person means
      the possession, direct or indirect, of the power to direct or cause the
      direction of the management and policies of such Person, whether through the
      ownership of voting securities, by contract or otherwise.

     

    "Agreement"
      means
      this Registration Rights Agreement, including all amendments, modifications
      and
      supplements and any exhibits or schedules to any of the foregoing, and shall
      refer to this Registration Rights Agreement as the same may be in effect at
      the
      time such reference becomes operative.

     

    "Blackout
      Period"
      has the
      meaning set forth in Section 9(e) hereof. 

     

    "Business
      Day"
      means
      any day, except a Saturday, Sunday or legal holiday on which banking
      institutions in The City of New York are authorized or obligated by law or
      executive order to close.

     

    "Certificate
      of Designation"
      means
      the Certificate of Amendment to Designate the Preferred Stock (as defined
      below), filed with the Secretary of State of Delaware.

     

    "Common
      Stock"
      means
      common stock, par value $0.001 per share, in the Company.

     

    "Company"
      has the
      meaning set forth in the introductory paragraph and includes any other person
      referred to in the second sentence of Section 16(c) hereof.

     

    "Damages
      Payment Date"
      means
      the first Business Day of each month.

     

    "Delay
      Period"
      has the
      meaning set forth in Section 3(d) hereof.

     

    "Demand
      Registration"
      has the
      meaning set forth in Section 3(a) hereof.

     

    "Demand
      Registration Statement"
      has the
      meaning set forth in Section 3(a) hereof.

     

    "Demand
      Request"
      has the
      meaning set forth in Section 3(a) hereof.

     

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

     

    "Full
      Cooperation"
      means,
      in connection with any underwritten offering, where, in addition to the
      cooperation otherwise required by this Agreement, (a) members of senior
      management of the Company (including the chairman of the Company's board of
      directors, the chief executive officer and the chief financial officer) fully
      cooperate with the underwriter(s) in connection therewith and make themselves
      available to participate in "road-show" and other customary marketing activities
      in such locations (domestic and foreign) as recommended by the underwriter(s)
      (including one-on-one meetings with prospective purchasers of the Registrable
      Securities) and (b) the Company prepares preliminary and final prospectuses
      (preliminary and final prospectus supplements in the case of an offering
      pursuant to the Shelf Registration Statement) for use in connection therewith
      containing such additional information as reasonably requested by the
      underwriter(s) (in addition to the minimum amount of information required by
      law, rule or regulation). 

     

    "Fully
      Marketed Underwritten Offering"
      means
      an underwritten offering in which there is Full Cooperation. 

     

    "Governmental
      Entity"
      means
      any national, federal, state, municipal, local, territorial, foreign or other
      government or any department, commission, board, bureau, agency, regulatory
      authority or instrumentality thereof, or any court, judicial, administrative
      or
      arbitral body or public or private tribunal. 

     

    "Investment
      Agreement"
      means
      the Investment Agreement, dated November 29, 2006, between the Company and
      the
      Investor.

     

    "Investor"
      has the
      meaning set forth in the introductory paragraph.

     

    "Liquidated
      Damages"
      has the
      meaning set forth in Section 12 hereof.

     

    "Nasdaq"
      means
      the Nasdaq quotation system, or any successor reporting system.

     

    "Person"
      means
      any individual, sole proprietorship, partnership, limited liability company,
      joint venture, trust, unincorporated organization, association, corporation,
      institution, public benefit corporation, Governmental Entity or any other
      entity.

     

    "Piggyback
      Registration"
      has the
      meaning set forth in Section 4(a) hereof.

     

    "Piggyback
      Registration Statement"
      has the
      meaning set forth in Section 4(a) hereof. 

     

    "Preferred
      Stock"
      means
      the Series D Preferred Stock issued to the Investor pursuant to the Investment
      Agreement.

     

    "Prospectus"
      means
      the prospectus or prospectuses forming a part of, or deemed to form a part
      of,
      or included in, or deemed included in, any Registration Statement, as amended
      or
      supplemented by any prospectus supplement with respect to the terms of the
      offering of any portion of the Registrable Securities covered by such
      Registration Statement and by all other amendments and supplements to the
      prospectus, including post-effective amendments and all material incorporated
      by
      reference in such prospectus or prospectuses.

     

    "Registrable
      Securities"
      means
      (i) any shares of Common Stock owned by the Investor, (ii) the Warrant Shares,
      (iii) any Preferred Stock owned by the Investor, and (iv) any securities issued
      or issuable in respect of Common Stock or other capital stock referred to in
      clauses (i), (ii) and (iii) above by way of conversion, exercise or exchange,
      or
      upon any stock dividend or stock split or in connection with a combination
      of
      shares, reclassification, recapitalization, merger, consolidation or other
      reorganization or otherwise.

     

    "Registration
      Default"
      has the
      meaning set forth in Section 12 hereof.

     

    "Registration
      Expenses"
      has
      the
      meaning set forth in Section 10(a) hereof.

     

    "Registration
      Statement"
      means
      any registration statement of the Company that covers any of the Registrable
      Securities pursuant to the provisions of this Agreement, including the
      Prospectus, amendments and supplements to such Registration Statement, including
      post-effective amendments, all exhibits and all materials incorporated by
      reference in such Registration Statement.

     

    "Rule
      144"
      means
      Rule 144 promulgated
      by the SEC pursuant to the
      Securities Act, as such rule may be amended from time to time, or any similar
      rule or regulation hereafter adopted by the SEC as
      a
      replacement thereto having substantially the same effect as such
      rule.

     

    "Rule
      415"
      means
      Rule 415 promulgated by the SEC pursuant to the Securities Act, as such rule
      may
      be amended from time to time, or any similar rule or regulation hereafter
      adopted by the SEC as a replacement thereto having substantially the same effect
      as such rule.

     

    "SEC"
      means
      the Securities and Exchange Commission.

     

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

     

    "Shelf
      Registration Statement"
      has the
      meaning set forth in Section 2(a) hereof. 

     

    "Suspension
      Notice"
      has the
      meaning set forth in Section 9(e) hereof.

     

    "Stock
      Repurchase"
      has the
      meaning set forth in Section 4(b) hereof.

     

    "transferee"
      has the
      meaning set forth in Section 14(a) hereof.

     

    "underwriter"
      means a
      securities dealer who purchases any Registrable Securities as principal and
      not
      as part of such dealer's market-making activities.

     

    "underwritten
      registration or underwritten offering"
      means
      an offering in which securities of the Company are sold to one or more
      underwriters (as defined in Section 2(a)(11) of the Securities Act) for resale
      to the public.

     

    "Warrant
      Agreement"
      means
      the Warrant Agreement dated November 29, 2006, 2006, between the Company and
      the
      Investor.

     

    "Warrant
      Shares"
      means
      the shares of the Company's Series D preferred stock issued or issuable upon
      exercise of the Warrants.

     

    "Warrants"
      means
      the warrants to acquire shares of the Company's Series D preferred stock issued
      pursuant to the Warrant Agreement.

     

    "Withdrawn
      Demand Registration"
      has the
      meaning set forth in Section 3(e) hereof.

     

    2.  Shelf
      Registration Statements.

     

    (a)  Right
      to Request Registration

     

    

      (a)  Right
        to Request Registration

       

    

    (i)
      No
      later than forty five (45) days after the date the Company receives a notice
      from the Investor (the "Investor Notice"), the Company shall file with the
      SEC a
      registration statement on such form under the Securities Act then available
      to
      the Company providing for the resale on a continuous basis, pursuant to Rule
      415, by the Investor of such number of shares of Registrable Securities
      requested by the Investor to be registered thereby (including the Prospectus,
      amendments and supplements to the shelf registration statement or Prospectus,
      including pre- and post-effective amendments, all exhibits thereto and all
      material incorporated by reference or deemed to be incorporated by reference,
      if
      any, in such shelf registration statement, the "Shelf Registration
      Statement").  The Company agrees that if no other form is available to it
      at the time it receives the Investor Notice, it shall file with the SEC a
      registration statement on Form S-1 in order to comply with its obligations
      hereunder.

     

    (ii) The
      Company shall use its best efforts to cause the Shelf Registration Statement
      to
      be declared effective by the SEC as soon as practicable but no later than one
      hundred and twenty (120) days of such filing.

     

    (iii) The
      Company shall maintain the effectiveness of the Shelf Registration Statement
      for
      a period of at least five years in the aggregate plus the duration of any
      Blackout Period.

     

    (iv) If
      the
      Shelf Registration Statement ceases to be effective for any reason as result
      of
      the issuance of a stop order by the SEC at any time, the Company shall use
      its
      best efforts to obtain the prompt withdrawal of any such order, and in any
      event
      shall within thirty (30) days of such cessation of effectiveness amend the
      Shelf
      Registration Statement in a manner expected to obtain the withdrawal of said
      order.

     

    (v) The
      Company shall supplement and amend the Shelf Registration Statement if required
      by the applicable rules, regulations or instructions, if required by the
      Securities Act or if reasonably requested by the Investor.

     

    (b)  Number
      of Fully Marketed Underwritten Offerings.

     

    The
      Investor shall be entitled to request an aggregate of 1 Fully Marketed
      Underwritten Offering pursuant to the Shelf Registration Statement. If the
      Investor requests a Fully Marketed Underwritten Offering, the Company shall
      cause there to occur Full Cooperation in
      connection therewith. An
      underwritten offering shall not count as one of the permitted Fully Marketed
      Underwritten Offerings if there is not Full Cooperation in connection therewith
      or the Investor is not able to sell at least 50% of the Registrable Securities
      desired to be sold in such Fully Marketed Underwritten Offering. Except as
      provided in this Section 2(b), there shall be no limitation on the number of
      takedowns off the Shelf Registration Statement.

     

    3.  Additional
      Demand Registrations.

     

    (a)  Right
      to Request Registration

     

    Any
      time
      after the date hereof, the Investor may request registration for resale under
      the Securities Act of all or part of the Registrable Securities (the
      "Demand
      Request")
      pursuant to a Registration Statement separate from the Shelf Registration
      Statement (a "Demand
      Registration").
      As
      promptly as practicable after receipt of the Demand Request, but in any event
      within thirty (30) days of receipt of the Demand Requset, the Company shall
      file
      a registration statement registering for resale such number of shares of
      Registrable Securities held by the Investor as requested to be so registered
      (including
      the Prospectus, amendments and supplements to such registration statement or
      Prospectus, including pre- and post-effective amendments, all exhibits thereto
      and all material incorporated by reference or deemed to be incorporated by
      reference, if any, in such registration statement, a
      "Demand
      Registration Statement").
      In
      connection with such Demand Registration, the Company shall cause there to
      occur
      Full Cooperation. 

     

    (b)  Number
      of Demand Registrations

     

    The
      Investor will be entitled to request one (1) Fully Marketed Underwritten
      Offering pursuant to Section 3(a). A registration shall not count as the
      permitted Demand Registration pursuant to Section 3(a), (i) until the related
      Demand Registration Statement has become effective, (ii) if the Investor is
      not
      able to register and sell all of the Registrable Securities requested to be
      included in such registration, or (iii) if there was not Full Cooperation in
      connection therewith.

     

    (c)  Priority
      on Demand Registrations.
      If the
      Demand Registration pursuant to this Section 3 involves an underwritten offering
      and the managing underwriter shall advise the Company that in its opinion the
      number of securities requested to be included in such registration exceeds
      the
      number that can be sold in such offering without having an adverse effect on
      such offering, including the price at which such securities can be sold, then
      the Company shall include in such registration the maximum number of securities
      that such underwriter advises can be so sold without having such effect,
      allocated (i) first, to Registrable Securities requested by the Investor to
      be
      included in such registration and (ii) second, among all securities requested
      to
      be included in such registration by any other Persons (including securities
      to
      be sold for the account of the Company) allocated among such Persons in such
      manner as they may agree.

     

    (d)  Restrictions
      on Demand Registrations

     

    The
      Company may postpone the filing or the effectiveness of a Demand Registration
      Statement if, based on the good faith judgment of the Company's Board of
      Directors, such postponement is necessary in order to avoid premature disclosure
      of a matter the Board of Directors has determined would not be in the best
      interest of the Company to be disclosed at such time; provided,
      however,
      that
      the Investor requesting such Demand Registration Statement shall be entitled,
      at
      any time after receiving notice of such postponement and before such Demand
      Registration Statement becomes effective, to withdraw such request and, if
      such
      request is withdrawn, such Demand Registration shall not count as the permitted
      Demand Registration. The Company shall provide written notice to the Investor
      of, and detailed reasons for (x) any postponement of the filing or effectiveness
      of a Demand Registration Statement pursuant to this Section 3(d), (y) the
      Company's decision to file or seek effectiveness of such Demand Registration
      Statement following such postponement and (z) the effectiveness of such Demand
      Registration Statement. The Company may defer the filing or effectiveness of
      a
      particular Demand Registration Statement pursuant to this Section 3(d) only
      once
      during any twelve (12) month period. Notwithstanding the provisions of this
      Section 3(d), the Company may not postpone the filing or effectiveness of a
      Demand Registration Statement past the date that is the earliest of (a) the
      date
      upon which any disclosure of a matter the Board of Directors has determined
      would not be in the best interest of the Company to be disclosed is disclosed
      to
      the public or ceases to be material, (b) thirty (30) days after the date upon
      which the Board of Directors has determined such matter should not be disclosed
      and (c) such date that, if such postponement continued, would result in there
      being more than forty-five (45) days in the aggregate in any twelve (12) month
      period during which the filing or effectiveness of one or more Registration
      Statements has been so postponed. The period during which filing or
      effectiveness is so postponed hereunder is referred to as a "Delay
      Period."

     

    (e)  Effective
      Period of Demand Registrations

     

    After
      the
      Demand Registration filed pursuant to this Agreement has become effective,
      the
      Company shall use its best efforts to keep such Demand Registration Statement
      effective for a period of at least one hundred and eighty (180) days from the
      date on which the SEC declares such Demand Registration Statement effective
      plus
      the duration of any Delay Period and any Blackout Period, or such shorter period
      that shall terminate when all of the Registrable Securities covered by such
      Demand Registration Statement has been sold pursuant to such Demand Registration
      Statement in accordance with the plan of distribution set forth therein. If
      the
      Company shall withdraw the Demand Registration Statement pursuant to Section
      3(d) hereof (a "Withdrawn
      Demand Registration"),
      the
      Investor shall be entitled to a replacement Demand Registration which (subject
      to the provisions of this Section 3) the Company shall use its best efforts
      to
      keep effective for a period commencing on the effective date of such Demand
      Registration and ending on the earlier to occur of the date (i) which is one
      hundred and eighty (180) days from the effective date of such Demand
      Registration and (ii) on which all of the Registrable Securities covered by
      such
      Demand Registration has been sold. Such additional Demand Registration otherwise
      shall be subject to all of the provisions of this Agreement.

     

    4.  Piggyback
      Registrations.

     

    (a)  Right
      to Piggyback

     

    Whenever
      the Company proposes to publicly sell or register for sale any of its common
      equity securities pursuant to a registration statement (a "Piggyback
      Registration Statement")
      under
      the Securities Act (other than a registration statement on Form S-8 or on Form
      S-4 or any similar successor forms thereto), whether for its own account or
      for
      the account of one or more securityholders of the Company (a "Piggyback
      Registration"),
      the
      Company shall give prompt written notice to the Investor of its intention to
      effect such sale or registration and, subject to Sections 4(b)
      and 4(c), shall include in such transaction all Registrable Securities with
      respect to which the Company has received a written request from the Investor
      for inclusion therein within fifteen (15) days after the receipt of the
      Company's notice. The Company may postpone or withdraw the filing or the
      effectiveness of a Piggyback Registration at any time in its sole discretion,
      without prejudice to the Investor's right to immediately request a Demand
      Registration or Shelf Registration Statement hereunder. A Piggyback Registration
      shall not be considered a Demand Registration for purposes of Section 3 of
      this
      Agreement or a Shelf Registration Statement for purposes of Section 2 of this
      Agreement.

     

    (b)  Priority
      on Primary Registrations

     

    If
      a
      Piggyback Registration is initiated as an underwritten primary registration
      on
      behalf of the Company where the primary use of proceeds does not include the
      repurchase, redemption, acquisition or retirement of capital stock of the
      Company (a "Stock
      Repurchase"),
      and
      the managing underwriter advises the Company in writing that in its opinion
      the
      number of securities requested to be included in such registration exceeds
      the
      number that can be sold in such offering without having an adverse effect on
      such offering, including the price at which such securities can be sold, then
      the Company shall include in such registration the maximum number of shares
      that
      such underwriter advises can be so sold without having such effect, allocated
      (i) first, to the securities the Company proposes to sell, (ii) second, to
      the
      Registrable Securities requested to be included therein by the Investor, and
      (iii) third, among other securities requested to be included in such
      registration by other security holders of the Company on such basis as such
      holders may agree among themselves and the Company.

     

    (c)  Priority
      on Secondary Registrations

     

    If
      a
      Piggyback Registration is initiated as an underwritten registration on behalf
      of
      a holder of the Company's securities other than Registrable Securities or on
      behalf of the Company where the use of proceeds includes a Stock Repurchase,
      and
      the managing underwriter advises the Company in writing that in its opinion
      the
      number of securities requested to be included in such registration exceeds
      the
      number that can be sold in such offering without having an adverse effect on
      such offering, including the price at which such securities can be sold, then
      the Company shall include in such registration the maximum number of shares
      that
      such underwriter advises can be so sold without having such effect, allocated
      (i) first, to the securities requested to be included therein by the holder(s)
      requesting such registration if and to the extent that such holder(s) were
      granted registration rights by the Company prior to the date hereof and (ii)
      second, to the Registrable Securities requested to be included in such
      registration by the Investor, and (iii) third, the securities the Company
      proposes to sell and such other securities requested to be included by other
      security holders of the Company, on such basis as such holders may agree among
      themselves and the Company.

     

    5.  Other
      Registrations

     

    The
      Company shall not grant to any Person the right, other than as set forth herein
      and except to employees of the Company with respect to registrations on Form
      S-8
      (or any successor forms thereto), to request the Company to register any
      securities of the Company except such rights as are not more favorable than
      or
      inconsistent with the rights granted to the Investor and that do not adversely
      affect the priorities set forth herein of the Investor.

    

    6.  Selection
      of Underwriters.

     

    If
      any of
      the Registrable Securities covered by a Demand Registration Statement or a
      Shelf
      Registration Statement is to be sold in an underwritten offering, the Investor
      shall have the right to select the managing underwriter(s) to administer the
      offering subject to the prior approval of the Company, which approval shall
      not
      be unreasonably withheld.

     

    7.  Holdback
      Agreements.

     

    The
      Company agrees not to, and shall exercise its best efforts to obtain agreements
      (in the underwriters' customary form) from its directors, executive officers
      and
      beneficial owners of five
      (5)%
      or more of the Company's outstanding voting stock not to, directly or indirectly
      offer, sell, pledge, contract to sell, (including any short sale), grant any
      option to purchase or otherwise dispose of any equity securities of the Company
      or enter into any hedging transaction relating to any equity securities of
      the
      Company during the one hundred and eighty (180) days beginning on the effective
      date of any underwritten Demand Registration Statement or any underwritten
      Piggyback Registration Statement or the pricing date of any underwritten
      offering pursuant to any Registration Statement (except as part of such
      underwritten offering or pursuant to registrations on Form S-8 or S-4 or any
      successor forms thereto) unless the underwriter managing the offering otherwise
      agrees to a shorter period.

    

    8.  Lock
      - Up

     

    If
      requested by the Company and a managing underwriter, the Investor shall not
      sell
      or otherwise transfer or dispose of any Registrable Securities held by it (other
      than those included in the registration) during the one hundred eighty (180)
      day
      period following the effective date of a registration statement of the Company
      filed under the Securities Act in connection with the public offering of
      securities of the Company; provided,
      however,
      that
      all officers and directors of the Company and all other persons holding two
      percent (2%) or more of the Company's outstanding stock enter into similar
      agreements. Notwithstanding the foregoing, if the underwriters waive any
      restrictions pursuant to this Section 8 as to any officer or director of the
      Company, such restrictions shall also be waived as to the Investor and the
      Registrable Securities.

     

    9.  Procedures.

     

    (a) In
      the
      event that the Investor requests that any Registrable Securities be sold or
      registered pursuant to this Agreement, the Company shall use its best efforts
      to
      effect the registration and the sale of such Registrable Securities in
      accordance with the Investor's intended methods of disposition thereof, and
      pursuant thereto the Company shall as expeditiously as possible:

     

    (i)  prepare
      and file with the SEC a Registration Statement with respect to such Registrable
      Securities and use its best efforts to cause such Registration Statement to
      become effective as soon as practicable thereafter; in any event not later
      than
      the time periods stated in Sections 2(a) and 3(a), if and as applicable, and
      before filing a Registration Statement or Prospectus or any amendments or
      supplements thereto (including any prospectus supplement for a shelf takedown),
      furnish to the Investor and the underwriter or underwriters, if any, copies
      of
      all such documents proposed to be filed, including documents incorporated by
      reference in the Prospectus and, if requested by the Investor, the exhibits
      incorporated by reference, and the Investor (and the underwriter(s), if any)
      shall have the opportunity to review and comment thereon, and the Company will
      make such changes and additions thereto as reasonably requested by the Investor
      (and the underwriter(s), if any) prior to filing any Registration Statement
      or
      amendment thereto or any Prospectus or any supplement thereto;

     

    (ii)  prepare
      and file with the SEC such amendments and supplements to such Registration
      Statement and the Prospectus used in connection therewith as may be necessary
      to
      keep such Registration Statement effective for a period of not less than one
      hundred and eighty (180) days, in the case of a Demand Registration Statement
      or
      an aggregate of five years, in the case of a Shelf Registration Statement (plus,
      in each case, the duration of any Delay Period and any Blackout Period), or
      such
      shorter period as is necessary to complete the distribution of the securities
      covered by such Registration Statement and comply with the provisions of the
      Securities Act with respect to the disposition of all securities covered by
      such
      Registration Statement during such period in accordance with the intended
      methods of disposition by the Investor thereof set forth in such Registration
      Statement and, in the case of the Shelf Registration Statement, prepare such
      prospectus supplements containing such disclosures as may be reasonably
      requested by the Investor or any underwriter(s) in connection with each shelf
      takedown;

     

    (iii)  furnish
      to the Investor such number of copies of such Registration Statement, each
      amendment and supplement thereto, the Prospectus included in such Registration
      Statement (including each preliminary Prospectus) and such other documents
      as
      the Investor and any underwriter(s) may reasonably request in order to
      facilitate the disposition of the Registrable Securities, provided,
      however,
      that
      the Company shall have no obligation to furnish copies of a final prospectus
      if
      the conditions of Rule 172(c) under the Securities Act are satisfied by the
      Company;

     

    (iv)  use
      its
      best efforts to register or qualify such Registrable Securities under such
      other
      securities or blue sky laws of such jurisdictions (domestic or foreign) as
      the
      Investor and any underwriter(s) reasonably requests and do any and all other
      acts and things that may be reasonably necessary or advisable to enable the
      Investor and any underwriter(s) to consummate the disposition in such
      jurisdictions of the Registrable Securities (provided, that the Company will
      not
      be required to (1) qualify generally to do business in any jurisdiction where
      it
      would not otherwise be required to qualify but for this subparagraph (iv),
      (2)
      subject itself to taxation in any such jurisdiction or (3) consent to general
      service of process in any such jurisdiction);

     

    (v)  notify
      the Investor and any underwriter(s), at any time when a Prospectus relating
      thereto is required to be delivered under the Securities Act, of the occurrence
      of any event as a result of which the Prospectus included in such Registration
      Statement contains an untrue statement of a material fact or omits any material
      fact necessary to make the statements therein not misleading, and, at the
      request of the Investor or any underwriter(s), the Company shall prepare a
      supplement or amendment to such Prospectus so that, as thereafter delivered
      to
      the purchasers of such Registrable Securities, such Prospectus shall not contain
      an untrue statement of a material fact or omit to state any material fact
      necessary to make the statements therein not misleading;

     

    (vi)  in
      the
      case of an underwritten offering, (i) enter into such agreements (including
      underwriting agreements in customary form), (ii) take all such other actions
      as
      the Investor or the underwriter(s) reasonably request in order to expedite
      or
      facilitate the disposition of such Registrable Securities (including, without
      limitation, causing senior management and other Company personnel to cooperate
      with the Investor and the underwriter(s) in connection with performing due
      diligence) and (iii) cause its counsel to issue opinions of counsel in form,
      substance and scope as are customary in primary underwritten offerings,
      addressed and delivered to the underwriter(s) and the Investor;

     

    (vii)  in
      connection with each Demand Registration pursuant to Section 3 and each Fully
      Marketed Underwritten Offering requested by the Investor under Section 2, cause
      there to occur Full Cooperation and, in all other cases, cause members of senior
      management of the Company to be available to participate in, and to cooperate
      with the underwriter(s) in connection with customary marketing activities
      (including select conference calls and one-on-one meetings with prospective
      purchasers);

     

    (viii)  make
      available for inspection by the Investor, any underwriter participating in
      any
      disposition pursuant to such Registration Statement, and any attorney,
      accountant or other agent retained by the Investor or underwriter, all financial
      and other records, pertinent corporate documents and properties of the Company,
      and cause the Company's officers, directors, employees and independent
      accountants to supply all information reasonably requested by the Investor,
      underwriter, attorney, accountant or agent in connection with such Registration
      Statement;

     

    (ix)  use
      its
      best efforts to cause all such Registrable Securities to be listed on each
      securities exchange on which securities of the same class issued by the Company
      are then listed or, if no such similar securities are then listed, on Nasdaq
      or
      a national securities exchange selected by the Company;

     

    (x)  provide
      a
      transfer agent and registrar for all such Registrable Securities not later
      than
      the effective date of such Registration Statement;

     

    (xi)  if
      requested, cause to be delivered, immediately prior to the pricing of any
      underwritten offering, immediately prior to effectiveness of each Registration
      Statement (and, in the case of an underwritten offering, at the time of closing
      of the sale of Registrable Securities pursuant thereto), letters from the
      Company's independent registered public accountants addressed to the Investor
      and each underwriter, if any, stating that such accountants are independent
      public accountants within the meaning of the Securities Act and the applicable
      rules and regulations adopted by the SEC thereunder, and otherwise in customary
      form and covering such financial and accounting matters as are customarily
      covered by letters of the independent registered public accountants delivered
      in
      connection with primary underwritten public offerings;

     

    (xii)  make
      generally available to its Investors a consolidated earnings statement (which
      need not be audited) for the 12 months beginning after the effective date of
      a
      Registration Statement as soon as reasonably practicable after the end of such
      period, which earnings statement shall satisfy the requirements of an earning
      statement under Section 11(a) of the Securities Act;
      and

     

    (xiii)  promptly
      notify the Investor and the underwriter or underwriters, if any:

     

    (1)  when
      the
      Registration Statement, any pre-effective amendment, the Prospectus or any
      Prospectus supplement or post-effective amendment to the Registration Statement
      has been filed and, with respect to the Registration Statement or any
      post-effective amendment, when the same has become effective;

     

    (2)  of
      any
      written request by the SEC for amendments or supplements to the Registration
      Statement or any Prospectus or of any inquiry by the SEC relating to the
      Registration Statement;

     

    (3)  of
      the
      notification to the Company by the SEC of its initiation of any proceeding
      with
      respect to the issuance by the SEC of any stop order suspending the
      effectiveness of the Registration Statement; and

     

    (4)  of
      the
      receipt by the Company of any notification with respect to the suspension of
      the
      qualification of any Registrable Securities for sale under the applicable
      securities or blue sky laws of any jurisdiction.

     

    (b) The
      Company represents and warrants that no Registration Statement (including any
      amendments or supplements thereto and Prospectuses contained therein) shall
      contain any untrue statement of a material fact or omit to state a material
      fact
      required to be stated therein, or necessary to make the statements therein
      not
      misleading (except that the Company makes no representation or warranty with
      respect to information relating to the Investor furnished to the Company by
      or
      on behalf of the Investor specifically for use therein).

     

    (c) The
      Company shall make available to the Investor (i) promptly after the same is
      prepared and publicly distributed, filed with the SEC, or received by the
      Company, one copy of each Registration Statement and any amendment thereto,
      each
      preliminary Prospectus and Prospectus and each amendment or supplement thereto,
      each letter written by or on behalf of the Company to the SEC or the staff
      of
      the SEC (or other governmental agency or self-regulatory body or other body
      having jurisdiction, including any domestic or foreign securities exchange),
      and
      each item of correspondence from the SEC or the staff of the SEC (or other
      governmental agency or self-regulatory body or other body having jurisdiction,
      including any domestic or foreign securities exchange), in each case relating
      to
      such Registration Statement or to any of the documents incorporated by reference
      therein, and (ii) such number of copies of a Prospectus, including a preliminary
      Prospectus, and all amendments and supplements thereto and such other documents
      as the Investor or any underwriter may reasonably request in order to facilitate
      the disposition of the Registrable Securities. The Company will promptly notify
      the Investor of the effectiveness of each Registration Statement or any
      post-effective amendment or the filing of any supplement or amendment to such
      Shelf Registration Statement or of any Prospectus supplement. The Company will
      promptly respond to any and all comments received from the SEC, with a view
      towards causing each Registration Statement or any amendment thereto to be
      declared effective by the SEC as soon as practicable, in any event not later
      than the timeframes stated in Sections 2(a) or 3(a) as and if applicable, and
      shall file an acceleration request, if necessary, immediately following the
      resolution or clearance of all SEC comments or, if applicable, following
      notification by the SEC that any such Registration Statement or any amendment
      thereto will not be subject to review.

     

    (d) 
      The
      Company may require the Investor to furnish to the Company any other information
      regarding the Investor and the distribution of such securities as the Company
      reasonably determines, based on the advice of counsel, is required to be
      included in any Registration Statement.

     

    (e) The
      Investor agrees that, upon notice from the Company of the happening of any
      event
      as a result of which the Prospectus included (or deemed included) in such
      Registration Statement contains an untrue statement of a material fact or omits
      any material fact necessary to make the statements therein not misleading (a
      "Suspension
      Notice"),
      the
      Investor will forthwith discontinue disposition of Registrable Securities
      pursuant to such Registration Statement for a reasonable length of time not
      to
      exceed ten (10) days (thirty (30) days in the case of an event described in
      Section 3(d)) until the Investor is advised in writing by the Company that
      the
      use of the Prospectus may be resumed and is furnished with a supplemented or
      amended Prospectus as contemplated by Section 9(a) hereof; provided,
      however,
      that
      such postponement of sales of Registrable Securities by the Investor shall
      not
      exceed forty-five (45) days in the aggregate in any 12 month period. If the
      Company shall give the Investor any Suspension Notice, the Company shall extend
      the period of time during which the Company is required to maintain the
      applicable Registration Statements effective pursuant to this Agreement by
      the
      number of days during the period from and including the date of the giving
      of
      such Suspension Notice to and including the date the Investor either is advised
      by the Company that the use of the Prospectus may be resumed or receives the
      copies of the supplemented or amended Prospectus contemplated by Section 9(a)
      (a
      "Blackout
      Period").
      In
      any event, the Company shall not be entitled to deliver more than a total of
      three (3) Suspension Notices or notices of any Delay Period in any twelve (12)
      month period.

     

    (f) The
      Company shall not permit any officer, director, underwriter, broker or any
      other
      person acting on behalf of the Company to use any free writing prospectus (as
      defined in Rule 405 under the Securities Act) in connection with any
      registration statement covering Registrable Securities, without the prior
      written consent of the Investor and any underwriter.

     

    10.  Registration
      Expenses.

     

    (a) All
      expenses incident to the Company's performance of or compliance with this
      Agreement, including, without limitation, all registration and filing fees
      (including SEC registration fees and NASD filing fees), fees and expenses of
      compliance with securities or blue sky laws, listing application fees, printing
      expenses, transfer agent's and registrar's fees, cost of distributing
      Prospectuses in preliminary and final form as well as any supplements thereto,
      and fees and disbursements of counsel for the Company and all accountants and
      other Persons retained by the Company (all such expenses being herein called
      "Registration
      Expenses")
      (but
      not including any underwriting discounts or commissions or transfer taxes,
      if
      any, attributable to the sale of Registrable Securities), shall be borne by
      the
      Company. In addition, the Company shall pay its internal expenses (including,
      without limitation, all salaries and expenses of its officers and employees
      performing legal or accounting duties), the expense of any annual audit or
      quarterly review, the expense of any liability insurance and the expenses and
      fees for listing the securities to be registered on each securities exchange
      on
      which they are to be listed.

     

    (b) The
      Company shall pay, or shall reimburse the stockholders covered by such
      registration or sale for, the reasonable fees and disbursements of one law
      firm
      chosen by such stockholders as their counsel in connection with each
      Registration Statement and sale of Registrable Securities pursuant
      thereto.
      Notwithstanding anything to the contrary, such payment or reimbursement from
      the
      Company shall not exceed $35,000 per Registration Statement.

     

    (c) The
      obligation of the Company to bear the expenses described in Section 10(a) and
      to
      pay or reimburse the Investor for the expenses described in Section 10(b) shall
      apply irrespective of whether a registration, once properly demanded, if
      applicable, becomes effective, is withdrawn or suspended, is converted to
      another form of registration and irrespective of whether any of the foregoing
      shall occur.

     

    11.  Indemnification.

     

    (a) The
      Company shall indemnify, to the fullest extent permitted by law, the Investor
      and its officers, directors, employees and Affiliates and each Person who
      controls the Investor (within the meaning of the Securities Act) against all
      losses, claims, damages, liabilities and expenses arising out of or based upon
      any untrue or alleged untrue statement of material fact contained in any
      Registration Statement, Prospectus, preliminary Prospectus or any "issuer free
      writing prospectus" (as defined in Securities Act Rule 433) or any amendment
      thereof or supplement thereto or any omission or alleged omission of a material
      fact required to be stated therein or necessary to make the statements therein
      not misleading or any violation or alleged violation by the Company of the
      Securities Act, the Exchange Act or applicable "blue sky" laws, except insofar
      as the same are made in reliance and in conformity with information relating
      to
      the Investor furnished in writing to the Company by the Investor expressly
      for
      use therein. In connection with an underwritten offering, the Company shall
      indemnify such underwriter(s), their officers, employees and directors and
      each
      Person who controls such underwriter(s) (within the meaning of the Securities
      Act) at least to the same extent as provided above with respect to the
      indemnification of the Investor.

     

    (b) In
      connection with any Registration Statement in which the Investor is
      participating, the Investor shall furnish to the Company in writing such
      information as the Company reasonably determines, based on the advice of
      counsel, is required to be included in, any such Registration Statement or
      Prospectus and, shall indemnify, to the fullest extent permitted by law, the
      Company, its officers, employees, directors, Affiliates, and each Person who
      controls the Company (within the meaning of the Securities Act) against all
      losses, claims, damages, liabilities and expenses arising out of or based upon
      any untrue or alleged untrue statement of material fact contained in the
      Registration Statement, Prospectus or preliminary Prospectus or any amendment
      thereof or supplement thereto or any omission or alleged omission of a material
      fact required to be stated therein or necessary to make the statements therein
      not misleading, but only to the extent that the same are made in reliance and
      in
      conformity with information relating to the Investor furnished in writing to
      the
      Company by the Investor expressly for use therein.
      In no
      event shall the liability of the Investor be greater in amount than the amount
      of net proceeds received by the Investor upon such sale.

     

    (c) Any
      Person entitled to indemnification hereunder shall (i) give prompt written
      notice to the indemnifying party of any claim with respect to which it seeks
      indemnification and (ii) unless in such indemnified party's reasonable judgment
      a conflict of interest between such indemnified and indemnifying parties may
      exist with respect to such claim, permit such indemnifying party to assume
      the
      defense of such claim with counsel reasonably satisfactory to the indemnified
      party. If such defense is assumed, the indemnifying party shall not be subject
      to any liability for any settlement made by the indemnified party without its
      consent (but such consent will not be unreasonably withheld). An indemnifying
      party who is not entitled to, or elects not to, assume the defense of a claim
      shall not be obligated to pay the fees and expenses of more than one counsel
      (in
      addition to any local counsel) for all parties indemnified by such indemnifying
      party with respect to such claim, unless in the reasonable judgment of any
      indemnified party there may be one or more legal or equitable defenses available
      to such indemnified party that are in addition to or may conflict with those
      available to another indemnified party with respect to such claim. Failure
      to
      give prompt written notice shall not release the indemnifying party from its
      obligations hereunder.

     

    (d) The
      indemnification provided for under this Agreement shall remain in full force
      and
      effect regardless of any investigation made by or on behalf of the indemnified
      party or any officer, director or controlling Person of such indemnified party
      and shall survive the transfer of securities.

     

    (e) If
      the
      indemnification provided for in or pursuant to this Section 11 is due in
      accordance with the terms hereof, but is held by a court to be unavailable
      or
      unenforceable in respect of any losses, claims, damages, liabilities or expenses
      referred to herein, then each applicable indemnifying party, in lieu of
      indemnifying such indemnified party, shall contribute to the amount paid or
      payable by such indemnified Person as a result of such losses, claims, damages,
      liabilities or expenses in such proportion as is appropriate to reflect the
      relative fault of the indemnifying party on the one hand and of the indemnified
      party on the other in connection with the statements or omissions that result
      in
      such losses, claims, damages, liabilities or expenses as well as any other
      relevant equitable considerations. The relative fault of the indemnifying party
      on the one hand and of the indemnified Person on the other shall be determined
      by reference to, among other things, whether the untrue or alleged untrue
      statement of a material fact or the omission or alleged omission to state a
      material fact relates to information supplied by the indemnifying party or
      by
      the indemnified party, and by such party's relative intent, knowledge, access
      to
      information and opportunity to correct or prevent such statement or omission.
      In
      no event shall the liability of the Investor be greater in amount than the
      amount of net proceeds received by the Investor upon such sale.

     

    12.  Liquidated
      Damages.

     

    If
      (a)
      the Company fails to file the Registration Statement as required under the
      terms
      hereof, on or before the applicable dates specified above for such filing,
      (b)
      such Registration Statement is not declared effective by the SEC on or prior
      to
      the applicable dates specified above for such effectiveness, or (c) such
      Registration Statement is declared effective but thereafter ceases to be
      effective or useable in connection with the resales of the Registrable
      Securities (each such event referred to in clauses (a) through (c) above a
      "Registration
      Default"),
      then
      the Company will pay liquidated damages to the Investor, with respect to the
      first ninety (90) day period immediately following the occurrence of such
      Registration Default in an amount equal to $0.35 per week per $1,000 amount
      of
      Registrable Securities held by the Investor ("Liquidated
      Damages").
      The
      amount of Liquidated Damages will increase by an additional $0.20 per week
      per
      $1,000 amount of Registrable Securities with respect to each subsequent ninety
      (90) day period until all Registration Defaults have been cured, up to a maximum
      amount of Liquidated Damages of $3.00 per week per $1,000 amount of Registrable
      Securities. All accrued Liquidated Damages shall be paid on each Damages Payment
      Date by the Company, at the option of the Investor, either by wire transfer
      of
      immediately available funds to an account specified by the Investor or by
      federal funds check by mailing it to the Investor's registered address as it
      appears in the register of the Company. Following the cure of all Registration
      Defaults, the accrual of Liquidated Damages will cease.

     

    13. Rule
      144.

     

    The
      Company covenants that it will timely file the reports required to be filed
      by
      it under the Securities Act and the Exchange Act and the rules and regulations
      adopted by the SEC thereunder, and it will take such further action as
the
      Investor may
      reasonably request to make available adequate current public information with
      respect to the Company meeting the current public information requirements
      of
      Rule 144(c) under the Securities Act, to the extent required to enable
the
      Investor to
      sell
      Registrable Securities without registration under the Securities Act within
      the
      limitation of the exemptions provided by (i) Rule 144 under the Securities
      Act,
      as such Rule may be amended from time to time, or (ii) any similar rule or
      regulation hereafter adopted by the SEC. Upon the request of the
      Investor,
      the
      Company will deliver to the
      Investor a
      written
      statement as to whether it has complied with such information and
      requirements.

     

    14. Transfer
      of Registration Rights.

     

    (a)  The
      Investor may transfer all or any portion of its then-remaining rights under
      this
      Agreement to any transferee who acquires at least 20% of the Investor's
      common stock or Preferred Stock (each, a "transferee").
      Any
      transfer of registration rights pursuant to this Section 14 shall be effective
      upon receipt by the Company of (x) written notice from the Investor stating
      the
      name and address of any transferee and identifying the amount of Registrable
      Securities with respect to which the rights under this Agreement are being
      transferred and the nature of the rights so transferred and (y) a written
      agreement from the transferee to be bound by all of the terms of this Agreement.
      In connection with any such transfer, the term "Investor" as used in this
      Agreement shall, where appropriate to assign such rights to such transferee,
      be
      deemed to refer to the transferee holder of such Registrable Securities. The
      Investor and such transferees may exercise the registration rights hereunder
      in
      such proportion (not to exceed the then-remaining rights hereunder) as they
      shall agree among themselves.

     

    (b)  After
      such transfer, the Investor shall retain its rights under this Agreement with
      respect to all other Registrable Securities owned by the Investor. Upon the
      request of the Investor, the Company shall execute a Registration Rights
      Agreement with such transferee or a proposed transferee substantially similar
      to
      the applicable sections of this Agreement.

     

    15. Conversion
      or Exchange of Other Securities.

     

    If
      the
      Investor offers Registrable Securities by forward sale, or any options, rights,
      warrants or other securities issued by it or any other person that are offered
      with, convertible into or exercisable or exchangeable for any Registrable
      Securities, the Registrable Securities subject to such forward sale or
      underlying such options, rights, warrants or other securities shall be eligible
      for registration pursuant to Sections 2, 3 and 4 of this Agreement.

     

    16. Miscellaneous.

     

    (a)  Notices

     

    .
      All
      notices, requests, consents and other communications required or permitted
      hereunder shall be in writing and shall be hand delivered or mailed postage
      prepaid by registered or certified mail or by facsimile transmission (with
      immediate telephone confirmation thereafter) and, in the case of the Investor,
      shall also be sent via e-mail,

     

    If
      to the
      Company:

     

    WorldWater
      and Power Corp.

    Pennington
      Business Park

    55
      Route
      31 South

    Pennington,
      NJ 08534

    Attention:
      Quentin T. Kelly

    Facsimile
      No.: (609) 818-0720

     

    with
      a
      copy to (which shall not constitute notice):

     

    Salvo
      Landau Gruen & Rogers

    510
      Township Line Road, Suite 150

    Blue
      Bell, Pennsylvania 19422

    Attention:
      Stephen A. Salvo, Esq.

    Facsimile
      No.: (215) 653-0383

     

    If
      to the
      Investor:

     

    EMCORE
      Corporation

    145
      Belmont Drive

    Somerset,
      NJ 08873

    Attention:
      Howard W. Brodie, Esq.

    Facsimile
      No.: (732) 302-9783

     

    With
      a
      copy to:

     

    Skadden,
      Arps, Slate, Meagher & Flom LLP 

    Four
      Times Square

    New
      York,
      New York 10036-6522

    Attention:
      Thomas H. Kennedy, Esq.

    Facsimile
      No.: (212) 735-2000 

     

    If
      to a
      transferee Investor, to the address of such transferee Investor set forth in
      the
      transfer documentation provided to the Company;

     

    in
      each
      case with copies to (which shall not constitute notice):

     

    Skadden,
      Arps, Slate, Meagher & Flom LLP 

    Four
      Times Square

    New
      York,
      New York 10036-6522

    Attention:
      Thomas H. Kennedy, Esq.

    Facsimile
      No.: (212) 735-2000

     

    or
      at
      such other address as such party each may specify by written notice to the
      others, and each such notice, request, consent and other communication shall
      for
      all purposes of the Agreement be treated as being effective or having been
      given
      when delivered personally, upon one Business Day after being deposited with
      a
      courier if delivered by courier, upon receipt of facsimile confirmation if
      transmitted by facsimile, or, if sent by mail, at the earlier of its receipt
      or
      72 hours after the same has been deposited in a regularly maintained receptacle
      for the deposit of United States mail, addressed and postage prepaid as
      aforesaid.

     

    (b)  No
      Waivers

     

    .
      No
      failure or delay by any party in exercising any right, power or privilege
      hereunder shall operate as a waiver thereof nor shall any single or partial
      exercise thereof preclude any other or further exercise thereof or the exercise
      of any other right, power or privilege. The rights and remedies herein provided
      shall be cumulative and not exclusive of any rights or remedies provided by
      law.

     

    (c)  Successors
      and Assigns

     

    .
      The
      provisions of this Agreement shall be binding upon and inure to the benefit
      of
      the parties hereto and their respective successors and assigns. If the
      outstanding Common Stock is converted into or exchanged or substituted for
      other
      securities issued by any other Person, as a condition to the effectiveness
      of
      the merger, consolidation, reclassification, share exchange or other transaction
      pursuant to which such conversion, exchange, substitution or other transaction
      takes place, such other Person shall automatically become bound hereby with
      respect to such other securities constituting Registrable Securities and, if
      requested by the Investor or a permitted transferee, shall further evidence
      such
      obligation by executing and delivering to the Investor and such transferee
      a
      written agreement to such effect in form and substance satisfactory to the
      Investor. 

     

    (d)  Governing
      Law

     

    .
      The
      internal laws, and not the laws of conflicts (other than Section 5-1401 of
      the
      General Obligations Law of the State of New York), of New York shall govern
      the
      enforceability and validity of this Agreement, the construction of its terms
      and
      the interpretation of the rights and duties of the parties.

     

    (e)  Jurisdiction

     

    .
      Any
      suit, action or proceeding seeking to enforce any provision of, or based on
      any
      matter arising out of or in connection with, this Agreement or the transactions
      contemplated hereby may only be brought in any federal or state court located
      in
      the County and State of New York, and each of the parties hereby consents to
      the
      exclusive jurisdiction of such courts (and of the appropriate appellate courts
      therefrom) in any such suit, action or proceeding and irrevocably waives, to
      the
      fullest extent permitted by law, any objection which it may now or hereafter
      have to the laying of the venue of any such suit, action or proceeding in any
      such court or that any such suit, action or proceeding which is brought in
      any
      such court has been brought in an inconvenient forum. Process in any such suit,
      action or proceeding may be served on any party anywhere in the world, whether
      within or without the jurisdiction of any such court. Without limiting the
      foregoing, each party agrees that service of process on such party as provided
      in Section 16(a) shall be deemed effective service of process on such
      party.

     

    (f)  Waiver
      of Jury Trial

     

    .
      EACH OF
      THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY
      JURY
      IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE
      TRANSACTIONS CONTEMPLATED HEREBY.

     

    (g)  Counterparts;
      Effectiveness

     

    .
      This
      Agreement may be executed in any number of counterparts (including by facsimile)
      and by different parties hereto in separate counterparts, with the same effect
      as if all parties had signed the same document. All such counterparts shall
      be
      deemed an original, shall be construed together and shall constitute one and
      the
      same instrument. This Agreement shall become effective when each party hereto
      shall have received counterparts hereof signed by all of the other parties
      hereto.

     

    (h)  Entire
      Agreement

     

    .
      This
      Agreement contains the entire agreement between the parties hereto with respect
      to the subject matter hereof and supersedes and replaces all other prior
      agreements, written or oral, among the parties hereto with respect to the
      subject matter hereof.

     

    (i)  Captions

     

    .
      The
      headings and other captions in this Agreement are for convenience and reference
      only and shall not be used in interpreting, construing or enforcing any
      provision of this Agreement.

     

    (j)  Severability

     

    .
      If any
      term, provision, covenant or restriction of this Agreement is held by a court
      of
      competent jurisdiction or other authority to be invalid, void or unenforceable,
      the remainder of the terms, provisions, covenants and restrictions of this
      Agreement shall remain in full force and effect and shall in no way be affected,
      impaired or invalidated so long as the economic or legal substance of the
      transactions contemplated hereby is not affected in any manner materially
      adverse to any party. Upon such a determination, the parties shall negotiate
      in
      good faith to modify this Agreement so as to effect the original intent of
      the
      parties as closely as possible in an acceptable manner in order that the
      transactions contemplated hereby be consummated as originally contemplated
      to
      the fullest extent possible.

     

    (k)  Amendments

     

    .
      The
      provisions of this Agreement, including the provisions of this sentence, may
      not
      be amended, modified or supplemented, and waivers or consents to or departures
      from the provisions hereof may not be given, without the written consent of
      the
      Company and the Investor.

     

    (l)  Aggregation
      of Stock

     

    .
      All
      Registrable Securities held by or acquired by any Affiliated Persons will be
      aggregated together for the purpose of determining the availability of any
      rights under this Agreement.

     

    (m)  Remedies

     

    .
      In the
      event of a breach by the Company of its obligations under this Agreement, each
      holder of Registrable Securities, in addition to being entitled to exercise
      all
      rights granted by law, including recovery of damages, will be entitled to
      specific performance of its rights under this Agreement. The Company agrees
      that
      monetary damages would not be adequate compensation for any loss incurred by
      reason of a breach by it of any of the provisions of this Agreement and hereby
      further agrees that, in the event of any action for specific performance in
      respect of such breach, it shall waive the defense that remedy of law would
      be
      adequate.

     

    [Execution
      Page Follows]

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, this Registration rights Agreement has been duly executed
      by
      each of the parties hereto as of the date first written above.

    

    EMCORE
      Corporation

    

    

    By:
      /s/
      Howard W. Brodie 

    Name:
      Howard W. Brodie

    Title:
      Chief
      Legal Officer, Executive Vice-President and Secretary

    

    

    

    WorldWater
      & Power Corp.

    

    By:
      /s/
      Quentin T. Kelly 

    Name:
      Quentin T. Kelly

    Title:
      Chairman

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