Document:

Exhibit 10.8

     

    EXHIBIT
      10.8

    CHINA
      MOBILITY SOLUTOINS, INC.

    Private
      Placement of Units

    PLACEMENT
      AGENCY AGREEMENT

     

    Dated
      as
      of June 30, 2005 

    

     

    Meyers
      Associates L.P. 

    45
      Broadway B
      2nd
      Floor

    New
      York,
      New York 10006

    Attn:
      President

    

    Ladies
      and Gentlemen:

     

    China
      Mobility Solutions, Inc., a Florida corporation (the “Company”) proposes to
      offer for sale (the “Offering”) in a private offering pursuant to
      Section 4(2) of the Securities Act of 1933, as amended (the “Act”), and/or
      Regulation D promulgated thereunder, an aggregate of $2,000,000 of units
      (“Units”) (plus $1,000,000 of additional Units to cover over-subscriptions).
      Each Unit consists of a $25,000 principal amount of 6% convertible debentures
      (the “Debentures”), Class A Common Stock Purchase Warrants (the “Class A
      Warrants”) and Class B Common Stock Purchase Warrants (the “Class B Warrants”
and together with the Class A Warrants, the “Warrants”). The Units, Debentures,
      Class A Warrants and Class B Warrants are sometimes referred to herein as the
      “Securities.” The Units are being offered on a “best efforts all or none” basis
      as to the entire $2,000,000 of Units (the “Offering Amount”) during an offering
      period commencing on the date hereof and expiring 60 days thereafter, unless
      extended by the Company and the Placement Agent for up to an additional sixty
      (30) days (such period, as same may be extended, being hereinafter referred
      to
      as the "Offering Period"). The maximum number of Units offered hereby may be
      increased by an additional $1,000,000 of Units upon agreement of the Company
      and
      the Placement Agent to cover over-subscriptions. Offers and sales of the
      Securities shall be to Accredited Investors (as defined in Regulation D). This
      agreement shall confirm our agreement concerning Meyers Associates L.P. acting
      as our exclusive placement agent (the APlacement
      Agent@
      or
AMeyers@)
      in
      connection with the offer and sale of the Securities. 

     

            l.
      Appointment of
      Placement Agent.

    

    On
      the
      basis of the representations and warranties contained herein, and subject to
      the
      terms and conditions set forth herein, the Company hereby appoints Meyers
      Associates L.P. as its Placement Agent and grants to it the exclusive right
      to
      offer, as its agent, the Securities pursuant to the terms of this Agreement.
      The
      Company expressly acknowledges and agrees that Meyers=
      obligations hereunder are not on a firm commitment basis and that the execution
      of this Agreement does not constitute a commitment by Meyers to purchase the
      Securities and does not ensure the successful placement of the Securities or
      any
      portion thereof. Further, Meyers=
      obligation to use its best efforts to assist the Company in the Offering is
      subject to the completion of a due diligence review of the Company, the industry
      and the market for such securities generally, as well as general market
      conditions. On the basis of such representations and warranties, and subject
      to
      such conditions, Meyers hereby accepts such an appointment and agrees to use
      its
      reasonable best efforts to secure subscriptions to purchase $2,000,000 of Units
      (plus $1,000,000 of additional Units to cover over-subscriptions). 

    

        2. Terms
      of
      the Offering. 

    

    (a)
      The
      Company shall prepare and deliver to the Placement Agent copies of a
      Confidential Disclosure Statement (the “Disclosure Statement”), relating to,
      among other things, the Company, the Securities and the terms of the sale of
      the
      Securities. The Disclosure Statement, including all exhibits and appendices
      thereto and documents delivered therewith, are referred to herein as the
“Offering Documents” and shall include any supplements or amendments in
      accordance with this Agreement. The Company shall utilize the services of
      securities counsel with experience in private placement offerings and the rules
      and regulations of the Securities and Exchange Commission (“SEC”) in drafting
      the Offering Documents.

    

    (b)
      The
      Offering shall consist of $2,000,000 of Units (plus $1,000,000 of additional
      Units to cover over-subscriptions). The terms of the Offering and Securities
      are
      further described in the Offering Documents which are incorporated herein.
      The
      actual composition of the Units and terms of the Debentures and Warrants, and
      the price of the Units are subject to further review and negotiation, market
      conditions and the market for the Company's Common Stock and the completion
      of
      due diligence. In the event a subscription is not accepted, such rejected
      subscription funds will be returned to the subscriber without interest or
      deductions. 

    

    (c)
      The
      Units are being offered on a “best efforts all or none” basis as to the entire
      $2,000,000 of Units (plus $1,000,000 of additional Units to cover
      over-subscriptions). The Offering shall commence on the date that the Company
      delivers to the Placement Agent the Offering Documents that have been completed
      to the reasonable satisfaction of the Placement Agent and its counsel, and
      shall
      expire at 5:00 p.m., New York time, on a date which is 60 days thereafter and
      may be extended for up to an additional 30-day period at the discretion of
      the
      Company and Placement Agent. Such period, as same may be so extended, shall
      hereinafter be referred to as the “Offering Period.”

    

    (d)
      Each
      prospective investor (“Prospective Investor”) who desires to purchase the
      Securities shall deliver to the Placement Agent a fully executed subscription
      agreement and questionnaire (“Subscription Agreement”), in the form annexed to
      the Disclosure Statement and immediately available funds in the amount necessary
      to purchase the number of Securities such Prospective Investor desires to
      purchase. Neither the Company nor the Placement Agent shall have any obligation
      to independently verify the accuracy or completeness of any information
      contained in any Subscription Agreement or the authenticity, sufficiency, or
      validity of any check delivered by any Prospective Investor in payment for
      Securities.

    

    (e)
      The
      Placement Agent shall deliver each subscription funds received from a
      Prospective Investor to the Company for deposit in a segregated escrow account
      at an independent banking institution and shall deliver the executed copies
      of
      the Subscription Agreement received from such Prospective Investor to the
      Company. All funds shall be held in the segregated account pending acceptance
      of
      the subscription. The Company shall notify the Placement Agent promptly of
      the
      acceptance or rejection or any subscription.

    
      
        
        

      

      
        -1-

        
          

        

      

      
        
        

        
        

      

    

       (f)
      Meyers may engage other persons selected by Meyers to assist Meyers in the
      Offering (each such broker/dealers being hereinafter referred to as a "Selling
      Group Member") and Meyers may allow such Selling Group Member such part of
      the
      compensation and payment of expenses payable to Meyers under Section 5 hereof
      as
      Meyers shall determine. Any such Selling Group Member shall be a member firm
      in
      good standing as a broker-dealer under the rules of the NASD. Each Selling
      Group
      Member shall be required to agree in writing to comply with the provisions
      of
      this Section 2. The Company hereby agrees to make such representations and
      warranties to, and covenants and agreements with, any Selling Group Member
      (including an agreement to indemnify such Selling Group Member on terms
      substantially similar to Section 12 hereof) as provided herein.

    

    3.
      Closings: Release of Funds.

    

    (a)
      The
      date that the initial subscriptions in the Offering Amount are accepted by
      the
      Company and funds are released from the escrow account shall be deemed the
      “Closing.” At least one (1) day prior to the release of funds, the Company and
      the Placement Agent shall send written notice to each other, which notice shall
      state the amount of funds to be released, the name and address of each
      subscriber whose subscription has been accepted, and the amount of each
      subscription.

    

    (b) At
      any
      time prior to the expiration of the Offering Period following the Closing and
      after acceptance by the Company of subscriptions for the sale of additional
      Units of up to $1,000,000, one or more closings (each an “Subsequent Closing”)
      shall take place in the manner herein set forth with respect to the Closing.
      The
      final Subsequent Closing to be held in accordance herewith shall be deemed
      the
“Final Closing” and the date thereof shall be the “Final Closing Date.”
References herein to a AClosing”
      shall mean the Closing, any Subsequent Closing or the Final Closing, as the
      context requires, and the date thereof shall be referred to as a “Closing
      Date.”

    

    4. Representations
      and Warranties of the Placement Agent.

    

    The
      Placement Agent represents and warrants to the Company as follows:

    

    (a) The
      Placement Agent is duly incorporated and validly existing and in good standing
      under the laws of its State of incorporation.

    

    (b) The
      Placement Agent is, and at the time of each Closing will be, a member in good
      standing of the NASD.

    

    (c) Sales
      of
      Securities by the Placement Agent will only be made in such jurisdictions in
      which the Placement Agent or a Selling Group Member is a registered
      broker-dealer or where an applicable exemption from such registration
      exists.

    

    (d) Offers
      and sales of Securities by the Placement Agent will be made only in accordance
      with this Placement Agreement and in compliance with the provisions of Rule
      506
      of Regulation D (it being understood and agreed that the Placement Agent shall
      be entitled to rely upon the information and statements provided by the
      Prospective Investor in the Subscription Agreement and Investor Questionnaires),
      and the Placement Agent will furnish to each investor a copy of the Offering
      Documents prior to accepting any subscription for the Securities.

    

    5.
      Compensation. 

    

      (a)
       The
      Placement Agent shall be entitled, on each Closing Date, as compensation for
      Meyers’ services as Placement Agent under this Agreement, to selling commissions
      equal to10 % of the gross proceeds received by the Company from the sale of
      the
      Units effected at each Closing. In addition, the Placement Agent shall be
      entitled to 3% of the gross proceeds from the sale of the Units effected at
      each
      Closing in payment for a non-accountable expense allowance, of which $25,000
      has
      previously been paid. 

    

    (b) Concurrent
      with, and as a condition to, each closing of the Offering, the Company shall
      sell to the Placement Agent (or its designated affiliates) common stock purchase
      warrants (the “Agent Warrants”), at a price of $.001 per warrant, to purchase a
      number of shares of Common Stock equal to 25% of the shares of Common Stock
      issuable upon conversion of the Debentures and issuable upon exercise of the
      Warrants sold in the Offering. Such Agent Warrants will expire five years after
      the effective date of the registration statement contemplated by the Offering
      and will be exercisable at 125% of the initial conversion price of the
      Debentures issued to investors in the Offering, subject to adjustment to prevent
      dilution. The Agent Warrants may be exercised as to all or a lesser number
      of
      shares, will not be redeemable and will contain provisions for the piggy-back
      and demand registration of the resale of the underlying shares at the Company's
      expense and for adjustment in the number of such shares and the exercise price
      to prevent dilution. The Company covenants and agrees that with respect to
      registration under the Act of the Securities underlying the Placement Agent
      Warrants, the Placement Agent shall be entitled to the same registration rights
      as provided to subscribers in the Offering.

    

    6.
      Representations and Warranties of the Company.

    

    (a)
      The
      Company represents and warrants to, and agrees with, the Placement Agent that
      as
      of the date hereof and as of each Closing Date (except as affected by the
      Offering):

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

        
        

      

    

    (i)
      Assuming the accuracy of the representations and warranties of the Prospective
      Investors set forth in the Subscription Agreement and Purchase Questionnaire
      and
      the representations and warranties of the Placement Agent set forth herein,
      the
      Offering Documents (a) contain, and at all times during the period from the
      date
      hereof to and including each Closing Date, will contain all information required
      to be contained therein, if any, pursuant to Rules 502 and 506 of Regulation
      D
      and all applicable federal and/or state securities and “blue sky” laws, and (b)
      do not, and during such period will not, contain any untrue statement of a
      material fact or omit to state any material fact required to be stated therein
      or necessary to make the statements therein in light of the circumstances made
      therein not misleading. Each contract, agreement, instrument, lease, license,
      or
      other document required to be described in the Offering Documents shall be,
      and
      have been, accurately described therein. 

    

    (ii)
      No
      Offering Documents or information (it being understood that neither the Company
      nor any of its officers or directors or employees shall provide any written
      information to any Prospective Investor which is not contained in the Offering
      Documents) provided by the Company to Prospective Investors pursuant to Section
      7(f) hereof shall contain any untrue statement of a material fact or omit to
      state any material fact required to be stated therein or necessary to make
      the
      statements therein in light of circumstances made therein not
      misleading.

    

    (iii)
      The
      Company has not, directly or indirectly, solicited any offer to buy or offered
      to sell any Securities or any other securities of the Company during the
      twelve-month period ending on the date hereof except as may be properly
      described in the Offering Documents, and has no present intention to solicit
      any
      offer to buy or to offer to sell any of the Securities, any Common Stock or
      any
      other securities of the Company other than pursuant to this Agreement.

    

    (iv)
      The
      Company is, and at all times during the period from the date hereof to and
      including each Closing Date will be, a corporation duly organized, validly
      existing, and in good standing under the laws of the State of Florida, with
      full
      corporate power and authority, and has obtained all necessary consents,
      authorizations, approvals, orders, licenses, certificates, and permits and
      declarations of and from, and has made filings with, all federal, state and
      local authorities, to own, lease, license, and use its properties and assets
      and
      to conduct its business as presently conducted as described in the Offering
      Documents and/or in any such case where the failure to have any of the foregoing
      would not have a material adverse effect on the Company's presently conducted
      business. As of the date hereof, the Company is, and at all times during the
      period from the date hereof to and including each Closing Date, duly qualified
      to do business and is in good standing in every jurisdiction in which its
      ownership, leasing, licensing, or use of property and assets or the conduct
      of
      its business makes such qualification necessary except where the failure to
      be
      so qualified would not have a material adverse effect on the Company's
      business.

    

    (v)
      The
      Offering Documents, including the documents filed with the SEC included therein,
      does not contain any untrue statement of a material fact or omit to state any
      material fact required to be stated therein or necessary to make the statements
      therein not misleading, all in light of the circumstances under which they
      were
      made. Each statute, regulation, legal and governmental proceeding, contract,
      agreement, instrument, lease, license, or other document described in the
      Offering Documents has been accurately described therein in all material
      respects.

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

        
        

      

    

    (vi)
      No
      document provided by the Company to Prospective Investors pursuant to Section
      6(a)(vii) hereof, and no oral information provided by the Company to Prospective
      Investors, will contain any untrue statement of a material fact or omit to
      state
      any material fact required to be stated therein or necessary to make the
      statements therein not misleading. Contracts to which the Company or any of
      its
      Controlled Subsidiaries (as defined below) is a party provided by the Company
      to
      Prospective Investors shall not be deemed to contain any untrue statement of
      a
      material fact or to omit to state any material fact if the contract so provided
      is a true, correct and complete copy of such contract, as amended or modified
      through the date it is so provided.

    

    (vii)
      All
      prior offerings of the Company=s
      securities complied in all respects with the Securities Act, the Exchange Act
      and rules and regulations promulgated thereunder, all applicable Blue Sky laws
      and all applicable securities laws and regulations of any foreign country in
      which such securities were offered or sold.

    

    (viii)
      The Company and its Controlled Subsidiaries, if any, are (A) corporations duly
      organized, validly existing and in good standing under the laws of the state
      of
      their incorporation, each have full power and authority to own or lease all
      of
      the assets owned or leased by each of them and to conduct business as described
      in the Offering Documents and (B) are duly qualified to do business and in
      good
      standing as a foreign corporation in all jurisdictions in which the nature
      of
      the activities conducted or the character of the assets owned or leased makes
      such qualification necessary. Complete and correct copies of the articles of
      incorporation and of the by-laws of the Company and its Controlled Subsidiaries
      as in effect on the date hereof have been delivered to Meyers, and no changes
      therein will be made on or subsequent to the date hereof and prior to the Final
      Closing Date except as may be required pursuant to this Agreement. The term
      “Controlled Subsidiaries” means any corporation or other organization in which
      the Company owns, directly or indirectly, an equity or other ownership interest
      equal to or greater than 50 percent.

    

    (ix)
      Since the dates as of which information is given in the Offering Documents,
      other than as set forth therein, (A) there has not been any material adverse
      change or any development involving a prospective material adverse change in
      the
      general affairs, business, prospects, properties, management, condition
      (financial or otherwise) or results of operations of the Company or its
      Controlled Subsidiaries, whether or not arising from transactions in the
      ordinary course of business, (B) except in the ordinary course of business,
      neither the Company nor its Controlled Subsidiaries has incurred, and neither
      the Company nor its Controlled Subsidiaries will have incurred, any material
      liabilities or obligations, direct or indirect, or have entered into any
      material transaction, (C) the Company has not and will not have paid or declared
      any dividends or other distributions on its capital stock and (D) there has
      not
      been any change in the capital stock of the Company or any material change
      in
      the short-term or long-term debt of the Company or its Controlled Subsidiaries.
      

    

    (x)
      Moen
& Company, Chartered Accountant=s,
      whose
      report on the Company=s
      audited
      financial statements and review of the company=s
      unaudited interim financial statements that are included in the SEC filings
      included as part of the Offering Documents, are independent public accountants
      with respect to the Company and its Controlled Subsidiaries as required by
      the
      Securities Act and the rules and regulations thereunder.

    

    (xi)
      The
      Company’s consolidated financial statements, together with related notes and
      schedules of the Company and its Controlled Subsidiaries, included as part
      of
      the Offering Documents comply in all respects with the requirements of the
      Securities Act and the rules and regulations thereunder and present fairly
      the
      financial position of the Company and its Controlled Subsidiaries on the
      respective dates indicated and its statement of operations for the respective
      periods covered thereby. Any condensed financial information appearing in the
      Offering Documents is fairly stated in all material respects in relation to
      the
      financial statements of the Company and its Controlled Subsidiaries from which
      they have been derived. Such financial statements, and related notes and
      schedules, have been prepared in conformity with generally accepted accounting
      principles applied on a consistent basis through the entire period
      involved.

    
      
        
        

      

      
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    (xii) Except
      as
      described in the Offering Documents, there is no action, suit, investigation
      or
      proceeding pending or threatened before or by any Federal or state court,
      commission, regulatory body, administrative agency or other governmental body,
      domestic or foreign, or arbitrator to which the Company or its Controlled
      Subsidiaries is or may become a party or of which any property of the Company
      or
      its Controlled Subsidiaries is subject or affected that (A) might affect the
      consummation of the transactions contemplated under this Agreement, including
      the issuance or validity of the Units offered hereby, or the Common Stock
      issuable upon exercise of the Warrants, or (B) might have a material adverse
      effect on the condition (financial or otherwise), sales, properties, earnings,
      net worth, prospects, results of operations or businesses of the Company and
      its
      Controlled Subsidiaries, taken as a whole (“Material Adverse Effect”), or any of
      its principal officers. All pending legal or governmental proceedings to which
      the Company or its Controlled Subsidiaries is a party or of which any of their
      respective properties are subject or affected which are not described in the
      Offering Documents, including ordinary routine litigation incidental to the
      business, would not have a Material Adverse Effect. No labor dispute with the
      employees of the Company exists or is threatened or imminent that could have
      a
      Material Adverse Effect.

    

    (xiii) The
      Company and its Controlled Subsidiaries have all approvals, licenses,
      franchises, authorizations and permits (collectively, “permits”) necessary under
      all applicable statutes, codes, rules, regulations, orders and decrees of
      governments or governmental bodies (collectively, “laws”), which are material to
      the ownership, lease or use of their respective properties or the conduct of
      their respective businesses as described in the Offering Documents. Neither
      the
      Company nor its Controlled Subsidiaries has received notice of any proceedings
      relating to the revocation or modification of any such permits which, singly
      or
      in the aggregate, would have a Material Adverse Effect, and each of the Company
      and its Controlled Subsidiaries is in all material respects in compliance with
      such permits and laws.

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

        
        

      

    

    (xiv)
      The
      Company and its Controlled Subsidiaries own or are licensed to use all patents,
      patent applications, inventions, trademarks, trade names, applications for
      registration of trademarks, copyrights, know-how, trade secrets, licenses and
      rights in any thereof (“Proprietary Rights”) which are material to the
      businesses of the Company and its Controlled Subsidiaries as now conducted
      and
      as proposed to be conducted, in each case as described in the Offering
      Documents. The Company and its Controlled Subsidiaries do not have any knowledge
      of, and the Company and its Controlled Subsidiaries have not given or received
      any notice of any pending conflict with or infringement of, the rights of others
      with respect to any Proprietary Rights or with respect to any license of
      Proprietary Rights. No action, suit, arbitration, or legal, administrative
      or
      other proceeding, or domestic or foreign governmental investigation is pending
      or, to the best of the Company's knowledge, threatened, which involves any
      Proprietary Rights. Neither the Company nor its Controlled Subsidiaries is
      subject to any judgment, order, writ, injunction or decree of any court or
      any
      Federal, state, local, foreign or other governmental department, commission,
      board, bureau, agency or instrumentality, domestic or foreign, or any
      arbitrator, or has entered into or is a party to any contract which restricts
      or
      impairs the use of any such Proprietary Rights in a manner which would have
      a
      material adverse effect on the use of any of the Proprietary Rights. No
      Proprietary Rights used by the Company or its Controlled Subsidiaries and no
      services or products sold by the Company or its Controlled Subsidiaries,
      conflict with or infringe upon, to the knowledge of the Company and its
      Controlled Subsidiaries, any proprietary rights available to any third party.
      Neither the Company nor its Controlled Subsidiaries has received written notice
      of any pending conflict with or infringement upon such third party proprietary
      rights. Neither the Company nor its Controlled Subsidiaries has entered into
      any
      consent, indemnification, forbearance to sue or settlement agreement with
      respect to Proprietary Rights other than in the ordinary course of business.
      To
      the best knowledge of the Company, no claims have been asserted by any person
      with respect to the validity of or the Company's or its Controlled Subsidiaries'
      ownership of or right to use the Proprietary Rights and, to the best knowledge
      of the Company, there is no reasonable basis for any such claim. The Proprietary
      Rights are valid and enforceable and no registration relating thereto has
      lapsed, expired or been abandoned or canceled or is the subject of cancellation
      or other adversarial proceedings which would have a Material Adverse Effect,
      and
      all applications therefore are pending and are in good standing. The Company
      and
      its Controlled Subsidiaries have complied, in all material respects, with their
      respective contractual obligations relating to the protection of the Proprietary
      Rights used pursuant to licenses. To the best knowledge of the Company, no
      person is infringing on or violating the Proprietary Rights owned or used by
      the
      Company or its Controlled Subsidiaries.

    

    (xv)
      The
      Company has an authorized, issued and outstanding capitalization as set forth
      in
      the Offering Documents; all of the issued shares of capital stock of the Company
      have been duly authorized and validly issued, are fully paid and nonassessable
      and conform to the descriptions thereof contained in the Offering Documents;
      and
      none of the issued shares of capital stock of the Company has been issued in
      violation of any preemptive or similar right. Except as described in the
      Offering Documents, there are no outstanding (A) securities or obligations
      of
      the Company convertible into or exchangeable for any shares of capital stock
      of
      the Company, (B) warrants, rights or options to subscribe for or purchase from
      the Company any such capital stock or any such convertible or exchangeable
      securities or obligations or (C) obligations for the Company to issue such
      shares, any such convertible or exchangeable securities or obligations, or
      any
      such warrants, rights or obligations. 

    

    (xvi) Except
      as
      described in the Offering Documents, there are no contracts, agreements or
      understandings between the Company and any person granting such person the
      right
      to require the Company to file a registration statement under the Securities
      Act
      with respect to any securities of the Company owned or to be owned by such
      person or to require the Company to include such securities in the securities
      being registered pursuant to any registration statement filed by the Company
      under the Act.

    

    (xvii) The
      Units
      to be issued and sold to Prospective Investors as provided in the Subscription
      Agreement have been duly authorized and when issued and delivered against
      payment therefor, will be validly issued, fully paid and nonassessable and
      will
      conform to the description thereof in the Offering Documents. The Debentures
      are
      convertible into Common Stock and the shares of Common Stock issuable upon
      conversion of the Debentures have been duly authorized and when issued and
      delivered upon conversion thereof will be validly issued, fully paid and
      nonassessable and will conform to the description thereof in the Offering
      Documents; and there are no preemptive or other rights to subscribe for or
      to
      purchase, nor any restriction upon the voting or transfer of, any shares of
      the
      Common Stock issuable upon conversion of the Debentures or otherwise pursuant
      to
      the Debentures under the Company's articles of incorporation or by-laws or
      any
      agreement or other outstanding instrument to which the Company is a party or
      is
      otherwise known to the Company. The Company has reserved sufficient shares
      of
      Common Stock to be issued upon conversion of, or otherwise pursuant to, the
      Debentures. The Warrants are exercisable for Common Stock and the shares of
      Common Stock issuable upon exercise of the Warrants have been duly authorized
      and when issued and delivered upon exercise and due payment therefor will be
      validly issued, fully paid and nonassessable and will conform to the description
      thereof in the Offering Documents; and there are no preemptive or other rights
      to subscribe for or to purchase, nor any restriction upon the voting or transfer
      of, any shares of the Common Stock issuable upon exercise of the Warrants
      pursuant to the Company's articles of incorporation or by-laws or any agreement
      or other outstanding instrument to which the Company is a party or is otherwise
      known to the Company. The Company has reserved sufficient shares of Common
      Stock
      to be issued upon exercise of the Warrants.

    
      
        
        

      

      
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    (xviii) The
      Agent=s
      Warrant
      has been duly authorized and, when issued and delivered against payment
      therefor, will be validly issued, fully paid and nonassessable; the
      Agent=s
      Warrant
      is exercisable for Common Stock in accordance with the terms of the Agent
      Warrant Agreement and at the price therein provided; the shares of Common Stock
      issuable upon the exercise of the Agent=s
      Warrant
      have been duly authorized and reserved for issuance upon such exercise and
      such
      shares, when issued upon such exercise in accordance with the terms of the
      Agent
      Warrant Agreement, will be duly authorized, validly issued, fully paid and
      nonassessable; and there are no preemptive or other rights to subscribe for
      or
      to purchase, nor any restriction upon the voting or transfer of, any shares
      of
      the Common Stock issuable upon exercise of the Agent=s
      Warrants pursuant to the Company's articles of incorporation or by-laws or
      any
      agreement or other outstanding instrument to which the Company is a party or
      is
      otherwise known to the Company.

    

    (xix) All
      offers and sales of securities of the Company issued prior to the date hereof
      were at all relevant times duly registered or exempt from the registration
      requirements of the Securities Act or issued in compliance with the Exchange
      Act
      and the rules and regulations thereunder and were duly registered or the subject
      of an available exemption from the registration requirements of the applicable
      state securities or Blue Sky laws and all applicable securities laws and
      regulations of any foreign country in which such securities were offered or
      sold.

    

    (xx) Neither
      the Company nor its Controlled Subsidiaries are (A) in violation of its articles
      of incorporation or by-laws, (B) in violation of any statute, law, rule, code,
      administrative regulation, ordinance, judgment, order or decree of any
      government, governmental instrumentality, court, domestic or foreign, or
      arbitration panel or other body applicable to it where such violation would
      have
      a Material Adverse Effect or (C) in default in the performance or observance
      of
      any obligation, agreement, covenant or condition contained in any indenture,
      mortgage, deed of trust, voting agreement, voting trust agreement, loan
      agreement, bond, debenture, note or other evidence of indebtedness, lease,
      sublease, license agreement, contract or other agreement or instrument to which
      it is a party or by which it or any of its respective properties are bound
      or
      affected (“Contracts”), where such defaults, singly or in the aggregate, would
      have a Material Adverse Effect. To the knowledge of the Company, no other party
      under any Contract is in default in any material respect thereunder which
      affects the Company.

    

    (xxi) The
      Company has all requisite power and authority to execute, deliver and perform
      its obligations under this Agreement, the Debenture Purchase and Warrant
      Agreement, the Registration Rights Agreement, the Debentures, and the Class
      A
      and Class B Warrant Agreements and the Agent=s
      Warrant. This Agreement, the Debenture Purchase and Warrant Agreement, the
      Registration Rights Agreement, the Debentures, and the Class A and Class B
      Warrant Agreements and the Agent=s
      Warrant
      have been duly and validly authorized, executed and delivered by the Company,
      and each such agreement constitutes a legal, valid and binding agreement of
      the
      Company enforceable against the Company in accordance with its respective terms,
      except as rights to indemnity and contribution hereunder and thereunder may
      be
      limited by the securities laws of the United States and except as such
      enforceability may be limited by bankruptcy, insolvency, reorganization or
      similar laws or equitable principles affecting the enforcement of creditors'
      rights generally;

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

        
        

      

    

    (xxii) The
      issuance of the Units, including the Debentures, the Warrants, the
      Agent=s
      Warrant, the Common Stock issuable pursuant to the Debentures, Warrants and
      Agent’s Warrant, and the execution, delivery and performance of this Agreement,
      the Debenture Purchase and Warrant Agreement, the Registration Rights Agreement,
      the Debentures, the Class A and Class B Warrant Agreements and the
      Agent=s
      Warrant, and the consummation of the transactions contemplated hereby and
      thereby, do not and will not conflict with or result in a material breach or
      violation of any of the terms or provisions of, or constitute a material default
      under, or give rise to rights of termination under, or result in the
      acceleration of any obligation under, or result in the creation or imposition
      of
      any lien, charge or encumbrance upon any property or assets of the Company
      or
      any of its Controlled Subsidiaries pursuant to the terms of any indenture,
      mortgage, deed of trust, voting agreement, voting trust agreement, loan
      agreement, bond, debenture, note or other evidence of indebtedness or result
      in
      a material breach or violation of any of the terms or provisions of, or
      constitute a material default under any lease, sublease, contract or other
      agreement or instrument to which the Company or any of its Controlled
      Subsidiaries are, a party or by which the Company, its Controlled Subsidiaries,
      or any of the Company=s
      or its
      Controlled Subsidiaries=
      respective properties or assets are bound or affected, nor will such action
      result in any violation of the provisions of the articles of incorporation
      or
      by-laws of the Company or its Controlled Subsidiaries or a material violation
      of
      any applicable statute, law, rule, code, administrative regulation, ordinance,
      judgment, order or decree of any government, governmental instrumentality or
      court, domestic or foreign, or arbitration panel or other body, having
      jurisdiction over the Company, its Controlled Subsidiaries, or any of the
      Company=s
      or its
      Controlled Subsidiaries=
      respective properties or obligations.

    

    (xxiii) No
      consent, approval, authorization, license or order of or from, or registration,
      qualification, declaration or filing with, federal, state, local, foreign or
      other governmental authority or any person or court, administrative agency,
      or
      other body is required for the consummation of the transactions contemplated
      in
      this Agreement, or the Offering Documents, except as may have been made or
      may
      be required obtained under the NASD, any state securities or Blue Sky laws
      or
      pursuant to Regulation D.

    

    (xxiv) The
      Company is in compliance in all material respects with all applicable federal,
      state and local environmental laws and regulations, including, without
      limitation, those applicable to emissions to the environment, waste management
      and waste disposal (collectively, the “Environmental Laws”), except for any
      noncompliance as may be described in the Offering Documents, and to the best
      of
      the Company's knowledge, there are no circumstances that would prevent,
      interfere with, or materially increase the cost of such compliance in the
      future. Except as set forth in the Offering Documents, there is no claim under
      any Environmental Law, including common law (“Environmental Claim”), pending or,
      to the knowledge of the Company, threatened against or affecting the Company
      or
      its Controlled Subsidiaries and, to the best of the Company's knowledge, there
      are no past or present actions, activities, circumstances, events or incidents,
      including, without limitation, releases of any material into the environment,
      that could form the basis of any Environmental Claim against or affecting the
      Company or its Controlled Subsidiaries.

    

    (xxv) Each
      of
      the Company and its Controlled Subsidiaries has good and marketable title to
      all
      property owned by it, in each case free and clear of all liens, charges,
      encumbrances or restrictions except as described in the Offering Documents
      or
      such as do not materially affect the value of such property and do not interfere
      with the use made and proposed to be made of such property by the Company.
      Except as described in the Offering Documents, all material Contracts to which
      the Company or its Controlled Subsidiaries is a party or by which the Company
      or
      its Controlled Subsidiaries or any of their respective properties or assets
      are
      bound are valid, subsisting and enforceable and are in full force and
      effect.

    

    (xxvi) The
      Company and its Controlled Subsidiaries (A) has paid all federal, state, local
      and foreign taxes for which it is liable and has furnished all information
      returns it is required to furnish pursuant to the Internal Revenue Code of
      1986,
      as amended, (B) has established adequate reserves for such taxes which are
      not
      due and payable and (C) does not have any tax deficiency or claims outstanding,
      proposed or assessed against it.

    

    (xxvii) The
      Company and its Controlled Subsidiaries maintains insurance of the types and
      in
      amounts which it deems adequate for its business, all of which are in full
      force
      and effect.

    

    (xxviii)
      Other than set forth herein, there are no claims, payments, issuances,
      arrangements or understandings, whether oral or written, for services in the
      nature of a finder's or origination fee with respect to the sale of the
      Units.

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

        
        

      

    

    (xxix) Neither
      the Company nor its Controlled Subsidiaries, nor to the best of the
      Company=s
      knowledge any of the Company=s
      officers, employees, agents or any other person acting on behalf of, at the
      direction of or for the benefit of the Company has, directly or indirectly,
      given or agreed to give any money, gift or similar benefit (other than legal
      price concessions to customers in the ordinary course of business) to any
      customer, supplier, employee or agent of a customer or supplier, or official
      or
      employee of any governmental agency (domestic or foreign) or instrumentality
      of
      any government (domestic or foreign) or any political party or candidate for
      office (domestic or foreign) or other person who was, is, or may be in a
      position to help or hinder the business of the Company (or assist the Company
      in
      connection with any actual or proposed transaction) which (a) might subject
      the
      Company or any other such person to any damage or penalty in any civil, criminal
      or governmental litigation or proceeding (domestic or foreign), (b) if not
      given
      in the past, might have had a Material Adverse Effect or (c) if not continued
      in
      the future, might result in a Material Adverse Effect. The Company's internal
      accounting controls are sufficient to cause the Company to comply with the
      Foreign Corrupt Practices Act of 1977, as amended. 

    

    (xxx) During
      the past five years, none of the current officers or directors of the Company
      have been:

    

    (a) The
      subject of a petition under the federal bankruptcy laws or any state insolvency
      law filed by or against them, or by a receiver, fiscal agent or similar officer
      appointed by a court for their business or property, or any partnership in
      which
      any or them was a general partner at or within two years before the time of
      such
      filing, or any corporation or business association of which any of them was
      an
      executive officer at or within two years before the time of such
      filing;

    

    (b) Convicted
      in a criminal proceeding or a named subject of a pending criminal proceeding
      (excluding traffic violations and other minor offenses);

    

    (c) The
      subject of any order, judgment, or decree not subsequently reversed, suspended
      or vacated, of any court of competent jurisdiction, permanently or temporarily
      enjoining any of them from, or otherwise limiting, any of the following
      activities:

    

    (d) (i) acting
      as
      a futures commission merchant, introducing broker, commodity trading advisor,
      commodity pool operator, floor broker, leverage transaction merchant, any other
      person regulated by the Commodity Futures Trading Commission, or an associated
      person of any of the foregoing, or as an investment adviser, underwriter, broker
      or dealer in securities, or as an affiliated person, director or employee of
      any
      investment company, bank, savings and loan association or insurance company,
      or
      engaging in or continuing any conduct or practice in connection with any such
      activity;

    

    (ii)
       engaging
      in any type of business practice; or

    

    (iii) engaging
      in any activity in connection with the purchase or sale of any security or
      commodity or in connection with any violation of federal or state securities
      law
      or federal commodity laws.

    

    (iv) the
      subject of any order, judgment or decree, not subsequently reversed, suspended
      or vacated of any federal or state authority barring, suspending or otherwise
      limiting for more than sixty (60) days their right to engage in any activity
      described in paragraph (3)(i) above, or be associated with persons engaged
      in
      any such activity;

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

        
        

      

    

    (v) found
      by
      any court of competent jurisdiction in a civil action or by the Securities
      and
      Exchange Commission to have violated any federal or state securities law, and
      the judgment in such civil action or finding by the Commission has not been
      subsequently reversed, suspended or vacated; or

    

    (vi) found
      by
      a court of competent jurisdiction in a civil action or by the Commodity Futures
      Trading Commission to have violated any federal commodities law, and the
      judgment in such civil action or finding by the Commodity Futures Trading
      Commission has not been subsequently reversed, suspended or
      vacated.

    

    (vii) found
      by
      a court or an administrative agency to have or is alleged to have violated
      any
      Canadian or foreign securities laws.

    

    (xxvii) Neither
      the Company nor, to the knowledge of the Company, any of its affiliates has,
      directly or through any agent, sold, offered for sale or solicited offers to
      buy
      nor will any of the foregoing directly buy any security of the Company, as
      defined in the Securities Act, which is or will be integrated with the sale
      of
      the Units in a manner that would require the registration, pursuant to the
      Securities Act, of the Offering.

    

    (xv)
      During the period commencing on the date hereof and ending on the Final Closing
      Date, the Company shall not, without prior notice to and consent of the
      Placement Agent: (A) issue any securities or incur any liability or obligation,
      primary or contingent, for borrowed money; (B) enter into any transaction not
      in
      the ordinary course of business; or (C) declare or pay any dividend on its
      capital stock,

    

    (xvi)
      Neither the Company nor any of its officers, directors, or affiliates, has
      engaged or will engage, directly or indirectly, in any act or activity that
      may
      jeopardize the status of the offering and sale of the Securities as an exempt
      transaction under the Act or under all applicable federal and/or state
      securities or "blue sky" laws of any jurisdiction in which the Securities may
      be
      offered or sold. 

    

    7. Covenants
      of the Company. 

    

    The
      Company covenants that it will: 

     

    (a)
      Notify Meyers immediately, and confirm such notice in writing, (i) when any
      event shall have occurred during the period commencing on the date hereof and
      ending on the Final Closing Date, as a result of which the Offering Documents
      would include any untrue statement of a material fact or omit to state any
      material fact required to be stated therein or necessary to make the statements
      therein, in light of the circumstances under which they were made, not
      misleading, and (ii) of the receipt of any notification with respect to the
      modification, rescission, withdrawal, or suspension of the qualification or
      registration of the Securities, or of an exemption from such registration or
      qualification, in any jurisdiction. The Company will use its best efforts to
      prevent the issuance of any such modification, rescission, withdrawal, or
      suspension and if Meyers so request, to obtain the lifting thereof as promptly
      as possible.

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

        
        

      

    

    (b)
      Not
      make any supplement or amendment to the Offering Documents unless such
      supplement or amendment complies with the requirements of the Act and Regulation
      D and the applicable federal and/or state securities and "blue sky" laws and
      unless Meyers shall have approved of such supplement or amendment in writing.
      If, at any time during the period commencing on the date hereof and ending
      on
      the Final Closing Date, any event shall have occurred as a result of which
      the
      Offering Documents contains any untrue statement of a material fact or omits
      to
      state any material fact required to be stated therein or necessary to make
      the
      statements therein not misleading, or if, in the opinion of counsel to the
      Company or counsel to the Placement Agent, it is necessary at any time to
      supplement or amend the Offering Documents to comply with the Act, Regulation
      D,
      or any applicable securities or "blue sky" laws, the Company will promptly
      prepare an appropriate supplement or amendment (in form and substance
      satisfactory to Meyers) which will correct such statement or omission or which
      will effect such compliance.

    

    (c)
      Deliver without charge to the Placement Agent such number of copies of the
      Offering Documents and any supplement or amendment thereto as may reasonably
      be
      requested by the Placement Agent.

    

    (d)
      Not,
      directly or indirectly, solicit any offer to buy from, or offer to sell to
      any
      person any Securities, except through the Placement Agent.

    

    (e)
      Use
      its best efforts to qualify the Securities for offering and sale under, or
      establish an exemption from such qualification or registration under, the
      securities or "blue sky" laws of the jurisdictions as may be required by the
      Placement Agent; provided, however, that the Company will not be obligated
      to
      qualify to do business as a dealer in securities in any jurisdiction in which
      it
      is not so qualified. The Company will not consummate any sale of Securities
      in
      any jurisdiction or in any manner in which such sale may not be lawfully made;
      in this regard the Company shall be entitled to rely on the Placement Agent's
      representations herein, and the representations of Prospective Investors in
      the
      Subscription Agreement and on the Blue Sky qualifications affected by the
      Placement Agent's counsel.

    

    (f)
      At
      all times during the period commencing on the date hereof and ending on the
      Final Closing Date, provide to each Prospective Investor or his Purchaser
      Representative (as defined in Regulation D), if any, on request, such
      information (in addition to that contained in the Offering Documents) concerning
      the Offering, the Company and any other relevant matters, as it possesses or
      can
      acquire without unreasonable effort or expense, and to extend to each
      Prospective Investor or his Purchaser Representative, if any, the opportunity
      to
      ask questions of, and receive answers from, the President or other Executive
      Officers of the Company concerning the terms and conditions of the Offering
      and
      the business of the Company and to obtain any other additional information,
      to
      the extent it possesses the same or can acquire it without reasonable effort
      or
      expense, as such Prospective Investor or Purchaser Representative may consider
      necessary in making an informed investment decision or in order to verify the
      accuracy of the information furnished to such Prospective Investor or Purchaser
      Representative, as the case may be.

    

    (g)
      Provide to each Prospective Investor or his Purchase Representative any
      information required to be delivered by Rule 502(b) of Regulation D.

    

    (h)
      Disclose to each Prospective Investor, in writing, any material relationship
      between such Prospective Investor's Purchaser Representative, if any, or its
      affiliates, on the one hand, and the Company or its affiliates, on the other
      hand, which, to the knowledge of the Company, then exists or is understood
      to be
      contemplated or has existed at any time during the previous two years and any
      compensation received or to be received as a result of such
      relationship.

    

    (i)
      Before accepting any subscription to purchase Securities from, or making any
      sale to, any Prospective Investor, have reasonable grounds to believe (relying
      upon the information provided pursuant to the Subscription Agreements that
      (A)
      such Prospective Investor meets the suitability requirements for investing
      in
      the Securities set forth in the Offering Documents, or (B) such Prospective
      Investor is an accredited investor (as defined in Regulation D).

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

        
        

      

    

    

    (j)
      Notify Meyers promptly of the acceptance or rejection of any subscription.
      The
      Company shall not (i) accept subscriptions from, or make sales of Securities
      to,
      any Prospective Investors who are not, to the Company's knowledge, accredited
      investors, or (ii) unreasonably reject any subscription for
      Securities.

    

    (k)
      Cooperate with Placement Agent's counsel to file five copies of a Notice of
      Sales of Securities on Form D with the Securities and Exchange Commission (the
      "Commission") no later than 15 days after the first sale of the Securities,
      and/or such documents or certificates as are required by any particular state
      “blue sky” law. The Company shall file promptly such amendments to such Notice
      on Form D as shall become necessary and, as requested by Meyers, shall also
      comply with any filing requirement imposed by the laws of any state or
      jurisdiction in which offers and sales are made. The Company shall furnish
      Meyers with copies of all such filings.

    

    (l)
      Not,
      directly or indirectly, engage in any act or activity which may jeopardize
      the
      status of the offering and sale of the Securities as exempt transactions under
      the Act or under the securities or “blue sky” laws of any jurisdiction in which
      the Offering maybe made. Without limiting the generality of the foregoing,
      and
      notwithstanding anything contained herein to the contrary, the Company shall
      not, directly or indirectly, engage in any offering of securities which, if
      integrated with the Offering in the manner prescribed by Rule 502(a) of
      Regulation D and applicable releases of the Commission, may jeopardize the
      status of the offering and sale of the Securities as exempt transactions under
      Regulation D.

    

    (m)
      Apply
      the net proceeds from the sale of the Securities as set forth in the Disclosure
      Statement. 

    

    (n)
      Not,
      during the period commencing on the date hereof and ending on the Final Closing
      Date, issue any press release or other communication, or hold any press
      conference with respect to the Company, its financial condition, results of
      operations, business, properties, assets, or liabilities, or the Offering,
      without Meyers prior written consent, except as required by applicable
      securities laws and except as may be related to the marketing and sale of its
      products in the normal course of business. 

    

    (o)
      Provide each Prospective Investor with a full executed registration rights
      agreement which agreement will provide that the Company shall file a
      registration statement (the “Registration Statement”) with the SEC within 30
      days of the Final Closing of the Offering to provide for the resale of the
      shares of Common Stock issuable pursuant to the Debentures, Warrants and Agent
      Warrants. The Company shall use its best efforts to obtain an order of
      effectiveness from the SEC declaring the registration statement effective as
      soon as reasonably possible, but in no event later than 90 days from the filing
      date and to maintain the effectiveness of such registration statement
until
      the
      date which is the earlier of (i) two years after the effective date of such
      registration statement, (ii) at such time as all of the shares registered
      thereunder have been publicly sold, or (iii) at such time as all of such shares
      may be sold pursuant to Rule 144(k). The
      agreement shall also provide that the failure to file the registration statement
      as contemplated herein or otherwise comply with its obligations thereunder
      shall
      result in a two- percent (2%) per month, pro-rated daily, penalty on the
      subscription price payable in cash or through the issuance by the Company to
      each investor of additional shares of Common Stock and an additional two (2%)
      percent penalty for each 30 days period thereafter. 

    

    (p)
      The
      Company shall use its best efforts (which shall include, but shall not be
      limited to, the solicitation of proxies, if necessary) to elect a designee
      of
      the Placement Agent to the Company's Board of Directors for a period equal
      to
      five years from the date the Offering is completed, and to provide to the
      Placement Agent within 45 days from the end of each quarter for a period of
      five
      years a monthly balance sheet and statement of operations.

    

    8.
      Payment of Expenses. 

    

    The
      Company shall pay all fees, charges, expenses and disbursements relating to
      the
      Offering, including, without limitation, all fees, charges, expenses and
      disbursements in connection with (a) the preparation, printing, filing,
      distribution and mailing of the Confidential Offering Memorandum and any
      supplement and amendment thereto and all other documents relating to the
      Offering and the purchase, sale and delivery of the Securities, including the
      cost of all copies thereof; (b) the issuance, sale, transfer and delivery of
      the
      Securities, including any transfer or other taxes payable thereon and the fees
      of any transfer agent or registrar; (c) the registration or qualification of
      the
      Securities for offer and sale under the securities laws of such states and
      other
      jurisdictions as Meyers may designate (including, without limitation, all filing
      and registration fees and the reasonable "blue sky" fees and disbursements
      of
      Meyers's counsel); (d) placement agent counsel fees; and (e) printing, mailing,
      travel and lodging expenses and other out-of-pocket expenses incurred by Meyers
      in connection with this Offering; provided, that all out-of-expenses in excess
      of $1,000 shall be subject to the prior approval of the Company, which approval
      shall not be unreasonably withheld. Upon Meyers's request, the Company shall
      provide funds to pay all such fees, charges, expenses and disbursements in
      advance. 

    

    9. Conditions
      of Placement Agent's Obligations.

    

    The
      obligations of the Placement Agent pursuant to this Agreement shall be subject,
      in its discretion, to the continuing accuracy of the representations and
      warranties of the Company contained herein and in each certificate and document
      contemplated under this Agreement to be delivered to the Placement Agent, as
      of
      the date hereof and as of each Closing Date, with respect to the performance
      by
      the Company of its obligations hereunder, and to the following
      conditions:

    

    (a)
      At
      the Closing and the Final Closing, the Placement Agent shall have received
      the
      favorable opinion of Robinson & Cole, LLP, counsel for the Company, dated
      each Closing Date, addressed to the Placement Agent and the investors, and
      in
      form and scope satisfactory to counsel for the Placement Agent, to the effect
      that: 

    

    (i)
      the
      Company is a corporation duly organized, validly existing, and in good standing
      under the laws of the State of Florida, with full corporate power and authority
      to own, lease, license, and use its properties and assets and to conduct its
      business in the manner described in the Offering Documents and is duly qualified
      to do business and is in good standing as a foreign corporation in every
      jurisdiction in which its ownership, leasing, licensing, or use of property
      and
      assets or the conduct of its business makes such qualification necessary (except
      where the failure to so qualify would not have a material adverse effect upon
      the Company or its business);

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

        
        

      

    

    (ii)
      the
      Company has, as of the date hereof, an authorized, and, to such counsel's
      knowledge, outstanding capitalization as set forth in the Disclosure Statement.
      Each issued and outstanding share of Common Stock is validly authorized, validly
      issued, fully paid, and nonassessable, with no personal liability attaching
      to
      the ownership thereof solely by being such a holder to such counsel's knowledge
      or as set forth on a schedule hereto has not been issued and is not owned or
      held in violation of any preemptive right of stockholders. To the best knowledge
      of such counsel, there is no commitment, plan, or arrangement to issue, and
      no
      outstanding option, warrant, or other right calling for the issuance of, any
      share of capital stock of the Company or any security or other instrument which
      by its terms is convertible into, exercisable for, or exchangeable for capital
      stock of the Company, except as may be properly described in the Offering
      Documents, in this Agreement or in a schedule hereto. To the best knowledge
      of
      such counsel, there is outstanding no security or other instrument which by
      its
      terms is convertible into or exchangeable for capital stock of the Company,
      except as may be properly described in the Offering Documents or in a schedule
      hereto; 

    

    (iii)
      such counsel has no knowledge of any litigation, arbitration, claim,
      governmental or other proceeding (formal or informal), or investigation pending
      or threatened with respect to the Company or any of its operations, businesses,
      properties, or assets except as may be properly described in the Offering
      Documents, in this Agreement or in a schedule hereto or such as individually
      or
      in the aggregate do not now have and will not in the future have a material
      adverse effect upon the operations, business, properties, or assets of the
      Company or which could materially adversely affect the transactions or other
      acts contemplated by this Agreement or the validity or enforceability of this
      Agreement;

    

    (iv)
      such
      counsel has no knowledge that the Company is in violation or breach of, or
      in
      default with respect to, complying with any provision of any contract,
      agreement, instrument, lease, license, arrangement, or understanding known
      to
      such counsel and which is material to the business of the Company;

    

    (v)
      the
      Company has all requisite corporate power and authority to execute, deliver,
      and
      perform this Agreement, and to consummate the transactions contemplated hereby.
      All necessary corporate proceedings of the Company have been taken to authorize
      the execution, delivery, and performance by the Company of this Agreement,
      and
      the consummation of the transactions contemplated hereby. This Agreement has
      been duly authorized, executed, and delivered by the Company, is the legal,
      valid, and binding obligation of the Company, and is enforceable against the
      Company in accordance with its terms, except as such enforceability may be
      limited by applicable bankruptcy, insolvency, reorganization, moratorium and
      other laws of general application now or hereafter in effect relating to or
      affecting the enforcement of creditors' right generally and the application
      of
      general equitable principles in any action, legal or equitable and then except,
      as to those provisions relating to indemnity or contribution, such opinion
      shall
      be limited as effected by any Federal or state securities laws regarding
      indemnity and/or contribution; 

    

    (vi)
      the
      Securities conform to all statements relating thereto contained in the Offering
      Documents. The Securities, shall be validly authorized, validly issued, fully
      paid, and nonassessable, with no personal liability attaching to the ownership
      thereof and to such counsel's knowledge or as set forth in a schedule annexed
      hereto shall not have been issued in violation of any preemptive rights of
      stockholders;

    

    (vii)
      assuming the accuracy of the representations and warranties of the Proposed
      Investors set forth in the Subscription Agreements and Investor Questionnaires
      and the representations and warranties of the Placement Agent set forth herein,
      the Offering Documents (except that no opinion need be expressed as to the
      financial statements, related schedules, or other financial data contained
      therein) comply as to form in all material respects with requirements of Rule
      506 of Regulation D. To the best knowledge of such counsel, any contract,
      agreement, instrument, lease, license, or document described in the Offering
      Documents has been accurately described therein; 

    

    (viii)
      such counsel has no knowledge of any modification, rescission, suspension,
      or
      withdrawal of registration or qualification of the Securities, or of an
      exemption from such registration or qualification, or the institution or threat
      of proceedings for that purpose;

    

    (ix)
      assuming that (a) a proper Form D is filed in accordance with Rule 503 of
      Regulation D, (b) that the offer and the sale of the Securities by the Placement
      Agent was made in compliance with Rule 506 of Regulation D and that the
      Placement Agent's representations and warranties set forth herein are true
      and
      correct, and (c) that the representations of the Prospective Investors in the
      Subscription Agreements signed by them are true and correct (which facts will
      not be independently verified by such counsel), the sale of Securities in the
      Offering is exempt from registration under the Securities Act of 1933 and is
      in
      compliance with Regulation D;

    

    (x)
      neither the execution and delivery of this Agreement, the certificates
      representing the Securities, nor compliance with the terms hereof or thereof
      will (i) conflict with, result in a breach of, or constitute a default under
      the
      Articles or Certificate of Incorporation or By-Laws of the Company, or, to
      the
      best of such counsel's knowledge, any material contract, instrument, agreement
      or document to which the Company is a party, or by which the assets or
      properties of the Company are bound; or (ii) to the best knowledge of such
      counsel, have any material adverse effect on any permit, certification,
      registration, approval, consent, license or franchise (other than Excluded
      Laws)
      necessary for the Company to own or lease and operate any of its properties
      and
      to conduct its business or the ability of the Company to make use thereof as
      described in the Offering Documents;

     

    
      
        
        

      

      
        -13-

        
          

        

      

      
        
        

      

    

     

    (xi)
      such
      counsel has no knowledge, except as disclosed in the Offering Documents, that
      the issuance of the Securities in the Offering will give any holder of any
      of
      the Company's outstanding options, warrants or other convertible securities
      or
      rights to purchase Securities of the Company's Common Stock or Preferred Stock,
      the right to purchase any additional shares of Common Stock and/or the right
      to
      purchase shares at a reduced price.

    

    In
      rendering such opinion, counsel for the Company may rely (A) as to matters
      of
      fact, on certificates of responsible officers of the Company; and (B) to the
      extent they deem proper, upon written statements or certificates of officers
      of
      departments of various jurisdictions having custody of documents respecting
      the
      corporate existence or good standing of the Company, provided that copies of
      any
      such statements or certificates shall be delivered to counsel for the Placement
      Agent.

    

    (b)
      On or
      prior to the Closing Date the Placement Agent shall have been furnished such
      information, documents, certificates, and opinions as it may reasonably require
      for the purpose of enabling it to review the matters referred to in Section
      6,
      and in order to evidence the accuracy, completeness, or satisfaction of any
      of
      the representations, warranties, covenants, agreements, or conditions herein
      contained, or as it may otherwise reasonably request.

    

    (c)
      At
      the Closing and the each additional Closing, the Placement Agent shall have
      received one or more certificates of the chief executive officer and of the
      chief financial officer of the Company, dated the applicable Closing Date to
      the
      effect that, as of the date of this Agreement and as of the applicable Closing
      Date the representations and warranties of the Company contained herein were
      and
      are accurate, and that as of the Closing Date the obligations to be performed
      by
      the Company hereunder on or prior thereto have been fully performed. In
      addition, the parties shall deliver such other certificates or closing documents
      as are within the industry norm. Notwithstanding the foregoing, the Company
      hereby represents and warrants that at each Closing, the representations and
      warranties contained herein shall be true and correct in all
      respects.

    

    (d)
      All
      proceedings taken in connection with the issuance, sale, and delivery of the
      Securities shall be satisfactory in form and substance to Meyers and Meyers
      counsel.

    

    (e)
      There
      shall not have occurred after the date hereof, at any time prior to each
      Closing: (A) any domestic or international event, act, or occurrence which
      has
      materially disrupted, or in Meyers opinion will in the immediate future
      materially disrupt the securities markets; (B) a general suspension of, or
      a
      general limitation on prices for, trading in securities on the Nasdaq SmallCap
      Market, American Stock Exchange or the over-the-counter market; (C) any banking
      moratorium declared by a state or federal authority; (D) any material
      interruption in the mail service or other means of communication within the
      United States; (E) any material adverse change in the business, properties,
      assets, results of operations, or financial condition of the Company; or (F)
      any
      change in the market for securities in general or in political, financial,
      or
      economic conditions which, in Meyers judgment, makes it inadvisable to proceed
      with the offering, sale, and delivery of the Securities. 

    

    (f)
      The
      Company shall have executed and delivered to Meyers the Investment Banking
      Agreement as required under Section 13 hereunder and any required Agent Warrants
      as provided herein.

    

    Any
      certificate or other document signed by any officer of the Company and delivered
      to Meyers or to Meyers=
      counsel
      at a Closing shall be deemed a representation and warranty by the Company
      hereunder as to the statements made therein. If any condition to Meyers
      obligations hereunder has not been fulfilled as and when required to be so
      fulfilled, Meyers may terminate this Agreement or, if Meyers so elect, in
      writing waive any such conditions which have not been fulfilled or extend the
      time for their fulfillment. In the event that Meyers elect to terminate this
      Agreement, Meyers shall notify the Company of such election in writing. Upon
      such termination, neither party shall have any further liability or obligation
      to the other except as provided in Section 11 hereof.

    

    10. Conditions
      of Company's Obligations. 

    

    The
      obligations of the Company pursuant to this Agreement shall be subject, in
      its
      discretion, to the performance by the Placement Agent in all material respects
      of its obligations hereunder. 

    

    11. Termination.

    

    (a)
      This
      Agreement is effective upon the date hereof and shall remain in effect until
      (i)
      the completion of the Offering, or (ii) the earlier termination as herein
      provided. If no Units are sold pursuant to the Offering within 90 days of the
      completion of the Confidential Offering Memorandum and/or Offering Documents
      and
      related documentation, the Company may terminate this Agreement upon 10 days’
prior written notice to the Placement Agent. The Placement Agent may terminate
      the agency created hereby for any reason upon written notice to the Company.
      

    

    Notwithstanding
      the foregoing, in the event the Company elects to terminate the agency at any
      time within 60 days of the completion of the Confidential Offering Memorandum
      and/or Offering Documents (90 days upon the mutual agreement of the Company
      and
      Placement Agent), the Company shall pay the Placement Agent $200,000 with five
      days of such termination. 

     

    
      
        
        

      

      
        -14-

      

      
        
        

      

    

      (b)
      Neither party shall have any liability or continuing obligation to the other
      upon termination of this Agreement in accordance with paragraph 11 except that,
      regardless of which party elects to terminate, (i) the Company agrees to
      reimburse the Placement Agent for, or otherwise pay and bear, the expenses
      and
      fees to be paid and borne by the Company as provided for in paragraph 8 above
      and to reimburse the Placement Agent for the full amount of its actual
      out-of-pocket expenses (which shall include, without limitation, the fees and
      disbursements of the Placement Agent's counsel, travel and lodging expenses,
      mailing, printing and reproduction expenses, and any expenses reasonably
      incurred by the Placement Agent in conducting its due diligence) less amounts
      previously paid to the Placement Agent in reimbursement for such expenses and
      the advance against expenses delivered upon the execution of this Agreement,
      and
      (ii) the provisions of paragraph 14 and the Indemnification Provisions in
      paragraph 12 shall remain in full force and effect; provided further, that
      in
      the event the Company terminates this agreement, except as otherwise provided
      herein, prior to the consummation of the Offering, and within 90 days from
      the
      date of such termination, consummates any financing, merger, acquisition or
      like
      transaction introduced to, or considered by, the Company, during the term
      hereof, the Placement Agent shall be entitled to receive an amount equal to
      10%
      of the aggregate amount of such financing or $300,000 in the event of a merger
      or acquisition or similar transaction. In the event the Placement Agent arranges
      the sale of any securities under this Agreement, paragraphs 4, 5, 6, 7, 8,
      12,
      13, 14, 15, 16 and 17 shall survive the termination of this
      Agreement.

    

    (c)
       In
      the
      event the Company elects not to proceed with the Offering for any reason, in
      that event, in addition to the other obligations contained herein, the Company
      shall pay to the Placement Agent, as liquidated damages and not as a penalty,
      the sum of $150,000.

    

    12.
      Indemnification and Contribution. 

    

    (a)
      The
      Company agrees to indemnify and hold harmless the Placement Agent, its officers,
      directors, partners, employees, agents, and counsel, and each person, if any,
      who controls the Placement Agent within the meaning of Section 15 of the Act
      or
      Section 20(a) of the Securities Exchange Act of 1934, as amended (the "Exchange
      Act"), against any and all loss, liability, claim, damage, and expense
      whatsoever (which shall include, for all purposes of this Section 12, but not
      be
      limited to, attorneys' fees and any and all expense whatsoever incurred in
      investigating, preparing, or defending against any litigation, commenced or
      threatened, or any claim whatsoever and any and all amounts paid in settlement
      of any claim or litigation) as and when incurred arising out of, based upon,
      or
      in connection with (i) any untrue statement or alleged untrue statement of
      a
      material fact contained in the Offering Documents or in any document delivered
      or written statement made pursuant to Section 7(f), or (B) in any application
      or
      other document or communication (it being understood that neither the Company
      nor any officer, director or employee shall provide any information to any
      Prospective Investor which is not contained in the Offering Documents) (in
      this
      Section 12 collectively called an "application") executed by or on behalf of
      the
      Company or based upon written information furnished by or on behalf of the
      Company filed in any jurisdiction in order to register or qualify the Securities
      under the "blue sky" or securities laws thereof or in order to secure an
      exemption from such registration or qualification or filed with the Commission;
      or any omission or alleged omission to state a material fact required to be
      stated therein or necessary to make the statements therein not misleading,
      unless such statement or omission was made in reliance upon and in conformity
      with written information furnished to the Company as stated in Section 12(b)
      with respect to the Placement Agent expressly for inclusion in the Offering
      Documents or in any application, as the case may be; or (ii) any breach of
      any
      representation, warranty, covenant, or agreement of the Company contained in
      this Agreement. The foregoing agreement to indemnify shall be in addition to
      any
      liability the Company may otherwise have, including liabilities arising under
      this Agreement. 

    

    If
      any
      action is brought against the Placement Agent or any of its officers, directors,
      partners, employees, agent, or counsel, or any controlling persons of the
      Placement Agent (an "indemnified party"), in respect of which indemnify may
      be
      sought against the Company pursuant to the foregoing paragraph, such indemnified
      party or parties shall promptly notify the Company (the "indemnifying party")
      in
      writing of the institution of such action (but the failure so to notify shall
      not relieve the indemnifying party from any liability it may have other than
      pursuant to this Section 12(a)) and the indemnifying party shall promptly assume
      the defense of such action, including the employment of counsel (reasonably
      satisfactory to such indemnified party or parties) and payment of expenses.
      Such
      indemnified party shall have the right to employ its own counsel in any such
      case, but the fees and expense of such counsel shall be at the expense of such
      indemnified party unless the employment of such counsel shall have been
      authorized in writing by the indemnifying party in connection with the defense
      of such action or the indemnifying party shall not have promptly employed
      counsel satisfactory to such indemnified party or parties to have charge of
      the
      defense of such action or such indemnified party or parties shall have
      reasonably concluded that there may be one or more legal defenses available
      to
      it or them or to other indemnified parties which are different from or
      additional to those available to one or more of the indemnifying parties, in
      any
      of which events such fees and expenses of one such counsel shall be borne by
      the
      indemnifying party and the indemnifying party shall not have the right to direct
      the defense of such action on behalf of the indemnified party or parties.
      Anything in this paragraph to the contrary notwithstanding, the indemnifying
      party shall not be liable for any settlement of any such claim or action
      effected without its written consent. The Company agrees promptly to notify
      the
      Placement Agent of the commencement of any litigation or proceedings against
      the
      Company or any of its officers or directors in connection with the sale of
      the
      Securities, the Offering Documents, or any application. 

    

    

    (b)
      The
      Placement Agent agrees to indemnify and hold harmless the Company, its officers,
      directors, employees, agents, and counsel, and each other person, if any, who
      controls the Company within the meaning of Section 15 of the Act or Section
      20(a) of the Exchange Act, to the same extent as the foregoing indemnity from
      the Company to the Placement Agent in Section 12(a), with respect to any and
      all
      loss, liability, claim, damage, and expense whatsoever (which shall include,
      for
      all purposes of this Section 12, but not be limited to, attorneys' fees and
      any
      and all expense whatsoever incurred in investigating, preparing, or defending
      against any litigation, commenced or threatened, or any claim whatsoever and
      any
      and all amounts paid in settlement of any claim or litigation) as and when
      incurred arising out of, based upon, or in connection with (i) statements or
      omissions, if any, made in the Offering Documents in reliance upon and in
      conformity with written information furnished to the Company as stated in this
      Section 12 with respect to the Placement Agent expressly for inclusion in the
      Offering Documents, and (ii) the failure of the Placement Agent to comply with
      the provisions of Section 2(c) hereof or with the "blue sky" or securities
      laws
      of the jurisdictions in which the Placement Agent solicits offers to buy or
      offers to sell any Securities or any breach of any representation, warranty,
      covenant or agreement of the Placement Agent contained in this Agreement. The
      foregoing agreement to indemnify shall be in addition to any liability the
      Placement Agent may otherwise have, including liabilities arising under this
      Agreement. If any action shall be brought against the Company or any other
      person so indemnified based on the Offering Documents and in respect of which
      indemnity may be sought against the Placement Agent pursuant to this Section
      12,
      the Placement Agent shall have the rights and duties given to the indemnifying
      party, and the Company and each other person so indemnified shall have the
      rights and duties given to the indemnified parties, by the provisions of Section
      12(a) hereof.

     

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

     

    (c)
      To
      provide for just and equitable contribution, if (i) an indemnified party makes
      a
      claim for indemnification pursuant to Section 12(a) or 12(b) hereof but it
      is
      found in a final judicial determination, not subject to further appeal, that
      such indemnification may not be enforced in such case, even though this
      Agreement expressly provides for indemnification in such case, or (ii) any
      indemnified or indemnifying party seeks contribution under the Act, the Exchange
      Act, or otherwise, then the Company (including for this purpose any contribution
      made by or on behalf of any officer, director, employee, agent, or counsel
      of
      the Company, or any controlling person of the Company), on the one hand, and
      the
      Placement Agent (including for this purpose any contribution by or on behalf
      of
      an indemnified party), on the other hand, shall contribute to the losses,
      liabilities, claims, damages, and expenses whatsoever to which any of them
      may
      be subject, in such proportions as are appropriate to reflect the relative
      benefits received by the Company, on the one hand, and the Placement Agent,
      on
      the other hand; provided, however, that if applicable law does not permit such
      allocation, then other relevant equitable considerations such as the relative
      fault of the Company and the Placement Agent in connection with the facts which
      resulted in such losses, liabilities, claims, damages, and expenses shall also
      be considered. The relative benefits received by the Company, on the one hand,
      and the Placement Agent, on the other hand, shall be deemed to be in the same
      proportion as (x) the total proceeds from the Offering (net of compensation
      payable to the Placement Agent pursuant to Section 5(a) hereof but before
      deducting expenses) received by the Company, and (y) the compensation received
      by the Placement Agent pursuant to Section 5(a) hereof.

    

    The
      relative fault, in the case of an untrue statement, alleged untrue statement,
      omission, or alleged omission, shall be determined by, among other things,
      whether such statement, alleged statement, omission, or alleged omission relates
      to information supplied by the Company or by the Placement Agent, and the
      parties' relative intent, knowledge, access to information, and opportunity
      to
      correct or prevent such statement, alleged statement, omission, or alleged
      omission. The Company and the Placement Agent agree that it would be unjust
      and
      inequitable if the respective obligations of the Company and the Placement
      Agent
      for contribution were determined by pro rata or per capita allocation of the
      aggregate losses, liabilities, claims, damages, and expenses or by any other
      method of allocation that does not reflect the equitable considerations referred
      to in this Section 19(c). In no case shall the Placement Agent by responsible
      for a portion of the contribution obligation in excess of the compensation
      received by it pursuant to Section 5(a) hereof. No person guilty of a fraudulent
      misrepresentation shall be entitled to contribution from any person who is
      not
      guilty of such fraudulent misrepresentation. For purposes of this Section 12(c),
      each person, if any, who controls the Placement Agent within the meaning of
      Section 15 of the Act or Section 20(a) of the Exchange Act and each officer,
      director, partners, employee, agent, and counsel of the Placement Agent, shall
      have the same rights to contribution as the Placement Agent, and each person,
      if
      any, who controls the Company within the meaning of Section 15 of the Act or
      Section 20(a) of the Exchange Act and each officer, director, employee, agent,
      and counsel of the Company, shall have the same rights to contribution as the
      Company, subject in each case to the provisions of this Section 12(c). Anything
      in this Section 12(c) to the contrary notwithstanding, no party shall be liable
      for contribution with respect to the settlement of any claim or action effected
      without its written consent. This Section 12(c) is intended to supersede any
      right to contribution under the Act, the Exchange Act, or
      otherwise.

    

    13. Investment
      Banking Agreement and Right of First Refusal

    

       (a) Upon
      the
      closing of any financing arranged by the Placement Agent (the "Closing"), the
      Company will deemed to have engaged, and will enter into a separate agreement
      (the "Investment Banking Agreement") with the Placement Agent, pursuant to
      which
      (i) the Company shall employ the Placement Agent as its Investment Banker and
      Financial Consultant for a period of 12 months at a monthly retainer of $5,000,
      upon the closing of an additional $1,000,000 of the Offering, the retainer
      will
      increase to $7,500; and (ii) pay the Placement Agent a fee of five (5%) percent
      of the first $5,000,000, two and one-half (2-1/2%) percent of the amount over
      $5,000,000 but less than $10,000,000, and 1% of the amount over $10,000,000
      of
      the consideration paid or received by the Company (or by any subsidiary or
      affiliated entity of the Company) in any transaction (including mergers and
      acquisitions,) consummated by the Company or any subsidiary or affiliated entity
      of the Company, which were introduced to the Company by the Placement Agent.
      The
      Investment Banking Agreement shall be renewable upon the written consent of
      the
      Company and Meyers.

    

    (b) At
      the
      Closing, the Placement Agent will be granted an irrevocable right of first
      refusal for a period ending 24 months from the effective date of the
      Registration Statement filed by the Company with respect to this Offering for
      all future public offerings or private financings (whether debt and/or equity)
      to purchase for its account or to sell for the account of the Company, or any
      subsidiary of or successor to the Company, any securities of the Company or
      any
      such subsidiary or successor of the Company that the Company or any such
      subsidiary or successor may seek to sell through an underwriter, placement
      agent
      or broker dealer whether pursuant to registration under the Securities Act
      or
      otherwise. This right of first refusal does not include commercial bank
      financing arrangements entered into by the Company. If the Placement Agent
      fails
      to accept such offer within 20 business days after the mailing of a notice
      containing such offer by registered mail addressed to the Placement Agent (5
      business days in the event the offer covers a sale under Rule 144), then the
      Placement Agent shall have no further claim or right with respect to the
      financing proposal contained in such notice. If, however, the terms of such
      proposal are subsequently modified in any material respect, the preferential
      right referred to herein shall apply to such modified proposal as if the
      original proposal had not been made. The Placement Agent's failure to exercise
      its preferential right with respect to any particular proposal shall not affect
      its preferential rights relative to future proposals. 

     

    
      
        
        

      

      
        -16-

        
          

        

      

      
        
        

      

    

     

    14. Non-Solicitation.

    

    The
      Company agrees that, for a period of three years from the date hereof, it shall
      not solicit any offer to buy from or offer to sell any person introduced to
      the
      Company by the Placement Agent in connection with the Offering, directly or
      indirectly, any securities of the Company or of any other entity, or provide
      the
      name of any such person to any other securities broker or dealer or selling
      agent. In the event that the Company or any of its affiliates, directly or
      indirectly, solicits, offers to buy from or offers to sell to any such person
      any such securities, or provides the name of any such person to any other
      securities broker or dealer or selling agent, and such person purchases such
      securities or purchases securities from any other securities broker or dealer
      or
      selling agent, the Company shall pay to the Placement Agent an amount equal
      to
      10% of the aggregate purchase price of the securities so purchased by such
      person.

    

    15.
       Right
      of
      Participation.

    

    For
      a
      period of twelve months from the Effective Date of the Registration Statement,
      the Company will not, directly or indirectly, effect a subsequent financing
      of
      its securities (whether structured as debt or equity), unless in each such
      case
      the Company shall have first offered to sell to the investors in the Offering
      (the “Investors”) the securities being offered in such subsequent financing (the
      securities being offered to the Investors being referred to herein as the
“Offered
      Securities”).
      The
      Company shall offer to sell to each Investor (A) such Investor’s pro rata share
      of the Offered Securities (the “Basic
      Amount”),
      and
      (B) such additional portion of the Offered Securities as such Investor shall
      indicate it will purchase should the other Investors subscribe for less than
      their Basic Amounts (the “Undersubscription
      Amount”),
      at a
      price and on such other terms as shall have been specified by the Company in
      writing delivered to such Investor (the “Offer”),
      which
      Offer by its terms shall remain open and irrevocable for a period of not less
      than three (3) business days from such Investor’s receipt of the terms of the
      Offer in writing (the “Offer
      Period”).
      

    

    16. Representations
      and Agreements to Survive Delivery.

    

    All
      representations, warranties, covenants, and agreements contained in this
      Agreement shall be deemed to be representations, warranties, covenants, and
      agreements at the Closing Date and, such representations, warranties, covenants,
      and agreements, including the indemnification and contribution agreements
      contained in Section 12, shall remain operative and in full force and effect
      regardless of any investigation made by or on behalf of the Placement Agent
      or
      any indemnified person, or by or on behalf of the Company or any person or
      entity which is entitled to be indemnified under Section 12(b), and shall
      survive termination of this Agreement or the issuance, sale, and delivery of
      the
      Securities. In addition, notwithstanding any election hereunder or any
      termination of this Agreement, and whether or not the terms of this Agreement
      are otherwise carried out, the provisions of Sections 6, 7(a), 7(c), 10 and
      12
      shall survive termination of this Agreement and shall not be affected in any
      way
      by such election or termination or failure to carry out the terms of this
      Agreement or any part thereof.

    

    17.
      Notices.

    

    All
      communications hereunder, except as may be otherwise specifically provided
      herein, shall be in writing and, if sent to the Placement Agent, shall be mailed
      by certified mail, hand delivered, or sent by overnight courier service, to
      Meyers Associates L.P. 45 Broadway, New York, New York 10006 Attention: Bruce
      Meyers, with a copy to Goldstein & DiGioia LLP, 45 Broadway, 11th
      Floor,
      New York, New York 10017, Attention: Michael A. DiGioia, Esq.; or if sent to
      the
      Company, China Mobility Solutions, Inc., 900-789 West Pender Street, Vancouver,
      B.C. Canada V6C 1H2, Attention: Xiao-Qing (Angela) Du, with a copy to Elliot
      Lutzker, Esq, Robinson & Cole, LLP, 885 Third Avenue, Suite 2800, New York,
      New York 10022-4834. All notices hereunder shall be effective upon receipt
      by
      the party to which it is addressed.

    

    18.
      Parties.

    

    This
      Agreement shall inure solely to the benefit of, and shall be binding upon,
      the
      Placement Agent and the Company and the persons and entities referred to in
      Section 10 who are entitled to indemnification or contribution, and their
      respective successors, legal representatives, and assigns (which shall not
      include any purchaser, as such, of Securities), and no other person shall have
      or be construed to have any legal or equitable right remedy, or claim under
      or
      in respect of or by virtue of this Agreement or any provision herein
      contained.

    

    19.
      Construction.

    

    This
      Agreement shall be construed in accordance with the laws of the State of New
      York, without giving effect to conflict of laws. Any or all actions or
      proceedings which may be brought by the Company or Meyers under this Agreement
      shall be brought in the federal or state courts having a situs within the State
      of New York, New York County, and the Company and Meyers each hereby consent
      to
      the jurisdiction of any local, state, or federal court located within the State
      of New York, New York County and waive all objections to venue.

    

    

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    20.
      Counterparts.

     

               This
      Agreement may be
      executed in counterparts, each of which shall constitute an original and all
      of
      which, when taken together, shall constitute one agreement.

    

    If
      the
      foregoing correctly sets forth the understanding between us, please so indicate
      in the space provided below for that purpose, whereupon this letter shall
      constitute a binding agreement among us. 

    

    Very
      truly yours, 

    

    CHINA
      MOBILITY SOLUTIONS, INC

    

    

    By:
      ________________________________        

    Name:
      Xiao-Qing (Angela) Du, President

    Title:
      President & Chief Executive Officer

    Accepted
      as of the date

    first
      above written:

    

    Meyers
      Associates L.P.

    

    

    By: ___________________________

    Name:
      Bruce Meyers

    Title:
      President

     

     

    
      
        
          
          

        

        
          -18-Form Restricted Stock Award Agreement

    
      
         

        Exhibit
          10.109

        FORM
          AGREEMENT

      

       

    

    RESTRICTED
      STOCK AWARD AGREEMENT

     

    Issued
      Pursuant to the

    Glimcher
      Realty Trust

    2004
      Incentive Compensation Plan

     

    THIS
      RESTRICTED STOCK AWARD AGREEMENT (“Agreement”), effective ____________________
      (the “Effective Date”), represents the grant of restricted stock (“Stock”) by
      Glimcher Realty Trust (the “Company”), to ___________ (the “Participant”)
      pursuant to the terms, provisions and definitions of the Glimcher Realty Trust
      2004 Incentive Compensation Plan adopted by its Board of Trustees (the “Board”)
      on or about March 15, 2004 (the “Plan”) and approved by the Company’s
      shareholders on May 7, 2004. Stock granted hereby is intended to be restricted
      and shall be subject to the restrictions set forth in this Agreement and the
      Plan. 

     

    The
      Plan
      provides a complete description of the terms and conditions governing the Stock.
      If there is any inconsistency between the provisions of this Agreement and
      the
      provisions of the Plan, the Plan’s provisions shall completely supersede and
      replace the inconsistent or conflicting provisions of this Agreement. All
      capitalized terms shall have the meanings ascribed to them in the Plan, unless
      specifically set forth otherwise herein. The parties hereto agree as
      follows:

     

    1. General
      Stock Grant Information.
      The
      individual named above has been selected to be a Participant in the Plan and
      receive shares of Stock, as specified below (the “Shares”):

     

    
      	 	
              a.

            	
              Date
                of Grant:
                ________________________________

            

    

     

    
      	 	
              b.

            	
              Number
                of Shares Granted:
                ____________________

            

    

     

    
      	 	
              c.

            	
              Type
                of Shares
                Granted:________________________

            

    

     

    
      	 	
              d.

            	
              Price
                Per Share on the Date of Grant:
                $________

            

    

     

    
      	 	
              e.

            	
              Latest
                Vesting Date:
                ______________

            

    

     

    2. Grant
      of Stock.
      The
      Company hereby grants to the Participant the Shares set forth above, at the
      stated per share price (which is one hundred percent (100%) of the Fair Market
      Value (defined herein) of a Share on the Date of Grant) in the manner and
      subject to the terms and conditions of the Plan and this Agreement. The
      Executive Compensation Committee has determined that the “Fair Market Value” of
      a Share on the Date of Grant is equal to the average of the high and low selling
      price of a Share on the preceding trading day.

     

    3. Restrictions

    a. Transfer
      Restrictions.
      Except
      as otherwise provided in Section 4, the Shares may not be sold, transferred,
      pledged, assigned, or otherwise alienated or hypothecated, other than by will
      or
      by the laws of descent and distribution, at any time prior to the periods and
      in
      accordance with the lapsing schedule set forth below in Section 3(c). No sale,
      transfer, pledge, assignment, alienation or hypothecation of the Shares in
      violation of this Section 3(a), whether voluntary or involuntary, by operation
      of law or otherwise, shall be valid as to any person, assignee or transferee
      with respect to any interest in the Shares whatsoever. The Participant shall
      continue to be treated as the owner of the Shares for purposes of this Agreement
      and shall continue to be bound by all of the terms and provisions hereof. The
      restrictions set out in this Section 3(a) are referred to in this Agreement
      as
      the “Transfer Restrictions.”

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

      
        
          Exhibit
            10.109

          FORM
            AGREEMENT

        

      

       

    

    b. Employee
      Forfeiture Restrictions.
      Upon
      the termination of the Participant’s employment with the Company, or any of its
      subsidiaries or affiliates, for any reason, all Shares that are not the Vested
      Shares (as defined below) held by the Participant, or any guardian or legal
      representative, at the effective date of such termination, shall immediately
      be
      returned to and canceled by the Company and shall be deemed to have been
      forfeited by the Participant (the “Forfeiture Restrictions”); provided that the
      Executive Compensation Committee of the Board may, in its sole and absolute
      discretion, allow the Participant to retain the Shares for a period of time
      after such termination date to be specified in writing by the Executive
      Compensation Committee.

    

    c. Lapse
      of Employee Forfeiture and Transfer Restrictions.
      To the
      extent the Participant remains in the continuous employment of the Company
      through the Vesting Date specified below, the Forfeiture Restrictions under
      Section 3(b) and Transfer Restrictions under Section 3(a) hereof shall lapse
      as
      follows: 

    

    
      	
               

              Vesting
                Date

            	 	
              Percentage
                of Shares for which

              Forfeiture
                and Transfer Restrictions Shall have Lapsed

            
	
              Third
                Annual Anniversary of Date of Grant

            	 	
              33%

            
	
              Fourth
                Annual Anniversary of Date of Grant

            	 	
              66%

            
	
              Fifth
                Annual Anniversary of Date of Grant

            	 	
              100%

            

    

    

    To
      the
      extent the Forfeiture Restrictions and Transfer Restrictions shall have lapsed
      under this Section 3(c) with respect to the Shares, those Shares (the “Vested
      Shares”) will, effective on and after the Vesting Date, thereafter be free of
      the Forfeiture Restrictions set forth in Section 3(b) and Transfer Restrictions
      under Section 3(a) hereof, but such Vested Shares will continue to be subject
      to
      all of the remaining terms and conditions of this Agreement as applicable.
      Any
      Shares for which the Forfeiture Restrictions and Transfer Restrictions have
      not
      yet lapsed in accordance with this Section 3(c) hereof shall, for purposes
      of
      this Agreement, be considered (“Non-Vested Shares”).

    

    4. Administration.
      This
      Agreement and the rights of the Participant hereunder are subject to all the
      terms and conditions of the Plan, as the same may be amended from time to time,
      as well as to such rules and regulations as the Executive Compensation Committee
      may adopt for administration of the Plan. It is expressly understood that the
      Executive Compensation Committee is authorized to administer, construe, and
      make
      all determinations necessary or appropriate to the administration of the Plan
      and this Agreement, all of which shall be binding upon the Participant. Any
      inconsistency between the Agreement and the Plan shall be resolved in favor
      of
      the Plan.

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

      
        
          
            
              Exhibit
                10.109

              FORM
                AGREEMENT

            

          

           

        

      

    

    5. Reservation
      of Shares.
      The
      Company hereby agrees that at all times there shall be reserved for issuance
      and/or delivery upon grant such number of shares of Stock as shall be required
      for issuance or delivery upon the grant of the Shares hereunder. 

    

    6. Adjustments.
      The
      Shares subject to this Agreement shall also be subject to adjustment in
      accordance with Section 4.4 of the Plan.

    

    7. Exclusion
      from Pension Computations. By
      acceptance of the grant pursuant to this Agreement, the Participant hereby
      agrees that any income or gain realized upon the receipt of the Stock hereof,
      upon the disposition of the Shares received, or upon the lapse of the
      restrictions pursuant to the terms of this Agreement, is special incentive
      compensation and shall not be taken into account, to the extent provided under
      the applicable plan documents and to the extent permissible under applicable
      law, as “wages,” “salary,” or “compensation” in determining the amount of any
      payment under any pension, retirement, incentive, profit sharing, bonus or
      deferred compensation plan of the Company or any of its subsidiaries or
      affiliates.

    

    8. Amendment.
      The
      Executive Compensation Committee may, with the consent of the Participant,
      at
      any time or from time to time amend the provisions, terms and conditions of
      this
      Agreement, and may at any time or from time to time amend the provisions, terms
      and conditions of this Agreement in accordance with the Plan and applicable
      law.

    

    9. Notices.
      Any
      notice which either party hereto may be required or permitted to give to the
      other shall be in writing, and may be delivered personally or by mail, postage
      prepaid, or overnight courier, addressed as follows: if to the Company, at
      its
      office at 150 East Gay Street, Suite 24, Attn: General Counsel, Columbus, Ohio
      43215 or at such other address as the Company by notice to the Participant
      may
      designate in writing from time to time; and if to the Participant, at the
      address shown below his or her signature on this Agreement, or at such other
      address as the Participant by notice to the Company may designate in writing
      from time to time. Notices shall be effective upon receipt. 

    

    10. Withholding
      Taxes.
      The
      Company shall have the right to withhold from a Participant, or otherwise
      require such Participant to pay, any Withholding Taxes (defined below) arising
      as a result of the grant of any Shares, the lapse of any Forfeiture Restrictions
      or Transfer Restrictions on any Shares, the transfer of any Shares, any tax
      election by the Participant, or any other taxable event. If the Participant
      shall fail to make such Withholding Tax payments when and as required, the
      Company (or its Affiliates or Subsidiaries) shall, to the extent permitted
      by
      law, have the right to deduct any such Withholding Taxes from any payment of
      any
      kind otherwise due to such Participant or to take such other action as may
      be
      necessary to satisfy such Withholding Taxes. If the Participant makes an
      election pursuant to Section 83(b) of the Code concerning a Restricted Share
      Award then the Participant shall submit a copy of such election to the Company.
      In satisfaction of the requirement to pay Withholding Taxes, the Participant
      may
      make a written election which may be accepted or rejected in the discretion
      of
      the Executive Compensation Committee, to tender other Shares to the Company
      (either by actual delivery or attestation, in the sole discretion of the
      Executive Compensation Committee, provided that, except as otherwise determined
      by the Executive Compensation Committee, the Shares that are tendered must
      have
      been held by the Participant for at least six (6) months prior to their tender
      to satisfy the Grant Price or have been purchased on the open market), having
      an
      aggregate Fair Market Value equal to the Withholding Taxes. “Withholding Taxes”
means any federal, state, or local income, employment, payroll, or similar
      tax
      related to the Shares that are required to be withheld by the
      Company.

    

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

      
        
          
            
              Exhibit
                10.109

              FORM
                AGREEMENT

            

          

           

        

      

    

    11. Registration;
      Legend.
      The
      Company may postpone the issuance and delivery of Shares under this Agreement
      until (a) the admission of such Shares to listing on any stock exchange or
      exchanges on which Stock of the Company of the same class are then listed and
      (b) the completion of such registration or other qualification of such Shares
      under any state or federal law, rule or regulation as the Company shall
      determine to be necessary or advisable. The Participant shall make such
      representations and furnish such information as may, in the opinion of counsel
      for the Company, be appropriate to permit the Company, in light of the then
      existence or non-existence with respect to such Shares of an effective
      Registration Statement under the Securities Act of 1933, as amended, to issue
      the Shares in compliance with the provisions of that or any comparable act.
      The
      Company may cause the following or a similar legend to be set forth on each
      certificate representing the Stock granted hereunder unless counsel for the
      Company is of the opinion as to any such certificate that such legend is
      unnecessary:

    

    THE
      SALE OR TRANSFER OF THE COMMON SHARES OF STOCK REPRESENTED BY THIS CERTIFICATE,
      WHETHER VOLUNTARY, INVOLUNTARY, OR BY OPERATION OF LAW, IS SUBJECT TO CERTAIN
      RESTRICTIONS ON TRANSFER AS SET FORTH IN THE GLIMCHER REALTY TRUST 2004
      INCENTIVE COMPENSATION PLAN (THE “PLAN”), AND IN THE ASSOCIATED RESTRICTED STOCK
      AGREEMENT FOR THE HOLDER HEREOF. A COPY OF THE PLAN AND SUCH RESTRICTED STOCK
      AGREEMENT MAY BE OBTAINED FROM GLIMCHER REALTY TRUST. 

    

    12.  
      Miscellaneous

    

    a. This
      Agreement shall not confer upon the Participant any right to continuation of
      employment by the Company, nor shall this Agreement interfere in any way with
      the Company’s right to terminate the Participant’s employment at any
      time.

    

    b. The
      Participant shall, to the extent permitted by applicable law, have full voting
      rights as a stockholder of the Company with respect to the Shares granted
      hereunder and the right to receive applicable dividends for the Stock granted
      hereunder.

    

    c. With
      the
      approval of the Board, the Executive Compensation Committee may terminate,
      amend, or modify the Plan; provided, however, that no such termination,
      amendment, or modification of the Plan may in any way adversely affect the
      Participant’s rights under this Agreement or be contrary to applicable
      law.

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

      
        
          
            
              Exhibit
                10.109

              FORM
                AGREEMENT

            

          

           

        

      

    

    d. This
      Agreement shall be subject to all applicable laws, rules, and regulations,
      and
      to such approvals by any governmental agencies or national securities exchanges
      as may be required. 

    

    e. To
      the
      extent not preempted by federal law, this Agreement shall be governed by, and
      construed in accordance with the laws of the State of New York.

    

    f. All
      obligations of the Company under the Plan and this Agreement, with respect
      to
      the Shares, shall be binding on any successor to the Company, whether the
      existence of such successor is the result of a direct or indirect purchase,
      merger, consolidation, or otherwise, of all or substan-tially all of the
      business and/or assets of the Company.

    

    g. The
      provisions of this Agreement are severable and if any one or more provisions
      are
      determined to be illegal or otherwise unenforceable, in whole or in part, the
      remaining provisions shall nevertheless be binding and enforceable.

    

    h. By
      executing this Agreement and accepting this Award or other benefit under the
      Plan, the Participant and each person claiming under or through the Participant
      shall be conclusively deemed to have indicated their acceptance and ratification
      of, and consent to, any action taken under the Plan by the Company, the Board
      or
      the Executive Compensation Committee.

    

    i. The
      Participant, every person claiming under or through the Participant, and the
      Company hereby waives to the fullest extent permitted by applicable law any
      right to a trial by jury with respect to any litigation directly or indirectly
      arising out of, under, or in connection with the Plan or this Agreement issued
      pursuant to the Plan.

    

    j. This
      Agreement, the Plan, and any certificate representing the Stock granted
      hereunder shall constitute the entire agreement and understanding between the
      Participant and the Company concerning the grant of the Stock hereunder and
      with
      respect to the subject matter contained herein. This Agreement, the Plan, and
      any certificate representing the Stock granted hereunder supersede all prior
      agreements and the understandings between the Parties with respect to the grant
      of the Stock hereunder and with respect to the subject matter contained
      herein.

    

    13. Exculpation.
      This
      Agreement and all documents, agreements, understandings and arrangements
      relating hereto have been executed by the undersigned in his/her capacity as
      an
      officer or Trustee of the Company, which has been formed as a Maryland real
      estate investment trust pursuant to an Amended and Restated Declaration of
      Trust
      of the Company dated as of November 1, 1993, as amended, and not individually,
      and neither the trustees, officers or shareholders of the Company nor the
      trustees, directors, officers or shareholders of any subsidiary or affiliate
      of
      the Company shall be bound or have any personal liability hereunder or
      thereunder. Each party hereto shall look solely to the assets of the Company
      for
      satisfaction of any liability of the Company in respect of this Award and all
      documents, agreements, understanding and arrangements relating hereto and will
      not seek recourse or commence any action against any of the trustees, officers,
      agents or shareholders of the Company or any of the trustees, directors, agents,
      officers or shareholders of any subsidiary or affiliate of the Company, or
      any
      of their personal assets for the performance or payment of any obligation
      hereunder or thereunder. The foregoing shall also apply to any future documents,
      agreements, understandings, arrangements and transactions between the parties
      hereto.

    

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

      
        
          
            
              Exhibit
                10.109

              FORM
                AGREEMENT

            

          

           

        

      

    

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

    

    GLIMCHER
      REALTY TRUST

    

    

    By:
      ______________________

    Print
      Name: 

    Title:
      

    

    ACKNOWLEDGED
      & ACCEPTED:

    

    

    ______________________________________

    Signature

    

    Print
      Name:_____________________________

     

    Address:
      ______________________________

     ______________________________

     ______________________________

    
       

       

       

      6

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