Document:

Unassociated Document

     

    Exhibit
      4.2

    STOCK
      PURCHASE AGREEMENT

    

    BETWEEN

    

    WindsorTech,
      Inc., a Delaware Corporation

    AND

    

    CERTAIN
      INVESTORS 

    (AS
      LISTED ON SCHEDULE A) 

    

    DATED

    

    May
      18, 2004

    
      
        
          

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    STOCK
      PURCHASE AGREEMENT

    

    

    This
      STOCK PURCHASE AGREEMENT (the "Agreement")
      is
      made and entered into as of the 18th
      day of
      May, 2004 by and among
      WindsorTech, Inc., a
      corporation organized and existing under the laws of the State of Delaware
      (“WindsorTech ” or the “Company”),
      and
      certain investors, (hereinafter referred to collectively as “Investor”
or
      “Investors”)
      as
      listed on Schedule
      A
      herein
      (each agreement with an Investor being deemed a separate and independent
      agreement between the Company and such Investor).

     

    PRELIMINARY
      STATEMENT:

    

    

     

    WHEREAS,
      the
      Investors wish to purchase, upon the terms and subject to the conditions of
      this
      Agreement of Three Million, Six Hundred Thousand Dollars ($3,600,000.00) of
      the
      Common Stock of the Company with the right, upon the purchase of each share
      of
      Common Stock, to receive one (1) common stock purchase warrant in accordance
      with the terms hereof (each share of Common Stock and corresponding stock
      purchase warrant are referred to herein as a “Unit”);
      and

     

    WHEREAS,
      the
      parties intend to memorialize the purchase and sale of such Units; 

    

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants and premises contained herein, and for
      other good and valuable consideration, the receipt and adequacy of which are
      hereby conclusively acknowledged, the parties hereto, intending to be legally
      bound, agree as follows

     

    ARTICLE
      I

    

     

    INCORPORATION
      BY REFERENCE, SUPERSEDER AND DEFINITIONS

     

    1.1 Incorporation
      by Reference.
      The
      foregoing recitals, Schedule
      A
      and the
      Exhibits attached hereto and referred to herein, are hereby acknowledged to
      be
      true and accurate, and are incorporated herein by this reference.

     

    1.2 Superseder.
      This
      Agreement, to the extent that it is inconsistent with any other instrument
      or
      understanding among the parties, shall supersede such instrument or
      understanding to the fullest extent permitted by law. A copy of this Agreement
      shall be filed at the Company’s principal office.

     

     

     

    
      
        

          STOCK
            PURCHASE AGREEMENT BETWEEN 

          WindsorTech,
            Inc. . AND CERTAIN INVESTORS

        

      

      
        Page
          1 of 26

        
          

        

      

      
        
        

      

    

     

    1.3 Certain
      Definitions.
      For
      purposes of this Agreement, the following capitalized terms shall have the
      following meanings (all capitalized terms used in this Agreement that are not
      defined in this Article 1 shall have the meanings set forth elsewhere in this
      Agreement):

     

    1.3.1 “1933
      Act”
means
      the Securities Act of 1933, as amended.

    

    1.3.2 “1934
      Act”
means
      the Securities Exchange Act of 1934, as amended.

    

    1.3.3
      “Affiliate”
      means
      that definition as disclosed in the 1933 Act and/or 1934 Act and shall also
      mean
      a Person or Persons directly or indirectly, through one or more intermediaries,
      controlling, controlled by or under common control with the Person(s) in
      question. The term “control,” as used in the immediately preceding sentence,
      means, with respect to a Person that is a corporation, the right to the
      exercise, directly or indirectly, of more than 50 percent of the voting rights
      attributable to the shares of such controlled corporation and, with respect
      to a
      Person that is not a corporation, the possession, directly or indirectly, of
      the
      power to direct or cause the direction of the management or policies of such
      controlled Person.

    

    1.3.4
      “Articles”.
      The
      Articles of Organization of the Company, as the same may be amended from time
      to
      time. 

     

    1.3.5
      “Closing
      Date”
means
      the earlier of  May
      18, 2004
      or upon
      all of the conditions of Article VIII and Article IX herein are satisfied,
      unless extended by mutual consent by the Company and the Investors on or before
      May 28, 2004.

     

    1.3.6
      “Common
      Stock”
means
      the shares of common stock of WindsorTech, Inc., a Delaware Corporation , par
      value $0.001 per share.

     

                                    1.3.7
      "Effective
      Date"
      shall
      mean the date the Registration Statement of the Company covering the Shares
      being subscribed for hereby is declared effective.

     

            1.3.8
      "Material
      Adverse Effect"
      shall
      mean any adverse effect on the business, operations, properties or financial
      condition of the Company that is material and adverse to the Company and its
      subsidiaries and affiliates, taken as a whole and/or any condition,
      circumstance, or situation that would prohibit or otherwise materially interfere
      with the ability of the Company to perform any of its material obligations
      under
      this Agreement or the Registration Rights Agreement or to perform its
      obligations under any other material agreement.

     

                                   
      1.3.10“Person”
      means an
      individual, partnership, firm, limited liability company, trust, joint venture,
      association, corporation, or any other legal entity.

     

    
      	1.3.11        
               	
              “Purchase
                Price”
                means the purchase price for the
                Units.

            

    

     

     

    
      
        
        

      

      
        

          STOCK
            PURCHASE AGREEMENT BETWEEN 

          WindsorTech,
            Inc. . AND CERTAIN INVESTORS
Page 2 of 26

        
          

        

      

      
        
        

      

    

     

    1.3.12  Registration
      Rights Agreement"
      shall
      mean the registration rights agreement between the Investors and the Company
      attached hereto as Exhibit
      B.

     

    1.3.13  "Registration
      Statement"
      shall
      mean the registration statement under the 1933 Act to be filed with the
      Securities and Exchange Commission for the registration of the Shares pursuant
      to the Registration Rights Agreement attached hereto as Exhibit
      B.

     

    1.3.14  “SEC”
means
      the Securities and Exchange Commission.

     

    1.3.15  "SEC
      Documents"
      shall
      mean the Company's latest Form 10-K or 10-KSB as of the time in question, all
      Forms 10-Q or 10-QSB and 8-K filed thereafter, and the Proxy Statement for
      its
      latest fiscal year as of the time in question until such time as the Company
      no
      longer has an obligation to maintain the effectiveness of a Registration
      Statement as set forth in the Registration Rights Agreement.

     

    1.3.16  "Shares"
      shall
      mean, collectively, the shares of Common Stock of the Company being subscribed
      for hereunder and those shares of Common Stock issuable to the Investor upon
      exercise of the Warrants.

     

    1.3.17  “Units”
shall
      mean the Common Stock and the Warrants collectively. 

     

    1.3.18  “Warrants”
shall
      mean the Common Stock purchase warrants in the form attached hereto Exhibit
      A.

     

    

     

    ARTICLE
      II

    

    SALE
      AND PURCHASE OF WINDSORTECH’S UNITS 

    AND
      PURCHASE PRICE

    

    
      2.1  Sale
        of WindsorTech Units Upon
        the
        terms and subject to the conditions set forth herein, and in accordance with
        applicable law, the Company agrees to sell, and the Investors, severally
        and not
        jointly, agree to purchase the following Units with an aggregate principal
        amount of a minimum of Three Million, Six Hundred Thousand Dollars
        ($3,600,000.00) in accordance with the commitments set forth on Schedule
        A
        attached
        hereto, at the Purchase Price on the Closing Date, each Unit consisting
        of:

      

      2.1.1 Common
        Stock
        Upon
        execution and delivery of this Agreement and the Company’s receipt of the
        Purchase Price (as described herein), each Investor shall receive shares
        of
        Common Stock of the Company at a value of sixty cents ($.60) per share. The
        Company shall register those shares of Common Stock pursuant to the terms
        and
        conditions of a Registration Rights Agreement attached hereto as Exhibit
        B.
        The
        Registration Rights Agreement shall include, but not be limited to, such
        terms
        and conditions as the immediate registration of the shares of Common Stock
        sold
        hereunder, one demand right if all the shares of Common Stock sold hereunder
        are
        not registered or the Registration Statement is subsequently not effective,
        unlimited “piggy back” registration rights, and liquidated damages to the
        Investor of thirty percent (30%)of the Purchase Price per annum payable on
        a
        monthly basis if the shares of Common Stock are not registered pursuant to
        an
        effective Registration Statement within five months of the Closing Date or
        if
        the shares of Common Stock are registered pursuant to an effective Registration
        Statement and such Registration Statement or other Registration Statement
        including the shares of Common Stock is not effective in the period from
        five
        months following the Closing Date through two years following the Closing
        Date,
        except that the obligation of the Company terminates when the Investor no
        longer
        holds more than twenty percent (20%) of their shares of Common Stock as acquired
        herein.

    
      
        
           

        

        
        

      

      
        

          STOCK
            PURCHASE AGREEMENT BETWEEN 

          WindsorTech,
            Inc. . AND CERTAIN INVESTORS
Page 3 of 26

        
          

        

      

      
        
        

        
        

      

    

    
 

    2.1.2 Warrants
      Upon
      execution and delivery of this Agreement and the Company’s receipt of the
      Purchase Price (as described herein), each Investor shall receive one Warrant
      for each share of Common Stock purchased. The Warrants, the form of which are
      attached hereto as Composite Exhibit
      A
      shall
      include, but not be limited to, such terms and conditions as a exercise price
      of
      $1.50 per share for up to 3,000,000 shares of Common Stock, and $3.60 for up
      to
      3,000,000 shares of Common Stock per share, all share as more particularly
      set
      forth in the Warrants with an expiration date of five (5) years from the date
      of
      issuance 

    

    2.2 Purchase
      Price.
      The
      purchase price to be paid by each Investor on the Closing Date shall be as
      defined section 1.3.5 ($.60) sixty cents per share, as the case may be, in
      accordance with on Schedule
      A
      attached
      hereto, and shall be payable in United States Dollars. Payment to the Company
      of
      the Purchase Price shall be made at the Closing Date by wire transfer of funds
      to the account specified by the Company and provided to the Investor.

     

    2.3 Escrow.
      The
      funds received by Gibraltar Bank (the “Escrow Agent”) in accordance with Section
      2.2 of this Agreement shall be held in escrow pursuant to the terms and
      conditions of this Section 2.3 of the Agreement. The funds shall be held in
      a
      non-interest bearing account. The Escrow Agent shall disburse the funds to
      the
      Company, or as the Company shall in writing direct, upon receipt of written
      confirmation to Escrow Agent from WindsorTech and Barron Partners, LP pursuant
      to the Escrow Agreement of even date herewith, that all closing contingencies
      have been met. If the closing of such transaction has not taken place by the
      closing date as defined in this Agreement, or the closing date as extended
      as
      defined in this Agreement, the Escrow Agent shall return such funds to the
      Investors immediately and shall return all executed documents to the Company.
      The Investors and the Company, jointly and severally, agree to indemnify Escrow
      Agent for, and to hold it harmless against, any loss, liability, damage or
      expense incurred by Escrow Agent arising out of, or in connection with, this
      Agreement, any litigation arising in connection with this Agreement or any
      transaction related in any way hereto, including but not limited to attorneys'
      fees incurred by Escrow Agent in the event of any question as to the provisions
      hereof or its duties hereunder, and other costs and expenses incurred by Escrow
      Agent in fulfilling its duties and responsibilities hereunder, or incurred
      by
      Escrow Agent defending itself against any claim of liability (other than, in
      all
      such cases, for Escrow Agent’s willful misconduct or gross negligence). Escrow
      Agent shall have no duties arising from this Agreement except those expressly
      set forth in this Section 2.3 and it shall not be bound by any notice of claim
      or demand, or any waiver, modification or amendment unless it shall have given
      its prior written consent thereto.

     

     

    
      
        
        

      

      
        

          STOCK
            PURCHASE AGREEMENT BETWEEN 

          WindsorTech,
            Inc. . AND CERTAIN INVESTORS
Page 4 of 26

        
          

        

      

      
        
        

      

    

     

    ARTICLE
      II

     

    CLOSING
      DATE AND DELIVERIES AT CLOSING

    

    3.1
       Closing
      Date The
      closing of the transactions contemplated by this Agreement (the “Closing”),
      unless expressly determined herein, shall be held at the offices of the Company,
      at at 10:00 a.m.. local time, on the Closing Date or on such other date and
      at
      such other place as may be mutually agreed by the parties, including closing
      by
      facsimile with originals to follow. 

    

    3.2 Deliveries
      by the Company.
      In
      addition to and without limiting any other provision of this Agreement, the
      Company agrees to deliver, or cause to be delivered, to the Investors, the
      following: 

    

    
      	(a)  
                	
              Within
                seven (7) business days of the closing, Certificates representing
                WindsorTech Shares, which certificates shall be duly endorsed to
                the
                Investor(s); 

            

    

    
      	(b)  
                	
              At
                or prior to Closing, an executed
                Agreement;

            

    

    
      	(c)  
                	
              At
                or prior to Closing, executed Warrants in the name of the Investor(s)
                in
                the form attached hereto as Exhibit
                A;

            

    

    
      	(d)   
               	
              At
                or prior to Closing, an executed Registration Rights Agreement between
                the
                Investor(s) and the Company in the form attached hereto as Exhibit
                B;

            

    

    
      	(e)     	
              At
                or prior to Closing, confirmation that the provisions of Paragraph
                6.6
                herein have been satisfied or commenced, as appropriate;
                and

            

    

    
      	(f)    
               	
              Such
                other documents or certificates as shall be reasonably requested
                by the
                each Investor or its counsel.

            

    

    
      	                 (g) 	
              Completion
                of the acquisition by WindsorTech, Inc. of QualTech International,
                Inc.
                and QualTech Services Group, Inc., which closing shall occur concurrently
                with this closing; it being understood that the proceeds of this
                closing
                will be used, in part, to fund the QualTech closings.
                

            

    

     

     

     

    
      
        
        

      

      
        

          STOCK
            PURCHASE AGREEMENT BETWEEN 

          WindsorTech,
            Inc. . AND CERTAIN INVESTORS
Page 5 of 26

        
          

        

      

      
        
        

      

    

     

    3.3 Deliveries
      by Investor.
      In
      addition to and without limiting any other provision of this Agreement, each
      Investor agrees to deliver, or cause to be delivered, to the Company, as
      appropriate, the following: 

    

    
      	(a)  	
              At
                or prior to Closing, the Purchase
                Price;

            

    

    
      	(b)  	
              At
                or prior to Closing, an executed
                Agreement;

            

    

    
      	(c)  	
              At
                or prior to Closing, an executed Registration Rights Agreement between
                each Investor and the Company in the form attached hereto as Exhibit
                B;
                and 

            

    

    
      	(d)  	
              Such
                other documents or certificates as shall be reasonably requested
                by the
                Company or his counsel.

            

    

    

    In
      the
      event any document provided to the other party in Paragraphs 3.2 and 3.3 herein
      are provided by facsimile, the party shall forward an original document to
      the
      other party within seven (7) business days. . The Investors by majority of
      dollar amount invested may waive any of the Company’s conditions of
      closing.

    

    

    3.4 Further
      Assurances.
      The
      Company and each Investor shall, upon request, on or after the Closing Date,
      cooperate with each other (specifically, the Company shall cooperate with each
      Investor, and each Investor shall cooperate with the Company, and no Investor
      is
      required to cooperate with any other Investor) by furnishing any additional
      information, executing and delivering any additional documents and/or other
      instruments and doing any and all such things as may be reasonably required
      by
      the parties or their counsel to consummate or otherwise implement the
      transactions contemplated by this Agreement

     

    ARTICLE
      IV

    

    REPRESENTATIONS
      AND WARRANTIES OF WINDSORTECH 

    

    WindsorTech
      represents and warrants to the Investor(s) (which warranties and representations
      shall survive the Closing regardless of what examinations, inspections, audits
      and other investigations the Purchaser has heretofore made or may hereinafter
      make with respect to such warranties and representations) as follows:

    

    4.1 Organization
      and Qualification.
      WindsorTech is a corporation duly organized, validly existing and in good
      standing under the laws of the State of Delaware , and has the requisite
      corporate power and authority to own, lease and operate its properties and
      to
      carry on its business as it is now being conducted and is duly qualified to
      do
      business in any other jurisdiction by virtue of the nature of the businesses
      conducted by it or the ownership or leasing of its properties, except where
      the
      failure to be so qualified will not, when taken together with all other such
      failures, have a Material Adverse Effect on the business, operations,
      properties, assets, financial condition or results of operation of WindsorTech
      and its subsidiaries taken as a whole.

     

     

    
      
        
        

      

      
        

          STOCK
            PURCHASE AGREEMENT BETWEEN 

          WindsorTech,
            Inc. . AND CERTAIN INVESTORS
Page 6 of 26

        
          

        

      

      
        
        

      

    

    

    
      	4.2  	
              Articles
                of Incorporation and By-Laws.
                The complete and correct copies of WindsorTech’s Articles of Incorporation
                and By-Laws, as amended or restated to date which have been filed
                with the
                Securities and Exchange Commission as of the Closing Date. The Company
                will be, prior to closing clarifying its By-laws to eliminate the
                possibility of claims that it has or which may relate to staggered
                terms
                or its board of directors and to eliminate language relating to staggering
                terms for its directors. Except for these issues, said Articles of
                Incorporation and By-laws are complete and
                correct.

            

    

    

    
      	 4.3 
              	
              Capitalization.

            

    

    

    4.3.1
      The
      authorized and outstanding capital stock of WindsorTech is set forth in
      WindsorTech’s Annual Report on Form 10-KSB, filed on March 29, 2004 with the
      Securities and Exchange Commission and updated on all subsequent SEC Documents.
      All shares of capital stock have been duly authorized and are validly issued,
      and are fully paid and no assessable, and free of preemptive
      rights.

    

    4.3.2
      Except pursuant to this Agreement, and as set forth in WidsorTech ’s Annual
      Report on Form 10-KSB, filed on March 29, 2004 with the SEC, as of the date
      hereof and as of the Closing Date, there are not now outstanding options,
      warrants, rights to subscribe for, calls or commitments of any character
      whatsoever relating to, or securities or rights convertible into or exchangeable
      for, shares of any class of capital stock of WindsorTech , or agreements,
      understandings or arrangements to which WindsorTech is a party, or by which
      WindsorTech is or may be bound, to issue additional shares of its capital stock
      or options, warrants, scrip or rights to subscribe for, calls or commitment
      of
      any character whatsoever relating to, or securities or rights convertible into
      or exchangeable for, any shares of any class of its capital stock. The Company
      agrees to inform the Investors in writing of any additional warrants granted
      prior to the Closing Date.

    

    

    4.3.3
      The
      Company on the Closing Date (i) will have full right, power, and authority
      to
      sell, assign, transfer, and deliver, by reason of record and beneficial
      ownership, to each Investor, WindsorTech Shares hereunder, free and clear of
      all
      liens, charges, claims, options, pledges, restrictions, and encumbrances
      whatsoever; and (ii) upon delivery of and payment by each Investor of the
      Purchase Price to the Company, such Investor will acquire good and marketable
      title to such Company Stock, free and clear of all liens, charges, claims,
      options, pledges, restrictions, and encumbrances whatsoever.

    

    4.4 Authority.
      WindsortTech has all requisite corporate power and authority to execute and
      deliver this Agreement, to perform its obligations hereunder and to consummate
      the transactions 

     

     

     

    
      
        
        

      

      
        
          STOCK
            PURCHASE AGREEMENT BETWEEN 

          WindsorTech,
            Inc. . AND CERTAIN INVESTORS
Page 7 of 26

        
          

        

      

      
        
        

      

    

     

    contemplated
      hereby. The execution and delivery of this Agreement by WindsorTech and the
      consummation of the transactions contemplated hereby have been duly authorized
      by all necessary corporate action and no other corporate proceedings on the
      part
      of WindsorTech is necessary to authorize this Agreement or to consummate the
      transactions contemplated hereby except as disclosed in this Agreement. This
      Agreement has been duly executed and delivered by WindsorTech and constitutes
      the legal, valid and binding obligation of WindsorTech , enforceable against
      WindsorTech in accordance with its terms, except as may be limited by
      bankruptcy, insolvency, reorganization, moratorium, or other similar laws
      affecting the enforcement of creditors' rights generally and general principles
      of equity.

    

    4.5 No
      Conflict; Required Filings and Consents. The
      execution and delivery of this Agreement by WindsorTech does not, and the
      performance by WindsorTech of their respective obligations hereunder will not:
      (i) conflict with or violate the Articles or By-Laws of WindsorTech ; (ii)
      conflict with, breach or violate any federal, state, foreign or local law,
      statute, ordinance, rule, regulation, order, judgment or decree (collectively,
      "Laws")
      in
      effect as of the date of this Agreement and applicable to WindsorTech ; or
      (iii)
      result in any breach of, constitute a default (or an event that with notice
      or
      lapse of time or both would become a default) under, give to any other entity
      any right of termination, amendment, acceleration or cancellation of, require
      payment under, or result in the creation of a lien or encumbrance on any of
      the
      properties or assets of WindsorTech pursuant to, any note, bond, mortgage,
      indenture, contract, agreement, lease, license, permit, franchise or other
      instrument or obligation to which WindsorTech is a party or by WindsorTech
      or
      any of its properties or assets is bound. Excluding from the foregoing are
      such
      violations, conflicts, breaches, defaults, terminations, accelerations,
      creations of liens, or incumbency that would not, in the aggregate, have a
      Material Adverse Effect.

    

    4.6 Report
      and Financial Statements.
      WindsorTech ’s Annual Report on Form 10-KSB, filed on March 29, 2004 with the
      Securities and Exchange Commission contains the audited financial statements
      of
      WindsorTech as of December 31, 2003 (the “Financial
      Statements”).
      Each
      of the balance sheets contained in or incorporated by reference into any such
      Financial Statements (including the related notes and schedules thereto) fairly
      presented the financial position of WindsorTech as of its date, and each of
      the
      statements of income and changes in stockholders’ equity and cash flows or
      equivalent statements in such Financial Statements (including any related notes
      and schedules thereto) fairly presents and will fairly present the results
      of
      operations, changes in stockholders’ equity and changes in cash flows, as the
      case may be, of WindsorTech for the periods to which they relate, in each case
      in accordance with United States generally accepted accounting principles
      (“U.S.
      GAAP”)
      consistently applied during the periods involved, except in each case as may
      be
      noted therein, subject to normal year-end audit adjustments in the case of
      unaudited statements. The books and records of WindsorTech have been, and are
      being, maintained in all material respects in accordance with U.S. GAAP and
      any
      other applicable legal and accounting requirements and reflect only actual
      transaction. 

     

     

    
      
        
        

      

      
        
          STOCK
            PURCHASE AGREEMENT BETWEEN 

          WindsorTech,
            Inc. . AND CERTAIN INVESTORS
Page 8 of 26

        
          

        

      

      
        
        

      

    

     

    4.7 Compliance
      with Applicable Laws.
      WindsorTech is not in violation of, or, to the knowledge of WindsorTech is
      under
      investigation with respect to or has been given notice or has been charged
      with
      the violation of any Law of a governmental agency, except for violations which
      individually or in the aggregate do not have a Material Adverse Effect.

    

    4.8 Brokers.
      Except
      for S Partners, LLC, no broker, finder or investment banker is entitled to
      any
      brokerage, finder's or other fee or Commission in connection with the
      transactions contemplated by this Agreement based upon arrangements made by
      or
      on behalf of WindsorTech 

    

    4.9 SEC
      Documents.
      WindsorTech acknowledges that WindsorTech is a publicly held company and has
      made available to the Investors true and complete copies of any requested SEC
      Documents. The Company has registered its Common Stock pursuant to Section
      12 of
      the 1934 Act, and the Common Stock is listed and traded on the OTC Bulletin
      Board Market of the National Association of Securities Dealers, Inc. The Company
      has received no notice, either oral or written, with respect to the continued
      eligibility of the Common Stock for such listing, and the Company has maintained
      all requirements for the continuation of such listing. The Company has not
      provided to the Investors any information that, according to applicable law,
      rule or regulation, should have been disclosed publicly prior to the date hereof
      by the Company, but which has not been so disclosed. As of their respective
      dates, the SEC Documents complied in all material respects with the requirements
      of the 1934 Act, and rules and regulations of the SEC promulgated thereunder
      and
      the SEC Documents did not contain any untrue statement of a material fact or
      omit to state a material fact required to be stated therein or necessary in
      order to make the statements therein, in light of the circumstances under which
      they were made, not misleading that the Investor has received from the Company
      reports with the Securities and Exchange Commission and with the NASD.

     

    4.10 Litigation.
      To the
      knowledge of WindsorTech no litigation, claim, or other proceeding before any
      court or governmental agency is pending or threatened against WindsorTech
      except: On April 20, 2004, David Loppert, a former employee and Director of
      the
      Company initiated suit against the Company seeking a determination as to his
      status as a Director and seeking to review certain Company records. The Company
      believes it acted properly in Mr. Loppert’s removal. A vast majority of the
      Documents sought by Mr. Loppert were in his exclusive possession until
      early2004. Further, the Company has on multiple occasions advised Mr. Loppert
      that when a proper request (i.e. in the form as required by Delaware statutes)
      was received, the Company would make documents available to Mr. Loppert. Despite
      repeated correspondence to this effect, Mr. Loppert failed or refused to do
      so.
      The Company does not know why Mr. Loppert is seeking review of the
      documents. The
      Company will vigorously defend the claims of Mr. Loppert and does not believe
      the suit will have a material adverse impact on the Company. 

    

    4.11 Exemption
      from Registration.
      Subject
      to the accuracy of the Investors' representations in Article V, except as
      required pursuant to the Registration Rights Agreement, the sale of the Units
      will not require registration under the 1933 Act and/or any applicable state
      securities law. When validly converted in accordance with the terms of the
      Warrants, the Shares underlying the Warrants will be duly and validly issued,
      fully paid, and non-assessable. The Company is issuing the Units in accordance
      with and in reliance upon the exemption from securities registration afforded,
      inter alia, by Rule 506 under Regulation D as promulgated by the SEC under
      the
      1933, and/or Section 4(2) of the 1933 Act.

     

     

    
 

    
      
        
        

      

      
        
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    4.12 No
      General Solicitation or Advertising in Regard to this
      Transaction.
      Neither
      the Company nor any of its Affiliates nor, to the knowledge of the Company,
      any
      Person acting on its or their behalf (i) has conducted or will conduct any
      general solicitation (as that term is used in Rule 502(c) of Regulation
      D as
      promulgated by the SEC under the 1933 Act) or general advertising with respect
      to the sale of the Units, or (ii) made any offers or sales of any security
      or
      solicited any offers to buy any security under any circumstances that would
      require registration of the Units, under the 1933 Act, except as required
      herein.

    

    4.13 No
      Material Adverse Change.
      Since
      December 31, 2003 , no Material Adverse Effect has occurred or exists with
      respect to the Company that has not been disclosed in the SEC Documents. No
      material supplier has given notice, oral or written, that it intends to cease
      or
      reduce the volume of its business with the Company from historical levels.
      Since
      December 31, 2003 , no event or circumstance has occurred or exists with respect
      to the Company or its businesses, properties, prospects, operations or financial
      condition, that, under any applicable law, rule or regulation, requires public
      disclosure or announcement prior to the date hereof by the Company but which
      has
      not been so publicly announced or disclosed in writing to the
      Investors.

    

    4.14 Material
      Non-Public Information.
      The
      Company has not disclosed to the Investors any material non-public information
      that (i) if disclosed, would reasonably be expected to have a material effect
      on
      the price of the Common Stock or (ii) according to applicable law, rule or
      regulation, should have been disclosed publicly by the Company prior to the
      date
      hereof but which has not been so disclosed.

    

    4.15
      Internal
      Controls And Procedures.
      The
      Company maintains books and records and internal accounting controls which
      provide reasonable assurance that (i) all transactions to which the Company
      or
      any subsidiary is a party or by which its properties are bound are executed
      with
      management's authorization; (ii) the recorded accounting of the Company's
      consolidated assets is compared with existing assets at regular intervals;
      (iii)
      access to the Company's consolidated assets is permitted only in accordance
      with
      management's authorization; and (iv) all transactions to which the Company
      or
      any subsidiary is a party or by which its properties are bound are recorded
      as
      necessary to permit preparation of the financial statements of the Company
      in
      accordance with U.S. generally accepted accounting principles.

    

    4.16 Full
      Disclosure.
      No
      representation or warranty made by WindsorTech in this Agreement and no
      certificate or document furnished or to be furnished to the Purchaser pursuant
      to this Agreement contains or will contain any untrue statement of a material
      fact, or omits or will omit to state a material fact necessary to make the
      statements contained herein or therein not misleading.

    

    

    

    
      
        
        

      

      
        
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    ARTICLE
      V

     

    REPRESENTATIONS
      AND WARRANTIES OF THE INVESTORS

     

    Each
      Investor, severally and not jointly, as to himself or itself and not as to
      any
      other Investor, represents and warrants to the Company with the Company
      that:

    

    5.1 Organization
      and Standing of the Investor.
      Where
      the Investor is a corporation, such Investor is duly incorporated, validly
      existing and in good standing under the laws of the state in which it was
      formed. The state in which any offer to purchase shares hereunder was made
      or
      accepted by such Investor is the state shown as such Investor’s address. If an
      entity, the Investor was not formed for the purpose of investing solely in
      the
      Units the subject of this Agreement.

     

    5.2 Authorization
      and Power.
      The
      Investor has the requisite power and authority to enter into and perform this
      Agreement and to purchase the Units being sold to it hereunder. The execution,
      delivery and performance of this Agreement by the Investor and the consummation
      by the Investor of the transactions contemplated hereby have been duly
      authorized by all necessary corporate action where appropriate. This Agreement
      and the Registration Rights Agreement have been duly executed and delivered
      by
      the Investor and at the Closing shall constitute valid and binding obligations
      of the Investor enforceable against the Investor in accordance with their terms,
      except as such enforceability may be limited by applicable bankruptcy,
      insolvency, reorganization, moratorium, liquidation, conservatorship,
      receivership or similar laws relating to, or affecting generally the enforcement
      of, creditors' rights and remedies or by other equitable principles of general
      application.

    

    5.3
      No
      Conflicts.
      The
      execution, delivery and performance of this Agreement and the consummation
      by
      the Investor of the transactions contemplated hereby or relating hereto do
      not
      and will not (i) result in a violation of such Investor's charter documents
      or
      bylaws where appropriate or (ii) conflict with, or constitute a default (or
      an
      event which with notice or lapse of time or both would become a default) under,
      or give to others any rights of termination, amendment, acceleration or
      cancellation of any agreement, indenture or instrument to which the Investor
      is
      a party, or result in a violation of any law, rule, or regulation, or any order,
      judgment or decree of any court or governmental agency applicable to the
      Investor or its properties (except for such conflicts, defaults and violations
      as would not, individually or in the aggregate, have a Material Adverse Effect
      on such Investor). The Investor is not required to obtain any consent,
      authorization or order of, or make any filing or registration with, any court
      or
      governmental agency in order for it to execute, deliver or perform any of such
      Investor’s obligations under this Agreement or to purchase the Units in
      accordance with the terms hereof, provided that for purposes of the
      representation made in this sentence, the Investor is assuming and relying
      upon
      the accuracy of the relevant representations and agreements of the Company
      herein.

     

     

    
      
        
        

      

      
        
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    5.4 Financial
      Risks.
      The
      Investor acknowledges that such Investor is able to bear the financial risks
      associated with an investment in the Units and that it has been given full
      access to such records of the Company and the subsidiaries and to the officers
      of the Company and the subsidiaries as it has deemed necessary or appropriate
      to
      conduct its due diligence investigation. The Investor is capable of evaluating
      the risks and merits of an investment in the Units by virtue of its experience
      as an investor and its knowledge, experience, and sophistication in financial
      and business matters and the Investor is capable of bearing the entire loss
      of
      its investment in the Units.

    

    5.5 Accredited
      Investor.
      The
      Investor is (i) an “accredited investor” as that term is defined in Rule 501 of
      Regulation D promulgated under the 1933 Act by reason of Rule 501(a)(3) and
      (6),
      (ii) experienced in making investments of the kind described in this Agreement
      and the related documents, (iii) able, by reason of the business and financial
      experience of its officers (if an entity) and professional advisors (who are
      not
      affiliated with or compensated in any way by the Company or any of its
      affiliates or selling agents), to protect its own interests in connection with
      the transactions described in this Agreement, and the related documents, and
      (iv) able to afford the entire loss of its investment in the Units.

     

    5.6
      Brokers.
      Except
      for S Partners, LLC, who shall be paid by the Company, no broker, finder or
      investment banker is entitled to any brokerage, finder's or other fee or
      Commission in connection with the transactions contemplated by this Agreement
      based upon arrangements made by or on behalf of the Investors.

    

    5.7 Knowledge
      of Company.
      Each
      Investor and such Investor’s advisors, if any, have been, upon request,
      furnished with all materials relating to the business, finances and operations
      of the Company and materials relating to the offer and sale of the Units. Each
      Investor and such Investor’s advisors, if any, have been afforded the
      opportunity to ask questions of the Company and have received complete and
      satisfactory answers to any such inquiries.
      

    

    5.8 Risk
      Factors
      Each
      Investor understands that such Investor’s investment in the Units involves a
      high degree of risk. Each Investor understands that no United States federal
      or
      state agency or any other government or governmental agency has passed on or
      made any recommendation or endorsement of the Units. Each Investors warrants
      that such Investor is able to bear the complete loss of such Buyer’s investment
      in the Units.

     

     

    
      
        
        

      

      
        
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    5.9 Full
      Disclosure.
      No
      representation or warranty made by the Investor in this Agreement and no
      certificate or document furnished or to be furnished to WindsorTech pursuant
      to
      this Agreement contains or will contain any untrue statement of a material
      fact,
      or omits or will omit to state a material fact necessary to make the statements
      contained herein or therein not misleading. Except as set forth or referred
      to
      in this Agreement, Investor does not have any

     

    agreement
      or understanding with any person relating to acquiring, holding,

     

    voting
      or
      disposing of any equity securities of the Company.

     

    5.10 Reimbursement
      of Due Diligence Expenses.
      Upon
      closing, the Company shall reimburse Investors for expenses incurred in
      conducting due diligence up to an aggregate maximum of $10,000. Such
      reimbursement shall be allocated to Investors that provide proof of payment
      of
      such expenses in a proportional manner. If the transaction is not closed there
      shall be no reimbursement of any due diligence expenses.

     

    ARTICLE
      VI

    

    COVENANTS
      OF THE COMPANY

    

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

    

    6.2.
      Reservation
      Of Common Stock.
      As of
      the date hereof, the Company has reserved and the Company shall continue to
      reserve and keep available at all times, free of preemptive rights, shares
      of
      Common Stock for the purpose of enabling the Company to issue the shares of
      Common Stock underlying the Warrants. 

    

    6.3.
      Listing
      Of Common Stock.
      The
      Company hereby agrees to maintain the listing of the Common Stock on a publicly
      trading market. The Company will take all action to continue the listing and
      trading of its Common Stock on a publicly traded market and will comply in
      all
      respects with the Company's reporting, filing and other obligations under the
      bylaws or rules of the a publicly traded market.

    

    6.4.
      Exchange
      Act Registration.
      The
      Company will cause its Common Stock to continue to be registered under Section
      12(b) or (g) of the 1934 Act, will use its best efforts to comply in all
      respects with its reporting and filing obligations under the 1934 Act, and
      will
      not take any action or file any document (whether or not permitted by the 1934
      Act or the rules thereunder) to terminate or suspend such registration or to
      terminate or suspend its reporting and filing obligations under the 1934 until
      the Investors have disposed of all of their Shares or the shares of Common
      Stock
      underlying the Warrants.

    

    6.5.
      Corporate
      Existence; Conflicting Agreements.
      The
      Company will take all steps necessary to preserve and continue the corporate
      existence of the Company. The Company shall not enter into any agreement, the
      terms of which agreement would restrict or impair the right or ability of the
      Company to perform any of its obligations under this Agreement or any of the
      other agreements attached as exhibits hereto.

     

     

    
      
        
        

      

      
        
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      	6.6  	
              Preferred
                Stock. On
                or prior to the Closing Date, the Company will cause to be cancelled
                all
                authorized shares of Preferred Stock of the Company. For a period
                of one
                year from the closing the Company will not issue any preferred
                stock.

            

    

    

    
      	6.7  	
               Independent
                Directors.
                The Company will cause the appointment of at least one independent
                director within ninety (90) days. If no such Director is appointed,
                the
                Company shall pay to the Investors, pro rata, as liquidated damages
                and
                not as a penalty, an amount equal to ten (10%) of the Purchase Price
                per
                annum, payable monthly. The parties agree that the only damages payable
                for a violation of the terms of this Agreement with respect to which
                liquidated damages are expressly provided shall be such liquidated
                damages. Nothing shall preclude the Investor from pursuing or obtaining
                specific performance or other equitable relief with respect to this
                Agreement. The parties hereto agree that the liquidated damages provided
                for in this Section 6.6 constitute a reasonable estimate of the damages
                that may be incurred by the Investor by reason of the failure of
                the
                Company to appoint at least two independent directors in accordance
                with
                the provision hereof.

            

    

    

    
      	6.8  	
              Use
                of Proceeds.
                The Company will use the proceeds from the sale of the Units (excluding
                amounts paid by the Company for legal and administrative fees in
                connection with the sale of the Units) for acquisitions and/or working
                capital. 

            

    

    

    
      	    
              6.9	
              Right
                of First Refusal.
                Each Investor shall have the right to participate in any financing
                by the
                company on a pro rata basis at eighty percent (80%) of the offering
                price.

            

    

     

    
      	
            	6.10	
              Price
                Adjustment.
                If,
                within the 24 months following the Closing Date, the Company closes
                on the
                sale of a note or notes, shares of Common Stock, or shares of a new
                class
                of Preferred Stock at a price per share of Common Stock, or with
                a
                conversion right to acquire Common Stock at a price per share of
                Common
                Stock, that is less than the Purchase Price (as adjusted to the
                capitalization per share as of the Closing Date, following any stock
                splits, stock dividends, or the like) (collectively, the “Subsequent
                Purchase Price”), the Company shall make a post-Closing adjustment in the
                Purchase Price so that the effective price per share paid by the
                Investors
                at Closing is reduced to the Subsequent Purchase Price as applied
                to the
                Investors’ then current holdings. Within five business days following the
                closing of the subsequent sale, the Company shall pay to the Investors
                the
                product of the number of Shares owned by Investors on the date of
                the
                subsequent sale times the difference between the Purchase Price and
                the
                Subsequent Purchase Price. Payment shall be made in cash or issuance
                of
                the notes, Preferred Stock, Common Stock, unit offering or whichever
                financing is causing the triggering of this provision, at the option
                of
                each individual Investor. 

            

    

     

     

    
      
        
        

      

      
        
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      	6.11  	
              Insider
                Selling.
                The earliest any “insiders” can start selling their shares shall be one
                year from closing. Except that any “insider” may dispose of shares
                provided the stock price at the time of dispositions at least: $3.40
                per
                share for disposition of up to 100,000 shares per “insider” and thereafter
                said stock price is at least at $4.80 per share for disposition of
                up to
                100,000 shares per “insider”. There shall be no further “lock-up” on any
                insider dispositions if the stock price shall at any time reach $6.00
                per
                share

            

    

     

    ARTICLE
      VII

    

    COVENANTS
      OF THE INVESTORS

    

    7.1
      Compliance
      with Law.
      The
      Investor's trading activities with respect to shares of the Company's Common
      Stock will be in compliance with all applicable state and federal securities
      laws, rules and regulations and rules and regulations of any public market
      on
      which the Company's Common Stock is listed.

    

    7.2
      Transfer
      Restrictions.
      The
      Investor’s acknowledge that (1) the Shares, Warrants and shares underlying the
      Warrants have not been registered under the provisions of the 1933 Act, and
      may
      not be transferred unless (A) subsequently registered thereunder or (B) the
      Investor’s shall have delivered to the Company an opinion of counsel, reasonably
      satisfactory in form, scope and substance to the Company, to the effect that
      the
      Shares, Warrants and shares underlying the Warrants to be sold or transferred
      may be sold or transferred pursuant to an exemption from such registration;
      and
      (2) any sale of the Shares, Warrants and shares underlying the Warrants made
      in
      reliance on Rule 144 promulgated under the 1933 Act may be made only in
      accordance with the terms of said Rule and further, if said Rule is not
      applicable, any resale of such Securities under circumstances in which the
      seller, or the person through whom the sale is made, may be deemed to be an
      underwriter, as that term is used in the 1933 Act, may require compliance with
      some other exemption under the 1933 Act or the rules and regulations of the
      SEC
      thereunder.

    

    7.3
      Restrictive
      Legend.
      The
      Investor’s acknowledge and agree that the Shares, and, until such time as the
      Shares have been registered under the 1933 Act and sold in accordance with
      an
      effective Registration Statement, certificates and other instruments
      representing any of the Shares shall bear a restrictive legend in substantially
      the following form (and a stop-transfer order may be placed against transfer
      of
      any such Securities):

    

    "THE
      SHARES OF COMMON STOCK REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), OR ANY
      STATE SECURITIES LAWS AND NEITHER SUCH SHARES NOR ANY INTEREST THEREIN MAY
      BE
      OFFERED, SOLD, PLEDGED, ASSIGNED OR OTHERWISE TRANSFERRED UNLESS (1) A
      REGISTRATION STATEMENT WITH RESPECT THERETO IS EFFECTIVE UNDER THE SECURITIES
      ACT AND ANY APPLICABLE STATE SECURITIES LAWS, OR (2) IN ACCORDANCE WITH THE
      PROVISIONS OF REGULATION S, OR (3) PURSUANT TO AN EXEMPTION FROM REGISTRATION
      UNDER THE SECURITIES ACT."

     

     

    
      
        
        

      

      
        
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    7.4
       Patriot
      Act.

    
      WindsorTech
        and Investor certify that they have not been designated, and are owned or
        controlled, by a Asuspected
        terrorist@
        as
        defined in Executive Order 13224. The parties seek to comply with all applicable
        laws concerning money laundering and related activities. In furtherance of
        those
        efforts, the parties hereby represent, warrant and agree that: (i) none of
        the
        cash or property that WindsorTech will use to purchase the Shares or has
        been or
        shall be derived from, or related to, any activity that is deemed criminal
        under
        United States law; (ii) no disbursement by WindsorTech to the Investor, to
        the
        extent within WindsorTech=s
        control, shall cause any party to be in violation of the United States Bank
        Secrecy Act, the United States International Money Laundering Control Act
        of
        1986 or the United States International Money Laundering Abatement and
        Anti-Terrorist Financing Act of 2001; (iii) Investor has complied with the
        United States Bank Secrecy Act, the United States International Money Laundering
        Control Act of 1986 and/or the United States International Money Laundering
        Abatement and Anti-Terrorist Financing Act of 2001 and Seller=s
        business is not derived from, or related to, any activity that is deemed
        criminal under United States law. WindsorTech shall promptly notify the Company
        if any of these representations ceases to be true and accurate regarding
        WindsorTech. WindsorTech agrees to provide the Company any additional
        information regarding WindsorTech that the Company deems necessary or convenient
        to ensure compliance with all applicable laws concerning money laundering
        and
        similar activities. The parties understand and agree that if at any time
        it is
        discovered that any of the foregoing representations are incorrect, or if
        otherwise required by applicable law or regulation related to money laundering
        similar activities, the parties may undertake appropriate actions to ensure
        compliance with applicable law or regulation. The Parties understand that
        either
        may release information about the other and, if applicable, any underlying
        beneficial owners, to proper authorities, in their its
        sole
        discretion, they determine that it is in the best interests in light of relevant
        rules and regulations under the laws set forth in this
        section.

    

     

     

    
 

    
      
        
        

      

      
        
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      ARTICLE
        VIII

    

     

    CONDITIONS
      PRECEDENT TO THE COMPANY’S OBLIGATIONS

    

    The
      obligation of the Company to consummate the transactions contemplated hereby
      shall be subject to the fulfillment, on or prior to Closing Date, of the
      following conditions:

    

    8.1 No
      Termination.
      This
      Agreement shall not have been terminated pursuant to Article X
      hereof.

    

    8.2 Representations
      True and Correct.
      The
      representations and warranties of the Investors contained in this Agreement
      shall be true and correct in all material respects on and as of the Closing
      Date
      with the same force and effect as if made on as of the Closing
      Date.

    

    8.3 Compliance
      with Covenants.
      The
      Investors shall have performed and complied in all material respects with all
      covenants, agreements, and conditions required by this Agreement to be performed
      or complied by it prior to or at the Closing Date.

    

    8.4 No
      Adverse Proceedings. On
      the
      Closing Date, no action or proceeding shall be pending by any public authority
      or individual or entity before any court or administrative body to restrain,
      enjoin, or otherwise prevent the consummation of this Agreement or the
      transactions contemplated hereby or to recover any damages or obtain other
      relief as a result of the transactions proposed hereby. 

    

    

     

    ARTICLE
      IX

     

    CONDITIONS
      PRECEDENT TO INVESTOR’S OBLIGATIONS

    

    The
      obligation of the Investors to consummate the transactions contemplated hereby
      shall be subject to the fulfillment, on or prior to Closing Date unless
      specified otherwise, of the following conditions:

    

    9.1 No
      Termination.
      This
      Agreement shall not have been terminated pursuant to Article X
      hereof.

     

     

    
      
        
        

      

      
        
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    9.2 Representations
      True and Correct.
      To the
      best of WindsorTech’s knowledge, the representations and warranties of
      WindsorTech contained in this Agreement shall be true and correct in all
      material respects on and as of the Closing Date with the same force and effect
      as if made on as of the Closing Date.

    

    9.1 Compliance
      with Covenants .
      WindsorTech shall have performed and complied in all material respects with
      all
      covenants, agreements, and conditions required by this Agreement to be performed
      or complied by it prior to or at the Closing Date.

    

    9.4 No
      Adverse Proceedings. On
      the
      Closing Date, no action or proceeding shall be pending by any public authority
      or individual or entity before any court or administrative body to restrain,
      enjoin, or otherwise prevent the consummation of this Agreement or the
      transactions contemplated hereby or to recover any damages or obtain other
      relief as a result of the transactions proposed hereby. 

    

     

    ARTICLE
      X

     

    TERMINATION,
      AMENDMENT AND WAIVER

    

    10.1 Termination.
      This
      Agreement may be terminated at any time prior to the Effective
      Time:

    

    10.1.1 by
      mutual
      written consent of the Investors and the Company;

    

    10.1.2 by
      the
      Company upon a material breach of any representation, warranty, covenant or
      agreement on the part of the Investor set forth in this Agreement, or the
      Investor upon a material breach of any representation, warranty, covenant or
      agreement on the part of WindsorTech set forth in this Agreement, or if any
      representation or warranty of WindsorTech or the Investor, respectively, shall
      have become untrue, in either case such that any of the conditions set forth
      in
      Article VIII or Article IX hereof would not be satisfied (a "Terminating
      Breach"),
      and
      such breach shall, if capable of cure, not have been cured within five (5)
      days
      after receipt by the party in breach of a notice from the non-breaching party
      setting forth in detail the nature of such breach;

    

    10.1.3
      by
      either party prior to closing, if the Closing Date is after May 28, 2004.

    

    10.2 Effect
      of Termination.
      In the
      event of the termination of this Agreement pursuant to Paragraph 10.1 hereof,
      there shall be no liability on the party of WindsorTech or the Investors or
      any
      of their respective officers, directors, agents or other representatives and
      all
      rights and obligations of any party hereto shall cease,.

     

     

    
      
        
        

      

      
        
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    10.3
      Amendment.
      This
      Agreement may be amended by the parties hereto any time prior to the Closing
      Date by an instrument in writing signed by the parties hereto.

    

    10.3 Intentionally
      Omitted  

     

    ARTICLE
      XI

     

    GENERAL
      PROVISIONS

     

    11.1 Transaction
      Costs.
      Except
      as otherwise provided herein, each of the parties shall pay all of his or its
      costs and expenses (including attorney fees and other legal costs and expenses
      and accountants’ fees and other accounting costs and expenses) incurred by that
      party in connection with this Agreement. 

    

    11.2 Indemnification.
      Each
      Investor, severally and not jointly agrees to defend and hold the Company
      (following the Closing Date) and its officers and directors harmless against
      and
      in respect of any and all claims, demands, losses, costs, expenses, obligations,
      liabilities or damages, including interest, penalties and reasonable attorney’s
      fees, that it shall incur or suffer, which arise out of, result from or relate
      to any breach of this Agreement by such Investor or failure by such Investors
      to
      perform with respect to any of its representations, warranties or covenants
      contained in this Agreement or in any exhibit or other instrument furnished
      or
      to be furnished under this Agreement. The Company agrees to defend and hold
      the
      Investor harmless against and in respect of any and all claims, demands, losses,
      costs, expenses, obligations, liabilities or damages, including interest,
      penalties and reasonable attorney’s fees, that it shall incur or suffer, which
      arise out of, result from or relate to any breach of this Agreement or failure
      by the Company to perform with respect to any of its representations, warranties
      or covenants contained in this Agreement or in any exhibit or other instrument
      furnished or to be furnished under this Agreement.

     

    11.3 Headings.
      The
      table of contents and headings contained in this Agreement are for reference
      purposes only and shall not affect in any way the meaning or interpretation
      of
      this Agreement.

    

    11.4 Entire
      Agreement.
      This
      Agreement (together with the Schedule, Exhibits, Warrants and documents referred
      to herein) constitute the entire agreement of the parties and supersede all
      prior agreements and undertakings, both written and oral, between the parties,
      or any of them, with respect to the subject matter hereof. 

     

    11.5 Notices.
      All
      notices and other communications hereunder shall be in writing and shall be
      deemed to have been given (i) on the date they are delivered if delivered in
      person; (ii) on the date initially received if delivered by facsimile
      transmission followed by registered or certified mail confirmation or overnight
      courier service; (iii) on the date delivered by an overnight courier service;
      or
      (iv) on the third business day after it is mailed by registered or certified
      mail, return receipt requested with postage and other fees prepaid as
      follows:

     

     

    
      
        
        

      

      
        
          STOCK
            PURCHASE AGREEMENT BETWEEN 

          WindsorTech,
            Inc. . AND CERTAIN INVESTORS
Page 19 of 26

        
          

        

      

      
        
        

      

    

    

      
        	 	 
	
                If
                  to WindsorTech, Inc. :

              	
                WindsorTech,
                  Inc. 

              
	 	
                70
                  Lake Drive

              
	 	
                Hightstown,
                  NJ 08520

              

      

    

    

    

      
        	 	 
	
                With
                  a copy to:

              	 
	
                 

              	
                Burger,
                  Trailor & Farmer, P.A. 

              
	
                 

              	
                1601
                  Forum Place, Suite 404 

              
	
                 

              	
                West
                  Palm Beach, Florida 33401 

              
	
                 

              	
                Telephone
                  Number: (561) 689-1663 

              
	
                 

              	
                Facsimile
                  Number: (561) 689-1707 

              

      

    

    

          

    
      	If to the Investors: 	_____________________________ 
	 	_____________________________ 

    

    

     

    

    To
      the
      address listed on Schedule
      A
      herein
      or to the address provided to the Company by an Investor. 

    

    

    11.6 Severability.
      If any
      term or other provision of this Agreement is invalid, illegal or incapable
      of
      being enforced by any rule of law or public policy, all other conditions and
      provisions of this Agreement shall nevertheless remain in full force and effect
      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
      determination that any such term or other provision is invalid, illegal or
      incapable of being enforced, the parties hereto 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 to the end that the transactions
      contemplated hereby are fulfilled to the extent possible.

     

     

    
      
        
        

      

      
        
          STOCK
            PURCHASE AGREEMENT BETWEEN 

          WindsorTech,
            Inc. . AND CERTAIN INVESTORS
Page 20 of 26

        
          

        

      

      
        
        

      

    

    

    11.7 Binding
      Effect.
      All the
      terms and provisions of this Agreement whether so expressed or not, shall be
      binding upon, inure to the benefit of, and be enforceable by the parties and
      their respective administrators, executors, legal representatives, heirs,
      successors and assignees. 

    

    11.8 Preparation
      of Agreement.
      This
      Agreement shall not be construed more strongly against any party regardless
      of
      who is responsible for its preparation. The parties acknowledge each contributed
      and is equally responsible for its preparation. 

     

    11.9 Governing
      Law.
      This
      Agreement shall be governed by, and construed in accordance with, the laws
      of
      the State of Florida , without giving effect to applicable principles of
      conflicts of law.

    

    11.10 Jurisdiction.
      This
      Agreement shall be exclusively governed by and construed in accordance with
      the
      laws of the State of Florida . If any action is brought among the parties with
      respect to this Agreement or otherwise, by way of a claim or counterclaim,
      the
      parties agree that in any such action, and on all issues, the parties
      irrevocably waive their right to a trial by jury. Exclusive jurisdiction and
      venue for any such action shall be the State Courts of Florida . In the event
      suit or action is brought by any party under this Agreement to enforce any
      of
      its terms, or in any appeal therefrom, it is agreed that the prevailing party
      shall be entitled to reasonable attorneys fees to be fixed by the arbitrator,
      trial court, and/or appellate court.

    

    11.11
      Preparation
      and Filing of Securities and Exchange Commission filings.
Each
      Investor shall reasonably assist and cooperate with the Company in the
      preparation of all filings with the SEC after the Closing Date due after the
      Closing Date. 

    

    11.12 Further
      Assurances, Cooperation.
      Each
      party shall, upon reasonable request by the other party, execute and deliver
      any
      additional documents necessary or desirable to complete the transactions herein
      pursuant to and in the manner contemplated by this Agreement. The parties hereto
      agree to cooperate and use their respective best efforts to consummate the
      transactions contemplated by this Agreement.

    

    11.13 Survival
      The
      representations, warranties, covenants and agreements made herein shall survive
      the Closing of the transaction contemplated hereby. 

    

    11.14 Third
      Parties 
      Except
      as disclosed in this Agreement, nothing in this Agreement, whether express
      or
      implied, is intended to confer any rights or remedies under or by reason of
      this
      Agreement on any persons other than the parties hereto and their respective
      administrators, executors, legal representatives, heirs, successors and
      assignees. Nothing in this Agreement is intended to relieve or discharge the
      obligation or liability of any third persons to any party to this Agreement,
      nor
      shall any provision give any third persons any right of subrogation or action
      over or against any party to this Agreement.

     

     

     

    
      
        
        

      

      
        
          STOCK
            PURCHASE AGREEMENT BETWEEN 

          WindsorTech,
            Inc. . AND CERTAIN INVESTORS
Page 21 of 26

        
          

        

      

      
        
        

      

    

    

    11.15 Failure
      or Indulgence Not Waiver; Remedies Cumulative.
      No
      failure or delay on the part of any party hereto in the exercise of any right
      hereunder shall impair such right or be construed to be a waiver of, or
      acquiescence in, any breach of any representation, warranty, covenant or
      agreement herein, nor shall nay single or partial exercise of any such right
      preclude other or further exercise thereof or of any other right. All rights
      and
      remedies existing under this Agreement are cumulative to, and not exclusive
      of,
      any rights or remedies otherwise available.

    

    11.16 Counterparts.
      This
      Agreement may be executed in one or more counterparts, and by the different
      parties hereto in separate counterparts, each of which when executed shall
      be
      deemed to be an original, but all of which taken together shall constitute
      one
      and the same agreement. A facsimile transmission of this signed Agreement shall
      be legal and binding on all parties hereto. 

      
        
           

          
          

        

        
          
            STOCK
              PURCHASE AGREEMENT BETWEEN 

            WindsorTech,
              Inc. . AND CERTAIN INVESTORS
Page 22 of 26

          
            

          

        

        
          
          

        

      

    

    IN
      WITNESS WHEREOF,
      the
      Investors and the Company have as of the date first written above executed
      this
      Agreement.

    

    WindsorTech,
      Inc.       

    

    ______________________
        

    

    By:
      ___________________ 

    Title:__________________
      

    

    

      
        	
                _____________________________

              	
                _______________________________

              
	
                Print
                  Name:

              	
                Print
                  Name:

              
	
                Entity
                  (if appropriate):

                ____________

              	
                Entity

                (if
                  appropriate):__________________

              
	
                ______________________________

              	
                ______________________________

              
	
                Title:
                  (if appropriate):____________

              	
                Title:
                  

                (if
                  appropriate):__________________

              
	 	 
	 	 
	
                _____________________________

              	
                _______________________________

              
	
                Print
                  Name:

              	
                Print
                  Name:

              
	
                Entity
                  (if appropriate):____________

              	
                Entity
                  

                (if
                  appropriate):____________

              
	
                ______________________________

              	
                ______________________________

              
	
                Title:
                  (if appropriate):____________

              	
                Title:
                  

                (if
                  appropriate):____________

              

      

    

    

    
      
         

        
        

      

      
        
          STOCK
            PURCHASE AGREEMENT BETWEEN 

          WindsorTech,
            Inc. . AND CERTAIN INVESTORS
Page 23 of 26

        
          

        

      

      
        
        

      

    

    

    Schedule
      A

    

    

    
      	
              NAME
                AND ADDRESS

            	
              AMOUNT
                OF INVESTMENT

            	
              NUMBER
                OF SHARES OF COMMON STOCK

            	
              NUMBER
                OF WARRANTS

            
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 

    

    

    
      
        

        
           

        
        

      

      
        
          STOCK
            PURCHASE AGREEMENT BETWEEN 

          WindsorTech,
            Inc. . AND CERTAIN INVESTORS
Page 24 of 26

        
          

        

      

      
        
        

      

    

    Exhibit
      A

    

    Form
      of Warrant

    
      
         

        
        

      

      
        
          STOCK
            PURCHASE AGREEMENT BETWEEN 

          WindsorTech,
            Inc. . AND CERTAIN INVESTORS
Page 25 of 26

        
          

        

      

      
        
        

      

    

    Exhibit
      B

    

    Registration
      Rights Agreement

    

    

      STOCK
        PURCHASE AGREEMENT BETWEEN 

      WindsorTech,
        Inc. . AND CERTAIN INVESTORS
Page 26 of
      26

       

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

    

    ADDENDUM
      TO STOCK PURCHASE AGREEMENT

    

    This
      ADDENDUM TO STOCK PURCHASE AGREEMENT (the "Agreement")
      is
      made and entered into as of the  
      day of
      June, 2004 by and among
      WindsorTech, Inc., a
      corporation organized and existing under the laws of the State of Delaware
      (“WindsorTech ” or the “Company”),
      and
      certain investors, (hereinafter referred to collectively as “Investor”
or
      “Investors”)
      as
      listed on Schedule
      A
      herein
      (each agreement with an Investor being deemed a separate and independent
      agreement between the Company and such Investor).

     

    WHEREAS,
      the
      parties desire to modify certain of the provisions of the Stock Purchase
      Agreement made between them as of May 18, 2004;

     

     NOW
      THEREFORE,
      in
      consideration of the mutual covenants and premises contained herein and for
      other good and valuable consideration, the receipt and adequacy of which is
      hereby conclusively acknowledged, the parties hereto, intending to be legally
      bound agree as follows: 

    

    1. 
      Paragraph 6.11 of the STOCK PURCHASE AGREEMENT dated as of May 18, 2004 shall
      be
      amended to read as follows: 

     

      
      Insider
      Selling: The earliest any “insiders” can start selling their shares shall be
      one

    year
      from
      closing. Except that any “insider” may dispose of shares provided the stock
      price at the time of disposition is at least: $3.40 per share for disposition
      of
      up to 100,000 shares per “insider” and thereafter said stock price is at least
      at $4.80 per share for disposition of up to 100,000 shares per “insider”. There
      shall be no further “lock-up” on any insider disposition if the stock price
      shall at any time reach $6.00 per share. The Company and investor acknowledge
      and agree that the Investor is not an “insider” as such term is used
      herein.

    

    2.
       
      Paragraph 7.4 of the Stock Purchase Agreement dated as of May 18, 2004 shall
      be
      amended to read as follows: 

    

      Patriot
      Act: WindsorTech
      and Investor certify that they have not been designated, and  are
      not
      owned or controlled, by a “suspected terrorist” as defined in Executive Order
      13224. The parties seek to comply with all applicable laws concerning money
      laundering and related activities. In furtherance of those efforts, Investor
      hereby represents, warrants and agrees that: (i) none of the cash or property
      that Investor will use to purchase the Shares has been or shall be derived
      from,
      or related to, any activity that is deemed criminal under United States law;
      (ii) no disbursement by Investor to WindsorTech, to the extent within Investor’s
      control, shall cause any party to be in violation of the United States Bank
      Secrecy Act, the United States International Money Laundering Control Act of
      1986 or the United States International Money Laundering Abatement and
      Anti-Terrorist Financing Act of 2001; (iii) Investor has complied with the
      United States Bank Secrecy Act, the United States International Money Laundering
      Control Act of 1986 and/or the United States International Money Laundering
      Abatement and Anti-Terrorist Financing Act of 2001 and Investor’s Seller’s
      business is not derived from, or related to, any activity that is deemed
      criminal under United States law. Investor shall promptly notify WindsorTech
      if
      any of these representations ceases to be true and accurate regarding Investor.
      WindsorTech agrees to provide the Investor any additional information regarding
      WindsorTech that the Investor deems necessary or convenient to ensure compliance
      with all applicable laws concerning money laundering and similar activities.
      The
      parties understand and agree that if at any time it is discovered that any
      of
      the foregoing representations are incorrect, or if otherwise required by
      applicable law or regulation related to money laundering similar activities,
      the
      parties may undertake appropriate actions to ensure compliance with applicable
      law or regulation. The Parties understand that either may release information
      about the other and, if applicable, any underlying beneficial owners, to proper
      authorities, if, in their sole discretion, they determine that it is in the
      best
      interests in light of relevant rules and regulations under the laws set forth
      in
      this section.

     

     

    
      STOCK
        PURCHASE AGREEMENT BETWEEN 

      WindsorTech,
        Inc. . AND CERTAIN INVESTORS

      PAGE
        1OF
        2

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    3.
      This
      Agreement may be executed in one or more counterparts, and by the different
      parties hereto in separate counterparts, each of which when executed shall
      be
      deemed to be an original, but all of which taken together shall constitute
      one
      and the same agreement. A facsimile transmission of this signed Agreement shall
      be legal and binding on all parties hereto and shall serve as an original.
      

     

    4. Unless
      otherwise modified by the terms and conditions of this Addendum to Stock
      Purchase Agreement, the Stock Purchase Agreement shall remain in full force
      and
      effect.

    

    

    

    IN
      WITNESS WHEREOF,
      the
      Investors and the Company have as of the date first written above executed
      this
      Agreement.

    

    WindsorTech,
      Inc.       

    

    ______________________
        

    

    By:
      ___________________ 

    Title:__________________
      

    

     

    Investor

    

    ________________________________

     

     

    

      STOCK
        PURCHASE AGREEMENT BETWEEN 

      WindsorTech,
        Inc. . AND CERTAIN INVESTORS

      PAGE
        2 OF
        2Unassociated Document

     

    Exhibit
      4.3

    REGISTRATION
      RIGHTS AGREEMENT

    

    THIS
      REGISTRATION RIGHTS AGREEMENT (the "Agreement")
      is
      made and entered into as of the 18th
      day of
      May, 2004 by and among
      WindsorTech, Inc, ., a
      corporation organized and existing under the laws of the State of Delaware
      (“WindsorTech” or the “Company”),
      and
      certain investors, (hereinafter referred to collectively as “Investor”
or
      “Investors”)
      as
      identified herein (each agreement with an Investor being deemed a separate
      and
      independent agreement between the Company and such Investor). Unless defined
      otherwise, capitalized terms herein shall have the identical meaning as in
      the
      Stock Purchase Agreement.

     

    

     

    PRELIMINARY
      STATEMENT

    

    WHEREAS,
      pursuant to the Stock Purchase Agreement, of even date herewith, by and among
      WindsorTech and the Investors, as part of the consideration, Investors shall
      receive Shares of WindsorTech; and

    

    WHEREAS,
      the
      ability of the Investors to sell their shares of Common Stock is subject to
      certain restrictions under the 1933 Act; and

    

    WHEREAS,
      as a
      condition to the Stock Purchase Agreement, WindsorTechhas agreed to provide
      the
      Investors with a mechanism that will permit such Investors, subject to a market
      stand-off agreement, to sell their Shares of Common Stock in the
      future.

    

      NOW,
      THEREFORE,
      in
      consideration of the premises and of the mutual covenants and agreements, and
      subject to the terms and conditions herein contained, the parties hereto hereby
      agree as follows:

    

     

    ARTICLE
      I

     

    INCORPORATION
      BY REFERENCE, SUPERSEDER

     

    1.1 Incorporation
      by Reference.
      The
      foregoing recitals, Schedule
      A
      and the
      Exhibits attached hereto and referred to herein, are hereby acknowledged to
      be
      true and accurate, and are incorporated herein by this reference.

     

    1.2 Superseder.
      This
      Agreement is entered as part and parcel of a series of agreements between the
      Company and the Investors. Such agreements shall be read consistent and not
      in
      conflict with each other. To the extent any person is deemed involved, it shall
      be interpreted to be enforceable the fullest extent permitted by law. A copy
      of
      this Agreement shall be filed at the Company’s principal office.

     

    

    
      
        
          REGISTRATION
            RIGHTS AGREEMENT BETWEEN 

          WindsorTech,
            Inc. . AND CERTAIN INVESTORS

        

      

      
        Page
          1 of
          17

        
          

        

      

      
        
        

      

    

    

    

    

    ARTICLE
      II

     

    DEMAND
      REGISTRATION RIGHTS

     

    

    2.1
      "Registrable
      Shares"
      means
      and includes the Shares of WindsorTechissued to the Investors pursuant to the
      Stock Purchase Agreement. As to any particular Registrable Shares, such
      securities will cease to be Registrable Shares when (a) they have been
      effectively registered under the 1933 Act and disposed of in accordance with
      the
      registration statement covering them, (b) they are or may be freely traded
      without registration pursuant to Rule 144 under the 1933 Act (or any similar
      provisions that are then in effect), or (c) they have been otherwise transferred
      and new certificates for them not bearing a restrictive legend have been issued
      by WindsorTech and WindsorTech shall not have "stop transfer" instructions
      against them. "Shares"
      shall
      mean, collectively, the shares of Common Stock of the Company being issued
      pursuant to the Stock Purchase Agreement and those shares of Common Stock
      issuable to the Investor upon exercise of the Warrants being issued pursuant
      to
      the Stock Purchase Agreement.

     

    2.2 Registration
      of Registrable Securities.
      The
      Company shall prepare and file within thirty (30) days following the date hereof
      (the "Filing
      Date")
      a
      registration statement (the "Registration
      Statement")
      covering the resale of the Registrable Securities. The Company shall use its
      best efforts to cause the Registration Statement to be declared effective by
      the
      SEC on the earlier of (i) 120 days following the Closing Date with respect
      to
      the Registration Statement, (ii) ten (10) days following the receipt of a "No
      Review" or similar letter from the SEC or (iii) the first day following the
      day
      the SEC determines the Registration Statement eligible to be declared effective
      (the "Required
      Effectiveness Date").
      Nothing contained herein shall be deemed to limit the number of Registrable
      Securities to be registered by the Company hereunder. As a result, should the
      Registration Statement not relate to the maximum number of Registrable
      Securities acquired by (or potentially acquirable by) the holders of the Shares
      of WindsorTech issued to the Investors pursuant to the Stock Purchase Agreement,
      the Company shall be required to promptly file a separate registration statement
      (utilizing Rule 462 promulgated under the Exchange Act, where applicable)
      relating to such Registrable Securities which then remain unregistered. The
      provisions of this Agreement shall relate to any such separate registration
      statement as if it were an amendment to the Registration Statement.

    

    2.3 Demand
      Registration.
      Subject
      to the limitations of Section 2.2, at any time, holders of the majority of
      the
      Shares as of the date of the Stock Purchase Agreement may request the
      registration, once and only once, under the 1933 Act of all or part of the
      Registrable Shares then outstanding (a "Demand
      Registration").
      Subject to the conditions of Section 3, the Company shall use its best efforts
      to file such registration statement under the 1933 Act as promptly as
      practicable after the date any such request is received by the Company and
      to
      cause such registration statement to be declared effective. The Company shall
      notify the Investors promptly when any such registration statement has been
      declared effective. If more than 80 percent of the Shares as of the date of
      the
      Stock Purchase Agreement have been registered or sold, this provision shall
      expire.

    

     

    
      
        
          REGISTRATION
            RIGHTS AGREEMENT BETWEEN 

          WindsorTech,
            Inc. . AND CERTAIN INVESTORS

        

      

      
        Page
          2 of
          17

        
          

        

      

      
        
        

      

    

     

    2.4 Registration
      Statement Form.
      Registrations under Section 2.2 and Section 2.3 shall be on Form SB-2 or such
      other appropriate registration form of the SEC as shall permit the disposition
      of such Registrable Securities in accordance with the intended method or methods
      of disposition specified in the Registration Statement; provided, however,
      such
      intended method of disposition shall not include an underwritten offering of
      the
      Registrable Securities.

    

    2.5 Expenses.
      The
      Company will pay all Registration expenses in connection with any registration
      required by under Sections 2.2 and Section 2.3 herein.

    

    2.6 Effective
      Registration Statement.
      A
      registration requested pursuant to Sections 2.2 and Section 2.3 shall not be
      deemed to have been effected (i) unless a registration statement with respect
      thereto has become effective within the time period specified herein, provided
      that a registration which does not become effective after the Company filed
      a
      registration statement with respect thereto solely by reason of the refusal
      to
      proceed of any holder of Registrable Securities (other than a refusal to proceed
      based upon the advice of counsel in the form of a letter signed by such counsel
      and provided to the Company relating to a disclosure matter unrelated to such
      holder) shall be deemed to have been effected by the Company unless the holders
      of the Registrable Securities shall have elected to pay all Registration
      Expenses in connection with such registration, (ii) if, after it has become
      effective, such registration becomes subject to any stop order, injunction
      or
      other order or extraordinary requirement of the SEC or other governmental agency
      or court for any reason or (iii) if, after it has become effective, such
      registration ceases to be effective for more than the allowable Black-Out
      Periods (as defined herein).

    

    2.7 Plan
      Of Distribution. The
      Company hereby agrees that the Registration Statement shall include a plan
      of
      distribution section reasonably acceptable to the Holder; provided, however,
      such plan of distribution section shall be modified by the Company so as to
      not
      provide for the disposition of the Registrable Securities on the basis of an
      underwritten offering.

    

    2.8 Liquidated
      Damages.
      Subject
      to diligent efforts to comply with applicable laws, rules and/or regulations
      for
      which the following time period shall be extended if, after five (5) months
      from
      the date hereof, in the event the Company does not register the Registrable
      Securities pursuant to the requirements of Section 2.2 herein, or if the
      Registration Statement filed pursuant to Section 2.2 herein is not declared
      effective, or if the Registrable Securities are registered pursuant to an
      effective Registration Statement and such Registration Statement or other
      Registration Statement including the Registrable Securities is not effective
      in
      the period from five months from the date hereof through two years following
      the
      date hereof, the Company shall, for each such day, pay the Purchaser, as
      liquidated damages and not as a penalty, an amount equal to  30% of
      the
      Purchase Price per annum; and for any such day, such payment shall be made
      no
      later than the first business day of the calendar month next succeeding the
      month in which such day occurs. In addition, if the Company has not filed a
      registration statement within the thirty day period after closing as specified
      in 2.2, the Company shall, for each such day after thirty days from closing
      and
      until the filing of a registration statement, pay the Purchaser, as liquidated
      damages and not as a penalty, an amount equal to thirty percent (30%)of the
      Purchase Price per annum; and for any such day, such payment shall be made
      no
      later than the first business day of the calendar month next succeeding the
      month in which such day occurs.

     

     

    
      
        
          REGISTRATION
            RIGHTS AGREEMENT BETWEEN 

          WindsorTech,
            Inc. . AND CERTAIN INVESTORS

        

      

      
        Page
          3 of
          17

        
          

        

      

      
        
        

      

    

     

    The
      parties agree that the only damages payable for a violation of the terms of this
      Agreement with respect to which liquidated damages are expressly provided shall
      be such liquidated damages. Nothing shall preclude the Purchaser from pursuing
      or obtaining specific performance or other equitable relief with respect to
      this
      Agreement.

     

    The
      parties hereto agree that the liquidated damages provided for in this Section
      2.8 constitute a reasonable estimate of the damages that may be incurred by
      the
      Purchaser by reason of the failure of the Registration Statement to be filed
      or
      declared effective in accordance with the provisions hereof.

     

    The
      obligation of the Company terminates when the holder of shares of Registrable
      Securities no longer holds more than twenty percent (20%) of their shares of
      Registrable Securities.

    

    The
      penalties of this provision shall not be cumulative with those of the Stock
      Purchase Agreement of even date herewith. 

    

    ARTICLE
      III

     

    

    INCIDENTAL
      REGISTRATION RIGHTS

     

    

    3.1 Right
      To Include (“Piggy-Back”) Registrable Securities.  Provided
      that the Registrable Securities have not been registered, if at any time after
      the date hereof but before the second anniversary of the date hereof, the
      Company proposes to register any of its securities under the 1933 Act (other
      than by a registration in connection with an acquisition in a manner which
      would
      not permit registration of Registrable Securities for sale to the public, on
      Form S-8, or any successor form thereto, on Form S-4, or any successor form
      thereto and other than pursuant to Section 2), on an underwritten basis (either
      best-efforts or firm-commitment), then, the Company will each such time give
      prompt written notice to all holders of Registrable Securities of its intention
      to do so and of such holders of Registrable Securities' rights under this
      Section 3.1. Upon the written

    request
      of any such holders of Registrable Securities made within ten (10) days after
      the receipt of any such notice (which request shall specify the Registrable
      Securities intended to be disposed of by such holders of Registrable Securities
      and the intended method of disposition thereof), the Company will, subject
      to
      the terms of this Agreement, use its commercially reasonable best efforts to
      effect the registration under the 1933 Act of the Registrable Securities, to
      the
      extent requisite to permit the disposition (in accordance with the intended
      methods thereof as aforesaid) of such Registrable Securities so to be
      registered, by inclusion of such Registrable Securities in the registration
      statement which covers the securities which the Company proposes to register,
      provided that if, at any time after written notice of its intention to register
      any securities and prior to the effective

    date
      of
      the registration statement filed in connection with such registration, the
      Company shall determine for any reason either not to register or to delay
      registration of such securities, the Company may, at its election, give written
      notice of such determination to each holders of Registrable Securities and,
      thereupon, (i) in the case of a determination not to register, shall be relieved
      of this obligation to register any Registrable Securities in connection with
      such registration (but not from its obligation to pay the Registration Expenses
      in connection therewith), without prejudice, however, to the rights of any
      holder or holders of Registrable Securities entitled to do so to request that
      such registration be effected as a registration under Section 2, and (ii) in
      the
      case of a determination to delay registering, shall be permitted to delay
      registering any Registrable Securities, for the same period as the delay in
      registering such other securities. No registration effected under this Section
      3.1 shall relieve the Company of its obligation to effect any registration
      upon
      request under Section 2.
      The
      Company will pay all Registration Expenses in connection with each registration
      of Registrable Securities requested pursuant to this Section 3.1. The right
      provided the Holders of the Registrable Securities pursuant to this Section
      shall be exercisable at their sole discretion and will in no way limit any
      of
      the Company's obligations to pay the Securities according to their
      terms.

     

     

    
      
        
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    3.2 Priority
      In Incidental Registrations.
      If the
      managing underwriter of the underwritten offering contemplated by this Section
      3
      shall inform the Company and holders of the Registrable Securities requesting
      such registration by letter of its belief that the number of securities
      requested to be included in such registration exceeds the number

    which
      can
      be sold in such offering, then the Company will include in such registration,
      to
      the extent of the number which the Company is so advised can be sold in such
      offering, (i) first securities proposed by the Company to be sold for its own
      account, and (ii) second Registrable Securities and (iii) securities of other
      selling security holders requested to be included in such
      registration.

    

     

    ARTICLE
      IV

     

    

    REGISTRATION
      PROCEDURES 

     

     

    

    4.1
      REGISTRATION PROCEDURES. If and whenever the Company is required to effect
      the
      registration of any Registrable Securities under the 1933 Act as provided in
      Section 2.2 and, as applicable, 2.3, the Company shall, as expeditiously as
      possible:

    

    (i)
      prepare and file with the SEC the Registration Statement, or amendments thereto,
      to effect such registration (including such audited financial statements as
      may
      be required by the 1933 Act or the rules and regulations promulgated thereunder)
      and thereafter use its commercially reasonable best efforts to cause such
      registration statement to be declared effective by the SEC, as soon as
      practicable, but in any event no later than the Required Effectiveness Date
      (with respect to a registration pursuant to Section 2.2); provided, however,
      that before filing such registration statement or any amendments thereto, the
      Company will furnish to the counsel selected by the holders of Registrable
      Securities which are to be included in such registration, copies of all such
      documents proposed to be filed;

     

     

    
      
        
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    (ii)
      with
      respect to any registration statement pursuant to Section 2.2 or Section 2.3,
      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 and to comply with
      the
      provisions of the 1933 Act with respect to the disposition of all Registrable
      Securities covered by such registration statement until the earlier to occur
      of
      thirty six (36) months after the date of this Agreement (subject to the right
      of
      the Company to suspend the effectiveness thereof for not more than 10
      consecutive Trading Days or an aggregate of 20 Trading Days during each year
      (each a "Black-Out
      Period"))
      or
      such time as all of the securities which are the subject of such registration
      statement cease to be Registrable Securities (such period, in each case, the
      "Registration
      Maintenance Period");

    

    (iii)
      furnish to each holder of Registrable Securities covered by such registration
      statement such number of conformed copies of such registration statement and
      of
      each such amendment and supplement thereto (in each case including all
      exhibits), such number of copies of the prospectus contained in such
      registration statement (including each preliminary prospectus and any summary
      prospectus) and any other prospectus filed under Rule 424 under the 1933 Act,
      in
      conformity with the requirements of the 1933 Act, and such other documents,
      as
      such holder of Registrable Securities and underwriter, if any, may reasonably
      request in order to facilitate the public sale or other disposition of the
      Registrable Securities owned by such holder of Registrable Securities;

    

    (iv)
      use
      its commercially reasonable best efforts to register or qualify all Registrable
      Securities and other securities covered by such registration statement under
      such other securities laws or blue sky laws as any holder of Registrable
      Securities thereof shall reasonably request, to keep such registrations or
      qualifications in effect for so long as such registration statement remains
      in
      effect, and take any other action which may be reasonably necessary to enable
      such holder of Registrable Securities to consummate the disposition in such
      jurisdictions of the securities owned by such holder of Registrable Securities,
      except that the Company shall not for any such purpose be required to qualify
      generally to do business as a foreign corporation in any jurisdiction wherein
      it
      would not but for the requirements of this subdivision (iv) be obligated to
      be
      so qualified or to consent to general service of process in any such
      jurisdiction;

    

    (v)
      use
      its commercially reasonable best efforts to cause all Registrable Securities
      covered by such registration statement to be registered with or approved by
      such
      other governmental agencies or authorities as may be necessary to enable the
      holder of Registrable Securities thereof to consummate the disposition of such
      Registrable Securities;

     

     

    
      
        
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    (vi)
      furnish to each holder of Registrable Securities a signed counterpart, addressed
      to such holder of Registrable Securities, and the underwriters, if any, of
      an
      opinion of counsel for the Company, dated the effective date of such
      registration statement (or, if such registration includes an underwritten public
      offering, an opinion dated the date of the closing under the underwriting
      agreement), reasonably satisfactory in form and substance to such holder of
      Registrable Securities) including that the prospectus and any prospectus
      supplement forming a part of the Registration Statement does not contain an
      untrue statement of a material fact or omits 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, and

    

    (vii)
      notify the Investor and its counsel promptly and confirm such advice in writing
      promptly after the Company has knowledge thereof:

     

    (A)
      when
      the Registration Statement, the prospectus or any prospectus supplement related
      thereto or post-effective amendment to the Registration Statement has been
      filed, and, with respect to the Registration Statement or any post-effective
      amendment thereto, when the same has become effective;

    

    (B)
      of
      any request by the SEC for amendments or supplements to the Registration
      Statement or the prospectus or for additional information;

    

    (C)
      of
      the issuance by the SEC of any stop order suspending the effectiveness of the
      Registration Statement or the initiation of any proceedings by any Person for
      that purpose; and

    

    (D)
      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 securities
      or
      blue sky laws of any jurisdiction or the initiation or threat of any proceeding
      for such purpose;

    

    (viii)
      notify each holder of Registrable Securities covered by such registration
      statement, at any time when a prospectus relating thereto is required to be
      delivered under the 1933 Act, upon discovery that, or upon the happening of
      any
      event as a result of which, the prospectus included in such registration
      statement, as then in effect, includes an untrue statement of a material fact
      or
      omits to state any material facts required to be stated therein or necessary
      to
      make the statements therein not misleading in the light of the circumstances
      then existing, and at the request of any such holder of Registrable Securities
      promptly prepare and furnish to such holder of Registrable Securities a
      reasonable number of copies of a supplement to or an amendment of such
      prospectus as may be necessary so that, as thereafter delivered to the
      purchasers of such securities, such prospectus shall not include 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 not misleading in
      the
      light of the circumstances then existing;

     

     

    
      
        
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    (ix)
      use
      its best efforts to obtain the withdrawal of any order suspending the
      effectiveness of the Registration Statement at the earliest possible
      moment;

    

    (x)
      otherwise use its commercially reasonable best efforts to comply with all
      applicable rules and regulations of the SEC, and make available to its security
      holders, as soon as reasonably practicable, an earnings statement covering
      the
      period of at least twelve months, but not more than eighteen months, beginning
      with the first full calendar month after the effective date of such registration
      statement, which earnings statement

    shall
      satisfy the provisions of Section 11(a) of the 1933 Act and Rule 158
      thereunder;

    

    (xi)
      enter into such agreements and take such other actions as the Investors shall
      reasonably request in writing (at the expense of the requesting or benefiting
      Investors) in order to expedite or facilitate the disposition of such
      Registrable Securities; and

    

    (xii)
      use
      its commercially reasonable best efforts to list all Registrable Securities
      covered by such registration statement on any securities exchange on which
      any
      of the Registrable Securities are then listed.

    

    The
      Company may require each holder of Registrable Securities as to which any
      registration is being effected to furnish the Company such information regarding
      such holder of Registrable Securities and the distribution of such securities
      as
      the Company may from time to time reasonably request in writing.

    

    4.2
      The
      Company will not file any registration statement pursuant to Section 2.2 or
      Section 2.3, or amendment thereto or any prospectus or any supplement thereto
      to
      which the Investors shall reasonably object, provided that the Company may
      file
      such documents in a form required by law or upon the advice of its
      counsel.

    

    4.3
      The
      Company represents and warrants to each holder of Registrable Securities that
      it
      has obtained all necessary waivers, consents and authorizations necessary to
      execute this Agreement and consummate the transactions contemplated hereby
      other
      than such waivers, consents and/or authorizations specifically contemplated
      by
      the Stock Purchase Agreement.

    

    4.4
      Each
      holder of Registrable Securities agrees that, upon receipt of any notice from
      the Company of the occurrence of any event of the kind described in subdivision
      (viii) of Section
      4.1, such Holder will forthwith discontinue such holder of Registrable
      Securities’ disposition of Registrable Securities pursuant to the Registration
      Statement relating to such Registrable Securities until such holder of
      Registrable Securities’ receipt of the copies of the supplemented or amended
      prospectus contemplated by subdivision (viii) of Section 4.1 and, if so directed
      by the Company, will deliver to the Company (at the Company's expense) all
      copies, other than permanent file copies, then in such Holder's possession
      of
      the prospectus relating to such Registrable Securities current at the time
      of
      receipt of such notice.

     

     

    
      
        
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    ARTICLE
      V

     

    

    UNDERWRITTEN
      OFFERINGS 

     

    

    5.1 Incidental
      Underwritten Offerings.
      If the
      Company at any time proposes to register any of its securities under the 1933
      Act as contemplated by Section 3.1 and such securities are to be distributed
      by
      or through one or more underwriters, the Company will, if requested by any
      holder of Registrable Securities as provided in Section 3.1 and subject to
      the
      provisions of Section 3.2, use its commercially reasonable best efforts to
      arrange for such underwriters to include all the Registrable Securities to
      be
      offered and sold by such holder among the securities to be distributed by such
      underwriters.

    

    5.2 Participation
      In Underwritten Offerings.
      No
      holder of Registrable Securities may participate in any underwritten offering
      under Section 3.1 unless such holder of Registrable Securities (i) agrees to
      sell such Person's securities on the basis provided in any underwriting
      arrangements approved, subject to the terms and conditions hereof, by the
      holders of a majority of Registrable Securities to be included in such
      underwritten offering and (ii) completes and executes all questionnaires,
      indemnities, underwriting agreements and other documents (other than powers
      of
      attorney) required under the terms of such underwriting arrangements.
      Notwithstanding the foregoing, no underwriting agreement (or other agreement
      in
      connection with such offering) shall require any holder of Registrable
      Securities to make a representation or warranty to or agreements with the
      Company or the underwriters other than representations and warranties contained
      in a writing furnished by such holder of Registrable Securities expressly for
      use in the related registration statement or representations, warranties or
      agreements regarding such holder of Registrable Securities, such holder's
      Registrable Securities and such holder's intended method of distribution and
      any
      other representation required by law.

    

    5.3 Preparation;
      Reasonable Investigation.
      In
      connection with the preparation and filing of each registration statement under
      the 1933 Act pursuant to this Agreement, the Company will give the holders
      of
      Registrable Securities registered under such registration statement, and their
      respective counsel and accountants, the opportunity to participate in the
      preparation of such registration statement, each prospectus included therein
      or
      filed with the SEC, and each amendment thereof or supplement thereto, and will
      give each of them such access to its books and records and such opportunities
      to
      discuss the business of the Company with its officers and the independent public
      accountants who have certified its financial statements as shall be necessary,
      in the reasonable opinion of such holders' and such underwriters' respective
      counsel, to conduct a reasonable investigation within the meaning of the 1933
      Act.

     

     

    
      
        
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    ARTICLE
      VI

     

    

    INDEMNIFICATION
      

     

    

    6.1 Indemnification
      by the Company.
      In the
      event of any registration of any securities of the Company under the 1933 Act,
      the Company will, and hereby does agree to indemnify and hold harmless the
      holder of any Registrable Securities covered by such registration statement,
      its
      directors and officers, each other Person who participates as an underwriter
      in
      the offering or sale of such securities and each other Person, if any, who
      controls such holder or any such underwriter within the meaning of the 1933
      Act
      against any losses, claims, damages or liabilities, joint or several, to which
      such holder or any such director or officer or underwriter or controlling person
      may become subject under the 1933 Act or otherwise, insofar as such losses,
      claims, damages or liabilities (or actions or proceedings, whether commenced
      or
      threatened, in respect thereof) arise out of or are based upon any untrue
      statement or alleged untrue statement of any material fact contained in any
      registration statement under which such securities were registered under the
      1933 Act, any preliminary prospectus, final prospectus or summary prospectus
      contained therein, or any amendment or supplement thereto, or any omission
      or
      alleged omission to state therein a material fact required to be stated therein
      or necessary to make the statements therein not misleading, and the Company
      will
      reimburse such holder and each such director, officer, underwriter and
      controlling person for any legal or any other expenses reasonably incurred
      by
      them in connection with investigating or defending any such loss, claim,
      liability, action or proceeding, provided that the Company shall not be liable
      in any such case to the extent that any such loss, claim, damage, liability,
      (or
      action or proceeding in respect thereof) or expense arises out of or is based
      upon an untrue statement or alleged untrue statement or omission or alleged
      omission made in such registration statement, any such preliminary prospectus,
      final prospectus, summary prospectus, amendment or supplement in reliance upon
      and in conformity with written information furnished to the Company by such
      holder or underwriter stating that it is for use in the preparation thereof
      and,
      provided further that the Company shall not be liable to any Person who
      participates as an underwriter in the offering or sale of Registrable Securities
      or to any other Person, if any, who controls such underwriter within the meaning
      of the 1933 Act, in any such case to the extent that any such loss, claim,
      damage, liability (or action or proceeding in respect thereof) or expense arises
      out of such Person's failure to send or give a copy of the final prospectus,
      as
      the same may be then supplemented or amended, within the time required by the
      1933 Act to the Person asserting the existence of an untrue statement or alleged
      untrue statement or omission or alleged omission at or prior to the written
      confirmation of the sale of Registrable Securities to such Person if such
      statement or omission was corrected in such final prospectus or an amendment
      or
      supplement thereto. Such indemnity shall remain in full force and effect
      regardless of any investigation made by or on behalf of such holder or any
      such
      director, officer, underwriter or controlling person and shall survive the
      transfer of such securities by such holder. Provided however that such indemnity
      is limited to the total initial payment paid by any Investor for its Units.
      

     

     

    
      
        
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    6.2 Indemnification
      by the Investors.
      The
      Company may require, as a condition to including any Registrable Securities
      in
      any registration statement filed pursuant to this Agreement, that the Company
      shall have received an undertaking satisfactory to it from the prospective
      holder of such Registrable Securities, to indemnify and hold harmless (in the
      same manner and to the same extent as set forth in Section 6.1) the Company,
      each director of the Company, each officer of the Company and each other Person,
      if any, who controls the Company within the meaning of the 1933 Act, with
      respect to any statement or alleged statement in or omission or alleged omission
      from such registration statement, any preliminary prospectus, final prospectus
      or summary prospectus contained therein, or any amendment or supplement thereto,
      if such statement or alleged statement or omission or alleged omission was
      made
      in reliance upon and in conformity with written information furnished to the
      Company through an instrument duly executed by such holder of Registrable
      Securities specifically stating that it is for use in the preparation of such
      registration statement, preliminary prospectus, final prospectus, summary
      prospectus, amendment or supplement. Any such indemnity shall remain in full
      force and effect, regardless of any investigation made by or on behalf of the
      Company or any such director, officer or controlling person and shall survive
      the transfer of such securities by such Investor.

    

    6.3 Notices
      Of Claims, Etc.
      Promptly after receipt by an indemnified party of notice of the commencement
      of
      any action or proceeding involving a claim referred to in Sections 6.1 and
      Section 6.2, such indemnified party will, if claim in respect thereof is to
      be
      made against an indemnifying party, give written notice to the latter of the
      commencement of such action, provided that the failure of any indemnified party
      to give notice as provided herein shall not relieve the indemnifying party
      of
      its obligations under Sections 6.1 and Section 6.2, except to the extent that
      the indemnifying party is actually prejudiced by such failure to give notice.
      In
      case any such action is brought against an indemnified party, unless in such
      indemnified party's reasonable judgment a conflict of interest between such
      indemnified and indemnifying parties may exist in respect of such claim, the
      indemnifying party shall be entitled to participate in and to assume the defense
      thereof, jointly with any other indemnifying party similarly notified, to the
      extent that the indemnifying party may wish, with counsel reasonably
      satisfactory to such indemnified party, and after notice from the indemnifying
      party to such indemnified party of its election so to assume the defense
      thereof, the indemnifying party shall not be liable to such indemnified party
      for any legal or other expenses subsequently incurred by the latter in
      connection with the defense thereof other than reasonable costs of
      investigation. No indemnifying party shall, without the consent of the
      indemnified party, consent to entry of any judgment or enter into any settlement
      of any such action which does not include as an unconditional term thereof
      the
      giving by the claimant or plaintiff to such indemnified party of a release
      from
      all liability, or a covenant not to sue, in respect to such claim or litigation.
      No indemnified party shall consent to entry of any judgment or enter into any
      settlement of any such action the defense of which has been assumed by an
      indemnifying party without the consent of such indemnifying party.

     

     

    
      
        
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    6.4 Other
      Indemnification.
      Indemnification similar to that specified in Sections 6.1 and Section 6.2 (with
      appropriate modifications) shall be given by the Company and each holder of
      Registrable Securities (but only if and to the extent required pursuant to
      the
      terms herein) with respect to any required registration or other qualification
      of securities under any Federal or state law or regulation of any governmental
      authority, other than the 1933 Act.

    

    6.5 Indemnification
      Payments.
      The
      indemnification required by Sections 6.1 and Section 6.2 shall be made by
      periodic payments of the amount thereof during the course of the investigation
      or defense, as and when bills are received or expense, loss, damage or liability
      is incurred.

    

    6.6 Contribution.
      If the
      indemnification provided for in Sections 6.1 and Section 6.2 is unavailable
      to
      an indemnified party in respect of any expense, loss, claim, damage or liability
      referred to therein, then each indemnifying party, in lieu of indemnifying
      such
      indemnified party, shall contribute to the amount paid or payable by such
      indemnified party as a result of such expense, loss, claim, damage or liability
      (i) in such proportion as is appropriate to reflect the relative benefits
      received by the Company on the one hand and the holder of Registrable Securities
      or underwriter, as the case may be, on the other from the distribution of the
      Registrable Securities or (ii) if the allocation provided by clause (i) above
      is
      not permitted by applicable law, in such proportion as is appropriate to reflect
      not only the relative benefits referred to in clause (i) above but also the
      relative fault of the Company on the one hand and of the holder of Registrable
      Securities or underwriter, as the case may be, on the other in connection with
      the statements or omissions which resulted in such expense, loss, damage or
      liability, as well as any other relevant equitable considerations. The relative
      benefits received by the Company on the one hand and the holder of Registrable
      Securities or underwriter, as the case may be, on the other in connection with
      the distribution of the Registrable Securities shall be deemed to be in the
      same
      proportion as the total net proceeds received by the Company from the initial
      sale of the Registrable Securities by the Company to the purchasers bear to
      the
      gain, if any, realized by all selling holders participating in such offering
      or
      the underwriting discounts and commissions received by the underwriter, as
      the
      case may be. The relative fault of the Company on the one hand and of the holder
      of Registrable Securities or underwriter, as the case may be, on the other
      shall
      be determined by reference to, among other things, whether the untrue or alleged
      untrue statement of a material fact or omission to state a material fact relates
      to information supplied by the Company, by the holder of Registrable Securities
      or by the underwriter and the parties' relative intent, knowledge, access to
      information supplied by the Company, by the holder of Registrable Securities
      or
      by the underwriter and the parties' relative intent, knowledge, access to
      information and opportunity to correct or prevent such statement or omission,
      provided that the foregoing contribution agreement shall not inure to the
      benefit of any indemnified party if indemnification would be unavailable to
      such
      indemnified party by reason of the provisions contained herein, and in no event
      shall the obligation of any indemnifying party to contribute under this Section
      6.6 exceed the amount that such indemnifying party would have been obligated
      to
      pay by way of indemnification if the indemnification provided for hereunder
      had
      been available under the circumstances.

     

     

    
      
        
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    The
      Company and the holders of Registrable Securities agree that it would not be
      just and equitable if contribution pursuant to this Section 6.6 were determined
      by pro rata allocation (even if the holders of Registrable Securities and any
      underwriters were treated as one entity for such purpose) or by any other method
      of allocation that does not take account of the equitable considerations
      referred to in the immediately preceding paragraph. The amount paid or payable
      by an indemnified party as a result of the losses, claims, damages and
      liabilities referred to in the immediately preceding paragraph shall be deemed
      to include, subject to the limitations set forth herein, any legal or other
      expenses reasonably incurred by such indemnified party in connection with
      investigating or defending any such action or claim.

    

    Notwithstanding
      the provisions of this Section 6.6, no holder of Registrable Securities or
      underwriter shall be required to contribute any amount in excess of the amount
      by which (i) in the case of any such holder, the net proceeds received by such
      holder from the sale of Registrable Securities or (ii) in the case of an
      underwriter, the total price at which the Registrable Securities purchased
      by it
      and distributed to the public were offered to the public exceeds, in any such
      case, the amount of any damages that such holder or underwriter has otherwise
      been required to pay by reason of such untrue or alleged untrue statement or
      omission. No Person guilty of fraudulent misrepresentation (within the meaning
      of Section 11(f) of the 1933 Act) shall be entitled to contribution from any
      person who was not guilty of such fraudulent misrepresentation.

    

    ARTICLE
      VII

     

    

    RULE
      144

     

    

    7.1
      Rule
      144.
      The
      Company shall timely file the reports required to be filed by it under the
      1933
      Act and the 1934 Act (including but not limited to the reports under Sections
      13
      and 15(d) of the Exchange Act referred to in subparagraph (c) of Rule 144
      adopted by the SEC under the 1933 Act) and the rules and regulations adopted
      by
      the SEC thereunder (or, if the Company is not required to file such reports,
      will, upon the request of any holder of Registrable Securities, make publicly
      available other information) and will take such further action as any holder
      of
      Registrable Securities may reasonably request, all to the extent required from
      time to time to enable such holder to sell Registrable Securities without
      registration under the 1933 Act within the limitation of the exemptions provided
      by (a) Rule 144 under the 1933 Act, as such Rule may be amended from time to
      time, or (b) any similar rule or regulation hereafter adopted by the SEC. Upon
      the request of any holder of Registrable Securities, the Company will deliver
      to
      such holder a written statement as to whether it has complied with the
      requirements of this Section 7.1.

     

     

    
      
        
          REGISTRATION
            RIGHTS AGREEMENT BETWEEN 

          WindsorTech,
            Inc. . AND CERTAIN INVESTORS

        

      

      
        Page
          13 of
          17

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      VIII

     

    

    MISCELLANEOUS
      

     

    

    8.1
      Amendments
      And Waivers.
      This
      Agreement may be amended and the Company may take any action herein prohibited,
      or omit to perform any act herein required to be performed by it, only if the
      Company shall have obtained the written consent to such amendment, action or
      omission to act, of the holder or holders of the sum of the 51% or more of
      the
      shares of (i) Registrable Securities issued at such time, plus (ii) Registrable
      Securities issuable upon exercise or conversion of the Securities then
      constituting derivative securities (if such Securities were not fully exchanged
      or converted in full as of the date such consent if sought). Each holder of
      any
      Registrable Securities at the time or thereafter outstanding shall be bound
      by
      any consent authorized by this Section 8.1, whether or not such Registrable
      Securities shall have been marked to indicate such consent.

    

    8.2
      Nominees
      For Beneficial Owners.
      In the
      event that any Registrable Securities are held by a nominee for the beneficial
      owner thereof, the beneficial owner thereof may, at its election, be treated
      as
      the holder of such Registrable Securities for purposes of any request or other
      action by any holder or holders of Registrable Securities pursuant to this
      Agreement or any determination of any number of percentage of shares of
      Registrable Securities held by a holder or holders of Registrable Securities
      contemplated by this Agreement. If the beneficial owner of any Registrable
      Securities so elects, the Company may require assurances reasonably satisfactory
      to it of such owner's beneficial ownership or such Registrable
      Securities.

    

    8.3
      Notices.
      Except
      as
      otherwise provided in this Agreement, all notices, requests and other
      communications to any Person provided for hereunder shall be in writing and
      shall be given to such Person (a) in the case of a party hereto other than
      the
      Company, addressed to such party in the manner set forth in the Stock Purchase
      Agreement or at such other address as such party shall have furnished to the
      Company in writing, or (b) in the case of any other holder of Registrable
      Securities, at the address that such holder shall have furnished to the Company
      in writing, or, until any such other holder so furnishes to the Company an
      address, then to and at the address of the last holder of such Registrable
      Securities who has furnished an address to the Company, or (c) in the case
      of
      the Company, at the address set forth on the signature page hereto, to the
      attention of its President, or at such other address, or to the attention of
      such other officer, as the Company shall have furnished to each holder of
      Registrable Securities at the time outstanding. Each such notice, request or
      other communication shall be effective (i) if given by mail, 72 hours after
      such
      communication is deposited in the mail with first class postage
      prepaid, addressed as aforesaid or (ii) if given by any other means (including,
      without limitation, by fax or air courier), when delivered at the address
      specified above, provided that any such notice, request or communication shall
      not be effective until received.

     

     

    
      
        
          REGISTRATION
            RIGHTS AGREEMENT BETWEEN 

          WindsorTech,
            Inc. . AND CERTAIN INVESTORS

        

      

      
        Page
          14 of
          17

        
          

        

      

      
        
        

      

    

    

    8.4
      Assignment.
      This
      Agreement shall be binding upon and inure to the benefit of and be enforceable
      by the parties hereto. In addition, and whether or not any express assignment
      shall have been made, the provisions of this Agreement which are for the benefit
      of the parties hereto other than the Company shall also be for the benefit
      of
      and enforceable by any subsequent holder of any Registrable Securities. Each
      of
      the Holders of the Registrable Securities agrees, by accepting any portion
      of
      the Registrable Securities after the date hereof, to the provisions of this
      Agreement including, without limitation, appointment of the Investors'
      Representative to act on behalf of such Holder pursuant to the terms hereof
      which such actions shall be made in the good faith discretion of the Investors'
      Representative and be binding on all persons for all purposes.

    

    8.5
      Descriptive
      Headings.
      The
      descriptive headings of the several sections and paragraphs of this Agreement
      are inserted for reference only and shall not limit or otherwise affect the
      meaning hereof.

    

    8.6 Governing
      Law.
      This
      Agreement shall be governed by, and construed in accordance with, the laws
      of
      the State of Florida, without giving effect to applicable principles of
      conflicts of law.

    

    8.7
       Jurisdiction.
      This
      Agreement shall be exclusively governed by and construed in accordance with
      the
      laws of the State of Florida . If any action is brought among the parties with
      respect to this Agreement or otherwise, by way of a claim or counterclaim,
      the
      parties agree that in any such action, and on all issues, the parties
      irrevocably waive their right to a trial by jury. Exclusive jurisdiction and
      venue for any such action shall be the State Courts of Ohio. In the event suit
      or action is brought by any party under this Agreement to enforce any of its
      terms, or in any appeal therefrom, it is agreed that the prevailing party shall
      be entitled to reasonable attorneys fees to be fixed by the arbitrator, trial
      court, and/or appellate court.

    

    8.8
      Entire
      Agreement.
      This
      Agreement embodies the entire agreement and understanding between the Company
      and each other party hereto relating to the subject matter hereof and supercedes
      all prior agreements and understandings relating to such subject
      matter.

    

    8.9
      Severability.
      If any
      provision of this Agreement, or the application of such provisions to any Person
      or circumstance, shall be held invalid, the remainder of this Agreement, or
      the
      application of such provision to Persons or circumstances other than those
      to
      which it is held invalid, shall not be affected thereby.

    

    8.10 Binding
      Effect.
      All the
      terms and provisions of this Agreement whether so expressed or not, shall be
      binding upon, inure to the benefit of, and be enforceable by the parties and
      their respective administrators, executors, legal representatives, heirs,
      successors and assignees. 

     

     

     

    
      
        
          REGISTRATION
            RIGHTS AGREEMENT BETWEEN 

          WindsorTech,
            Inc. . AND CERTAIN INVESTORS

        

      

      
        Page
          15 of
          17

        
          

        

      

      
        
        

      

    

    

    8.11 Preparation
      of Agreement.
      This
      Agreement shall not be construed more strongly against any party regardless
      of
      who is responsible for its preparation. The parties acknowledge each contributed
      and is equally responsible for its preparation. 

    

    8.12 Failure
      or Indulgence Not Waiver; Remedies Cumulative.
      No
      failure or delay on the part of any party hereto in the exercise of any right
      hereunder shall impair such right or be construed to be a waiver of, or
      acquiescence in, any breach of any representation, warranty, covenant or
      agreement herein, nor shall nay single or partial exercise of any such right
      preclude other or further exercise thereof or of any other right. All rights
      and
      remedies existing under this Agreement are cumulative to, and not exclusive
      of,
      any rights or remedies otherwise available.

    

    8.13 Counterparts.
      This
      Agreement may be executed in one or more counterparts, and by the different
      parties hereto in separate counterparts, each of which when executed shall
      be
      deemed to be an original, but all of which taken together shall constitute
      one
      and the same agreement. A facsimile transmission of this signed Agreement shall
      be legal and binding on all parties hereto. 

     

    [SIGNATURES
      ON FOLLOWING PAGE]

    

    

      
        
          
 

          
            REGISTRATION
              RIGHTS AGREEMENT BETWEEN 

            WindsorTech,
              Inc. . AND CERTAIN INVESTORS

          

        

        
          Page
            16 of
            17

          
            

          

        

        
          
          

        

      

    

    IN
      WITNESS WHEREOF,
      the
      Investors and the Company have as of the date first written above executed
      this
      Agreement.

    

    WindsorTech,
      Inc.     

    

    ______________________
        

    

    By:
      ___________________ 

    Title:__________________
      

     

    INVESTORS      

    
 

    
      
        	 	
                _____________________________

              
	
                Print
                  Name:

              	
                Print
                  Name:

              
	
                Entity
                  

                (if
                  appropriate):____________

              	
                Entity(if
                  appropriate):____________

              
	
                ______________________________

              	
                ______________________________

              
	
                Title:
                  (if appropriate):____________

              	
                Title:
                  (if appropriate):____________

              
	 	 
	 	 
	 	 
	
                _____________________________

              	
                ______________________________

              
	
                Print
                  Name:

              	
                Print
                  Name:

              
	
                Entity
                  

                (if
                  appropriate):____________

              	
                Entity(if
                  appropriate):____________

              
	
                ______________________________

              	
                ______________________________

              
	
                Title:
                  (if appropriate):____________

              	
                Title:
                  (if appropriate):____________

              

      

    

     

    

      REGISTRATION
        RIGHTS AGREEMENT BETWEEN 

      WindsorTech,
        Inc. . AND CERTAIN INVESTORS

    

     Page
      17 of 17
       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    ADDENDUM
      TO REGISTRATION RIGHTS AGREEMENT

    

    THIS
      ADDENDUM TO REGISTRATION RIGHTS AGREEMENT (the "Agreement")
      is
      made and entered into as of the_______day
      of
      June, 2004 by and among
      WindsorTech, Inc, ., a
      corporation organized and existing under the laws of the State of Delaware
      (“WindsorTech” or the “Company”),
      and
      certain investors, (hereinafter referred to collectively as “Investor”
or
      “Investors”)
      as
      listed on Attachment
      A
      herein
      (each agreement with an Investor being deemed a separate and independent
      agreement between the Company and such Investor). Unless defined otherwise,
      capitalized terms herein shall have the identical meaning as in the Stock
      Purchase Agreement.

     

    

    WHEREAS,
      the
      parties desire to modify certain provisions of the Registration Rights Agreement
      made between them as of May 18, 2004;

    

      NOW,
      THEREFORE,
      in
      consideration of the premises and of the mutual covenants and agreements, and
      subject to the terms and conditions herein contained, the parties hereto hereby
      agree as follows:

    

     

    
      	1.  	
              Paragraph
                2.8 of the Registration Rights Agreement dated as of May 18,2004
                shall be
                amended as follows: 

            

    

     

    Liquidated
      Damages.
      If,
      after five (5) months from the date hereof, in the event the Company does not
      register the Registrable Securities pursuant to the requirements of Section
      2.2
      herein, or if the Registration Statement filed pursuant to Section 2.2 herein
      is
      not declared effective, or if the Registrable Securities are not registered
      pursuant to an effective Registration Statement and such Registration Statement
      or other Registration Statement including the Registrable Securities is not
      effective in the period from five months from the date hereof through two years
      following the date hereof, the Company shall, for each such day, pay the
      Purchaser, as liquidated damages and not as a penalty, an amount equal to
 30% of
      the
      Purchase Price per annum; and for any such day, such payment shall be made
      no
      later than the first business day of the calendar month next succeeding the
      month in which such day occurs. In addition, if the Company has not filed a
      registration statement within the thirty day period after closing as specified
      in 2.2, the Company shall, for each such day after thirty days from closing
      and
      until the filing of a registration statement, pay the Purchaser, as liquidated
      damages and not as a penalty, an amount equal to thirty percent (30%)of the
      Purchase Price per annum; and for any such day, such payment shall be made
      no
      later than the first business day of the calendar month next succeeding the
      month in which such day occurs.

     

    The
      parties agree that the only damages payable for a violation of the terms of
      this
      Agreement with respect to which liquidated damages are expressly provided shall
      be such liquidated damages. Nothing shall preclude the Purchaser from pursuing
      or obtaining specific performance or other equitable relief with respect to
      this
      Agreement. The parties hereto agree that the liquidated damages provided for
      in
      this Section 2.8 constitute a reasonable estimate of the damages that may be
      incurred by the Purchaser by reason of the failure of the Registration Statement
      to be filed or declared effective in accordance with the provisions
      hereof.

     

    
      

      REGISTRATION
        RIGHTS AGREEMENT BETWEEN 

      WindsorTech,
        Inc. . AND CERTAIN INVESTORS

      PAGE 1 OF
        2

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      obligation of the Company terminates when the holder of shares of Registrable
      Securities no longer holds more than twenty percent (20%) of their shares of
      Registrable Securities.

    

    The
      penalties of this provision shall not be cumulative with those of the Stock
      Purchase Agreement of even date herewith. Purchaser shall be entitled to the
      highest applicable penalty, but, in no event, permitted to obtain cumulative
      penalties. 

    

    2. Counterparts.
      This
      Addendum may be executed in one or more counterparts, and by the different
      parties hereto in separate counterparts, each of which when executed shall
      be
      deemed to be an original, but all of which taken together shall constitute
      one
      and the same agreement. A facsimile transmission of this signed Agreement shall
      be legal and binding on all parties hereto and shall serve as an original.
      

    

    3. Unless
      otherwise modified by the terms and conditions of this Addendum to Registration
      Rights Agreement, the Registration Rights Agreement shall remain in full force
      and effect.

    

    

    IN
      WITNESS WHEREOF,
      the
      Investors and the Company have as of the date first written above executed
      this
      Agreement.

    

    WindsorTech,
      Inc.     

    

    ______________________
        

    

    By:
      ___________________ 

    Title:__________________
      

    

     

    Investor   

     

    ________________________________

    

      

      REGISTRATION
        RIGHTS AGREEMENT BETWEEN 

      WindsorTech,
        Inc. . AND CERTAIN INVESTORS

      PAGE
        2 OF
        2

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