Document:

EXHIBIT 10.10
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                         COMMON STOCK PURCHASE AGREEMENT

                                     BETWEEN

                           ALPHA VENTURE CAPITAL, INC.

                                       AND

                           EARTH SEARCH SCIENCES, INC.

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                            DATED AS OF MAY 23, 2001

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          This COMMON STOCK PURCHASE AGREEMENT is entered into as of the 23rd
day of May, 2001 (this "Agreement"), between Alpha Venture Capital, Inc., a
corporation organized and existing under the laws of the Cook Islands (the
"Investor"), and Earth Search Sciences, Inc., a corporation organized and
existing under the laws of the State of Utah (the "Company").

         WHEREAS, the parties desire that, upon the terms and subject to the
conditions contained herein, the Company shall issue and sell to the Investor
and the Investor shall purchase (i) from time to time as provided herein, up to
$10,000,000 of the Common Stock (as defined below), and (ii) Warrants (as
defined below) to purchase shares of Common Stock; and

         WHEREAS, such investments will be made in reliance upon the provisions
of Section 4(2) ("Section 4(2)") and Regulation D ("Regulation D") of the United
States Securities Act of 1933, as amended and the regulations promulgated
thereunder (the "Securities Act"), and/or upon such other exemption from the
registration requirements of the Securities Act as may be available with respect
to any or all of the investments in Common Stock to be made hereunder.

         NOW, THEREFORE, the parties hereto agree as follows:

                                    ARTICLE I

                               CERTAIN DEFINITIONS

         Section 1.1 "Affiliate" shall have the meaning assigned to such term in
Section 3.4 hereof.

         Section 1.2 "Average Daily Trading Volume" shall mean the dollar amount
of the average daily trading volume of shares of Common Stock, calculated based
upon the average Bid Price and average daily trading volume traded over the
twenty (20) Trading Days preceding the Put Date.

         Section 1.3 "Bid Price" shall mean the closing bid price of the Common
Stock on the Principal Market.

         Section 1.4 "Capital Shares" shall mean the Common Stock and any shares
of any other class of common stock whether now or hereafter authorized, having
the right to participate in the distribution of earnings and assets of the
Company.

         Section 1.5 "Commitment Amount" shall mean the $10,000,000 up to which
the Investor has agreed to provide to the Company in order to purchase Put
Shares pursuant to the terms and conditions of this Agreement.

         Section 1.6 "Commitment Period" shall mean the period commencing on the
Effective Date and expiring on the earlier to occur of (x) the date on which the
Investor shall have purchased Put Shares pursuant to this Agreement for an
aggregate Purchase Price of $10,000,000, or (y) the date occurring twelve (12)
months from the Effective Date; provided, however, if at least twenty percent
(20%) (i.e., $2,000,000) of the Commitment Amount is purchased during the first
twelve (12) months from the Effective Date, the Commitment Period shall be
extended for an additional twelve (12) months.

         Section 1.7 "Common Stock" shall mean the Company's common stock,
$0.001 par value per share.

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         Section 1.8 "Common Stock Equivalents" shall mean any securities that
are convertible into or exchangeable for Common Stock or any warrants, options
or other rights to subscribe for or purchase Common Stock or any such
convertible or exchangeable securities.

         Section 1.9 "Condition Satisfaction Date" shall have the meaning
assigned to such term in Section 7.2 hereof.

         Section 1.10 "Control Person" shall have the meaning assigned to such
term in Section 11.2(a) hereof.

         Section 1.11 "Damages" shall mean any loss, claim, damage, liability,
costs and expenses (including, without limitation, reasonable attorneys' fees
and disbursements and costs and expenses of expert witnesses and investigation).

         Section 1.12 "EDGAR" shall mean the SEC's electronic data gathering and
retrieval system.

         Section 1.13 "Effective Date" shall mean the date on which the SEC has
declared the Registration Statement effective.

         Section 1.14 "Escrow Agent" shall mean Dundee Securities Corporation.

         Section 1.15 "Exchange Act" shall mean the Securities Exchange Act of
1934, as amended and the regulations promulgated thereunder.

         Section 1.16 "Investment Amount" shall mean the dollar amount (within
the range specified in Section 2.1) to be invested by the Investor to purchase
Put Shares with respect to any Put Purchase Notice delivered by the Company to
the Investor in accordance with Section 2.1 hereof.

         Section 1.17 "Material Adverse Effect" shall mean any effect on the
business, operations, properties, prospects or financial condition of the
Company that is material and adverse to the Company or to the Company and such
other entities controlling or controlled by the Company, taken as a whole,
and/or any condition, circumstance or situation that would prohibit or otherwise
interfere with the ability of the Company to enter into and perform its
obligations under this Agreement.

         Section 1.18 "Market Price" shall mean for the purpose of calculating
the Purchase Price of the Put Shares, the average of the five (5) lowest
reported VWAP of the Common Stock over the Valuation Period.

         Section 1.19 "Maximum Put Amount" shall mean the lesser of $1,500,000
or three hundred percent (300%) of the Average Daily Trading Volume.

         Section 1.20 "Minimum Put Amount" shall mean the lesser of $150,000 or
three hundred percent (300%) of the Average Daily Trading Volume.

         Section 1.21 "NASD" shall mean the National Association of Securities
Dealers, Inc.

         Section 1.22 "Outstanding" when used with reference to Common Stock or
Capital Shares (collectively the "Shares"), shall mean, at any date as of which
the number of such Shares is to be determined, all issued and outstanding
Shares, and shall include all such Shares issuable in respect of

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outstanding scrip or any certificates representing fractional interests in such
Shares; provided, however, that "Outstanding" shall not mean any such Shares
then directly or indirectly owned or held by or for the account of the Company.

         Section 1.23 "Person" shall mean an individual, a corporation, a
partnership, an association, a limited liability company, a trust or other
entity or organization, including a government or political subdivision or an
agency or instrumentality thereof.

         Section 1.24 "Principal Market" shall mean the NASD OTC Bulletin Board,
Nasdaq SmallCap Market, the Nasdaq National Market, the American Stock Exchange
or the New York Stock Exchange, whichever is at the time the principal trading
exchange or market for the Common Stock.

         Section 1.25 "Prospectus" as used in this Agreement means the
prospectus in the form included in the Registration Statement, as supplemented
by any prospectus supplement filed with the SEC pursuant to Rule 424(b).

         Section 1.26 "Purchase Price" as used in this Agreement shall mean 88%
of the Market Price on the Put Date. The foregoing percentage is the "Purchase
Price Percentage."

         Section 1.27 "Put" shall mean each occasion the Company elects to draw
down a portion from the equity line by exercising its right to tender a Put
Purchase Notice requiring the Investor to purchase a specified amount of the
Company's Common Stock, subject to the terms of this Agreement which tender must
be given to the Investor.

         Section 1.28 "Put Closing" shall mean one of the closings of a purchase
and sale of the Put Shares pursuant to Section 2.3.

         Section 1.29 "Put Closing Date" shall mean, with respect to a Put
Closing the second (2nd) Trading Day following the Put Date related to such Put
Closing, provided all conditions to such Put Closing have been satisfied on or
before such Trading Day.

         Section 1.30 "Put Date" shall mean the date on which a Put Purchase
Notice is delivered to the Investor.

         Section 1.31 "Put Purchase Notice" shall mean a written notice to the
Investor setting forth the Investment Amount that the Company intends to sell to
the Investor, as such form is attached hereto as Exhibit A.

         Section 1.32 "Put Shares" shall mean all shares of Common Stock issued
or issuable pursuant to a Put that has occurred or may occur in accordance with
the terms and conditions of this Agreement.

         Section 1.33 "Registrable Securities" shall mean the Put Shares and the
Warrant Shares until all Put Shares and Warrant Shares have been disposed of
pursuant to the Registration Statement.

         Section 1.34 "Registration Statement" shall mean the registration
statement on Form S-1 filed with the SEC for the registration of the Put Shares
and Warrant Shares, as such Registration Statement may be amended from time to
time.

         Section 1.35 "Regulation D" shall have the meaning set forth in the
recitals of this Agreement.

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         Section 1.36 "SEC" shall mean the Securities and Exchange Commission.

         Section 1.37 "Section 4(2)" shall have the meaning set forth in the
recitals of this Agreement.

         Section 1.38 "Securities Act" shall have the definition ascribed to it
in the recitals of this Agreement.

         Section 1.39 "SEC Documents" shall mean, to the extent applicable, the
Company's latest Form 10-K as of the time in question, all Forms 10-Q and 8-K
filed thereafter and all exhibits and amendments thereto and the Proxy Statement
for its latest fiscal year as of the time in question until such time the
Company no longer has an obligation to maintain the effectiveness of a
Registration Statement.

         Section 1.40 "Trading Cushion" shall mean the mandatory minimum fifteen
(15) Trading Days between Put Dates.

         Section 1.41 "Trading Day" shall mean any day during which the
Principal Market shall be open for business.

         Section 1.42 "VWAP" shall mean the daily volume weighted average price
(based on a Trading Day from 9:30 a.m. to 4:00 p.m., eastern time) of the Common
Stock of the Company on the OTC Bulletin Board (or any successor thereto) as
reported by Bloomberg Financial LP using the AQR function.

         Section 1.43 "Valuation Event" shall mean an event in which the Company
at any time during a Valuation Period takes any of the following actions:

                      (a) subdivides or combines its Common Stock;

                      (b) pays a dividend in its Capital Stock or makes any
                  other distribution of its Capital Shares;

                      (c) issues any additional Capital Shares ("Additional
                  Capital Shares"), otherwise than as provided in the foregoing
                  Subsections (a) and (b) above, at a price per share less, or
                  for other consideration lower, than the Bid Price in effect
                  immediately prior to such issuance, or without consideration;

                      (d) issues any warrants, options or other rights to
                  subscribe for or purchase any Additional Capital Shares and
                  the price per share for which Additional Capital Shares may at
                  any time thereafter be issuable pursuant to such warrants,
                  options or other rights shall be less than the Bid Price in
                  effect immediately prior to such issuance;

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

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

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

         Section 1.44 "Valuation Period" shall mean the period of ten (10)
Trading Days immediately preceding the Put Date during which the Purchase Price
of the Common Stock is determined.

         Section 1.45 "Warrants" shall mean the common stock purchase warrants
of the Company described in Section 2.4, a form of which is annexed hereto as
Exhibit G.

         Section 1.46 "Warrant Shares" shall mean the Common Stock issuable upon
exercise of the Warrants.

                                   ARTICLE II

                        PURCHASE AND SALE OF COMMON STOCK

         Section 2.1 Investments/Puts. Upon the terms and conditions set forth
herein (including, without limitation, the provisions of Article VII hereof), on
any Put Date the Company may exercise a Put by the delivery of a Put Purchase
Notice. The number of Put Shares that the Investor shall receive pursuant to
such Put shall be determined by dividing the relevant portions of the Investment
Amount specified in the Put Purchase Notice by the Purchase Price determined
during the Valuation Period. The Investment Amount for each Put as designated by
the Company in the applicable Put Purchase Notice shall be neither less than the
Minimum Put Amount and not more than the Maximum Put Amount and shall be subject
always to a limit of three hundred percent (300%) of the Average Daily Trading
Volume.

         Section 2.2 Mechanics.

                  (a) Put Purchase Notice. At any time during the Commitment
Period, the Company may deliver a Put Purchase Notice, in substantially the form
and substance of Exhibit A, to the Investor, subject to the conditions set forth
in Section 7.2.

                  (b) Date of Delivery of Put Purchase Notice. A Put Purchase
Notice shall be deemed delivered on (i) the Trading Day it is received by
facsimile or otherwise by the Investor if such notice is received prior to 2:00
p.m. New York time, or (ii) the immediately succeeding Trading Day if it is
received by facsimile or otherwise after 2:00 p.m. New York time on a Trading
Day or at any time on a day which is not a Trading Day. No Put Purchase Notice
may be deemed delivered on a day that is not a Trading Day.

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                  (c) Determination of Put Shares Issuable. The Purchase Price
shall be based on the Purchase Price Percentage of the Market Price during the
Valuation Period. The number of Put Shares to be purchased by the Investor shall
be settled on the Put Closing Date.

         Section 2.3 Put Closings. On the first (1st) Trading Day following any
Put Date, the Company shall have delivered to the Escrow Agent certificates for
such number of shares of Common Stock, the Warrants and a certificate for such
number of Warrant Shares issuable upon exercise of the Warrants and the Investor
shall deliver to the Escrow Agent the Purchase Price for such Put in immediately
available funds. On the Put Closing Date, upon the joint written directions of
the Company and the Investor, the Escrow Agent shall deliver the certificates to
the Investor and the Purchase Price to the Company. Additionally, on or prior to
the Put Closing Date, each of the Company and the Investor shall deliver all
documents, instruments and writings required to be delivered by either of them
pursuant to this Agreement in order to implement and effect the transactions
contemplated herein. Payment of funds to the Company and delivery of the
certificates to the Investor shall occur out of escrow in accordance with the
escrow agreement referred to in Section 6.2(o) following (x) the Company's
deposit into escrow of the unlegended certificates representing the Put Shares
and (y) the Investor's deposit into escrow of the Investment Amount.

         Section 2.4 Purchase and Sale of Warrants. Under the terms of this
Agreement, on the date hereof, the Company shall issue to the Investor Warrants
to purchase 3,000,000 shares of Common Stock exercisable for a period of five
(5) years, of which Warrants to purchase 1,500,000 shares of Common Stock shall
be immediately exercisable (the "A Warrants") and Warrants to purchase 1,500,000
shares of Common Stock shall be exercisable after the Effective Date (the "B
Warrants").

         Section 2.5 Valuation Event. If a Valuation Event occurs at any time
during a Valuation Period, the Investor may in its sole discretion (i) purchase
the Investment Amount of shares of Common Stock granted during such Valuation
Period on the terms at which the Company issued shares of Common Stock pursuant
to the Valuation Event during such Valuation Period, net of any third party's
discount and fees, (ii) purchase the Investment Amount of shares of Common Stock
granted during such Valuation Period at the applicable Purchase Price for such
Valuation Period, or (iii) elect not to purchase any shares of Common Stock
during such Valuation Period. The Investor shall notify the Company of its
election on the last Trading Day of the Valuation Period.

         Section 2.6 Liquidated Damages. If the Company fails to cause its
transfer agent to deliver to the Investor unlegended certificates representing
Put Shares to be sold or in connection with the sale by the Investor within
three (3) business days of the Investor's request, the Company shall pay the
Investor, as liquidated damages for such failure to deliver and not as a
penalty, in cash, an amount equal to $500 per each $100,000 funded for each day
that such Put Shares are not delivered up to ten (10) days, and $1,000 per each
$100,000 funded for each day that the Put Shares are not delivered in excess of
ten (10) days, until such Put Shares have been delivered. The Escrow Agent shall
be directed to pay such liquidated damages to the Investor out of the Investment
Amount delivered by the Investor to the Escrow Agent. If no funds remain in
escrow, the Company will be liable for the liquidated damages which shall be
payable on demand.

         Section 2.7 Termination of Investment Obligation. The obligation of the
Investor to purchase shares of Common Stock shall terminate permanently
(including with respect to a Put Closing Date that has not yet occurred) in the
event that (i) there shall occur any stop order or suspension of the
effectiveness of the Registration Statement for a consecutive ten day calendar
period or for an aggregate

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of thirty (30) Trading Days during the Commitment Period, for any reason, or
(ii) the Company shall at any time fail to comply with the requirements of
Section 5.2, 5.3, 5.4, 5.5 or 5.6.

                                   ARTICLE III

                   REPRESENTATIONS AND WARRANTIES OF INVESTOR

         The Investor represents and warrants to the Company that:

         Section 3.1 Intent. The Investor is entering into this Agreement for
its own account and not with a view to the distribution of the Common Stock, and
the Investor has no present arrangement (whether or not legally binding) at any
time to sell the Common Stock to or through any person or entity; provided,
however, that by making the representations herein, the Investor does not agree
to hold the Common Stock for any minimum or other specific term and reserves the
right to dispose of the Common Stock at any time in accordance with federal and
state securities laws applicable to such disposition.

         Section 3.2 Sophisticated Investor. The Investor is a sophisticated
investor (as described in Rule 506(b)(2)(ii) of Regulation D) and an accredited
investor (as defined in Rule 501 of Regulation D), and the Investor has such
experience in business and financial matters that it is capable of evaluating
the merits and risks of an investment in Common Stock. The Investor acknowledges
that an investment in the Common Stock is speculative and involves a high degree
of risk.

         Section 3.3 Authority. This Agreement has been duly authorized and
validly executed and delivered by the Investor and is a valid and binding
agreement of the Investor enforceable against it in accordance with its terms,
subject to applicable bankruptcy, insolvency, or similar laws relating to, or
affecting generally the enforcement of, creditors' rights and remedies or by
other equitable principles of general application.

         Section 3.4 Not an Affiliate. The Investor is not an officer, director
or to Investor's good faith belief, an "affiliate" (as that term is defined in
Rule 405 of the Securities Act) of the Company.

         Section 3.5 Absence of Conflicts. The execution and delivery of this
Agreement and any other document or instrument executed in connection herewith,
and the consummation of the transactions contemplated hereby, and compliance
with the requirements hereof, will not violate any law, rule, regulation, order,
writ, judgment, injunction, decree or award binding on Investor, or, to the
Investor's knowledge, (a) violate any provision of any indenture, instrument or
agreement to which Investor is a party or is subject, or by which Investor or
any of its assets is bound, (b) conflict with or constitute a material default
thereunder, (c) result in the creation or imposition of any lien pursuant to the
terms of any such indenture, instrument or agreement, or constitute a breach of
any fiduciary duty owed by Investor to any third party, or (d) require the
approval of any third-party (which has not been obtained) pursuant to any
material contract, agreement, instrument, relationship or legal obligation to
which Investor is subject or to which any of its assets, operations or
management may be subject.

         Section 3.6 Disclosure; Access to Information. The Investor has
received all documents, records, books and other information pertaining to
Investor's investment in the Company that have been requested by the Investor.
The Company is subject to the periodic reporting requirements of the Exchange
Act, and the Investor has had access to copies of any such reports that have
been requested by it.

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         Section 3.7 Manner of Sale. At no time was Investor presented with or
solicited by or through any leaflet, public promotional meeting, television
advertisement or any other form of general solicitation or advertising.

         Section 3.8 Governmental Review. Investor understands that no United
States federal or state agency or any other government or governmental agency
has passed upon or made any recommendation or endorsement of the Common Stock,
the Warrants and the Warrant Shares.

         Section 3.9 Transfer or Re-sale. Investor understands that: (i) except
as provided in the Registration Rights Agreement by and between the Investor and
the Company, dated the date hereof, the sale or re-sale of the Common Stock, the
Warrants and the Warrant Shares has not been and is not being registered under
the Securities Act or any applicable state securities laws, and the Common
Stock, the Warrants and the Warrant Shares may not be transferred unless (a) the
Common Stock, the Warrants and the Warrant Shares are sold pursuant to an
effective registration statement under the Securities Act, (b) the Investor
shall have delivered to the Company an opinion of counsel (which opinion shall
be in form, substance and scope customary for opinions of counsel in comparable
transactions) to the effect that the Common Stock, the Warrants and the Warrant
Shares to be sold or transferred may be sold or transferred pursuant to an
exemption from registration, (c) the Common Stock, the Warrants and the Warrant
Shares are sold or transferred to an "affiliate" (as defined in Rule 144 of the
Securities Act) of the Investor who agrees to sell or otherwise transfer the
Common Stock, the Warrants and the Warrant Shares only in accordance with this
Section 3.9 and who is an Accredited Investor (as defined in Regulation D), (d)
the Common Stock, the Warrants and the Warrant Shares are sold pursuant to Rule
144; (ii) any sales of the Common Stock, the Warrants and the Warrant Shares
made in reliance on Rule 144 may be made only in accordance with the terms of
such rule and further, if such rule is not applicable, any re-sale of the Common
Stock, the Warrants and the Warrant Shares under circumstances in which the
seller (or the person through whom the sale is made) may be deemed to be an
underwriter (as defined in the Securities Act) may require compliance with some
other exemption under the Securities Act or the rules and regulations of the SEC
thereunder; and (iii) neither the Company nor any other person is under any
obligation to register the Common Stock, the Warrants and the Warrant Shares
under the Securities Act or any state securities laws or comply with the terms
and conditions of any exemption thereunder (in each case, other than pursuant to
the Registration Rights Agreement).

         Section 3.10 Trading Guidelines. So long as Investor holds Common
Stock, Warrants or Warrant Shares, Buyer covenants and agrees that it will
conduct all sales of Common Stock in compliance with applicable securities laws.

                                   ARTICLE IV

                  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

         The Company represents and warrants to the Investor, except as may be
set forth in the Disclosure Schedule delivered in connection herewith, that:

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

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

         Section 4.3 Capitalization. As of May 15, 2001, the authorized capital
stock of the Company consists of 200,000,000 shares of Common Stock, of which
154,910,609 shares are issued and outstanding, and 200,000 shares of preferred
stock are issued and outstanding. Except as set forth in Schedule 4.3, there are
no options, warrants, or rights to subscribe to, securities, rights or
obligations convertible into or exchangeable for or giving any right to
subscribe for any shares of capital stock of the Company. All of the outstanding
shares of Common Stock of the Company have been duly and validly authorized and
issued and are fully paid and nonassessable.

         Section 4.4 Common Stock. As of the commencement of the Commitment
Period, the Company will have registered its Common Stock pursuant to Section
12(b) or 12(g) of the Exchange Act and be in full compliance with all reporting
requirements of the Exchange Act, if any, and the Company will have maintained
all requirements for the continued listing or quotation of its Common Stock, and
such Common Stock is then listed or quoted on the Principal Market. As of the
date hereof, the Common Stock is traded on the OTC Bulletin Board.

         Section 4.5 Financial Statements. The Company has delivered or made
available to the Investor true and complete copies of unaudited financial
statements (with footnotes if available) as of and for the period ending
December 31, 2000 (the "Financial Statements"). The Company has not provided to
the Investor any information that, according to applicable law, rule or
regulation, should have been disclosed publicly prior to the date hereof by the
Company, but which has not been so disclosed. The Financial Statements fairly
present in all material respects the financial position of the Company as of the
dates thereof and the results of operations for the periods then ended, subject
to normal year-end audit adjustments.

         Section 4.6 Valid Issuances. Assuming the accuracy of the
representations and warranties contained in Sections 3.1, 3.2, 3.4 and 3.7
hereof both at the date hereof and at the time of sale and issuance, the sale
and issuance of the Put Shares will be exempt from registration under the
Securities Act in reliance upon Section 4(2) thereof and/or Regulation D thereto
and when issued, the Put Shares shall be duly and validly issued, fully paid,
and nonassessable. Neither the sales of the Put Shares pursuant to, nor the
Company's performance of its obligations under this Agreement will (i) result in
the creation or imposition of any liens, charges, claims or other encumbrances
upon the Put Shares or any of the assets of the Company, or (ii) entitle the
holders of Outstanding Capital Shares to preemptive or other rights to subscribe
to or acquire the Capital Shares or other securities of the Company. The Put
Shares shall not subject the Investor to personal liability by reason of the
possession thereof.

         Section 4.7 No General Solicitation or Advertising in Regard to this
Transaction. Neither the Company nor any of its affiliates nor any distributor
or any person acting on its or their behalf (i) has

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conducted or will conduct any general solicitation (as that term is used in Rule
502(c) of Regulation D) or general advertising with respect to any of the Put
Shares, or (ii) made any offers or sales of any security or solicited any offers
to buy any security under any circumstances that would require registration of
the Common Stock under the Securities Act.

         Section 4.8 Corporate Documents. The Company has furnished or made
available to the Investor true and correct copies of the Company's Certificate
of Incorporation, as amended and in effect on the date hereof (the
"Certificate"), and the Company's By-Laws, as amended and in effect on the date
hereof (the "By-Laws").

         Section 4.9 No Conflicts. The execution, delivery and performance of
this Agreement by the Company and the consummation by the Company of the
transactions contemplated hereby, including, without limitation, the issuance of
Common Stock do not and will not (i) result in a violation of the Company's
Certificate or By-Laws or (ii) conflict with, or constitute a default (or an
event that with notice or lapse of time or both would become a default) under,
or give to others any rights of termination, amendment, acceleration or
cancellation of, any material agreement, indenture, instrument or any "lock-up"
or similar provision of any underwriting or similar agreement to which the
Company is a party, or (iii) result in a violation of any federal, state, local
or foreign law, rule, regulation, order, judgment or decree (including federal
and state securities laws and regulations) applicable to the Company or by which
any property or asset of the Company is bound or affected (except for such
conflicts, defaults, terminations, amendments, accelerations, cancellations and
violations as would not, individually or in the aggregate, have a Material
Adverse Effect) nor is the Company otherwise in violation of, conflict with or
in default under any of the foregoing; provided that, for purposes of the
Company's representations and warranties as to violations of foreign law, rule
or regulation referenced in clause (iii), no such representations and warranties
are being made insofar as the execution, delivery and performance of this
Agreement by the Company and the consummation by the Company of the transactions
contemplated hereby are or may be affected by the status of the Investor under
or pursuant to any such foreign law, rule or regulation. The business of the
Company is not being conducted in violation of any law, ordinance or regulation
of any governmental entity, except for possible violations that either
individually or in the aggregate do not and will not have a Material Adverse
Effect. The Company is not required under federal, state or local law, rule or
regulation to obtain any consent, authorization or order of, or make any filing
or registration with, any court or governmental agency in order for it to
execute, deliver or perform any of its obligations under this Agreement or issue
and sell the Common Stock in accordance with the terms hereof (other than any
SEC, NASD or state securities filings that may be required to be made by the
Company subsequent to any Put Closing, any registration statement that may be
filed pursuant hereto, and any shareholder approval required by the rules
applicable to companies whose common stock trades on any Principal Market);
provided that, for purposes of the representation made in this sentence, the
Company is assuming and relying upon the accuracy of the relevant
representations and agreements of the Investor herein.

         Section 4.10 No Material Adverse Change. Since the date of the
Financial Statements described in Section 4.5, no Material Adverse Effect has
occurred or exists with respect to the Company.

         Section 4.11 No Undisclosed Liabilities. The Company has no liabilities
or obligations which are material, individually or in the aggregate, and are not
disclosed to the Investor in the Financial Statements or otherwise in writing,
other than those incurred in the ordinary course of the Company's businesses
since the date of the Financial Statements and which, individually or in the
aggregate, do not or would not have a Material Adverse Effect on the Company.

                                       11
<PAGE>

         Section 4.12 No Undisclosed Events or Circumstances. No event or
circumstance has occurred or exists with respect to the Company or its
businesses, properties, prospects, operations or financial condition, that,
under applicable law, rule or regulation, requires as of the date hereof, public
disclosure or announcement prior to the date hereof by the Company.

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

         Section 4.14 Litigation and Other Proceedings. Except as set forth in
the Financial Statements described in Section 4.5, there are no lawsuits or
proceedings pending or to the best knowledge of the Company threatened, against
the Company, nor has the Company received any written or oral notice of any such
action, suit, proceeding or investigation, which might have a Material Adverse
Effect. Except as set forth on Schedule 4.14, no judgment, order, writ,
injunction, decree or award has been issued by or, so far as is known by the
Company, requested by any court, arbitrator or governmental agency which might
result in a Material Adverse Effect.

         Section 4.15 No Misleading or Untrue Communication. The Company and any
Person representing the Company, in connection with the transactions
contemplated by this Agreement, have not made, at any time, any communication in
connection with same, which contained any untrue statement of a material fact or
omitted to state any material fact necessary in order to make the statements, in
the light of the circumstances under which they were made, not misleading.

         Section 4.16 Non-Public Information. Neither the Company nor any of its
officers of agents has disclosed any material non-public information about the
Company to the Investor.

         Section 4.17 Securities Act of 1933. The Company has complied and will
comply in all material respects with all applicable federal and state securities
laws in connection with the offer, issuance and sale of the Put Shares and
Warrant Shares hereunder.

                  (i) Each Prospectus included as part of the Registration
Statement as originally filed or as part of any amendment or supplement thereto,
or filed pursuant to Rule 424 under the Securities Act, complied when so filed
in all material respects with the provisions of the Securities Act. The SEC has
not issued any order preventing or suspending the use of any Prospectus.

                  (ii) The Company meets the requirements for the use of Form
S-1 under the Securities Act. The Registration Statement in the form in which it
became effective and also in such form as it may be when any post-effective
amendment thereto became effective and the Prospectus and any supplement or
amendment thereto when filed with the SEC under Rule 424(b) under the Securities
Act, complied in all material respects with the provisions of the Securities Act
and did not at any such times contain an untrue statement of a material fact or
omit to state a material fact required to be stated therein or necessary to make
the statements therein (in the case of the Prospectus, in the light of the
circumstances under which they made) not misleading, except that this
representation and warranty does not apply to statements in or omissions from
the Registration Statement or the Prospectus made in reliance upon and in
conformity with information relating to the Investor furnished to the Company in
writing by or on behalf of the Investor expressly for use therein.

                                       12
<PAGE>

                  (iii) The Company has not distributed and, prior to the
completion of the sale of the Put Shares and Warrant Shares to the Investor,
will not distribute any offering material in connection with the offering and
sale of the Put Shares or Warrant Shares other than the Registration Statement,
the Prospectus or other materials, if any, permitted by the Securities Act.

         Section 4.18 Use of Proceeds. The proceeds from the sale of the Put
Shares and Warrant Shares will be used by the Company for working capital and
general corporate purposes.

                                    ARTICLE V

                            COVENANTS OF THE COMPANY

         Section 5.1 Effective Registration Statement. If it is necessary for
the Registration Statement or a post-effective amendment thereto to be declared
effective before the offering of the Put Shares or Warrant Shares may commence,
the Company will cause the Registration Statement or such post-effective
amendment to become effective as soon as reasonably practicable and will advise
the Investor promptly and, if requested by the Investor, will confirm such
advice in writing, when it receives notice that the Registration Statement or
such post-effective amendment has become effective.

         Section 5.2 Reservation of Common Stock. As of the date hereof, the
Company has reserved and the Company shall continue to reserve and keep
available at all times, free of preemptive rights, shares of Common Stock for
the purpose of enabling the Company to satisfy any obligation to issue the Put
Shares.

         Section 5.3 Quoting or Listing of Common Stock. The Company shall
maintain the quoting or listing of the Common Stock on a Principal Market, and
as soon as practicable (but in any event prior to the commencement of the
Commitment Period) to list the Put Shares on the Principal Market. The Company
further shall, if the Company applies to have the Common Stock traded on any
other Principal Market, include in such application the Put Shares, and shall
take such other action as is necessary or desirable to cause the Common Stock to
be listed on such other Principal Market as promptly as possible. The Company
shall take all action necessary to continue the quoting, listing and trading of
its Common Stock on the Principal Market and will comply in all respects with
the Company's reporting, filing and other obligations under the bylaws or rules
of the Principal Market.

         Section 5.4 Exchange Act Registration. The Company shall cause its
Common Stock to become and continue to be registered under Section 12(g) or
12(b) of the Exchange Act, will comply in all respects with its reporting and
filing obligations under the Exchange Act, and will not take any action or file
any document (whether or not permitted by the Exchange Act or the rules
thereunder) to terminate or suspend such registration or to terminate or suspend
its reporting and filing obligations under the Exchange Act. The Company will
take all action to obtain a listing and continue the listing and trading of its
Common Stock on the Principal Market and will comply in all respects with the
Company's reporting, filing and other obligations under the bylaws or rules of
the Principal Market.

         Section 5.5 Legends. The certificates evidencing the Common Stock to be
sold by the Investor shall be free of legends.

         Section 5.6 Corporate Existence. The Company will take all steps
necessary to preserve and continue the corporate existence of the Company.

                                       13
<PAGE>

         Section 5.7 Additional SEC Documents. In the event that the SEC
Documents furnished or submitted to the SEC by the Company are not available or
accessible by the Investor on EDGAR, the Company will deliver to the Investor,
as and when the originals thereof are submitted to the SEC for filing, copies of
all such SEC Documents.

         Section 5.8 Blackout Period. The Company will immediately notify the
Investor upon the occurrence of any of the following events in respect of the
Registration Statement or Prospectus: (i) receipt of any request for additional
information by the SEC or any other federal or state governmental authority
during the period of effectiveness of the Registration Statement for amendments
or supplements to the Registration Statement or related Prospectus; (ii) the
issuance by the SEC or any other federal or state governmental authority of any
stop order suspending the effectiveness of the Registration Statement or the
initiation of any proceedings for that purpose; (iii) receipt of any
notification with respect to the suspension of the qualification or exemption
from qualification of any of the Registrable Securities for sale in any
jurisdiction or the initiation or threatening of any proceeding for such
purpose; (iv) the happening of any event that makes any statement made in the
Registration Statement or Prospectus or any document incorporated or deemed to
be incorporated therein by reference untrue in any material respect or that
requires the making of any changes in the Registration Statement, Prospectus or
documents so that, in the case of the Registration Statement, it will not
contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein
not misleading, and that in the case of the Prospectus, it will not contain any
untrue statement of a material fact or omit to state any material fact required
to be stated therein or necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading; and (v) the
Company's reasonable determination that a post-effective amendment to the
Registration Statement would be appropriate; and the Company will promptly make
available to the Investor any such supplement or amendment to the Prospectus.
The Company shall not deliver to the Investor any Put Purchase Notice during the
continuation of any of the foregoing events or if the Company has knowledge that
any of the foregoing events will occur within ten (10) days of such knowledge.
If the Registration Statement shall cease to be effective for any reason
whatsoever (other than as a result of any actions or omissions of the Investor),
the Company shall immediately take all necessary action to cause the
Registration Statement to be amended or supplemented so as to cure the default.
Failure to cure such default within fifteen (15) business days shall result in
the Company paying a liquidated damage penalty of $1,000 per day for so long as
more than 10,000 shares of Common Stock are held by the Investor. Additionally,
if the Registration Statement is not declared effective by the Effectiveness
Date (as defined in the Registration Rights Agreement), the amount of A Warrants
issued to the Investor shall increase by five percent (5%) for each thirty (30)
day period that the Registration Statement is not declared effective after the
Effectiveness Date (as defined in the Registration Rights Agreement). If the
Registration Statement is not declared effective by the 150th day after the date
hereof, the Investor shall have the right to terminate this Agreement and retain
the A Warrants.

         Section 5.9 Disclosure of Material Information. In the event that any
or all of the information set forth on Schedule 7.2(a) hereto becomes material,
the Company shall make full and complete public disclosure if required by and in
accordance with all applicable law.

         Section 5.10 Other Financings. The Company covenants and agrees that it
will not, without the prior written consent of Investor, enter into any equity
financings containing any discount or variable pricing or issue any of its
equity securities (or instruments convertible into or exercisable for equity
securities) in any offerings priced at a discount to market or priced using a
variable pricing method with any third party until the later of (a) April 1,
2002 or (b) the expiration of the Commitment Period (the "Restrictive Period"),
other than as agreed to in writing by the parties; provided, however, that
during the

                                       14
<PAGE>

Restrictive Period, the Company shall be entitled to issue equity securities to
strategic partners and/or in connection with mergers or acquisitions in which
the Company is the surviving entity, so long as such securities are "restricted
securities" pursuant to Rule 144 of the Securities Act. Any equity financing or
debt financing arranged by the investment banking firm of Houlihan Lokey Howard
& Zukin in connection with the development of the Company's space program and
expansion of the Company's airborne business is hereby excluded from the
financing restrictions contained in this Section 5.10. The Company shall notify
the Investor in writing no later than ten (10) Trading Days prior to the
issuance of any convertible security or securities issued at a discount to
market.

         Section 5.11. Issuance of Put Shares. The sale and issuance of the Put
Shares shall be made in accordance with the provisions and requirements of
applicable federal and state law.

         Section 5.12 Amendments to the Registration Statement. The Company will
not (i) file any amendment to the Registration Statement or make any amendment
or supplement to the Prospectus relating to the Investor in any way whatsoever
of which the Investor shall not previously have been advised or to which the
Investor shall reasonably object after being so advised or (ii) so long as, in
the reasonable opinion of counsel for the Investor, a Prospectus is required to
be delivered in connection with sales by any Investor or dealer, file any
information, documents or reports pursuant to the Exchange Act without
delivering a copy of such information, documents or reports to the Investor,
promptly following such filing.

         Section 5.13 Prospectus Delivery. The Company shall file a prospectus
supplement to its Registration Statement on the first Trading Day immediately
following the end of each Valuation Period, and will deliver to the Investor,
without charge, in such quantities as reasonably requested by the Investor,
copies of each form of Prospectus and prospectus supplement on each Put Closing
Date. The Company consents to the use of the Prospectus (and of any amendment or
supplement thereto) in accordance with the provisions of the Securities Act and
with the securities or Blue Sky laws of the jurisdictions in which the Put
Shares or Warrant Shares may be sold by the Investor, in connection with the
offering and sale of the Put Shares and Warrant Shares and for such period of
time thereafter as the Prospectus is required by the Securities Act to be
delivered in connection with sales of the Put Shares and Warrant Shares. If
during such period of time any event shall occur that in the judgment of the
Company or in the opinion of counsel for the Investor is required to be set
forth in the Prospectus (as then amended or supplemented) or should be set forth
therein in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading, or if it is necessary
to supplement or amend the Prospectus to comply with the Securities Act or any
other law, the Company will forthwith prepare and file with the SEC an
appropriate supplement or amendment thereto, and will expeditiously furnish to
the Investor a reasonable number of copies thereof.

                                   ARTICLE VI

                          CONDITIONS TO DELIVERY OF PUT
                 PURCHASE NOTICES AND CONDITIONS TO PUT CLOSING

         Section 6.1 Conditions Precedent to the Obligation of the Company to
Issue and Sell Common Stock. The obligation hereunder of the Company to issue
and sell the Put Shares to the Investor incident to each Put Closing is subject
to the satisfaction, at or before each such Put Closing, of each of the
conditions set forth below.

                                       15
<PAGE>

                           (a) Accuracy of the Investor's Representation and
                  Warranties. The representations and warranties of the Investor
                  shall be true and correct in all material respects as of the
                  date of this Agreement and as of the date of each such Put
                  Closing as though made at each such time.

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

         Section 6.2 Conditions Precedent to the Right of the Company to Deliver
a Put Purchase Notice and the Obligation of the Investor to purchase Put Shares.
The right of the Company to deliver a Put Purchase Notice and the obligation of
the Investor hereunder to acquire and pay for the Put Shares incident to a Put
Closing is subject to the satisfaction, (i) on the Put Date, (ii) for each day
during the Valuation Period, and (iii) on the applicable Put Closing Date (each
a "Condition Satisfaction Date"), of each of the following conditions:

                           (a) Effective Registration Statement. The Company
                  shall have the Put Shares and Warrant Shares registered under
                  the Registration Statement equal to or in excess of the number
                  of Put Shares and Warrant Shares issuable pursuant this
                  Agreement. The Registration Statement registering the offer
                  and sale of the Put Shares and Warrant Shares shall have been
                  declared effective by the SEC and shall have been amended or
                  supplemented, as required, to disclose the sale of the Put
                  Shares and Warrant Shares prior to each Put Closing Date, as
                  applicable, and there shall be no stop order suspending the
                  effectiveness of the Registration Statement.

                           (b) Accuracy of the Company's Representations and
                  Warranties. The representations and warranties of the Company
                  shall be true and correct in all material respects as of each
                  Condition Satisfaction Date as though made at each such time
                  (except for representations and warranties specifically made
                  as of a particular date) with respect to all periods, and as
                  to all events and circumstances occurring or existing to and
                  including each Condition Satisfaction Date, except for any
                  conditions which have temporarily caused any representations
                  or warranties herein to be incorrect and which have been
                  corrected with no continuing impairment to the Company or the
                  Investor.

                           (c) Performance by the Company. The Company shall
                  have performed, satisfied and complied in all material
                  respects with all covenants, agreements and conditions
                  required by this Agreement to be performed, satisfied or
                  complied with by the Company at or prior to each Condition
                  Satisfaction Date, including but not limited to the
                  requirements for the Company and its transfer agent set forth
                  in Sections 8.1 and 8.2 to deliver Common Stock without
                  legends pursuant to the terms set forth in Sections 8.1 and
                  8.2, and Exhibit B hereto.

                           (d) No Injunction. No statute, rule, regulation,
                  executive order, decree, ruling or injunction shall have been
                  enacted, entered, promulgated or endorsed by any court or
                  governmental authority of competent jurisdiction that
                  prohibits or directly or materially adversely affects any of
                  the transactions contemplated by this Agreement, and

                                       16
<PAGE>

                  no proceeding shall have been commenced that may have the
                  effect of prohibiting or materially adversely affecting any of
                  the transactions contemplated by this Agreement.

                           (e) Adverse Changes. Since the date of filing of the
                  Company's most recent SEC Document, no event that had or is
                  reasonably likely to have a Material Adverse Effect has
                  occurred.

                           (f) No Suspension of Trading In or Delisting of
                  Common Stock. The trading of the Common Stock (including
                  without limitation the Put Shares) shall not have been
                  suspended by the SEC, the Principal Market or the NASD and the
                  Common Stock (including without limitation the Put Shares)
                  shall have been approved for listing or quotation and shall
                  have actually been listed or quoted on, and shall not have
                  been delisted from the Principal Market, nor shall the Company
                  have received any letter or notice of any suspension or
                  delisting or warning of such suspension or delisting. The
                  issuance of shares of Common Stock with respect to the
                  applicable Put Closing, if any, shall not violate the
                  shareholder approval requirements of the Principal Market.

                           (g) Legal Opinions. The Company's counsel shall
                  deliver to the Investor upon execution of this Agreement an
                  opinion in the form of Exhibit C hereto, addressing, among
                  other things, corporate matters and the exemption from
                  registration under the Securities Act of the issuance of the
                  Registrable Securities by the Company to the Investor under
                  this Agreement. The Company shall also have caused to be
                  delivered to the Investor, within five (5) Trading Days of the
                  Effective Date and upon the delivery of a Put Purchase Notice,
                  an updated opinion of the Company's counsel addressed to the
                  Investor; provided, however, that in the event that such an
                  opinion cannot be delivered by the Company's counsel to the
                  Investor, the Company shall not deliver a Put Purchase Notice.
                  If a Put Purchase Notice shall have been delivered in good
                  faith without knowledge by the Company that an opinion of
                  counsel cannot be delivered as required, at the option of the
                  Investor, either the applicable Put Closing Date shall
                  automatically be postponed for a period of up to five (5)
                  Trading Days until such an opinion is delivered to the
                  Investor, or such Put Closing shall otherwise be canceled.
                  Liquidated damages determined pursuant to Section 2.6 shall be
                  calculated and payable on the Put Closing Date.

                           (h) [Intentionally Omitted].

                           (i) Blue Sky. The Company shall have complied with
                  all blue sky laws to enable the Put Shares and Warrant Shares
                  to be issued and resold in the States of New York, New Jersey,
                  Florida, Connecticut and California.

                           (j) Ten Percent Limitation. The number of Put Shares
                  to be purchased on each Put Closing Date and the number of
                  Warrant Shares issuable upon any exercise of such Warrant by
                  the Investor shall not exceed the number of such shares that,
                  when aggregated with all other shares of Common Stock then
                  owned by the Investor beneficially or deemed beneficially
                  owned by the Investor, would result in the Investor owning
                  more than 9.99% of all of such Common Stock as would be
                  outstanding on such Put Closing Date or such date of exercise
                  of the Warrant, as determined in accordance with Section 16 of
                  the Exchange Act and the regulations promulgated thereunder.
                  For purposes of this Section 6.2(j), in the event that the
                  amount of Common Stock

                                       17
<PAGE>

                  outstanding as determined in accordance with Section 16 of the
                  Exchange Act and the regulations promulgated thereunder is
                  greater on a Put Closing Date than on the date upon which the
                  Put Purchase Notice associated with such Put Closing Date is
                  given, the amount of Common Stock outstanding on such Put
                  Closing Date shall govern for purposes of determining whether
                  the Investor, when aggregating all purchases of Common Stock
                  made pursuant to this Agreement and, if any, Shares, would own
                  more than 9.99% of the Common Stock following such Put Closing
                  Date.

                           (k) Cross Default. The Company shall not be in
                  default of a term, covenant, warranty or undertaking of any
                  other agreement to which the Company and Investor are parties,
                  nor shall there have occurred an event of default under any
                  such other agreement, in each case which default would have a
                  material adverse effect on the financial condition of the
                  Company or the Company's ability to comply with its
                  obligations to the Investor.

                           (l) No Knowledge. The Company shall have no knowledge
                  of any event more likely than not to have the effect of
                  causing such Registration Statement to be suspended or
                  otherwise ineffective (which event is more likely than not to
                  occur within the Valuation Period during which the Put
                  Purchase Notice is deemed delivered).

                           (m) Trading Cushion. The Trading Cushion shall have
                  elapsed since the immediately preceding Put Date.

                           (n) Shareholder Vote. The issuance of shares of
                  Common Stock with respect to the applicable Put Closing, if
                  any, shall not violate the shareholder approval requirements
                  of the Principal Market.

                           (o) Escrow Agreement. The parties hereto shall have
                  entered into an escrow agreement in the form of Exhibit D
                  hereto for the Purchase Prices due hereunder, providing for
                  the then prevailing interest on any funds deposited into the
                  escrow account established under such agreement.

                           (p) Escrow Shares. The Company shall maintain at all
                  times in the Escrow Account (as defined in the Escrow
                  Agreement) the greater of (a) 6,000,000 shares of Common Stock
                  and (b) 150% of the number of Put Shares issuable pursuant to
                  any upcoming Put, to enable the Escrow Agent to deliver the
                  Put Shares and the Warrant Shares to the Investor.

                           (q) Secretary's Certificate. The Investor shall have
                  received a Secretary's Certificate in substantially the form
                  and substance of Exhibit E hereto, executed by the Secretary
                  of the Company.

                           (r) Other. On each Condition Satisfaction Date, the
                  Investor shall have received such certificates and documents
                  as are required by this Agreement in order for the Investor to
                  confirm the Company's satisfaction of the conditions set forth
                  in this Section 6.2 including, without limitation, a
                  Compliance Certificate in substantially the form and substance
                  of Exhibit F hereto, executed by an executive officer of the
                  Company and to the effect that all the conditions to such Put
                  Closing shall have been satisfied as at the date of each such
                  certificate.

                                       18
<PAGE>

                                   ARTICLE VII

         DUE DILIGENCE REVIEW; NON-DISCLOSURE OF NON-PUBLIC INFORMATION

         Section 7.1 Due Diligence Review. The Company shall make available for
inspection and review by the Investor, advisors to and representatives of the
Investor (who may or may not be affiliated with the Investor and who are
reasonably acceptable to the Company), any underwriter participating in any
disposition of the Registrable Securities on behalf of the Investor pursuant to
the Registration Statement, any such registration statement or amendment or
supplement thereto or any blue sky, NASD or other filing, all financial and
other records, all SEC Documents and other filings with the SEC, and all other
corporate documents and properties of the Company as may be reasonably necessary
for the purpose of such review, and cause the Company's officers, directors and
employees to supply all such information reasonably requested by the Investor or
any such representative, advisor or underwriter in connection with such
Registration Statement (including, without limitation, in response to all
questions and other inquiries reasonably made or submitted by any of them),
prior to and from time to time after the filing and effectiveness of the
Registration Statement for the sole purpose of enabling the Investor and such
representatives, advisors and underwriters and their respective accountants and
attorneys to conduct initial and ongoing due diligence with respect to the
Company and the accuracy of the Registration Statement.

         Section 7.2 Non-Disclosure of Non-Public Information.

                  (a) Except as set forth on Schedule 7.2(a) hereof, the Company
represents and warrants that the Company and its officers, directors, employees
and agents have not disclosed any non-public information to the Investor or
advisors to or representatives of the Investor. The Company covenants and agrees
that it shall refrain from disclosing, and shall cause its officers, directors,
employees and agents to refrain from disclosing, unless prior to disclosure of
such information the Company identifies such information as being non-public
information and provides the Investor, such advisors and representatives with
the opportunity to accept or refuse to accept such non-public information for
review. The Company may, as a condition to disclosing any non-public information
hereunder, require the Investor's advisors and representatives to enter into a
confidentiality agreement in form reasonably satisfactory to the Company and the
Investor.

                  (b) The Company acknowledges and understands that the Investor
is entering into this Agreement at the request of the Company and in good faith
reliance on (i) the Company's representation set forth in Section 4.16 that
neither it nor its agents have disclosed to the Investor any material non-public
information; and (ii) the Company's covenant set forth in Section 5.9 that if
all or any portion of the information set forth on Schedule 7.2(a) becomes
material, the Company shall timely make full and complete public disclosure of
all or such portion of such information that shall have become material as
required by and in accordance with applicable law.

                  (c) Nothing herein shall require the Company to disclose
non-public information to the Investor or its advisors or representatives, and
the Company represents that it does not disseminate non-public information to
any investors who purchase stock in the Company in a public offering, to money
managers or to securities analysts, provided, however, that notwithstanding
anything herein to the contrary, the Company will, as hereinabove provided,
immediately notify the advisors and representatives of the Investor and, if any,
underwriters, of any event or the existence of any circumstance (without any
obligation to disclose the specific event or circumstance) of which it becomes
aware, constituting non-public information (whether or not requested of the
Company specifically or generally

                                       19
<PAGE>

during the course of due diligence by such persons or entities), which, if not
disclosed in the prospectus included in the Registration Statement would cause
such prospectus to include a material misstatement or to omit a material fact
required to be stated therein in order to make the statements, therein, in light
of the circumstances in which they were made, not misleading. Nothing contained
in this Section 7.2 shall be construed to mean that such persons or entities
other than the Investor (without the written consent of the Investor prior to
disclosure of such information) may not obtain non-public information in the
course of conducting due diligence in accordance with the terms of this
Agreement and nothing herein shall prevent any such persons or entities from
notifying the Company of their opinion that based on such due diligence by such
persons or entities, that the Registration Statement contains an untrue
statement of a material fact or omits a material fact required to be stated in
the Registration Statement or necessary to make the statements contained
therein, in light of the circumstances in which they were made, not misleading.

                                  ARTICLE VIII

                                     LEGENDS

         Section 8.1 Legend. Unless otherwise provided below, each certificate
representing the Put Shares and Warrant Shares shall be stamped or otherwise
imprinted with a legend substantially in the following form (the "Legend"):

                 THE SECURITIES REPRESENTED BY THIS CERTIFICATE (THE
                 "SECURITIES") HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
                 OF 1933, AS AMENDED (THE "SECURITIES ACT") OR ANY STATE
                 SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
                 DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND
                 UNDER APPLICABLE STATE SECURITIES LAWS OR EARTH SEARCH
                 SCIENCES, INC. (THE "COMPANY") SHALL HAVE RECEIVED AN OPINION
                 OF ITS COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE
                 SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE
                 SECURITIES LAWS IS NOT REQUIRED.

         As soon as practicable after the execution and delivery hereof, the
Company shall issue to the transfer agent instructions in substantially the form
of Exhibit B hereto. Such instructions shall be irrevocable by the Company from
and after the date thereof or from and after the issuance thereof. It is the
intent and purpose of such instructions, as provided therein, to require the
transfer agent to issue to the Investor, certificates evidencing the Put Shares
or Warrant Shares incident to a Put and issued on a Put Closing Date, free of
the Legend, without consultation by the transfer agent with the Company or its
counsel and without the need for any further advice or instruction or
documentation to the transfer agent by or from the Company or its counsel or the
Investor; provided, that (a) the Registration Statement shall then be effective,
(b) the Investor confirms to the transfer agent and the Company that it has or
intends to sell such Put Shares or Warrant Shares to a third party that is not
an affiliate of the Investor or the Company and the Investor agrees to redeliver
the certificate representing such Put Shares or Warrant Shares to the transfer
agent to add the Legend in the event the Put Shares or Warrant Shares are not
sold, and (c) if reasonably requested by the transfer agent or the Company, the
Investor confirms to the transfer agent and the Company that the Investor has
complied with the prospectus delivery requirement under the Securities Act. At
any time after the Effective Date, upon surrender of one or more certificates
evidencing Common Stock that bear the Legend, to the extent accompanied by a
notice requesting the issuance of new certificates free of the Legend to replace
those surrendered, the transfer agent shall

                                       20
<PAGE>

reissue such shares of Common Stock free of the Legend.

         Section 8.2. No Other Legend or Stock Transfer Restrictions. No legend
other than the one specified in Section 8.1 has been or shall be placed on the
share certificates representing the Put Shares or Warrant Shares and no
instructions or "stop transfer orders," so called, "stock transfer
restrictions," or other restrictions have been or shall be given to the
Company's transfer agent with respect thereto other than as expressly set forth
in this Article VIII.

         Section 8.3. Investor's Compliance. Nothing in this Article VIII shall
affect in any way the Investor's obligations to comply with all applicable
securities laws upon resale of the Put Shares and the Warrant Shares.

                                   ARTICLE IX

                               CHOICE OF LAW/VENUE

         Section 9.1 Choice of Law/Venue. This Agreement and the Warrants shall
be governed by and construed in accordance with the laws of the State of New
York without regard to principles of conflicts of laws. Any action brought by
either party against the other concerning the transactions contemplated by this
Agreement shall be brought only in the state courts of New York or in the
federal courts located in the city and/or state of New York. Both parties and
the individuals executing this Agreement and other agreements on behalf of the
Company agree to submit to the jurisdiction of such courts and waive trial by
jury. The prevailing party shall be entitled to recover from the other party its
actual reasonable attorneys' fees and costs. In the event that any provision of
this Agreement or any other agreement delivered in connection herewith is
invalid or unenforceable under any applicable statute or rule of law, then such
provision shall be deemed inoperative to the extent that it may conflict
therewith and shall be deemed modified to conform with such statute or rule of
law. Any such provision which may prove invalid or unenforceable under any law
shall not affect the validity or enforceability of any other provision of any
agreement.

                                    ARTICLE X

                       ASSIGNMENT; AMENDMENT; TERMINATION

         Section 10.1 Assignment. Neither this Agreement nor any rights or
obligations of the Investor or the Company hereunder may be assigned by either
party to any other person. Notwithstanding the foregoing, (a) the provisions of
this Agreement shall inure to the benefit of, and be enforceable by, and be
binding upon, any transferee of any of the Common Stock purchased or acquired by
the Investor hereunder with respect to the Common Stock held by such person
unless such Common Stock is free from restrictions on further transfer of such
Common Stock, and (b) the Investor's interest in this Agreement may be assigned
at any time, in whole or in part, to any other person or entity (including any
affiliate of the Investor) effective upon written notice to the Company. The
assignee shall assume the obligations of the Investor under this Agreement.
Notwithstanding such assignment by Investor, Investor shall still be liable for
any obligations under this Agreement not assumed by the assignee. The Company
shall have the right to require any assignee to execute a counterpart of this
Agreement.

         Section 10.2 Termination. This Agreement shall terminate (i) upon
mutual consent of the Company and the Investor or (ii) twelve (12) months after
the commencement of the Commitment Period unless at least 20% (i.e., $2,000,000)
of the Commitment Amount is purchased during the first twelve

                                       21
<PAGE>

(12) months from the Effective Date, in which case this Agreement shall
terminate twenty-four (24) months after the commencement of the Commitment
Period; provided, however, that the provisions of Articles V, VII, VIII, IX, X,
XI and XII shall survive the termination of this Agreement.

         Section 10.3 Amendment. Except as expressly provided in this Agreement,
neither this Agreement nor any term hereof may be amended, waived, discharged or
terminated other than by a written instrument signed by both parties hereto.

                                   ARTICLE XI

                            NOTICES; INDEMNIFICATION

         Section 11.1 Notices. All notices, demands, requests, consents,
approvals, and other communications required or permitted hereunder shall be in
writing and, unless otherwise specified herein, shall be (i) personally served,
(ii) deposited in the mail, registered or certified, return receipt requested,
postage prepaid, (iii) delivered by reputable air courier service with charges
prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed
as set forth below or to such other address as such party shall have specified
most recently by written notice. Any notice or other communication required or
permitted to be given hereunder shall be deemed effective (a) upon hand delivery
or delivery by facsimile, with accurate confirmation generated by the
transmitting facsimile machine, at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to
be received), or the first business day following such delivery (if delivered
other than on a business day during normal business hours where such notice is
to be received) or (b) on the second business day following the date of mailing
by express courier service, fully prepaid, addressed to such address, or upon
actual receipt of such mailing, whichever shall first occur. The addresses for
such communications shall be:

    If to the Company:

         Earth Search Sciences, Inc.
         1729 Montana Highway 35
         Kalispell, MT 59901
         Telephone No.: (406) 751-5200
         Facsimile No.: (406) 752-7433
         Attention: Chief Financial Officer

    With a copy to:

         Ballard Spahr Andrews & Ingersoll, LLP
         51st Floor, 1735 Market Street
         Philadelphia, PA 19103-7599
         Telephone No.:  (215) 864-8625
         Facsimile No.: (215) 864-8999
         Attention: Gerald J. Guarcini, Esq.

    If to the Investor:

         Alpha Venture Capital, Inc.
         Avarua Rarotonga

                                       22
<PAGE>

         Cook Islands
         Telephone No: (242) 356-2486
         Facsimile No.: (242) 356-4147
         Attention: Mr. Barry Herman, Director

    With a copy to:

         Jenkens & Gilchrist Parker Chapin LLP
         The Chrysler Building
         405 Lexington Avenue
         New York, NY 10174
         Telephone No.:(212) 704-6000
         Facsimile No: (212) 704-6288
         Attention: Christopher S. Auguste, Esq.

Either party hereto may from time to time change its address or facsimile number
for notices under this Section 11.1 by giving at least ten (10) days' prior
written notice of such changed address or facsimile number to the other party
hereto.

         Section 11.2 Indemnification.

                  (a) The Company agrees to indemnify and hold harmless the
Investor, its partners, Affiliates, officers, directors, employees, and duly
authorized agents, and each Person or entity, if any, who controls the Investor
within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act or is controlled by the Investor (the "Control Person") from and
against any Damages, joint or several, and any action in respect thereof to
which the Investor, its partners, Affiliates, officers, directors, employees,
and duly authorized agents, and any such Control Person becomes subject to,
resulting from, arising out of or relating to any misrepresentation, breach of
warranty or nonfulfillment of or failure to perform any covenant or agreement on
the part of Company contained in this Agreement in any event as such Damages are
incurred.

                  (b) The Investor agrees to indemnify and hold harmless the
Company, its partners, Affiliates, officers, directors, employees, and duly
authorized agents, and each Person or entity, if any, who controls the Company
within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act, together with the Control Persons from and against any Damages,
joint or several, and any action in respect thereof to which the Company, its
partners, Affiliates, officers, directors, employees, and duly authorized
agents, and any such Control Person becomes subject to, resulting from, arising
out of or relating to any misrepresentation, breach of warranty or
nonfulfillment of or failure to perform any covenant or agreement on the part of
Investor contained in this Agreement in an aggregate amount not to exceed
one-quarter of the Commitment Amount.

         Section 11.3 Method of Asserting Indemnification Claims. All claims for
indemnification by any Indemnified Party (as defined below) under Section 11.2
will be asserted and resolved as follows:

                  (a) In the event any claim or demand in respect of which any
person claiming indemnification under any provision of Section 11.2 (an
"Indemnified Party") might seek indemnity under Section 11.2 is asserted against
or sought to be collected from such Indemnified Party by a person other than the
Company, the Investor or any affiliate of the Company or (a "Third Party
Claim"), the Indemnified Party shall deliver a written notification, enclosing a
copy of all papers served, if any, and

                                       23
<PAGE>

specifying the nature of and basis for such Third Party Claim and for the
Indemnified Party's claim for indemnification that is being asserted under any
provision of Section 11.2 against any person (the "Indemnifying Party"),
together with the amount or, if not then reasonably ascertainable, the estimated
amount, determined in good faith, of such Third Party Claim (a "Claim Notice")
with reasonable promptness to the Indemnifying Party. If the Indemnified Party
fails to provide the Claim Notice with reasonable promptness after the
Indemnified Party receives notice of such Third Party Claim, the Indemnifying
Party will not be obligated to indemnify the Indemnified Party with respect to
such Third Party Claim to the extent that the Indemnifying Party's ability to
defend has been irreparably prejudiced by such failure of the Indemnified Party.
The Indemnifying Party will notify the Indemnified Party as soon as practicable
within the period ending thirty (30) calendar days following receipt by the
Indemnifying Party of either a Claim Notice or an Indemnity Notice (as defined
below) (the "Dispute Period") whether the Indemnifying Party disputes its
liability or the amount of its liability to the Indemnified Party under Section
11.2 and whether the Indemnifying Party desires, at its sole cost and expense,
to defend the Indemnified Party against such Third Party Claim.

                  (i) If the Indemnifying Party notifies the Indemnified Party
within the Dispute Period that the Indemnifying Party desires to defend the
Indemnified Party with respect to the Third Party Claim pursuant to this Section
11.3(a), then the Indemnifying Party will have the right to defend, with counsel
reasonably satisfactory to the Indemnified Party, at the sole cost and expense
of the Indemnifying Party, such Third Party Claim by all appropriate
proceedings, which proceedings will be vigorously and diligently defended by the
Indemnifying Party to a final conclusion or will be settled at the discretion of
the Indemnifying Party (but only with the consent of the Indemnified Party in
the case of any settlement that provides for any relief which affects the
Indemnified Party, other than the payment of monetary damages or that provides
for the payment of monetary damages as to which the Indemnified Party will not
be indemnified in full pursuant to Section 11.2). The Indemnifying Party will
have full control of such defense and proceedings, including any compromise or
settlement thereof; provided, however, that the Indemnified Party may, at the
sole cost and expense of the Indemnified Party, at any time prior to the
Indemnifying Party's delivery of the notice referred to in the first sentence of
this clause (i), file any motion, answer or other pleadings or take any other
action that the Indemnified Party reasonably believes to be necessary or
appropriate to protect its interests; and provided further, that if requested by
the Indemnifying Party, the Indemnified Party will, at the sole cost and expense
of the Indemnifying Party, provide reasonable cooperation to the Indemnifying
Party in contesting any Third Party Claim that the Indemnifying Party elects to
contest. The Indemnified Party may participate in, but not control, any defense
or settlement of any Third Party Claim controlled by the Indemnifying Party
pursuant to this clause (i), and except as provided in the preceding sentence,
the Indemnified Party will bear its own costs and expenses with respect to such
participation. Notwithstanding the foregoing, the Indemnified Party may take
over the control of the defense or settlement of a Third Party Claim at any time
if it irrevocably waives its right to indemnity under Section 11.2 with respect
to 100% of such Third Party Claim.

                  (ii) If the Indemnifying Party fails to notify the Indemnified
Party within the Dispute Period that the Indemnifying Party desires to defend
the Third Party Claim pursuant to Section 11.3(a), or if the Indemnifying Party
gives such notice but fails to defend vigorously and diligently or settle the
Third Party Claim, or if the Indemnifying Party fails to give any notice
whatsoever within the Dispute Period, then the Indemnified Party will have the
right to defend, at the sole cost and expense of the Indemnifying Party, the
Third Party Claim by all appropriate proceedings, which proceedings will be
prosecuted by the Indemnified Party in a reasonable manner and in good faith or
will be settled at the discretion of the Indemnified Party (with the consent of
the Indemnifying Party, which consent will not be unreasonably withheld). The
Indemnified Party will have full control of such defense and proceedings,
including any compromise or settlement thereof; provided, however, that if
requested by the Indemnified Party, the

                                       24
<PAGE>

Indemnifying Party will, at the sole cost and expense of the Indemnifying Party,
provide reasonable cooperation to the Indemnified Party and its counsel in
contesting any Third Party Claim which the Indemnified Party is contesting.
Notwithstanding the foregoing provisions of this clause (ii), if the
Indemnifying Party has notified the Indemnified Party within the Dispute Period
that the Indemnifying Party disputes its liability or the amount of its
liability hereunder to the Indemnified Party with respect to such Third Party
Claim and if such dispute is resolved in favor of the Indemnifying Party in the
manner provided in clause (iii) below, the Indemnifying Party will not be
required to bear the costs and expenses of the Indemnified Party's defense
pursuant to this clause (ii) or of the Indemnifying Party's participation
therein at the Indemnified Party's request, and the Indemnified Party will
reimburse the Indemnifying Party in full for all reasonable costs and expenses
incurred by the Indemnifying Party in connection with such litigation. The
Indemnifying Party may participate in, but not control, any defense or
settlement controlled by the Indemnified Party pursuant to this clause (ii), and
the Indemnifying Party will bear its own costs and expenses with respect to such
participation.

                  (iii) If the Indemnifying Party notifies the Indemnified Party
that it does not dispute its liability or the amount of its liability to the
Indemnified Party with respect to the Third Party Claim under Section 11.2 or
fails to notify the Indemnified Party within the Dispute Period whether the
Indemnifying Party disputes its liability or the amount of its liability to the
Indemnified Party with respect to such Third Party Claim, the Loss in the amount
specified in the Claim Notice will be conclusively deemed a liability of the
Indemnifying Party under Section 11.2 and the Indemnifying Party shall pay the
amount of such Loss to the Indemnified Party on demand. If the Indemnifying
Party has timely disputed its liability or the amount of its liability with
respect to such claim, the Indemnifying Party and the Indemnified Party will
proceed in good faith to negotiate a resolution of such dispute (the "Resolution
Period"), and if not resolved through negotiations within the Resolution Period,
such dispute shall be resolved by arbitration in accordance with paragraph (c)
of this Section 11.3.

                  (b) In the event any Indemnified Party should have a claim
under Section 11.2 against the Indemnifying Party that does not involve a Third
Party Claim, the Indemnified Party shall deliver a written notification of a
claim for indemnity under Section 11.2 specifying the nature of and basis for
such claim, together with the amount or, if not then reasonably ascertainable,
the estimated amount, determined in good faith, of such claim (an "Indemnity
Notice") with reasonable promptness to the Indemnifying Party. The failure by
any Indemnified Party to give the Indemnity Notice shall not impair such party's
rights hereunder except to the extent that the Indemnifying Party demonstrates
that it has been irreparably prejudiced thereby. If the Indemnifying Party
notifies the Indemnified Party that it does not dispute the claim or the amount
of the claim described in such Indemnity Notice or fails to notify the
Indemnified Party within the Dispute Period whether the Indemnifying Party
disputes the claim or the amount of the claim described in such Indemnity
Notice, the Loss in the amount specified in the Indemnity Notice will be
conclusively deemed a liability of the Indemnifying Party under Section 11.2 and
the Indemnifying Party shall pay the amount of such Loss to the Indemnified
Party on demand. If the Indemnifying Party has timely disputed its liability or
the amount of its liability with respect to such claim, the Indemnifying Party
and the Indemnified Party will proceed in good faith to negotiate a resolution
of such dispute, and if not resolved through negotiations within the Resolution
Period, such dispute shall be resolved by arbitration in accordance with
paragraph (c) of this Section 11.3.

                  (c) If the parties are unable to resolve a dispute as
contemplated by Sections 11.3(a) and (b) hereof, the parties agree that such
dispute shall be settled by arbitration as their sole and exclusive remedy with
respect to such dispute, such arbitration to be held in the State of New York,
under the rules promulgated by the American Arbitration Association, as amended
from time to time. Any

                                       25
<PAGE>

decision rendered in such arbitration proceeding shall be non-appealable, final
and binding upon the parties. All expenses incurred in any arbitration
proceeding shall be borne equally by the parties.

                                   ARTICLE XII

                                  MISCELLANEOUS

         Section 12.1 Fees and Expenses. Each of the Company and the Investor
agrees to pay its own expenses incident to the performance of its obligations
hereunder.

         Section 12.2 Brokerage. Each of the parties hereto represents that it
has had no dealings in connection with this transaction with any finder or
broker who will demand payment of any fee or commission from the other party
except as described on Schedule 12.2.

         Section 12.3 Publicity. Except as required by applicable law, the
Company shall not issue any press release or otherwise make any public statement
or announcement with respect to this Agreement or the transactions contemplated
hereby or the existence of this Agreement without the prior consent of the
Investor.

         Section 12.4 Counterparts. This Agreement may be executed in multiple
counterparts, each of which may be executed by less than all of the parties and
shall be deemed to be an original instrument which shall be enforceable against
the parties actually executing such counterparts and all of which together shall
constitute one and the same instrument.

         Section 12.5 Entire Agreement. This Agreement with the Exhibits hereto,
the Registration Rights Agreement, the Escrow Agreement and the Warrants set
forth the entire agreement and understanding of the parties relating to the
subject matter hereof and supersedes all prior and contemporaneous agreements,
negotiations and understandings between the parties, both oral and written
relating to the subject matter hereof. The terms and conditions of all Exhibits
to this Agreement are incorporated herein by this reference and shall constitute
part of this Agreement as if fully set forth herein.

         Section 12.6 Survival; Severability. The representations, warranties,
covenants and agreements of the parties hereto shall survive each Put Closing
hereunder. In the event that any provision of this Agreement becomes or is
declared by a court of competent jurisdiction to be illegal, unenforceable or
void, this Agreement shall continue in full force and effect without said
provision; provided that such severability shall be ineffective if it materially
changes the economic benefit of this Agreement to any party.

         Section 12.7 Title and Subtitles. The titles and subtitles used in this
Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.

         Section 12.8 Reporting Entity for the Common Stock. The reporting
entity relied upon for the determination of the trading price or trading volume
of the Common Stock on any given Trading Day for the purposes of this Agreement
shall be Bloomberg, L.P. or any successor thereto. The written mutual consent of
the Investor and the Company shall be required to employ any other reporting
entity.

                      [THIS SPACE INTENTIONALLY LEFT BLANK]

                                       26
<PAGE>

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

                                    EARTH SEARCH SCIENCES, INC.

                                    By:  _____________________________________
                                            Name: Rory Stevens
                                          Title:   Chief Financial Officer

                                    ALPHA VENTURE CAPITAL, INC.

                                    By:  _____________________________________
                                            Name: Barry Herman
                                          Title:   Director

                                       27
<PAGE>

                                  SCHEDULE 4.3
                                  ------------

                        OUTSTANDING OPTIONS AND WARRANTS

                                       28
<PAGE>

                                  SCHEDULE 4.14
                                  -------------

                                    JUDGMENTS

                                       29
<PAGE>

                                    EXHIBIT A

                                     FORM OF
                               PUT PURCHASE NOTICE

                  Reference is made to the Common Stock Purchase Agreement dated
as of May 23, 2001 (the "Agreement ") between Earth Search Sciences, Inc., a
Utah corporation (the "Company") and Alpha Venture Capital, Inc., a corporation
organized and existing under the laws of the Cook Islands. Capitalized terms
used and not otherwise defined herein shall have the meanings given such terms
in the Agreement.

                  In accordance with and pursuant to Section 2.2 of the
Agreement, the Company hereby issues this Put Purchase Notice to exercise a Put
request for the Put Amount indicated below.

                  Put Amount: ____________________________________

                  Valuation Period start date: ___________________

                  Valuation Period end date: _____________________

                  Put Closing Date: ______________________________

Dated: _____________________________

                                             _________________________________

                                             By:______________________________
                                                  Name:
                                                  Title:

                                             Address:
                                             Facsimile No.:
                                             Wire Instructions: _______________
                                             Contact Name:  ___________________

                                       30
<PAGE>

                                    EXHIBIT B

                         INSTRUCTIONS TO TRANSFER AGENT
                           EARTH SEARCH SCIENCES, INC.

                                                          ________________, 2001

[Name and address
of Transfer Agent]

Ladies & Gentlemen:

         Reference is made to that certain Common Stock Purchase Agreement (the
"Agreement") between Alpha Venture Capital, Inc. (the "Investor") and Earth
Search Sciences, Inc. (the "Company"). Pursuant and subject to the terms and
conditions set forth in the Agreement the Investor has agreed to purchase from
the Company and the Company has agreed to sell to the Investor from time to time
during the term of the Agreement shares (the "Shares") of Common Stock of the
Company, $0.001 par value (the "Common Stock") and certain warrants (the
"Warrants") which shall be exercisable into shares of Common Stock. The shares
of Common Stock issuable upon exercise of the Warrants are referred to herein as
"Warrant Shares." The Shares and Warrant Shares are collectively referred to
herein as "Underlying Shares."

         This letter shall serve as our irrevocable authorization and direction
to you (provided that you are the transfer agent for the Company with respect to
its Common Stock at such time) to issue Underlying Shares from time to time upon
notice from the Company to issue such Underlying Shares, provided you have
previously received an opinion of our counsel regarding the exemption and
validity of the issuance under the Securities Act of 1933, as amended. So long
as you have previously received (w) a notice of effectiveness of the Company's
outside counsel substantially in the form of Exhibit I attached hereto (which
the Company shall direct be delivered to you by such outside counsel upon the
effectiveness of the registration statement covering resales of Underlying
Shares) stating that a registration statement covering resales of Underlying
Shares has been declared effective by the Securities and Exchange Commission
under the Securities Act of 1933, as amended, and that Underlying Shares may be
issued (or reissued if they have been issued at a time when there was not such
an effective registration statement) or resold without any restrictive legend
(the "Notice of Effectiveness"), (x) a copy of such registration statement, (y)
an appropriate representation that the resale prospectus contained in the
registration statement has been delivered in compliance with applicable rules
and regulations and (z) with respect to the issuance of replacement Warrant
Shares, the certificates representing the originally issued Warrant Shares have
been returned to you as transfer agent, then certificates representing
Underlying Shares shall not bear any legend restricting transfer of Underlying
Shares thereby and should not be subject to any stop-transfer restriction;
provided, however, that if you have not previously received a copy of the Notice
of Effectiveness, such registration statement and such representation or you
have received a subsequent notice by the Company or its counsel of the
suspension or termination of the effectiveness of the registration statement or
the imposition of a Blackout Period as set forth in the Section 5.8 of the
Agreement, then certificates representing Underlying Shares shall bear the
following legend:

                                       31
<PAGE>

                  THESE SECURITIES REPRESENTED BY THIS CERTIFICATE (THE
                  "SECURITIES") HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
                  ACT OF 1933, AS AMENDED (THE "SECURITIES ACT") OR ANY STATE
                  SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE
                  DISPOSED OF UNLESS REGISTERED UNDER THAT ACT AND UNDER
                  APPLICABLE STATE SECURITIES LAWS OR EARTH SEARCH SCIENCES,
                  INC. (THE "COMPANY") SHALL HAVE RECEIVED AN OPINION OF ITS
                  COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE
                  SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE
                  SECURITIES LAWS IS NOT REQUIRED.

         Please be advised that the Investor has relied upon this instruction
letter as an inducement to enter into the Agreement and, accordingly, the
Investor, is a third party beneficiary to these instructions.

         Please execute this letter in the space indicated to acknowledge your
agreement to act in accordance with these instructions. Should you have any
questions concerning this matter, please contact me at ______________________.

                                                Very truly yours,

                                                EARTH SEARCH SCIENCES, INC.

                                                By: __________________________
                                                Name: ________________________
                                                Title: _______________________

ACKNOWLEDGED AND AGREED:

[TRANSFER AGENT]

By: ________________________________
     Name: _________________________
     Title: ________________________
     Tel.: _________________________

                                       32
<PAGE>

                                                                       Exhibit I

                        [FORM OF NOTICE OF EFFECTIVENESS]

[Addressee]
[Address]

TO WHOM IT MAY CONCERN:

         We are counsel to Earth Search Sciences, Inc., a Utah corporation (the
"Company"), and we have represented the Company in connection with that certain
Common Stock Purchase Agreement (the "Agreement") between the Company and the
Investor named therein, pursuant to which the Company agreed to issue shares
(the "Shares") of its common stock (the "Common Stock") from time to time during
the term of the Agreement and warrants to purchase shares of the Common Stock
(the "Warrant Shares"). Pursuant to the Agreement, the Company agreed to
register the Common Stock and the Warrant Shares.

         In connection with the foregoing, we have been advised that the
Registration Statement (File No. 333-______________) of the Company (the
"Registration Statement"), a copy of which is enclosed, was declared effective
at ____________M., eastern time, on ____________, 2001. Upon issuance of the
Underlying Shares referred to in the Company's instruction letter attached, and
provided that you have received from the Company a copy of the representation
pursuant to item (y) in the second paragraph of such instruction letter, you are
authorized to issue certificates for the Company's Common Stock without
restrictive legends. We have no knowledge as of the date hereof, after
telephonic inquiry of a member of the Securities and Exchange Commission's staff
that any stop order suspending the effectiveness of the Registration Statement
has been issued or that any proceedings for that purpose are pending before, or
threatened by, the Securities and Exchange Commission and, accordingly, the
Underlying Shares are available for resale under the Securities Act of 1933, as
amended, in the manner specified in, and pursuant to the terms of the
Registration Statement.

                                                              Very truly yours,

                                       33
<PAGE>

                                    EXHIBIT C
                               OPINION OF COUNSEL

         1. The Company is a corporation duly incorporated, validly existing and
in good standing under the laws of the State of Utah. The Company has the
requisite corporate power to own and operate its properties and assets, and to
carry on its business as presently conducted. The Company is duly qualified to
do business as a foreign corporation and is in good standing in every
jurisdiction in which the nature of the business conducted or property owned by
it makes such qualification necessary.

         2. The Company has the requisite corporate power and authority to enter
into and perform its obligations under the Common Stock Purchase Agreement, the
Registration Rights Agreement, the Escrow Agreement and the Warrants and to
issue and sell the Common Stock, the Warrants and the Common Stock issuable upon
exercise of the Warrants (the "Warrant Shares"). The execution, delivery and
performance of the Common Stock Purchase Agreement by the Company and the
consummation by it of the transactions contemplated thereby have been duly and
validly authorized by all necessary corporate action and no further consent or
authorization of the Company or its Board of Directors or stockholders is
required. The Common Stock Purchase Agreement, the Registration Rights
Agreement, the Escrow Agreement and the Warrants have been duly executed and
delivered by the Company, and each constitutes a legal, valid and binding
obligation of the Company enforceable against the Company in accordance with its
respective terms. The Common Stock is not subject to preemptive rights under the
Company's certificate of incorporation or bylaws.

         3. The Common Stock and the Warrants have been duly authorized and the
Common Stock, when delivered against payment in full as provided in the Common
Stock Purchase Agreement, will be validly issued, fully paid and nonassessable.
The Warrant Shares have been duly authorized and reserved for issuance, and,
when delivered upon exercise or against payment in full as provided in the
Warrants, will be validly issued, fully paid and nonassessable.

         4. The execution, delivery and performance of and compliance with the
terms of the Common Stock Purchase Agreement and the consummation by the Company
of the transactions contemplated thereby (i) do not violate any provision of the
Company's certificate of incorporation or bylaws, (ii) do not conflict with, or
constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of, any material agreement, mortgage,
deed of trust, indenture, note, bond, license, lease agreement, instrument or
obligation to which the Company is a party, (iii) does not create or impose a
lien, charge or encumbrance on any property of the Company under any agreement
or any commitment to which the Company is a party or by which the Company is
bound or by which any of its respective properties or assets are bound, or (iv)
does not result in a violation of any federal, state, local or foreign statute,
rule, regulation, order, judgment or decree (including federal and state
securities laws and regulations) applicable to the Company or any of its
subsidiaries or by which any property or asset of the Company or any of its
subsidiaries are bound or affected, except, in all cases other than violations
pursuant to clause (i) above, for such conflicts, defaults, terminations,
amendments,

                                       34
<PAGE>

acceleration, cancellations and violations as would not, individually or in the
aggregate, have a Material Adverse Effect.

         5. There is no action, suit, claim, investigation or proceeding pending
or threatened against the Company or any subsidiary which questions the validity
of the Common Stock Purchase Agreement or the transactions contemplated hereby
or any action taken or to be taken pursuant hereto or thereto. There is no
action, suit, claim, investigation or proceeding pending or, to our knowledge,
threatened, against or involving the Company, any subsidiary or any of their
respective properties or assets and which, if adversely determined, is
reasonably likely to result in a Material Adverse Effect.

         6. No consent, approval or authorization of or designation, declaration
or filing with any governmental authority on the part of the Company is required
in connection with the valid execution and delivery of the Common Stock Purchase
Agreement, or the offer, sale or issuance of the Common Stock and the Warrants
or the consummation of any other transaction contemplated by the Common Stock
Purchase Agreement (other than any filings which may be required to be made by
the Company with the Commission, or the OTC Bulletin Board or an Alternate
Market subsequent to the Closing, and, any registration statement which may be
filed pursuant to the Common Stock Purchase Agreement).

         7. The offer, issuance and sale of the Common Stock and the Warrants
pursuant to the Common Stock Purchase Agreement, and the issuance of the Warrant
Shares to the Investor, pursuant to the Common Stock Purchase Agreement will be
exempt from registration under the Securities Act of 1933, as amended, pursuant
to Rule 4(2) thereunder.

         8. The Company is not a "holding company" or a "public utility company"
as such terms are defined in the Public Utility Holding Company Act of 1935, as
amended. The Company is not, and as a result of and immediately upon Closing
will not be, an "investment company" or a company "controlled" by an "investment
company," within the meaning of the Investment Company Act of 1940, as amended.

                                       35
<PAGE>

                                    EXHIBIT D

                            FORM OF ESCROW AGREEMENT

                                       36
<PAGE>

                                    EXHIBIT E

                             SECRETARY'S CERTIFICATE

                           EARTH SEARCH SCIENCES, INC.

                                                  ___________, 2001

         The undersigned, _______________, Secretary of Earth Search Sciences,
Inc., a Utah corporation (the "Company"), delivers this certificate in
connection with the issuance and sale of shares of common stock of the Company
in an aggregate amount of up to $10,000,000 to Alpha Venture Capital, Inc. (the
"Investor") pursuant to the Common Stock Purchase Agreement, dated as of May 23,
2001 (the "Agreement"), by and between the Company and the Investor, and hereby
certifies on the date hereof, that (capitalized terms used herein without
definition have the meanings assigned to them in the Agreement):

         1. Attached hereto as Exhibit A is a true, complete and correct copy of
the Certificate of Incorporation of the Company and all amendments thereto as
filed with the Secretary of State of the State of Utah. The Certificate of
Incorporation of the Company has not been further amended or restated, and no
document with respect to any amendment to the Certificate of Incorporation of
the Company has been filed in the office of the Secretary of State of the State
of Utah since _________ __, ____, the date shown on the Company's latest
amendment to its Certificate of Incorporation, which is in full force and effect
on the date hereof, and no action has been taken by the Company in contemplation
of any such amendment or the dissolution, merger or consolidation of the
Company.

         2. Attached hereto as Exhibit B is a true and complete copy of the
By-laws of the Company, as amended and restated through, and as in full force
and effect on, the date hereof, and no proposal for any amendment, repeal or
other modification to the By-laws of the Company has taken or is currently
pending before the Board of Directors or stockholders of the Company.

         3. Attached hereto as Exhibit C is a true and correct copy of all
written actions and resolutions of the Board of Directors (including any
committees thereof) of the Company relating to the transactions contemplated by
the Agreement; said actions and resolutions have not been amended, rescinded or
modified since their adoption and remain in full force and effect as of the date
hereof; said actions and resolutions are the only resolutions adopted by the
Board of Directors of the Company, or any committee thereof, pertaining to (A)
the offering of the Common Stock to be sold by the Company pursuant to the
Agreement, (B) the execution and delivery of the Agreement and (C) all other
transactions in connection with the foregoing.

         4. Each person who, as an officer of the Company, or as
attorney-in-fact of an officer of the Company, signed (A) the Agreement, (B) the
Registration Statement and (C) any other document delivered prior hereto or on
the date hereof in connection with the transactions contemplated by the
Agreement, was duly elected, qualified and acting as such officer or duly
appointed and acting as such attorney-in-fact, and the signature of each such
person appearing on any such document is his genuine signature.

         5. The Agreement as executed and delivered on behalf of the Company has
been approved by the Board of Directors of the Company.

         6. The actions, resolutions and other records of the Company relating
to all of the proceedings

                                       37
<PAGE>

of the Stockholders of the Company, the Board of Directors of the Company and
any committees thereof made available to the Investor and its counsel are the
true, correct and complete copies thereof, with respect to all proceedings of
said Stockholders, Board of Directors and committees thereof. Such records and
other documents of the Company made available to the Investor and its counsel
were true and complete in all respects. There have been no material changes,
additions or alterations in said records and other documents that have not been
disclosed to the Investor.

         IN WITNESS WHEREOF, I have signed my name as of the date first above
written.

                                  By:
                                      ----------------------------------------
                                        Name:
                                        Title:   Secretary

          I, _______________, Chief Executive Officer of Earth Search Sciences,
Inc., do hereby certify that ______________ is the duly elected, qualified and
acting Secretary of the above mentioned company, and that the signature set
forth above is her true and genuine signature.

         IN WITNESS WHEREOF, I have hereunto signed my name as of the date first
above written.

                                  By:
                                     -----------------------------------------
                                       Name:
                                        Title:  Chief Executive Officer

                                       38
<PAGE>

                                    EXHIBIT F

                             COMPLIANCE CERTIFICATE
                           EARTH SEARCH SCIENCES, INC.

         The undersigned, ________________, hereby certifies, with respect to
shares of common stock of Earth Search Sciences, Inc. (the "Company") issuable
in connection with the Put Purchase Notice, dated ________ (the "Notice"),
delivered pursuant to Article II of the Common Stock Purchase Agreement, dated
May 23, 2001, by and among the Company and Alpha Venture Capital, Inc. (the
"Agreement"), as follows:

         1. The undersigned is the duly elected Chief Executive Officer of the
Company.

         2. The representations and warranties of the Company set forth in
Article IV of the Agreement are true and correct in all material respects as
though made on and as of the date hereof.

         3. The Company has performed in all material respects all covenants and
agreements to be performed by the Company on or prior to the Put Closing Date
related to the Notice and has complied in all material respects with all
obligations and conditions contained in Article VI and Article VII of the
Agreement.

         The undersigned has executed this Certificate this ____ day of ______,
2001.

                                      EARTH SEARCH SCIENCES, INC.

                                      By:_____________________________________
                                         Name:
                                         Title:   Chief Executive Officer

                                       39
<PAGE>

                                    EXHIBIT G

                                 FORM OF WARRANT

                                       40EXHIBIT 10.11
                                                                   -------------

                          REGISTRATION RIGHTS AGREEMENT

                  This Registration Rights Agreement (this "Agreement") is made
and entered into as of May 23, 2001, between Earth Search Sciences, Inc., a Utah
corporation (the "Company") and Alpha Venture Capital, Inc. (the "Purchaser").

                  This Agreement is being entered into pursuant to the Common
Stock Purchase Agreement, dated as of the date hereof between the Company and
the Purchaser (the "Purchase Agreement").

                  The Company and the Purchaser hereby agree as follows:

          1.      Definitions.

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

                  "Advice" shall have meaning set forth in Section 3(m).

                  "Board" shall have meaning set forth in Section 3(n).

                  "Business Day" means any day except Saturday, Sunday and any
day on which banking institutions in the state of New York generally are closed.

                  "Commission" means the Securities and Exchange Commission.

                  "Common Stock" means the Company's Common Stock, par value
$0.001 per share.

                  "Effectiveness Date" means with respect to the Registration
Statement the 120th day following the date hereof.

                  "Effectiveness Period" shall have the meaning set forth in
Section 2.

                  "Event" shall have the meaning set forth in Section 7(e).

                  "Event Date" shall have the meaning set forth in Section 7(e).

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

                  "Filing Date" means the 60th day following the date hereof.

                  "Holder" means the holder from time to time of Registrable
Securities.

                  "Indemnified Party" shall have the meaning set forth in
Section 5(c).
<PAGE>

                  "Indemnifying Party" shall have the meaning set forth in
Section 5(c).

                  "Losses" shall have the meaning set forth in Section 5(a).

                  "Person" means an individual or a corporation, partnership,
trust, incorporated or unincorporated association, joint venture, limited
liability company, joint stock company, government (or an agency or political
subdivision thereof) or other entity of any kind.

                  "Proceeding" means an action, claim, suit, investigation or
proceeding (including, without limitation, an investigation or partial
proceeding, such as a deposition), whether commenced or threatened.

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

                  "Registrable Securities" means the shares of Common Stock
issuable pursuant to a Put and the shares of Common Stock issuable upon exercise
of the Warrants; provided, however, that Registrable Securities shall include
(but not be limited to) a number of shares of Common Stock equal to no less than
the maximum number of shares of Common Stock which would be issuable pursuant to
a Put and upon exercise of the Warrants, assuming such issuance and exercise
occurred on the date hereof or the Filing Date, whichever date would result in
the greater number of Registrable Securities. Notwithstanding anything herein
contained to the contrary, if the actual number of shares of Common Stock
issuable pursuant to a Put and upon exercise of the Warrants exceeds the number
of shares of Common Stock issuable pursuant to a Put and upon exercise of the
Warrants based upon a computation as of the date hereof or the Filing Date, the
term "Registrable Securities" shall be deemed to include such additional shares
of Common Stock.

                  "Registration Statement" means the registration statements and
any additional registration statements contemplated by Section 2, including (in
each case) the Prospectus, amendments and supplements to such registration
statement or Prospectus, including pre- and post-effective amendments, all
exhibits thereto, and all material incorporated by reference in such
registration statement.

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

                                       2
<PAGE>

                  "Rule 158" means Rule 158 promulgated by the Commission
pursuant to the Securities Act, as such Rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.

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

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

                  "Shares" shall mean Put Shares and Warrant Shares.

                  "Special Counsel" means any special counsel to the Holder, for
which the Holder will be reimbursed by the Company pursuant to Section 4.

         2.       Shelf Registration.

                  On or prior to the Filing Date the Company shall prepare and
file with the Commission a "shelf" Registration Statement covering all
Registrable Securities for an offering to be made on a continuous basis pursuant
to Rule 415. The Registration Statement shall be on Form S-1, Form S-2 or Form
SB-2 (except if the Company is not then eligible to register for resale the
Registrable Securities on Form S-1, Form S-2 or Form SB-2, in which case such
registration shall be on another appropriate form in accordance herewith). The
Company shall (i) not permit any securities other than the Registrable
Securities to be included in the Registration Statement and (ii) use its best
efforts to cause the Registration Statement to be declared effective under the
Securities Act as promptly as possible after the filing thereof, but in any
event prior to the Effectiveness Date, and to keep such Registration Statement
continuously effective under the Securities Act for one (1) year from the date
the Registration Statement is declared effective under the Securities Act and
for an additional one (1) year from the date of any extension of the Commitment
Period (the "Effectiveness Period"). If an additional Registration Statement is
required to be filed because the actual number of shares of Common Stock
issuable pursuant to a Put and the Warrants are exercisable exceeds the number
of shares of Common Stock initially registered in respect of the Put Shares and
the Warrant Shares based upon the computation on the date hereof, the Company
shall have twenty (20) Business Days to file such additional Registration
Statement, and the Company shall use its best efforts to cause such additional
Registration Statement to be declared effective by the Commission as soon as
possible, but in no event later than sixty (60) days after filing.

         3.       Registration Procedures.

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

                  (a) Prepare and file with the Commission on or prior to the
Filing Date, a Registration Statement on Form S-1, Form S-2 or Form SB-2 (or if
the Company is not then eligible to register for resale the Registrable
Securities on Form S-1, Form S-2 or Form SB-2 such registration shall be on
another appropriate form in accordance herewith) in accordance

                                       3
<PAGE>

with the method or methods of distribution thereof as specified by the Holder
(except if otherwise directed by the Holder), and cause the Registration
Statement to become effective and remain effective as provided herein; provided,
however, that not less than five (5) Business Days prior to the filing of the
Registration Statement or any related Prospectus or any amendment or supplement
thereto (including any document that would be incorporated therein by
reference), the Company shall (i) furnish to the Holder and any Special Counsel,
copies of all such documents proposed to be filed, which documents (other than
those incorporated by reference) will be subject to the review of such Holder
and such Special Counsel, and (ii) cause its officers and directors, counsel and
independent certified public accountants to respond to such inquiries as shall
be necessary, in the reasonable opinion of counsel to such Holder, to conduct a
reasonable investigation within the meaning of the Securities Act. The Company
shall not file the Registration Statement or any such Prospectus or any
amendments or supplements thereto to which the Holder or its Special Counsel
shall reasonably object in writing within three (3) Business Days of their
receipt thereof.

                  (b) (i) Prepare and file with the Commission such amendments,
including post-effective amendments, to the Registration Statement as may be
necessary to keep the Registration Statement continuously effective as to the
applicable Registrable Securities for the Effectiveness Period and prepare and
file with the Commission such additional Registration Statements in order to
register for resale under the Securities Act all of the Registrable Securities;
(ii) cause the related Prospectus to be amended or supplemented by any required
Prospectus supplement, and as so supplemented or amended to be filed pursuant to
Rule 424 (or any similar provisions then in force) promulgated under the
Securities Act; (iii) respond as promptly as possible to any comments received
from the Commission with respect to the Registration Statement or any amendment
thereto and as promptly as possible provide the Holder true and complete copies
of all correspondence from and to the Commission relating to the Registration
Statement; and (iv) comply in all material respects with the provisions of the
Securities Act and the Exchange Act with respect to the disposition of all
Registrable Securities covered by the Registration Statement during the
applicable period in accordance with the intended methods of disposition by the
Holder thereof set forth in the Registration Statement as so amended or in such
Prospectus as so supplemented.

                  (c) Notify the Holder of Registrable Securities to be sold and
any Special Counsel as promptly as possible (and, in the case of (i)(A) below,
not less than five (5) days prior to such filing) and (if requested by any such
Person) confirm such notice in writing no later than one (1) Business Day
following the day (i)(A) when a Prospectus or any Prospectus supplement or
post-effective amendment to the Registration Statement is proposed to be filed;
(B) when the Commission notifies the Company whether there will be a "review" of
such Registration Statement and whenever the Commission comments in writing on
such Registration Statement and (C) with respect to the Registration Statement
or any post-effective amendment, when the same has become effective; (ii) of any
request by the Commission or any other Federal or state governmental authority
for amendments or supplements to the Registration Statement or Prospectus or for
additional information; (iii) of the issuance by the Commission of any stop
order suspending the effectiveness of the Registration Statement covering any or
all of the Registrable Securities or the initiation of any Proceedings for that
purpose; (iv) if at any time any of the representations and warranties of the
Company contained in the Purchase Agreement

                                       4
<PAGE>

ceases to be true and correct in all material respects; (v) of the receipt by
the Company of any notification with respect to the suspension of the
qualification or exemption from qualification of any of the Registrable
Securities for sale in any jurisdiction, or the initiation or threatening of any
Proceeding for such purpose; and (vi) of the occurrence of any event that makes
any statement made in the Registration Statement or Prospectus or any document
incorporated or deemed to be incorporated therein by reference untrue in any
material respect or that requires any revisions to the Registration Statement,
Prospectus or other documents so that, in the case of the Registration Statement
or the Prospectus, as the case may be, it will not contain any untrue statement
of a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading.

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

                  (e) If requested by the Holder, (i) promptly incorporate in a
Prospectus supplement or post-effective amendment to the Registration Statement
such information as the Company reasonably agrees should be included therein and
(ii) make all required filings of such Prospectus supplement or such
post-effective amendment as soon as practicable after the Company has received
notification of the matters to be incorporated in such Prospectus supplement or
post-effective amendment.

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

                  (g) Promptly deliver to the Holder and any Special Counsel,
without charge, as many copies of the Prospectus or Prospectuses (including each
form of prospectus) and each amendment or supplement thereto as such Persons may
reasonably request; and the Company hereby consents to the use of such
Prospectus and each amendment or supplement thereto by the Holder in connection
with the offering and sale of the Registrable Securities covered by such
Prospectus and any amendment or supplement thereto.

                  (h) Prior to any public offering of Registrable Securities,
use its best efforts to register or qualify or cooperate with the Holder and any
Special Counsel in connection with the registration or qualification (or
exemption from such registration or qualification) of such Registrable
Securities for offer and sale under the securities or Blue Sky laws of such
jurisdictions within the United States as the Holder requests in writing, to
keep each such registration or qualification (or exemption therefrom) effective
during the Effectiveness Period and to do any and all other acts or things
necessary or advisable to enable the disposition in such jurisdictions of the
Registrable Securities covered by a Registration Statement; provided,

                                       5
<PAGE>

however, that the Company shall not be required to qualify generally to do
business in any jurisdiction where it is not then so qualified or to take any
action that would subject it to general service of process in any such
jurisdiction where it is not then so subject or subject the Company to any
material tax in any such jurisdiction where it is not then so subject.

                  (i) Cooperate with the Holder to facilitate the timely
preparation and delivery of certificates representing Registrable Securities to
be sold pursuant to a Registration Statement, which certificates shall be free
of all restrictive legends, and to enable such Registrable Securities to be in
such denominations and registered in such names as the Holder may request at
least two (2) Business Days prior to any sale of Registrable Securities.

                  (j) Upon the occurrence of any event contemplated by Section
3(c)(vi), as promptly as possible, prepare a supplement or amendment, including
a post-effective amendment, to the Registration Statement or a supplement to the
related Prospectus or any document incorporated or deemed to be incorporated
therein by reference, and file any other required document so that, as
thereafter delivered, neither the Registration Statement nor such Prospectus
will contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein,
in the light of the circumstances under which they were made, not misleading.

                  (k) Use its best efforts to cause all Registrable Securities
relating to such Registration Statement to be listed on The Nasdaq SmallCap
Market and any other securities exchange, quotation system, market or
over-the-counter bulletin board, if any, on which similar securities issued by
the Company are then listed as and when required pursuant to the Purchase
Agreement.

                  (l) Comply in all material respects with all applicable rules
and regulations of the Commission and make generally available to its security
holders earning statements satisfying the provisions of Section 11(a) of the
Securities Act and Rule 158 not later than 45 days after the end of any 12-month
period (or 90 days after the end of any 12-month period if such period is a
fiscal year) commencing on the first day of the first fiscal quarter of the
Company after the effective date of the Registration Statement, which statement
shall conform to the requirements of Rule 158.

                  (m) The Company may require the Holder to furnish to the
Company information regarding the Holder and the distribution of such
Registrable Securities as is required by law to be disclosed in the Registration
Statement, and the Company may exclude from such registration the Registrable
Securities of the Holder if the Holder unreasonably fails to furnish such
information within a reasonable time after receiving such request.

                  If the Registration Statement refers to the Holder by name as
the holder of any securities of the Company, then the Holder shall have the
right to require (if such reference to the Holder by name or otherwise is not
required by the Securities Act or any similar federal statute then in force) the
deletion of the reference to the Holder in any amendment or supplement to the
Registration Statement filed or prepared subsequent to the time that such
reference ceases to be required.

                                       6
<PAGE>

                  The Holder covenants and agrees that (i) it will not sell any
Registrable Securities under the Registration Statement until it has received
copies of the Prospectus as then amended or supplemented as contemplated in
Section 3(g) and notice from the Company that such Registration Statement and
any post-effective amendments thereto have become effective as contemplated by
Section 3(c) and (ii) it and its officers, directors or Affiliates, if any, will
comply with the prospectus delivery requirements of the Securities Act as
applicable to them in connection with sales of Registrable Securities pursuant
to the Registration Statement.

                  The Holder agrees by its acquisition of such Registrable
Securities that, upon receipt of a notice from the Company of the occurrence of
any event of the kind described in Section 3(c)(ii), 3(c)(iii), 3(c)(iv),
3(c)(v) or 3(c)(vi), the Holder will forthwith discontinue disposition of such
Registrable Securities under the Registration Statement until the Holder's
receipt of the copies of the supplemented Prospectus and/or amended Registration
Statement contemplated by Section 3(j), or until it is advised in writing (the
"Advice") by the Company that the use of the applicable Prospectus may be
resumed, and, in either case, has received copies of any additional or
supplemental filings that are incorporated or deemed to be incorporated by
reference in such Prospectus or Registration Statement.

                  (n) If (i) there is material non-public information regarding
the Company which the Company's Board of Directors (the "Board") reasonably
determines not to be in the Company's best interest to disclose and which the
Company is not otherwise required to disclose, or (ii) there is a significant
business opportunity (including, but not limited to, the acquisition or
disposition of assets (other than in the ordinary course of business) or any
merger, consolidation, tender offer or other similar transaction) available to
the Company which the Board reasonably determines not to be in the Company's
best interest to disclose, then the Company may postpone or suspend filing or
effectiveness of a registration statement for a period not to exceed 20
consecutive days, provided that the Company may not postpone or suspend its
obligation under this Section 3(n) for more than 45 days in the aggregate during
any 12 month period; provided, however, that no such postponement or suspension
shall be permitted for consecutive 20 day periods, arising out of the same set
of facts, circumstances or transactions.

     4.           Registration Expenses.

                  All fees and expenses incident to the performance of or
compliance with this Agreement by the Company shall be borne by the Company
whether or not the Registration Statement is filed or becomes effective and
whether or not any Registrable Securities are sold pursuant to the Registration
Statement. The fees and expenses referred to in the foregoing sentence shall
include, without limitation, (i) all registration and filing fees (including,
without limitation, fees and expenses (A) with respect to filings required to be
made with The Nasdaq SmallCap Market and each other securities exchange or
market on which Registrable Securities are required hereunder to be listed, (B)
with respect to filings required to be made with the National Association of
Securities Dealers, Inc. and the NASD Regulation, Inc. and (C) in compliance
with state securities or Blue Sky laws (including, without limitation, fees and
disbursements of counsel for the Holder in connection with Blue Sky
qualifications of the Registrable Securities and determination of the
eligibility of the Registrable Securities for

                                       7
<PAGE>

investment under the laws of such jurisdictions as the Holder may designate)),
(ii) printing expenses (including, without limitation, expenses of printing
certificates for Registrable Securities and of printing prospectuses if the
printing of prospectuses is requested by the Holder), (iii) messenger, telephone
and delivery expenses, (iv) fees and disbursements of counsel for the Company
and Special Counsel for the Holder, in the case of the Special Counsel, to a
maximum amount of $5,000, (v) Securities Act liability insurance, if the Company
so desires such insurance, and (vi) fees and expenses of all other Persons
retained by the Company in connection with the consummation of the transactions
contemplated by this Agreement, including, without limitation, the Company's
independent public accountants (including the expenses of any comfort letters or
costs associated with the delivery by independent public accountants of a
comfort letter or comfort letters). In addition, the Company shall be
responsible for all of its internal expenses incurred in connection with the
consummation of the transactions contemplated by this Agreement (including,
without limitation, all salaries and expenses of its officers and employees
performing legal or accounting duties), the expense of any annual audit, the
fees and expenses incurred in connection with the listing of the Registrable
Securities on any securities exchange as required hereunder.

     5.           Indemnification.

                  (a) Indemnification by the Company. The Company shall,
notwithstanding any termination of this Agreement, indemnify and hold harmless
the Holder, the officers, directors, agents, brokers (including brokers who
offer and sell Registrable Securities as principal as a result of a pledge or
any failure to perform under a margin call of Common Stock), investment advisors
and employees of each of them, each Person who controls the Holder (within the
meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act)
and the officers, directors, agents and employees of each such controlling
Person, to the fullest extent permitted by applicable law, from and against any
and all losses, claims, damages, liabilities, costs (including, without
limitation, costs of preparation and attorneys' fees) and expenses
(collectively, "Losses"), as incurred, arising out of or relating to any untrue
or alleged untrue statement of a material fact contained in the Registration
Statement, any Prospectus or any form of prospectus or in any amendment or
supplement thereto or in any preliminary prospectus, or arising out of or
relating to any omission or alleged omission of a material fact required to be
stated therein or necessary to make the statements therein (in the case of any
Prospectus or form of prospectus or supplement thereto, in the light of the
circumstances under which they were made) not misleading, except to the extent,
but only to the extent, that such untrue statements or omissions are based
solely upon information regarding the Holder furnished in writing to the Company
by the Holder expressly for use therein, which information was reasonably relied
on by the Company for use therein or to the extent that such information relates
to the Holder or the Holder's proposed method of distribution of Registrable
Securities and was reviewed and expressly approved in writing by such Holder
expressly for use in the Registration Statement, such Prospectus or such form of
Prospectus or in any amendment or supplement thereto. The Company shall notify
the Holder promptly of the institution, threat or assertion of any Proceeding of
which the Company is aware in connection with the transactions contemplated by
this Agreement.

                                       8
<PAGE>

                  (b) Indemnification by Holder. The Holder shall indemnify and
hold harmless the Company, the directors, officers, agents and employees, each
Person who controls the Company (within the meaning of Section 15 of the
Securities Act and Section 20 of the Exchange Act), and the directors, officers,
agents or employees of such controlling Persons, to the fullest extent permitted
by applicable law, from and against all Losses, as incurred, arising solely out
of or based solely upon any untrue statement of a material fact contained in the
Registration Statement, any Prospectus, or any form of prospectus, or arising
solely out of or based solely upon any omission of a material fact required to
be stated therein or necessary to make the statements therein (in the case of
any Prospectus or form of prospectus or supplement thereto, in the light of the
circumstances under which they were made) not misleading, to the extent, but
only to the extent, that such untrue statement or omission is contained in any
information so furnished in writing by the Holder to the Company specifically
for inclusion in the Registration Statement or such Prospectus and that such
information was reasonably relied upon by the Company for use in the
Registration Statement, such Prospectus or such form of prospectus or to the
extent that such information relates to the Holder or the Holder's proposed
method of distribution of Registrable Securities and was reviewed and expressly
approved in writing by the Holder expressly for use in the Registration
Statement, such Prospectus or such form of Prospectus.

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

                  An Indemnified Party shall have the right to employ separate
counsel in any such Proceeding and to participate in the defense thereof, but
the fees and expenses of such counsel shall be at the expense of such
Indemnified Party or Parties unless: (1) the Indemnifying Party has agreed in
writing to pay such fees and expenses; or (2) the Indemnifying Party shall have
failed promptly to assume the defense of such Proceeding and to employ counsel
reasonably satisfactory to such Indemnified Party in any such Proceeding; or (3)
the named parties to any such Proceeding (including any impleaded parties)
include both such Indemnified Party and the Indemnifying Party, and such
Indemnified Party shall have been advised by counsel that a conflict of interest
is likely to exist if the same counsel were to represent such Indemnified Party
and the Indemnifying Party (in which case, if such Indemnified Party notifies
the Indemnifying Party in writing that it elects to employ separate counsel at
the expense of the Indemnifying Party, the Indemnifying Party shall not have the
right to assume the defense thereof and such counsel shall be at the expense of
the Indemnifying Party). The Indemnifying Party shall not be liable for any
settlement of any such Proceeding effected without its written consent, which
consent shall not be unreasonably withheld. No Indemnifying Party shall, without
the prior

                                       9
<PAGE>

written consent of the Indemnified Party, effect any settlement of any pending
Proceeding in respect of which any Indemnified Party is a party, unless such
settlement includes an unconditional release of such Indemnified Party from all
liability on claims that are the subject matter of such Proceeding.

              All fees and expenses of the Indemnified Party (including
reasonable fees and expenses to the extent incurred in connection with
investigating or preparing to defend such Proceeding in a manner not
inconsistent with this Section) shall be paid to the Indemnified Party, as
incurred, within ten (10) Business Days of written notice thereof to the
Indemnifying Party (regardless of whether it is ultimately determined that an
Indemnified Party is not entitled to indemnification hereunder; provided, that
the Indemnifying Party may require such Indemnified Party to undertake to
reimburse all such fees and expenses to the extent it is finally judicially
determined that such Indemnified Party is not entitled to indemnification
hereunder) and the amount of the settlement and all expenses relating thereto
have been paid by the indemnifying party.

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

              The parties hereto agree that it would not be just and equitable
if contribution pursuant to this Section 5(d) were determined by pro rata
allocation or by any other method of allocation that does not take into account
the equitable considerations referred to in the immediately preceding paragraph.
No Person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any Person
who was not guilty of such fraudulent misrepresentation.

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

                                       10
<PAGE>

         6.       Rule 144.

              As long as the Holder owns Put Shares, Warrants or Warrant Shares,
the Company covenants to timely file (or obtain extensions in respect thereof
and file within the applicable grace period) all reports required to be filed by
the Company after the date hereof pursuant to Section 13(a) or 15(d) of the
Exchange Act and to promptly furnish the Holder with true and complete copies of
all such filings. As long as the Holder owns Put Shares, Warrants or Warrant
Shares, if the Company is not required to file reports pursuant to Section 13(a)
or 15(d) of the Exchange Act, it will prepare and furnish to the Holder and make
publicly available in accordance with Rule 144(c) promulgated under the
Securities Act annual and quarterly financial statements, together with a
discussion and analysis of such financial statements in form and substance
substantially similar to those that would otherwise be required to be included
in reports required by Section 13(a) or 15(d) of the Exchange Act, as well as
any other information required thereby, in the time period that such filings
would have been required to have been made under the Exchange Act. The Company
further covenants that it will take such further action as the Holder may
reasonably request, all to the extent required from time to time to enable such
Person to sell Put Shares and Warrant Shares without registration under the
Securities Act within the limitation of the exemptions provided by Rule 144
promulgated under the Securities Act, including providing any legal opinions
relating to such sale pursuant to Rule 144. Upon the request of the Holder, the
Company shall deliver to the Holder a written certification of a duly authorized
officer as to whether it has complied with such requirements.

         7.       Miscellaneous.

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

                  (b) No Inconsistent Agreements. Except as set forth on
Schedule 7(b) attached hereto, neither the Company nor any of its subsidiaries
has, as of the date hereof entered into and currently in effect, nor shall the
Company or any of its subsidiaries, on or after the date of this Agreement,
enter into any agreement with respect to its securities that is inconsistent
with the rights granted to the Holder in this Agreement or otherwise conflicts
with the provisions hereof. Neither the Company nor any of its subsidiaries has
previously entered into any agreement currently in effect granting any
registration rights with respect to any of its securities to any Person. Without
limiting the generality of the foregoing, without the written consent of the
Holder, the Company shall not grant to any Person the right to request the
Company to register any securities of the Company under the Securities Act
unless the rights so granted are subject in all respects to the prior rights in
full of the Holder set forth herein, and are not otherwise in conflict with the
provisions of this Agreement.

                                       11
<PAGE>

                  (c) No Piggyback on Registrations. Except as set forth on
Schedule 7(c) attached hereto, neither the Company nor any of its security
holders may include securities of the Company in the Registration Statement, and
the Company shall not after the date hereof enter into any agreement providing
such right to any of its security holders, unless the right so granted is
subject in all respects to the prior rights in full of the Holder set forth
herein, and is not otherwise in conflict with the provisions of this Agreement.

                  (d) Piggy-Back Registrations. If at any time when there is not
an effective Registration Statement covering (i) Put Shares or (ii) Warrant
Shares, the Company shall determine to prepare and file with the Commission a
registration statement relating to an offering for its own account or the
account of others under the Securities Act of any of its equity securities,
other than on Form S-4 or Form S-8 (each as promulgated under the Securities
Act) or their then equivalents relating to equity securities to be issued solely
in connection with any acquisition of any entity or business or equity
securities issuable in connection with stock option or other employee benefit
plans, the Company shall send to each holder of Registrable Securities written
notice of such determination and, if within thirty (30) days after receipt of
such notice, any such holder shall so request in writing, (which request shall
specify the Registrable Securities intended to be disposed of by the Holder),
the Company will cause the registration under the Securities Act of all
Registrable Securities which the Company has been so requested to register by
the holder, to the extent requisite to permit the disposition of the Registrable
Securities so to be registered, provided that if at any time after giving
written notice of its intention to register any securities and prior to the
effective date of the registration statement filed in connection with such
registration, the Company shall determine for any reason not to register or to
delay registration of such securities, the Company may, at its election, give
written notice of such determination to such holder and, thereupon, (i) in the
case of a determination not to register, shall be relieved of its obligation to
register any Registrable Securities in connection with such registration (but
not from its obligation to pay expenses in accordance with Section 4 hereof),
and (ii) in the case of a determination to delay registering, shall be permitted
to delay registering any Registrable Securities being registered pursuant to
this Section 7(d) for the same period as the delay in registering such other
securities. The Company shall include in such registration statement all or any
part of such Registrable Securities such holder requests to be registered;
provided, however, that the Company shall not be required to register any
Registrable Securities pursuant to this Section 7(d) that are eligible for sale
pursuant to Rule 144(k) of the Securities Act. In the case of an underwritten
public offering, if the managing underwriter(s) or underwriter(s) should
reasonably object to the inclusion of the Registrable Securities in such
registration statement, then if the Company after consultation with the managing
underwriter should reasonably determine that the inclusion of such Registrable
Securities, would materially adversely affect the offering contemplated in such
registration statement, and based on such determination recommends inclusion in
such registration statement of fewer or none of the Registrable Securities of
the Holder, then (x) the number of Registrable Securities of the Holder included
in such registration statement shall be reduced (based upon the number of
Registrable Securities requested to be included in the registration), if the
Company after consultation with the underwriter(s) recommends the inclusion of
fewer Registrable Securities, or (y) none of the Registrable Securities of the
Holder shall be included in such registration statement, if the Company after
consultation with the underwriter(s) recommends the inclusion of none of such

                                       12
<PAGE>

Registrable Securities; provided, however, that if Securities are being offered
for the account of other persons or entities as well as the Company, such
reduction shall not represent a greater fraction of the number of Registrable
Securities intended to be offered by the Holder than the fraction of similar
reductions imposed on such other persons or entities (other than the Company).

                  (e) Failure to File Registration Statement and Other Events.
The Company and the Purchaser agree that the Holder will suffer damages if the
Registration Statement is not filed on or prior to the Filing Date and not
declared effective by the Commission on or prior to the Effectiveness Date and
maintained in the manner contemplated herein during the Effectiveness Time or if
certain other events occur. The Company and the Holder further agree that it
would not be feasible to ascertain the extent of such damages with precision.
Accordingly, if (A) the Registration Statement is not filed on or prior to the
Filing Date, or is not declared effective by the Commission on or prior to the
Effectiveness Date (or in the event an additional Registration Statement is
filed because the actual number of shares of Common Stock issuable pursuant to a
Put and the Warrants are exercisable exceeds the number of shares of Common
Stock initially registered is not filed and declared effective with the time
periods set forth in Section 2(a)), or (B) the Company fails to file with the
Commission a request for acceleration in accordance with Rule 12dl-2 promulgated
under the Exchange Act within five (5) Business Days of the date that the
Company is notified (orally or in writing, whichever is earlier) by the
Commission that a Registration Statement will not be "reviewed," or not subject
to further review, or (C) the Registration Statement is filed with and declared
effective by the Commission but thereafter ceases to be effective as to all
Registrable Securities at any time prior to the expiration of the Effectiveness
Period, without being succeeded immediately by a subsequent Registration
Statement filed with and declared effective by the Commission, or (D) trading in
the Common Stock shall be suspended or if the Common Stock is delisted from the
OTC Bulletin Board or The Nasdaq SmallCap Market or for any reason for more than
three (3) consecutive Business Days, or (E) the Company breaches in a material
respect any covenant or other material term or condition to this Agreement or
the Purchase Agreement (other than a representation or warranty contained
therein) or any other agreement, document, certificate or other instrument
delivered in connection with the transactions contemplated hereby and thereby,
and such breach continues for a period of thirty days after written notice
thereof to the Company, or (F) the Company has breached Section 3(n) (any such
failure or breach being referred to as an "Event," and for purposes of clause
(A) the date on which such Event occurs, or for purposes of clause (B) the date
on which such five day period is exceeded, or for purposes of clause (C) after
more than fifteen Business Days, or for purposes of clause (D) the date on which
such three Business Day period is exceeded, or for clause (E) the date on which
such thirty day period is exceeded, being referred to as "Event Date"), the
Company shall pay in cash as liquidated damages to the Holder an amount equal to
$1,000 per day for so long as more than 10,000 shares of Common Stock are held
by the Purchaser (the "Periodic Amount"). Payments to be made pursuant to this
Section 7(e) shall be due and payable immediately upon demand in immediately
available funds. The parties agree that the Periodic Amount represents a
reasonable estimate on the part of the parties, as of the date of this
Agreement, of the amount of damages that may be incurred by the Holder if the
Registration Statement is not maintained in the manner contemplated herein
during the Effectiveness Period or if any other Event as described herein has
occurred. Additionally, if the Registration Statement is not declared effective
by the Effectiveness Date, the amount of

                                       13
<PAGE>

Commitment Warrants issued to the Holder shall increase by five percent (5%) for
each thirty (30) day period that the Registration Statement is not declared
effective after the Effectiveness Date. If the Registration Statement is not
declared effective by the 150th day after the date hereof, the Holder shall have
the right to terminate the Commitment and retain the Commitment Warrants.

                  (f) Amendments and Waivers. The provisions of this Agreement,
including the provisions of this sentence, may not be amended, modified or
supplemented, and waivers or consents to departures from the provisions hereof
may not be given, unless the same shall be in writing and signed by the Company
and the Holder.

                  (g) Notices. Any and all notices or other communications or
deliveries required or permitted to be provided hereunder shall be in writing
and shall be deemed given and effective on the earlier of (i) the date of
transmission, if such notice or communication is delivered via facsimile at the
facsimile telephone number specified for notice prior to 5:00 p.m., New York
City time, on a Business Day, (ii) the Business Day after the date of
transmission, if such notice or communication is delivered via facsimile at the
facsimile telephone number specified for notice later than 5:00 p.m., New York
City time, on any date and earlier than 11:59 p.m., New York City time, on such
date, (iii) the Business Day following the date of mailing, if sent by
nationally recognized overnight courier service or (iv) actual receipt by the
party to whom such notice is required to be given. The addresses for such
communications shall be with respect to the Holder at its address set forth
under its name on Schedule 1 attached hereto, or with respect to the Company,
addressed to:

                                    Earth Search Sciences, Inc.
                                    1729 Montana Highway 35
                                    Kalispell, MT 59901
                                    Telephone No.: (406) 751-5200
                                    Facsimile No.: (406) 752-7433
                                    Attention: Chief Financial Officer

         or to such other address or addresses or facsimile number or numbers as
any such party may most recently have designated in writing to the other parties
hereto by such notice. Copies of notices to the Holder shall be sent to Jenkens
& Gilchrist Parker Chapin LLP, 405 Lexington Avenue, New York New York 10174,
Attention: Christopher S. Auguste, Esq., Facsimile No.: (212) 704-6288. Copies
of notices to the Company shall be sent to Ballard Spahr Andrews & Ingersoll,
LLP, 51st Floor, 1735 Market Street, Philadelphia, PA 19103-7599, Telephone No.:
(215) 864-8625, Facsimile No.: (215) 864-8999, Attention: Gerald J. Guarcini,
Esq.

                  (h) Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the parties and their successors and permitted
assigns and shall inure to the benefit of the Holder and its successors and
assigns. The Company may not assign this Agreement or any of its rights or
obligations hereunder without the prior written consent of the Holder. The
Purchaser may assign its rights hereunder in the manner and to the Persons as
permitted under the Purchase Agreement.

                                       14
<PAGE>

                  (i) Assignment of Registration Rights. The rights of the
Holder hereunder, including the right to have the Company register for resale
Registrable Securities in accordance with the terms of this Agreement, shall be
automatically assignable by the Holder to any Affiliate of the Holder of all or
a portion of the Registrable Securities if: (i) the Holder agrees in writing
with the transferee or assignee to assign such rights, and a copy of such
agreement is furnished to the Company within three (3) Business Days after such
assignment, (ii) the Company is, within three (3) Business Days after such
transfer or assignment, furnished with written notice of (a) the name and
address of such transferee or assignee, and (b) the securities with respect to
which such registration rights are being transferred or assigned, (iii)
following such transfer or assignment the further disposition of such securities
by the transferee or assignees is restricted under the Securities Act and
applicable state securities laws, (iv) at or before the time the Company
receives the written notice contemplated by clause (ii) of this Section, the
transferee or assignee agrees in writing with the Company to be bound by all of
the provisions of this Agreement, and (v) such transfer shall have been made in
accordance with the applicable requirements of the Purchase Agreement. In
addition, the Holder shall have the right to assign its rights hereunder to any
other Person with the prior written consent of the Company, which consent shall
not be unreasonably withheld. The rights to assignment shall apply to the Holder
(and to subsequent) successors and assigns.

                  (j) Counterparts. This Agreement may be executed in any number
of counterparts, each of which when so executed shall be deemed to be an
original and, all of which taken together shall constitute one and the same
Agreement. In the event that any signature is delivered by facsimile
transmission, such signature shall create a valid binding obligation of the
party executing (or on whose behalf such signature is executed) the same with
the same force and effect as if such facsimile signature were the original
thereof.

                  (k) Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York, without regard
to principles of conflicts of law thereof.

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

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

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

                                       15
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Registration
Rights Agreement to be duly executed by their respective authorized persons as
of the date first indicated above.

                                       EARTH SEARCH SCIENCES, INC.

                                       By:_____________________________________
                                             Name:  Rory Stevens
                                             Title:    Chief Financial Officer

                                       ALPHA VENTURE CAPITAL, INC.

                                       By:_____________________________________
                                             Name: Barry Herman
                                             Title:   Director

                                       16
<PAGE>

                                   Schedule 1
                                   ----------

Alpha Venture Capital, Inc.
Avarua Rarotonga
Cook Islands
Telephone No: (242) 356-2486
Facsimile No. (242) 356-4147
Attention: Mr. Barry Herman, Director

                                       17

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