Document:

Exhibit 10.90.1 2006 Stock Option Grant Notice and Agreement Letter

     

    EMERITUS
      CORPORATION

     

    2006
      EQUITY INCENTIVE PLAN

     

    

    STOCK
      OPTION GRANT NOTICE

     

    

       

      Emeritus
        Corporation (the "Company") hereby grants to you an Option (the "Option")
        to
        purchase shares of the Company's Common Stock under the Company's 2006 Equity
        Incentive Plan (the "Plan"). The Option is subject to all the terms and
        conditions set forth in this Stock Option Grant Notice (this "Grant Notice")
        and
        in the Stock Option Agreement and the Plan, which are attached to and
        incorporated into this Grant Notice in their entirety.

       

    

    
      	
               

              Participant:

               

            	
               

               

               

            
	
               

              Grant
                Date:

               

            	 
	
               

              Vesting
                Commencement Date:

               

            	 
	
               

              Number
                of Shares Subject to Option:

               

            	
               

               

               

            
	
               

              Exercise
                Price (per Share):

               

            	
               

              $

               

            
	
               

              Option
                Expiration Date:

               

            	 
	
               

              Type
                of Option:

               

            	
               

              o
                Incentive Stock Option* 
                See Sections 3 and 4 of the Stock Option Agreement. 

              o
                Nonqualified Stock Option

               

            
	
               

              Vesting
                and Exercisability Schedule:

               

            	 

    

    Additional
      Terms/Acknowledgement:
      You
      acknowledge receipt of, and understand and agree to, this Grant Notice, the
      Stock Option Agreement and the Plan. You further acknowledge that, as of the
      Grant Date, such documents set forth the entire understanding between you and
      the Company regarding the Option and supersede all prior oral and written
      agreements on the subject. 

    
      	
               

              EMERITUS
                CORPORATION

               

               

              By:
                __________________________

              Its:
                

               

            	
               

              PARTICIPANT

               

               

              Signature

               

            
	 	
              Date:

               

            
	
              Attachments:

              1.
                Stock Option Agreement

              2.
                2006 Equity Incentive Plan

            	
               

              Address: 

               

               

               

               

               

              Taxpayer
                ID:  

               

            

    

    

    

      

      
         

        *

      

    

    
      
        
          Exhibit
            10.90.1 2006 Stock Grant-Agreement Letter.DOC 

          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    EMERITUS CORPORATION 

    2006
      EQUITY INCENTIVE PLAN

     

    STOCK
      OPTION AGREEMENT

     

    Pursuant
      to your Stock Option Grant Notice (the "Grant Notice") and this Stock Option
      Agreement (this "Agreement"), Emeritus Corporation (the
      "Company") has granted you an Option under its 2006 Equity
      Incentive Plan (the "Plan") to purchase the number of shares of the Company's
      Common Stock indicated in your Grant Notice (the "Shares") at the exercise
      price
      indicated in your Grant Notice. Capitalized terms not defined in this Agreement
      but defined in the Plan have the same definitions as in the Plan.

     

    The
      details of the Option are as follows:

     

    1. Vesting
      and Exercisability.
      Subject
      to the limitations contained herein, the Option will vest and become exercisable
      as provided in your Grant Notice, provided that vesting will cease upon your
      Termination of Service and the unvested portion of the Option will
      terminate.

     

    2. Securities
      Law Compliance.
      Notwithstanding any other provision of this Agreement, you may not exercise
      the
      Option unless the Shares issuable upon exercise are registered under the
      Securities Act or, if such Shares are not then so registered, the Company has
      determined that such exercise and issuance would be exempt from the registration
      requirements of the Securities Act. The exercise of the Option must also comply
      with other applicable laws and regulations governing the Option, and you may
      not
      exercise the Option if the Company determines that such exercise would not
      be in
      material compliance with such laws and regulations.

    

     

    3. Incentive
      Stock Option Qualification. 
      If so
      designated in your Grant Notice, all or a portion of the Option is intended
      to
      qualify as an Incentive Stock Option under federal income tax law, but the
      Company does not represent or guarantee that the Option qualifies as
      such.

     

    If
      the
      Option has been designated as an Incentive Stock Option and the aggregate Fair
      Market Value (determined as of the Grant Date) of the shares of Common Stock
      subject to the portions of the Option and all other Incentive Stock Options
      you
      hold that first become exercisable during any calendar year exceeds $100,000,
      any excess portion will be treated as a Nonqualified Stock Option, unless the
      Internal Revenue Service changes the rules and regulations governing the
      $100,000 limit for Incentive Stock Options. A portion of the Option may be
      treated as a Nonqualified Stock Option if certain events cause exercisability
      of
      the Option to accelerate.

     

    4. Notice
      of Disqualifying Disposition.
      To the
      extent the Option has been designated as an Incentive Stock Option, to obtain
      certain tax benefits afforded to Incentive Stock Options, you must hold the
      Shares issued upon the exercise of the Option for two years after the Grant
      Date
      and one year after the date of exercise. You may be subject to the alternative
      minimum tax at the time of exercise. You should obtain tax advice when
      exercising the Option and prior to the disposition of the Shares. By accepting
      the Option, you agree to promptly notify the Company if you dispose of any
      of
      the Shares within one year from the date you exercise all or part of the Option
      or within two years from the Grant Date.

     

    5. Method
      of Exercise.
      You may
      exercise the Option by giving written notice to the Company, in form and
      substance satisfactory to the Company, which will state your election to
      exercise the Option and the number of Shares for which you are exercising the
      Option. The written notice must be accompanied by full payment of the exercise
      price for the number of Shares you are purchasing. You may make this payment
      in
      any combination of the following: (a) by cash; (b) by check acceptable
      to the Company; (c) if permitted by the Plan Administrator, by using shares
      of Common Stock you already own; (d) if the Common Stock is registered
      under the Exchange Act and to the extent permitted by law, by instructing a
      broker to deliver to the Company the total payment required, all in accordance
      with the regulations of the Federal Reserve Board; or (e) by any other
      method permitted by the Plan Administrator.

     

    6. Treatment
      Upon Termination of Employment or Service Relationship.
      The
      unvested portion of the Option will terminate automatically and without further
      notice immediately upon termination of your employment or service relationship
      with the Company or a Related Company for any reason ("Termination of Service").
      You may exercise the vested portion of the Option as follows:

     

    (a) General
      Rule.
      You
      must exercise the vested portion of the Option on or before the earlier of
      (i) three months after your Termination of Service and (ii) the Option
      Expiration Date; 

     

    (b) Retirement,
      Disability or Death.
      If your
      employment or service relationship terminates due to your Retirement, Disability
      or death, the vested portion of the Option must be exercised on or before the
      earlier of (i) one year after your Termination of Service and (ii) the
      Option Expiration Date. If you die after your Termination of Service but while
      the Option is still exercisable, the vested portion of the Option may be
      exercised until the earlier of (x) one year after the date of death and
      (y) the Option Expiration Date; and

     

    (c) Cause.
      The
      vested portion of the Option will automatically expire at the time the Company
      first notifies you of your Termination of Service for Cause, unless the Plan
      Administrator determines otherwise. If your employment or service relationship
      is suspended pending an investigation of whether you will be terminated for
      Cause, all your rights under the Option likewise will be suspended during the
      period of investigation. If any facts that would constitute termination for
      Cause are discovered after your Termination of Service, any Option you then
      hold
      may be immediately terminated by the Plan Administrator.

     

    The
      Option must be exercised within three months after termination of employment
      for
      reasons other than death or Disability and one year after termination of
      employment due to Disability to qualify for the beneficial tax treatment
      afforded Incentive Stock Options.

     

    It
      is your responsibility to be aware of the date the Option terminates.

     

    7. Limited
      Transferability.
      During
      your lifetime only you can exercise the Option. The Option is not transferable
      except by will or by the applicable laws of descent and distribution. The Plan
      provides for exercise of the Option by a beneficiary designated on a
      Company-approved form or the personal representative of your estate.
      Notwithstanding the foregoing, and to the extent permitted by Section 422 of
      the
      Internal Revenue Code of 1986, the Plan Administrator, in its sole discretion,
      may permit you to otherwise assign or transfer the Option, subject to such
      terms
      and conditions specified by the Plan Administrator.

     

    8. Withholding
      Taxes. As
      a
      condition to the exercise of any portion of the Option, you must make such
      arrangements as the Company may require for the satisfaction of any federal,
      state, local or foreign withholding tax obligations that may arise in connection
      with such exercise.

     

    9. Option
      Not an Employment or Service Contract.
      Nothing
      in the Plan or any Award granted under the Plan will be deemed to constitute
      an
      employment contract or confer or be deemed to confer any right for you to
      continue in the employ of, or to continue any other relationship with, the
      Company or any Related Company or limit in any way the right of the Company
      or
      any Related Company to terminate your employment or other relationship at any
      time, with or without Cause.

     

    10. No
      Right to Damages.
      You
      will have no right to bring a claim or to receive damages if you are required
      to
      exercise the vested portion of the Option within three months (or one year
      in
      the case of Retirement, Disability or death) of your Termination of Service
      or
      if any portion of the Option is cancelled or expires unexercised. The loss
      of
      existing or potential profit in the Option will not constitute an element of
      damages in the event of your Termination of Service for any reason, even if
      the
      termination is in violation of an obligation of the Company or a Related Company
      to you.

     

    11. Binding
      Effect.
      This
      Agreement will inure to the benefit of the successors and assigns of the Company
      and be binding upon you and your heirs, executors, administrators, successors
      and assigns.

     

    12. Section
      409A Compliance.
      Notwithstanding anything in this Agreement or the Plan to the contrary, the
      Company may adopt such amendments to this Agreement and adopt other policies
      and
      procedures (including amendments, policies and procedures with retroactive
      effect) or take other actions that the Company determines are necessary or
      appropriate to exempt the Option from Section 409A of the Code or to comply
      with
      Section 409A of the Code.Form of Registration Rights Agreement

    EXHIBIT
      4.8

     

    FORM
      OF REGISTRATION RIGHTS AGREEMENT

     

    This
      Registration Rights Agreement (this “Agreement”)
      is
      made and entered into as of February 28, 2006, among Pacificnet, Inc., a
      Delaware corporation (the “Company”),
      and
      the several purchasers signatory hereto (each such purchaser is a “Purchaser”
and
      collectively, the “Purchasers”).

     

    This
      Agreement is made pursuant to the Securities Purchase Agreement, dated as of
      the
      date hereof between the Company and each Purchaser (the “Purchase
      Agreement”).

     

    The
      Company and each Purchaser hereby agrees as follows: 

     

    1.  Definitions

     

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

     

    “Advice”
shall
      have the meaning set forth in Section 6(d).

     

    “Effectiveness
      Date”
means,
      with respect to the initial Registration Statement required to be filed
      hereunder, the 90th
      calendar
      day following the date here of (the 120th
      calendar
      day in the case of a “full
      review”
by
      the
      Commission of the initial Registration Statement) and, with respect to any
      additional Registration Statements which may be required pursuant to Section
      3(c), the 60th calendar day following the date on which the Company first knows,
      or reasonably should have known, that such additional Registration Statement
      is
      required hereunder; provided,
      however,
      in the
      event the Company is notified by the Commission that one of the above
      Registration Statements will not be reviewed or is no longer subject to further
      review and comments, the Effectiveness Date as to such Registration Statement
      shall be the fifth Trading Day following the date on which the Company is so
      notified if such date precedes the dates required above.

     

    “Effectiveness
      Period”
shall
      have the meaning set forth in Section 2(a). 

     

    “Event”
shall
      have the meaning set forth in Section 2(b). 

     

    “Event
      Date”
shall
      have the meaning set forth in Section 2(b).

     

    “Filing
      Date”
means,
      with respect to the initial Registration Statement required hereunder, the
      earlier of (i) April 30, 2006 or (ii) the 30th calendar day following the date
      the Company files its Form 10-KSB (or Form 10-K) for the year ended December
      31,
      2005 and, with respect to any additional Registration Statements which may
      be
      required pursuant to Section 3(c), the 30th day following the date on which
      the
      Company first knows, or reasonably should have known that such additional
      Registration Statement is required hereunder.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

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

     

    “Indemnified
      Party”
shall
      have the meaning set forth in Section 5(c). “Indemnifying
      Party”
shall
      have the meaning set forth in Section 5(c). “Losses”
shall
      have the meaning set forth in Section 5(a).

     

    “Plan
      of Distribution”
shall
      have the meaning set forth in Section 2(a).

     

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

     

    “Registrable
      Securities”
means
      (i) all of the shares of Common Stock issuable upon conversion in full of the
      Debentures, (ii) all shares issuable as interest or principal on the Debentures
      assuming all permissible interest and principal payments are made in shares
      of
      Common Stock and the Debentures are held until maturity, (iii) all Warrant
      Shares, (iv) any additional shares issuable in connection with any anti-dilution
      provisions in the Debentures or the Warrants (in each case, without giving
      effect to any limitations on conversion set forth in the Debenture or
      limitations on exercise set forth in the Warrant), (v) shares of Common Stock
      underlying warrants issued to the placement agent or its designees and (vi)
      any
      securities issued or issuable upon any stock split, dividend or other
      distribution, recapitalization or similar event with respect to the
      foregoing.

     

    “Registration
      Statement”
means
      the registration statements required to be filed hereunder and any additional
      registration statements contemplated by Section 3(c), including (in each case)
      the Prospectus, amendments and supplements to such registration statement or
      Prospectus, including pre- and post-effective amendments, all exhibits thereto,
      and all material incorporated by reference or deemed to be incorporated by
      reference in such registration statement.

     

    “Rule
      415”
means
      Rule 415 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same purpose and
      effect as such Rule.

     

    “Rule
      424”
means
      Rule 424 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same purpose and
      effect as such Rule.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

       

    

    “Selling
      Shareholder Questionnaire”
shall
      have the meaning set forth in Section 3(a).

     

    2.  Shelf
      Registration

     

    (a)  On
      or
      prior to each Filing Date, the Company shall prepare and file with the
      Commission a “Shelf”
      Registration Statement covering the resale of 150% of the Registrable Securities
      on such Filing Date for an offering to be made on a continuous basis pursuant
      to
      Rule 415. The Registration Statement shall be on Form S-3 (except if the Company
      is not then eligible to register for resale the Registrable Securities on Form
      S-3, in which case such registration shall be on another appropriate form in
      accordance herewith) and shall contain (unless otherwise directed by at least
      an
      85% majority in interest of the Holders) substantially the “Plan
      of Distribution”
      attached hereto as Annex A. Subject to the terms of this Agreement, the Company
      shall use its best efforts to cause a Registration Statement to be declared
      effective under the Securities Act as promptly as possible after the filing
      thereof, but in any event prior to the applicable Effectiveness Date, and shall
      use its best efforts to keep such Registration Statement continuously effective
      under the Securities Act until all Registrable Securities covered by such
      Registration Statement have been sold, or may be sold without volume
      restrictions pursuant to Rule 144(k), as determined by the counsel to the
      Company pursuant to a written opinion letter to such effect, addressed and
      acceptable to the Company’s transfer agent and the affected Holders (the
“Effectiveness
      Period”).
      The
      Company shall telephonically request effectiveness of a Registration Statement
      as of 5:00 pm Eastern Time on a Trading Day. The Company shall immediately
      notify the Holders via facsimile of the effectiveness of a Registration
      Statement on the same Trading Day that the Company telephonically confirms
      effectiveness with the Commission, which shall be the date requested for
      effectiveness of a Registration Statement. The Company shall, by 9:30 am Eastern
      Time on the Trading Day after the Effective Date (as defined in the Purchase
      Agreement), file a final Prospectus with the Commission as required by Rule
      424.
      Failure to so notify the Holder within 1 Trading Day of such notification of
      effectiveness or failure to file a final Prospectus as a foresaid shall be
      deemed an Event under Section 2(b).

     

    (b)  If:
      (i) a
      Registration Statement is not filed on or prior to its Filing Date (if the
      Company files a Registration Statement without affording the Holders the
      opportunity to review and comment on the same as required by Section 3(a),
      the
      Company shall not be deemed to have satisfied this clause (i)), or (ii) the
      Company fails to file with the Commission a request for acceleration in
      accordance with Rule 461 promulgated under the Securities Act, within five
      Trading Days of the date that the Company is notified (orally or in writing,
      whichever is earlier) by the Commission that a Registration Statement will
      not
      be “reviewed,”
or
      not
      subject to further review, or (iii) prior to its Effectiveness Date, the Company
      fails to file a pre-effective amendment and otherwise respond in writing to
      comments made by the Commission in respect of such Registration Statement within
      10 Trading Days after the receipt of comments by or notice from the Commission
      that such amendment is required in order for a Registration Statement to be
      declared effective, or (iv) a Registration Statement filed or required to be
      filed hereunder is not declared effective by the Commission by its Effectiveness
      Date, or (v) after the Effectiveness Date, a Registration Statement ceases
      for
      any reason to remain continuously effective as to all Registrable Securities
      for
      which it is required to be effective, or the Holders are otherwise not permitted
      to utilize the Prospectus therein to resell such Registrable Securities for
      more
      than 15 consecutive calendar days or more than an aggregate of 30 calendar
      days
      during any 12-month period (which need not be consecutive calendar days), (any
      such failure or breach being referred to as an “Event”,
      and
      for purposes of clause (i) or (iv) the date on which such Event occurs, or
      for
      purposes of clause (ii) the date on which such five Trading Day period is
      exceeded, or for purposes of clause (iii) the date which such 10 Trading Day
      period is exceeded, or for purposes of clause (v) the date on which such 15
      or
      30 calendar day period, as applicable, is exceeded, being referred to as
“Event
      Date”),
      then
      in addition to any other rights the Holders may have hereunder or under
      applicable law, on each such Event Date and on each monthly anniversary of
      each
      such Event Date (if the applicable Event shall not have been cured by such
      date)
      until the applicable Event is cured, the Company shall pay to each Holder an
      amount in cash, as partial liquidated damages and not as a penalty, equal to
      2.0% of the aggregate purchase price paid by such Holder pursuant to the
      Purchase Agreement for any Registrable Securities then held by such Holder,
      up
      to a maximum of 20% per Holder of the aggregate purchase price paid by such
      Holder pursuant to the Purchase Agreement. If the Company fails to pay any
      partial liquidated damages pursuant to this Section in full within seven days
      after the date payable, the Company will pay interest thereon at a rate of
      18%
      per annum (or such lesser maximum amount that is permitted to be paid by
      applicable law) to the Holder, accruing daily from the date such partial
      liquidated damages are due until such amounts, plus all such interest thereon,
      are paid in full. The partial liquidated damages pursuant to the terms hereof
      shall apply on a daily pro-rata basis for any portion of a month prior to the
      cure of an Event.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

       

    

    3.  Registration
      Procedures.

     

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

     

    (a)  Not
      less
      than five Trading Days prior to the filing of each Registration Statement and
      not less than one Trading Day prior to the filing of any related Prospectus
      or
      any amendment or supplement thereto (including any document that would be
      incorporated or deemed to be incorporated therein by reference), the Company
      shall, (i) furnish to each Holder copies of all such documents proposed to
      be
      filed, which documents (other than those incorporated or deemed to be
      incorporated by reference) will be subject to the review of such Holders, and
      (ii) cause its officers and directors, counsel and independent certified public
      accountants to respond to such inquiries as shall be necessary, in the
      reasonable opinion of respective counsel to each Holder to conduct a reasonable
      investigation within the meaning of the Securities Act. The Company shall not
      file a Registration Statement or any such Prospectus or any amendments or
      supplements thereto to which the Holders of a majority of the Registrable
      Securities shall reasonably object in good faith, provided that, the Company
      is
      notified of such objection in writing no later than 5 Trading Days after the
      Holders have been so furnished copies of a Registration Statement or 1 Trading
      Day after the Holders have been so furnished copies of any related Prospectus
      or
      amendments or supplements thereto. Each Holder agrees to furnish to the Company
      a completed Questionnaire in the form attached to this Agreement as Annex B
      (a
“Selling
      Shareholder Questionnaire”)
      not
      less than two Trading Days prior to the Filing Date or by the end of the fourth
      Trading Day following the date on which such Holder receives draft materials
      in
      accordance with this Section.

     

    (b)  (i)Prepare
      and file with the Commission such amendments, including post-effective
      amendments, to a Registration Statement and the Prospectus used in connection
      therewith as may be necessary to keep a Registration Statement continuously
      effective as to the applicable Registrable Securities for the Effectiveness
      Period and prepare and file with the Commission such additional Registration
      Statements in order to register for resale under the Securities Act all of
      the
      Registrable Securities; (ii) cause the related Prospectus to be amended or
      supplemented by any required Prospectus supplement (subject to the terms of
      this
      Agreement), and as so supplemented or amended to be filed pursuant to Rule
      424;
      (iii) respond as promptly as reasonably possible to any comments received from
      the Commission with respect to a Registration Statement or any amendment thereto
      and as promptly as reasonably possible provide the Holders true and complete
      copies of all correspondence from and to the Commission relating to a
      Registration Statement (provided that the Company may excise any information
      contained therein which would constitute material non-public information as
      to
      any Holder which has not executed a confidentiality agreement with the Company);
      and (iv) comply in all material respects with the provisions of the Securities
      Act and the Exchange Act with respect to the disposition of all Registrable
      Securities covered by a Registration Statement during the applicable period
      in
      accordance (subject to the terms of this Agreement) with the intended methods
      of
      disposition by the Holders thereof set forth in such Registration Statement
      as
      so amended or in such Prospectus as so supplemented.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

       

    

    (c)  If
      during
      the Effectiveness Period, the number of Registrable Securities at any time
      exceeds 90% of the number of shares of Common Stock then registered in a
      Registration Statement, then the Company shall file as soon as reasonably
      practicable but in any case prior to the applicable Filing Date, an additional
      Registration Statement covering the resale by the Holders of not less than
      150%
      of the number of such Registrable Securities.

     

    (d)  Notify
      the Holders of Registrable Securities to be sold (which notice shall, pursuant
      to clauses (iii) through (vi) hereof, be accompanied by an instruction to
      suspend the use of the Prospectus until the requisite changes have been made)
      as
      promptly as reasonably possible (and, in the case of (i)(A) below, not less
      than
      one Trading Day prior to such filing) and (if requested by any such Person)
      confirm such notice in writing no later than one Trading Day following the
      day
      (i)(A) when a Prospectus or any Prospectus supplement or post-effective
      amendment to a Registration Statement is proposed to be filed; (B) when the
      Commission notifies the Company whether there will be a “review”
of
      such
      Registration Statement and whenever the Commission comments in writing on such
      Registration Statement; and (C) with respect to a Registration Statement or
      any
      post-effective amendment, when the same has become effective; (ii) of any
      request by the Commission or any other Federal or state governmental authority
      for amendments or supplements to a Registration Statement or Prospectus or
      for
      additional information; (iii) of the issuance by the Commission or any other
      federal or state governmental authority of any stop order suspending the
      effectiveness of a Registration Statement covering any or all of the Registrable
      Securities or the initiation of any Proceedings for that purpose; (iv) of the
      receipt by the Company of any notification with respect to the suspension of
      the
      qualification or exemption from qualification of any of the Registrable
      Securities for sale in any jurisdiction, or the initiation or threatening of
      any
      Proceeding for such purpose; (v) of the occurrence of any event or passage
      of
      time that makes the financial statements included in a Registration Statement
      ineligible for inclusion therein or any statement made in a Registration
      Statement or Prospectus or any document incorporated or deemed to be
      incorporated therein by reference untrue in any material respect or that
      requires any revisions to a Registration Statement, Prospectus or other
      documents so that, in the case of a Registration Statement or the Prospectus,
      as
      the case may be, it will not contain any untrue statement of a material fact
      or
      omit to state any material fact required to be stated therein or necessary
      to
      make the statements therein, in light of the circumstances under which they
      were
      made, not misleading; and (vi) the occurrence or existence of any pending
      corporate development with respect to the Company that the Company believes
      may
      be material and that, in the determination of the Company, makes it not in
      the
      best interest of the Company to allow continued availability of a Registration
      Statement or Prospectus; provided that any and all of such information shall
      remain confidential to each Holder until such information otherwise becomes
      public, unless disclosure by a Holder is required by law; provided, further,
      notwithstanding each Holder’s agreement to keep such information confidential,
      the Holders make no acknowledgement that any such information is material,
      non-public information.

     

    (e)  Use
      its
      best efforts to avoid the issuance of, or, if issued, obtain the withdrawal
      of
      (i) any order suspending the effectiveness of a Registration Statement, or
      (ii)
      any suspension of the qualification (or exemption from qualification) of any
      of
      the Registrable Securities for sale in any jurisdiction, at the earliest
      practicable moment.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

       

    

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

     

    (g)  Subject
      to the terms of this Agreement, the Company hereby consents to the use of such
      Prospectus and each amendment or supplement thereto by each of the selling
      Holders in connection with the offering and sale of the Registrable Securities
      covered by such Prospectus and any amendment or supplement thereto, except
      after
      the giving of any notice pursuant to Section 3(d).

     

    (h)  If
      NASDR
      Rule 2710 requires any broker-dealer to make a filing prior to executing a
      sale
      by a Holder, the Company shall (i) make an Issuer Filing with the NASDR, Inc.
      Corporate Financing Department pursuant to proposed NASDR Rule
      2710(b)(10)(A)(i), (ii) respond within five Trading Days to any comments
      received from NASDR in connection therewith, (iii) and pay the filing fee
      required in connection therewith.

     

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

     

    (j)  If
      requested by the Holders, cooperate with the Holders to facilitate the timely
      preparation and delivery of certificates representing Registrable Securities
      to
      be delivered to a transferee pursuant to a Registration Statement, which
      certificates shall be free, to the extent permitted by the Purchase Agreement,
      of all restrictive legends, and to enable such Registrable Securities to be
      in
      such denominations and registered in such names as any such Holders may
      request.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

       

    

    (k)  Upon
      the
      occurrence of any event contemplated by this Section 3, as promptly as
      reasonably possible under the circumstances taking into account the Company’s
      good faith assessment of any adverse consequences to the Company and its
      stockholders of the premature disclosure of such event, prepare a supplement
      or
      amendment, including a post-effective amendment, to a Registration Statement
      or
      a supplement to the related Prospectus or any document incorporated or deemed
      to
      be incorporated therein by reference, and file any other required document
      so
      that, as thereafter delivered, neither a Registration Statement nor such
      Prospectus will contain an untrue statement of a material fact or omit to state
      a material fact required to be stated therein or necessary to make the
      statements therein, in light of the circumstances under which they were made,
      not misleading. If the Company notifies the Holders in accordance with clauses
      (iii) through (vi) of Section 3(d) above to suspend the use of any Prospectus
      until the requisite changes to such Prospectus have been made, then the Holders
      shall suspend use of such Prospectus. The Company will use its best efforts
      to
      ensure that the use of the Prospectus may be resumed as promptly as is
      practicable. The Company shall be entitled to exercise its right under this
      Section 3(k) to suspend the availability of a Registration Statement and
      Prospectus, subject to the payment of partial liquidated damages pursuant to
      Section 2(b), for a period not to exceed 60 calendar days (which need not be
      consecutive days) in any 12 month period.

     

    (l)  Comply
      with all applicable rules and regulations of the Commission.

     

    (m)  The
      Company may require each selling Holder to furnish to the Company a certified
      statement as to the number of shares of Common Stock beneficially owned by
      such
      Holder and, if required by the Commission, the natural persons thereof that
      have
      voting and dispositive control over the Shares. During any periods that the
      Company is unable to meet its obligations hereunder with respect to the
      registration of the Registrable Securities solely because any Holder fails
      to
      furnish such information within three Trading Days of the Company’s request, any
      liquidated damages that are accruing at such time as to such Holder only shall
      be tolled and any Event that may otherwise occur solely because of such delay
      shall be suspended as to such Holder only, until such information is delivered
      to the Company.

     

    4.  Registration
      Expenses.
      All
      fees and expenses incident to the performance of or compliance with this
      Agreement by the Company shall be borne by the Company whether or not any
      Registrable Securities are sold pursuant to a Registration Statement. The fees
      and expenses referred to in the foregoing sentence shall include, without
      limitation, (i) all registration and filing fees (including, without limitation,
      fees and expenses (A) with respect to filings required to be made with any
      Trading Market on which the Common Stock is then listed for trading, (B) in
      compliance with applicable state securities or Blue Sky laws reasonably agreed
      to by the Company in writing (including, without limitation, fees and
      disbursements of counsel for the Company in connection with Blue Sky
      qualifications or exemptions of the Registrable Securities) and (C) if not
      previously paid by the Company in connection with an Issuer Filing, with respect
      to any filing that may be required to be made by any broker through which a
      Holder intends to make sales of Registrable Securities with NASD Regulation,
      Inc. pursuant to the NASD Rule 2710, so long as the broker is receiving no
      more
      than a customary brokerage commission in connection with such sale, (ii)
      printing expenses (including, without limitation, expenses of printing
      certificates for Registrable Securities), (iii) messenger, telephone and
      delivery expenses, (iv) fees and disbursements of counsel for the Company,
      (v)
      Securities Act liability insurance, if the Company so desires such insurance,
      and (vi) fees and expenses of all other Persons retained by the Company in
      connection with the consummation of the transactions contemplated by this
      Agreement. In addition, the Company shall be responsible for all of its internal
      expenses incurred in connection with the consummation of the transactions
      contemplated by this Agreement (including, without limitation, all salaries
      and
      expenses of its officers and employees performing legal or accounting duties),
      the expense of any annual audit and the fees and expenses incurred in connection
      with the listing of the Registrable Securities on any securities exchange as
      required hereunder. In no event shall the Company be responsible for any broker
      or similar commissions of any Holder or, except to the extent provided for
      in
      the Transaction Documents, any legal fees or other costs of the
      Holders.

     

    
      
        
        

      

      
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    5.  Indemnification

     

    (a)  Indemnification
      by the Company. The Company shall, notwithstanding any termination of this
      Agreement, indemnify and hold harmless each Holder, the officers, directors,
      members, partners, agents, brokers (including brokers who offer and sell
      Registrable Securities as principal as a result of a pledge or any failure
      to
      perform under a margin call of Common Stock), investment advisors and employees
      (and any other Persons with a functionally equivalent role of a Person holding
      such titles, notwithstanding a lack of such title or any other title) of each
      of
      them, each Person who controls any such Holder (within the meaning of Section
      15
      of the Securities Act or Section 20 of the Exchange Act) and the officers,
      directors, members, shareholders, partners, agents and employees (and any other
      Persons with a functionally equivalent role of a Person holding such titles,
      notwithstanding a lack of such title or any other title) of each such
      controlling Person, to the fullest extent permitted by applicable law, from
      and
      against any and all losses, claims, damages, liabilities, costs (including,
      without limitation, reasonable attorneys’ fees) and expenses (collectively,
“Losses”),
      as
      incurred, arising out of or relating to (1) any untrue or alleged untrue
      statement of a material fact contained in a Registration Statement, any
      Prospectus or any form of prospectus or in any amendment or supplement thereto
      or in any preliminary prospectus, or arising out of or relating to any omission
      or alleged omission of a material fact required to be stated therein or
      necessary to make the statements therein (in the case of any Prospectus or
      form
      of prospectus or supplement thereto, in light of the circumstances under which
      they were made) not misleading or (2) any violation or alleged violation by
      the
      Company of the Securities Act, the Exchange Act or any state securities law,
      or
      any rule or regulation thereunder, in connection with the performance of its
      obligations under this Agreement, except to the extent, but only to the extent,
      that (i) such untrue statements or omissions are based solely upon information
      regarding such Holder furnished in writing to the Company by such Holder
      expressly for use therein, or to the extent that such information relates to
      such Holder or such Holder’s proposed method of distribution of Registrable
      Securities and was reviewed and expressly approved in writing by such Holder
      expressly for use in a Registration Statement, such Prospectus or such form
      of
      Prospectus or in any amendment or supplement thereto (it being understood that
      the Holder has approved Annex A hereto for this purpose) or (ii) in the case
      of
      an occurrence of an event of the type specified in Section 3(d)(iii)-(vi),
      the
      use by such Holder of an outdated or defective Prospectus after the Company
      has
      notified such Holder in writing that the Prospectus is outdated or defective
      and
      prior to the receipt by such Holder of the Advice contemplated in Section 6(d).
      The Company shall notify the Holders promptly of the institution, threat or
      assertion of any Proceeding arising from or in connection with the transactions
      contemplated by this Agreement of which the Company is aware.

     

    (b)  Indemnification
      by Holders. Each Holder shall, severally and not jointly, indemnify and hold
      harmless the Company, its directors, officers, agents and employees, each Person
      who controls the Company (within the meaning of Section 15 of the Securities
      Act
      and Section 20 of the Exchange Act), and the directors, officers, agents or
      employees of such controlling Persons, to the fullest extent permitted by
      applicable law, from and against all Losses, as incurred, to the extent arising
      out of or based solely upon: (x) such Holder’s failure to comply with the
      prospectus delivery requirements of the Securities Act or (y) any untrue or
      alleged untrue statement of a material fact contained in any Registration
      Statement, any Prospectus, or any form of prospectus, or in any amendment or
      supplement thereto or in any preliminary prospectus, or arising out of or
      relating to any omission or alleged omission of a material fact required to
      be
      stated therein or necessary to make the statements therein not misleading (i)
      to
      the extent, but only to the extent, that such untrue statement or omission
      is
      contained in any information so furnished in writing by such Holder to the
      Company specifically for inclusion in such Registration Statement or such
      Prospectus or (ii) to the extent that such information relates to such Holder’s
      proposed method of distribution of Registrable Securities and was reviewed
      and
      expressly approved in writing by such Holder expressly for use in a Registration
      Statement (it being understood that the Holder has approved Annex A hereto
      for
      this purpose), such Prospectus or such form of Prospectus or in any amendment
      or
      supplement thereto or (ii) in the case of an occurrence of an event of the
      type
      specified in Section 3(d)(iii)-(vi), the use by such Holder of an outdated
      or
      defective Prospectus after the Company has notified such Holder in writing
      that
      the Prospectus is outdated or defective and prior to the receipt by such Holder
      of the Advice contemplated in Section 6(d). In no event shall the liability
      of
      any selling Holder hereunder be greater in amount than the dollar amount of
      the
      net proceeds received by such Holder upon the sale of the Registrable Securities
      giving rise to such indemnification obligation.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

       

    

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

     

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

     

    Subject
      to the terms of this Agreement, all reasonable fees and expenses of the
      Indemnified Party (including reasonable fees and expenses to the extent incurred
      in connection with investigating or preparing to defend such Proceeding in
      a
      manner not inconsistent with this Section) shall be paid to the Indemnified
      Party, as incurred, within ten Trading Days of written notice thereof to the
      Indemnifying Party; provided, that the Indemnified Party shall promptly
      reimburse the Indemnifying Party for that portion of such fees and expenses
      applicable to such actions for which such Indemnified Party is judicially
      determined to be not entitled to indemnification hereunder.

     

    
      
        
        

      

      
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    (d)  Contribution.
      If the indemnification under Section 5(a) or 5(b) is unavailable to an
      Indemnified Party or insufficient to hold an Indemnified Party harmless for
      any
      Losses, then each Indemnifying Party shall contribute to the amount paid or
      payable by such Indemnified Party, in such proportion as is appropriate to
      reflect the relative fault of the Indemnifying Party and Indemnified Party
      in
      connection with the actions, statements or omissions that resulted in such
      Losses as well as any other relevant equitable considerations. The relative
      fault of such Indemnifying Party and Indemnified Party shall be determined
      by
      reference to, among other things, whether any action in question, including
      any
      untrue or alleged untrue statement of a material fact or omission or alleged
      omission of a material fact, has been taken or made by, or relates to
      information supplied by, such Indemnifying Party or Indemnified Party, and
      the
      parties’ relative intent, knowledge, access to information and opportunity to
      correct or prevent such action, statement or omission. The amount paid or
      payable by a party as a result of any Losses shall be deemed to include, subject
      to the limitations set forth in this Agreement, any reasonable attorneys’ or
      other fees or expenses incurred by such party in connection with any Proceeding
      to the extent such party would have been indemnified for such fees or expenses
      if the indemnification provided for in this Section was available to such party
      in accordance with its terms.

     

    The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section 5(d) were determined by pro rata allocation or by
      any
      other method of allocation that does not take into account the equitable
      considerations referred to in the immediately preceding paragraph.
      Notwithstanding the provisions of this Section 5(d), no Holder shall be required
      to contribute, in the aggregate, any amount in excess of the amount by which
      the
      proceeds actually received by such Holder from the sale of the Registrable
      Securities subject to the Proceeding exceeds the amount of any damages that
      such
      Holder has otherwise been required to pay by reason of such untrue or alleged
      untrue statement or omission or alleged omission, except in the case of fraud
      by
      such Holder.

     

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

     

    6.  Miscellaneous

     

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

     

    (b)  No
      Piggyback on Registrations. Except as set forth on Schedule 6(b) attached
      hereto, neither the Company nor any of its security holders (other than the
      Holders in such capacity pursuant hereto) may include securities of the Company
      in the initial Registration Statement other than the Registrable Securities.
      The
      Company shall not file any other registration statements until the initial
      Registration Statement required hereunder is declared effective by the
      Commission, provided that this Section 6(b) shall not prohibit the Company
      from
      filing amendments to registration statements already filed.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

    

    (c)  Compliance.
      Each Holder covenants and agrees that it will comply with the prospectus
      delivery requirements of the Securities Act as applicable to it in connection
      with sales of Registrable Securities pursuant to a Registration
      Statement.

     

    (d)  Discontinued
      Disposition. Each Holder agrees by its acquisition of Registrable Securities
      that, upon receipt of a notice from the Company of the occurrence of any event
      of the kind described in Section 3(d)(iii) through (vi), such Holder will
      forthwith discontinue disposition of such Registrable Securities under a
      Registration Statement until it is advised in writing (the “Advice”)
      by the
      Company that the use of the applicable Prospectus (as it may have been
      supplemented or amended) may be resumed. The Company will use its best efforts
      to ensure that the use of the Prospectus may be resumed as promptly as it
      practicable. The Company agrees and acknowledges that any periods during which
      the Holder is required to discontinue the disposition of the Registrable
      Securities hereunder shall be subject to the provisions of Section
      2(b).

     

    (e)  Piggy-Back
      Registrations. If at any time during the Effectiveness Period there is not
      an
      effective Registration Statement covering all of the Registrable Securities
      and
      the Company shall determine to prepare and file with the Commission a
      registration statement relating to an offering for its own account or the
      account of others under the Securities Act of any of its equity securities,
      other than on Form S-4 or Form S-8 (each as promulgated under the Securities
      Act) or their then equivalents relating to equity securities to be issued solely
      in connection with any acquisition of any entity or business or equity
      securities issuable in connection with the stock option or other employee
      benefit plans, then the Company shall send to each Holder a written notice
      of
      such determination and, if within fifteen days after the date of such notice,
      any such Holder shall so request in writing, the Company shall include in such
      registration statement all or any part of such Registrable Securities such
      Holder requests to be registered; provided, however, that, the Company shall
      not
      be required to register any Registrable Securities pursuant to this Section
      6(e)
      that are eligible for resale pursuant to Rule 144(k) promulgated under the
      Securities Act or that are the subject of a then effective Registration
      Statement.

     

    (f)  Amendments
      and Waivers. The provisions of this Agreement, including the provisions of
      this
      sentence, may not be amended, modified or supplemented, and waivers or consents
      to departures from the provisions hereof may not be given, unless the same
      shall
      be in writing and signed by the Company and each Holder of the then outstanding
      Registrable Securities (provided, however, if the outstanding principal amount
      of Holder’s Debenture is less than $50,000, such Holder’s written consent shall
      not be required to amend this Agreement unless the principal amount of each
      Debenture then outstanding is less than $50,000, in which case the written
      consent of the Holders of a majority of the then outstanding Registrable
      Securities shall be required to effect amendments to this Agreement).
      Notwithstanding the foregoing, a waiver or consent to depart from the provisions
      hereof with respect to a matter that relates exclusively to the rights of
      Holders and that does not directly or indirectly affect the rights of other
      Holders may be given by Holders of all of the Registrable Securities to which
      such waiver or consent relates; provided, however, that the provisions of this
      sentence may not be amended, modified, or supplemented except in accordance
      with
      the provisions of the immediately preceding sentence.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (g)  Notices.
      Any and all notices or other communications or deliveries required or permitted
      to be provided hereunder shall be delivered as set forth in the Purchase
      Agreement.

     

    (h)  Successors
      and Assigns. This Agreement shall inure to the benefit of and be binding upon
      the successors and permitted assigns of each of the parties and shall inure
      to
      the benefit of each Holder. The Company may not assign (except by merger) its
      rights or obligations hereunder without the prior written consent of all of
      the
      Holders of the then-outstanding Registrable Securities. Each Holder may assign
      their respective rights hereunder in the manner and to the Persons as permitted
      under the Purchase Agreement.

     

    (i)  No
      Inconsistent Agreements. Neither the Company nor any of its Subsidiaries has
      entered, as of the date hereof, nor shall the Company or any of its
      Subsidiaries, on or after the date of this Agreement, enter into any agreement
      with respect to its securities, that would have the effect of impairing the
      rights granted to the Holders in this Agreement or otherwise conflicts with
      the
      provisions hereof. Except as set forth on Schedule 6(i), neither the Company
      nor
      any of its subsidiaries has previously entered into any agreement granting
      any
      registration rights with respect to any of its securities to any Person that
      have not been satisfied in full.

     

    (j)  Execution
      and Counterparts. This Agreement may be executed in two or more counterparts,
      all of which when taken together shall be considered one and the same agreement
      and shall become effective when counterparts have been signed by each party
      and
      delivered to the other party, it being understood that both parties need not
      sign the same counterpart. In the event that any signature is delivered by
      facsimile transmission or by e-mail delivery of a “.pdf’ format data file, such
      signature shall create a valid and binding obligation of the party executing
      (or
      on whose behalf such signature is executed) with the same force and effect
      as if
      such facsimile or “.pdf’ signature page were an original thereof.

     

    (k)  Governing
      Law. All questions concerning the construction, validity, enforcement and
      interpretation of this Agreement shall be determined in accordance with the
      provisions of the Purchase Agreement.

     

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

     

    (m)  Severability.
      If any term, provision, covenant or restriction of this Agreement is held by
      a
      court of competent jurisdiction to be invalid, illegal, void or unenforceable,
      the remainder of the terms, provisions, covenants and restrictions set forth
      herein shall remain in full force and effect and shall in no way be affected,
      impaired or invalidated, and the parties hereto shall use their commercially
      reasonable efforts to find and employ an alternative means to achieve the same
      or substantially the same result as that contemplated by such term, provision,
      covenant or restriction. It is hereby stipulated and declared to be the
      intention of the parties that they would have executed the remaining terms,
      provisions, covenants and restrictions without including any of such that may
      be
      hereafter declared invalid, illegal, void or unenforceable.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

       

    

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

     

    (o)  Independent
      Nature of Holders’ Obligations and Rights. The obligations of each Holder
      hereunder are several and not joint with the obligations of any other Holder
      hereunder, and no Holder shall be responsible in any way for the performance
      of
      the obligations of any other Holder hereunder. Nothing contained herein or
      in
      any other agreement or document delivered at any closing, and no action taken
      by
      any Holder pursuant hereto or thereto, shall be deemed to constitute the Holders
      as a partnership, an association, a joint venture or any other kind of entity,
      or create a presumption that the Holders are in any way acting in concert with
      respect to such obligations or the transactions contemplated by this Agreement.
      Each Holder shall be entitled to protect and enforce its rights, including
      without limitation the rights arising out of this Agreement, and it shall not
      be
      necessary for any other Holder to be joined as an additional party in any
      proceeding for such purpose.

     

    ********************

    

    
      
        
        

      

      
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    IN
      WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
      as
      of the date first written above.

     

    
      	 	 	 
	 	PACIFICNET,
              INC.
	 	 	 
	 	By:  	 
	 	
              
Name:
              Victor Tong 
	 	Title:
              President

    

     

     

     

    [SIGNATURE
      PAGE OF HOLDERS FOLLOWS]

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    [SIGNATURE
      PAGE OF HOLDERS TO PACT RRA]

     

    Name
      of
      Holder: _________________________________

    Signature
      of Authorize Signatory Holder: __________________________________

    Name
      of
      Authorized Signatory: _______________________________

    Title
      of
      Authorized Signatory: ________________________________

     

     

     

    
15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00112-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00112-of-00352.parquet"}]]