Document:

SECURITIES PURCHASE AGREEMENT

      This Securities Purchase Agreement (this "AGREEMENT") is dated as of April
___, 2006, among Globetel Communications Corporation, a Delaware corporation
(the "COMPANY"), and the purchasers identified on the signature pages
hereto(each a "PURCHASER" and collectively the "PURCHASERS"); and

      WHEREAS, subject to the terms and conditions set forth in this Agreement
and pursuant to Section 4(2) of the Securities Act (as defined below), and Rule
506 and/Regulation S promulgated thereunder, the Company desires to issue and
sell to the Purchasers, and the Purchasers, severally and not jointly, desires
to purchase from the Company in the aggregate, up to 2,000,000 shares of Common
Stock under the terms and conditions stated herein.

      NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this
Agreement, and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the Company and each Purchaser agrees
as follows:

                                   ARTICLE I.
                                   DEFINITIONS

      1.1 DEFINITIONS. In addition to the terms defined elsewhere in this
Agreement, for all purposes of this Agreement, the following terms have the
meanings indicated in this Section 1.1:

            "ACTION" shall have the meaning ascribed to such term in Section
      3.1(j).

            "AFFILIATE" means any Person that, directly or indirectly through
      one or more intermediaries, controls or is controlled by or is under
      common control with a Person as such terms are used in and construed under
      Rule 144. With respect to a Purchaser, any investment fund or managed
      account that is managed on a discretionary basis by the same investment
      manager as such Purchaser will be deemed to be an Affiliate of such
      Purchaser.

            "BUSINESS DAY" means any day except Saturday, Sunday and any day
      which shall be a federal legal holiday or a day on which banking
      institutions in the State of New York are authorized or required by law or
      other governmental action to close.

            "CLOSING" means the closing of the purchase and sale of the Common
      Stock and the Warrants pursuant to Section 2.1.

            "CLOSING DATE" means the Trading Day when all of the Transaction
      Documents have been executed and delivered by the applicable parties
      thereto, and all conditions precedent to (i) the Purchasers' obligations
      to pay the Subscription Amount and (ii) the Company's obligations to
      deliver the Securities have been satisfied or waived. There may be more
      than one closing date

            "CLOSING PRICE" means on any particular date (a) the last reported
      closing bid price per share of Common Stock on such date on the Trading
      Market (as reported by Bloomberg L.P. at 4:15 PM (New York time), or (b)
      if there is no such price on such date, then the closing bid price on the
      Trading Market on the date nearest preceding such date (as reported by
      Bloomberg L.P. at 4:15 PM (New York time) for the closing bid price for
      regular session trading on such day), or (c) if the Common Stock is not
      then listed or quoted on the Trading Market and if prices for the Common
      Stock are then reported in the "pink sheets" published by the National
      Quotation Bureau Incorporated (or a similar organization or agency
      succeeding to its functions of reporting prices), the most recent bid
      price per share of the Common Stock so reported, or (d) if the shares of
      Common Stock are not then publicly traded the fair market value of a share
      of Common Stock as determined by an appraiser selected in good faith by
      the Purchasers of a majority in interest of the Shares then outstanding.

<PAGE>

            "COMMISSION" means the Securities and Exchange Commission.

            "COMMON STOCK" means the common stock of the Company, $0.00001 par
      value per share, and any securities into which such common stock may
      hereafter be reclassified.

            "COMMON STOCK EQUIVALENTS" means any securities of the Company or
      the Subsidiaries which would entitle the holder thereof to acquire at any
      time Common Stock, including without limitation, any debt, preferred
      stock, rights, options, warrants or other instrument that is at any time
      convertible into or exchangeable for, or otherwise entitles the holder
      thereof to receive, Common Stock.

            "COMPANY COUNSEL" means Jonathan D. Leinwand, General Counsel of
      GlobeTel.

            "DISCLOSURE SCHEDULES" means the Disclosure Schedules delivered
      concurrently herewith.

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

            "INTELLECTUAL PROPERTY RIGHTS" shall have the meaning ascribed to
      such term in Section 3.1(o).

            "LIENS" means a lien, charge, security interest, encumbrance, right
      of first refusal, preemptive right or other restriction.

            "MATERIAL ADVERSE EFFECT" shall have the meaning ascribed to such
      term in Section 3.1(b).

            "MATERIAL PERMITS" shall have the meaning ascribed to such term in
      Section 3.1(m).

            "PER SHARE PURCHASE PRICE" equals 84% of the Closing price on the
      day that the Company requests a closing but not less than $2.00 subject to
      adjustment for reverse and forward stock splits, stock dividends, stock
      combinations and other similar transactions of the Common Stock that occur
      after the date of this Agreement.

<PAGE>

            "PERSON" means an individual or corporation, partnership, trust,
      incorporated or unincorporated association, joint venture, limited
      liability company, joint stock company, government (or an agency or
      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.

            "REQUIRED APPROVALS" shall have the meaning ascribed to such term in
      Section 3.1(e).

            "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.

            "SEC REPORTS" shall have the meaning ascribed to such term in
      Section 3.1(h).

            "SECURITIES" means the Shares, the Warrants and the Warrant Shares.

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

            "SHARES" means the shares of Common Stock issued or issuable to the
      Purchaser pursuant to this Agreement.

            "SUBSIDIARY" shall mean the subsidiaries of the Company, if any, set
      forth on Schedule 3.1(a).

            "TRADING DAY" means (i) a day on which the Common Stock is traded on
      a Trading Market, or (ii) if the Common Stock is not quoted on a Trading
      Market, a day on which the Common Stock is quoted in the over-the-counter
      market as reported by the National Quotation Bureau Incorporated (or any
      similar organization or agency succeeding its functions of reporting
      prices); provided, that in the event that the Common Stock is not listed
      or quoted as set forth in (i) and (ii) hereof, then Trading Day shall mean
      a Business Day.

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

            "TRANSACTION DOCUMENTS" means this Agreement, the Warrants and the
      Registration Rights Agreement and any other documents or agreements
      executed in connection with the transactions contemplated hereunder.

<PAGE>

                                   ARTICLE II.
                                PURCHASE AND SALE

      2.1 CLOSING.

            (a) On the first Closing Date, the Purchaser shall purchase from the
      Company, and the Company shall issue and sell to the Purchaser, 500,000
      shares at a purchase price of $2.10 per share. The first closing date
      shall be April 27, 2006.

            (b) Subsequent thereto, but prior to June 25, 2006, the Company
      shall sell to the Purchaser, and the Purchaser shall purchase, an
      additional 1,500,000 Shares in amounts of not less than 500,000 shares per
      closing, upon the Company delivering to the Purchaser a Request for
      Closing. The Per Share Purchase price, as defined above, shall be
      determined using the closing price on the date that the Request for
      Closing is transmitted. If such request is not transmitted on a business
      day the closing price shall be determined at the end of the next business
      day following transmittal. However, notwithstanding anything to contrary
      contained herein, the Purchaser shall not be obligated to make subsequent
      purchases of shares after the First Closing Date as stated in Section
      2.1(a) above, if upon the date of the Request for Closing the closing
      market price for the Shares is less than $2.25 per share.

            (c) At each closing the Company shall pay to the purchaser a due
      diligence fee of 25,000 Shares per 500,000 Shares, or pro rata portion
      thereof, purchased by the Purchaser.

      2.2 CLOSING CONDITIONS; DELIVERIES.

            (a) On the first Closing date the Company shall deliver or cause to
      be delivered to each Purchaser the following:

                  (i) this Agreement duly executed by the Company;

                  (ii) a certificate evidencing a number of Shares equal to such
            Purchaser's Subscription Amount divided by the Per Share Purchase
            Price, registered in the name of such Purchaser;

            (b) On the Closing Date, the Purchaser shall deliver or cause to be
      delivered to the Company the following:

                  (i) this Agreement duly executed by such Purchaser;

                  (ii) such Purchaser's Subscription Amount by wire transfer to
            the account of the Company; and

            (c) All representations and warranties of the other party contained
      herein shall remain true and correct as of the Closing Date.

            (d) All obligations, covenants and agreements of the parties
      required to be performed at or prior to the Closing Date shall have been
      performed.

            (e) From the date hereof to the Closing Date, trading in the Common
      Stock shall not have been suspended by the Commission, and, at any time
      prior to the Closing Date, trading in securities generally as reported by
      Bloomberg Financial Markets shall not have been suspended or limited, or
      minimum prices shall not have been established on securities whose trades
      are reported by such service, or on any Trading Market, nor shall a
      banking moratorium have been declared either by the United States or New
      York State authorities nor shall there have occurred any material outbreak
      or escalation of hostilities or other national or international calamity
      of such magnitude in its effect on, or any material adverse change in, any
      financial market which, in each case, in the reasonable judgment of each
      Purchaser, makes it impracticable or inadvisable to purchase the Shares at
      the such Closing.

<PAGE>

            (f) On each subsequent Closing Date, the company shall deliver to
      the Purchaser a certificate evidencing a number of Shares equal to such
      Purchaser's Subscription Amount divided by the Per Share Purchase Price,
      registered in the name of such Purchaser, and the Purchaser shall deliver
      the to the Company the Purchasers Subscription Amount by wire transfer

                                  ARTICLE III.
                         REPRESENTATIONS AND WARRANTIES

      3.1 REPRESENTATIONS AND WARRANTIES OF THE COMPANY. Except as set forth
under the corresponding section of the Disclosure Schedules delivered
concurrently herewith, the Company hereby makes the following representations
and warranties as of the date hereof and as of the Closing Date to each
Purchaser:

            (a) SUBSIDIARIES. All of the subsidiaries of the Company are set
      forth on SCHEDULE 3.1(a). The Company owns, directly or indirectly, all of
      the capital stock or other equity interests of each Subsidiary free and
      clear of any Liens, and all the issued and outstanding shares of capital
      stock of each Subsidiary are validly issued and are fully paid,
      non-assessable and free of preemptive and similar rights to subscribe for
      or purchase securities. If the Company has no subsidiaries, then
      references in the Transaction Documents to the Subsidiaries will be
      disregarded.

            (b) ORGANIZATION AND QUALIFICATION. Each of the Company and the
      Subsidiaries is an entity duly incorporated or otherwise organized,
      validly existing and in good standing under the laws of the jurisdiction
      of its incorporation or organization (as applicable), with the requisite
      power and authority to own and use its properties and assets and to carry
      on its business as currently conducted. Neither the Company nor any
      Subsidiary is in violation or default of any of the provisions of its
      respective certificate or articles of incorporation, bylaws or other
      organizational or charter documents. Each of the Company and the
      Subsidiaries is duly qualified to conduct business and is in good standing
      as a foreign corporation or other entity in each jurisdiction in which the
      nature of the business conducted or property owned by it makes such
      qualification necessary, except where the failure to be so qualified or in
      good standing, as the case may be, could not have or reasonably be
      expected to result in (i) a material adverse effect on the legality,
      validity or enforceability of any Transaction Document, (ii) a material
      adverse effect on the results of operations, assets, business, prospects
      or financial condition of the Company and the Subsidiaries, taken as a
      whole, or (iii) a material adverse effect on the Company's ability to
      perform in any material respect on a timely basis its obligations under
      any Transaction Document (any of (i), (ii) or (iii), a "MATERIAL ADVERSE
      EFFECT") and no Proceeding has been instituted in any such jurisdiction
      revoking, limiting or curtailing or seeking to revoke, limit or curtail
      such power and authority or qualification.

<PAGE>

            (c) AUTHORIZATION; ENFORCEMENT. The Company has the requisite
      corporate power and authority to enter into and to consummate the
      transactions contemplated by each of the Transaction Documents and
      otherwise to carry out its obligations thereunder. The execution and
      delivery of each of the Transaction Documents by the Company and the
      consummation by it of the transactions contemplated thereby have been duly
      authorized by all necessary action on the part of the Company and no
      further action is required by the Company in connection therewith other
      than in connection with the Required Approvals. Each Transaction Document
      has been (or upon delivery will have been) duly executed by the Company
      and, when delivered in accordance with the terms hereof, will constitute
      the valid and binding obligation of the Company enforceable against the
      Company in accordance with its terms except (i) as limited by applicable
      bankruptcy, insolvency, reorganization, moratorium and other laws of
      general application affecting enforcement of creditors' rights generally
      and (ii) as limited by laws relating to the availability of specific
      performance, injunctive relief or other equitable remedies.

            (d) NO CONFLICTS. The execution, delivery and performance of the
      Transaction Documents by the Company, the issuance and sale of the Shares
      and the consummation by the Company of the other transactions contemplated
      thereby do not and will not (i) conflict with or violate any provision of
      the Company's or any Subsidiary's certificate or articles of
      incorporation, bylaws or other organizational or charter documents, 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, result in the
      creation of any Lien upon any of the properties or assets of the Company
      or any Subsidiary, or give to others any rights of termination, amendment,
      acceleration or cancellation (with or without notice, lapse of time or
      both) of, any agreement, credit facility, debt or other instrument
      (evidencing a Company or Subsidiary debt or otherwise) or other
      understanding to which the Company or any Subsidiary is a party or by
      which any property or asset of the Company or any Subsidiary is bound or
      affected, or (iii) subject to the Required Approvals, conflict with or
      result in a violation of any law, rule, regulation, order, judgment,
      injunction, decree or other restriction of any court or governmental
      authority to which the Company or a Subsidiary is subject (including
      federal and state securities laws and regulations), or by which any
      property or asset of the Company or a Subsidiary is bound or affected, or
      (iv) conflict with or violate the terms of any agreement by which the
      Company or any Subsidiary is bound or to which any property or asset of
      the Company or any Subsidiary is bound or affected; except in the case of
      each of clauses (ii) and (iii), such as could not have or reasonably be
      expected to result in a Material Adverse Effect.

            (e) FILINGS, CONSENTS AND APPROVALS. The Company is not required to
      obtain any consent, waiver, authorization or order of, give any notice to,
      or make any filing or registration with, any court or other federal,
      state, local or other governmental authority or other Person in connection
      with the execution, delivery and performance by the Company of the
      Transaction Documents, other than (i) filings required pursuant to Section
      4.6 of this Agreement, (ii) the filing with the Commission of the
      Registration Statement, (iii) application(s) to each applicable Trading
      Market for the listing of the Shares and Warrant Shares for trading
      thereon in the time and manner required thereby, and (iv) the filing of
      Form D with the Commission and such filings as are required to be made
      under applicable state securities laws (collectively, the "REQUIRED
      APPROVALS").

<PAGE>

            (f) ISSUANCE OF THE SECURITIES. The Securities are duly authorized
      and, when issued and paid for in accordance with the Transaction
      Documents, will be duly and validly issued, fully paid and nonassessable,
      free and clear of all Liens. The issuance of the Shares is not subject to
      any preemptive or similar rights to subscribe for or purchase securities.
      The Company has reserved from its duly authorized capital stock the
      maximum number of shares of Common Stock issuable pursuant to this
      Agreement and the Warrants.

            (g) CAPITALIZATION. The capitalization of the Company is as
      described in the Company's most recent periodic report filed with the
      Commission. The Company has not issued any capital stock since such filing
      other than pursuant to the exercise of employee stock options under the
      Company's stock option plans, the issuance of shares of Common Stock to
      employees pursuant to the Company's employee stock purchase plan and
      pursuant to the conversion or exercise of outstanding Common Stock
      Equivalents outstanding. No Person has any right of first refusal,
      preemptive right, right of participation, or any similar right to
      participate in the transactions contemplated by the Transaction Documents.
      Except as a result of the purchase and sale of the Securities, there are
      no outstanding options, warrants, script rights to subscribe to, calls or
      commitments of any character whatsoever relating to, or securities, rights
      or obligations convertible into or exchangeable for, or giving any Person
      any right to subscribe for or acquire, any shares of Common Stock, or
      contracts, commitments, understandings or arrangements by which the
      Company or any Subsidiary is or may become bound to issue additional
      shares of Common Stock, or securities or rights convertible or
      exchangeable into shares of Common Stock. The issue and sale of the
      Securities will not obligate the Company to issue shares of Common Stock
      or other securities to any Person (other than the Purchasers) and will not
      result in a right of any holder of Company securities to adjust the
      exercise, conversion, exchange or reset price under such securities. All
      of the outstanding shares of capital stock of the Company are validly
      issued, fully paid and nonassessable, have been issued in compliance with
      all federal and state securities laws, and none of such outstanding shares
      was issued in violation of any preemptive rights or similar rights to
      subscribe for or purchase securities. No further approval or authorization
      of any stockholder, the Board of Directors of the Company or others is
      required for the issuance and sale of the Shares. Except as disclosed in
      the SEC Reports, there are no stockholders agreements, voting agreements
      or other similar agreements with respect to the Company's capital stock to
      which the Company is a party or, to the knowledge of the Company, between
      or among any of the Company's stockholders.

            (h) SEC REPORTS; FINANCIAL STATEMENTS. The Company has filed all
      reports required to be filed by it under the Securities Act and the
      Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for
      the two years preceding the date hereof (or such shorter period as the
      Company was required by law to file such material) (the foregoing
      materials, including the exhibits thereto, being collectively referred to
      herein as the "SEC REPORTS") on a timely basis or has received a valid
      extension of such time of filing and has filed any such SEC Reports prior
      to the expiration of any such extension. As of their respective dates, the
      SEC Reports complied in all material respects with the requirements of the
      Securities Act and the Exchange Act and the rules and regulations of the
      Commission promulgated thereunder, and none of the SEC Reports, when
      filed, contained any untrue statement of a material fact or omitted to
      state a material fact required to be stated therein or necessary in order
      to make the statements therein, in light of the circumstances under which
      they were made, not misleading. The financial statements of the Company
      included in the SEC Reports comply in all material respects with
      applicable accounting requirements and the rules and regulations of the
      Commission with respect thereto as in effect at the time of filing. Such
      financial statements have been prepared in accordance with United States
      generally accepted accounting principles applied on a consistent basis
      during the periods involved ("GAAP"), except as may be otherwise specified
      in such financial statements or the notes thereto and except that
      unaudited financial statements may not contain all footnotes required by
      GAAP, and fairly present in all material respects the financial position
      of the Company and its consolidated subsidiaries as of and for the dates
      thereof and the results of operations and cash flows for the periods then
      ended, subject, in the case of unaudited statements, to normal,
      immaterial, year-end audit adjustments.

<PAGE>

            (i) MATERIAL CHANGES. Since the date of the latest audited financial
      statements included within the SEC Reports, except as disclosed in the SEC
      Reports, (i) there has been no event, occurrence or development that has
      had or that could reasonably be expected to result in a Material Adverse
      Effect, (ii) the Company has not incurred any liabilities (contingent or
      otherwise) other than (A) trade payables and accrued expenses incurred in
      the ordinary course of business consistent with past practice and (B)
      liabilities not required to be reflected in the Company's financial
      statements pursuant to GAAP or required to be disclosed in filings made
      with the Commission, (iii) the Company has not altered its method of
      accounting, (iv) the Company has not declared or made any dividend or
      distribution of cash or other property to its stockholders or purchased,
      redeemed or made any agreements to purchase or redeem any shares of its
      capital stock and (v) the Company has not issued any equity securities to
      any officer, director or Affiliate, except pursuant to existing Company
      stock option plans. The Company does not have pending before the
      Commission any request for confidential treatment of information.

            (j) LITIGATION. Except as disclosed in the SEC Reports, there is no
      action, suit, inquiry, notice of violation, proceeding or investigation
      pending or, to the knowledge of the Company, threatened against or
      affecting the Company, any Subsidiary or any of their respective
      properties before or by any court, arbitrator, governmental or
      administrative agency or regulatory authority (federal, state, county,
      local or foreign) (collectively, an "ACTION") which (i) adversely affects
      or challenges the legality, validity or enforceability of any of the
      Transaction Documents or the Securities or (ii) could, if there were an
      unfavorable decision, have or reasonably be expected to result in a
      Material Adverse Effect. Neither the Company nor any Subsidiary, nor any
      director or officer thereof, is or has been the subject of any Action
      involving a claim of violation of or liability under federal or state
      securities laws or a claim of breach of fiduciary duty. There has not
      been, and to the knowledge of the Company, there is not pending or
      contemplated, any investigation by the Commission involving the Company or
      any current or former director or officer of the Company. The Commission
      has not issued any stop order or other order suspending the effectiveness
      of any registration statement filed by the Company or any Subsidiary under
      the Exchange Act or the Securities Act.

<PAGE>

            (k) LABOR RELATIONS. No material labor dispute exists or, to the
      knowledge of the Company, is imminent with respect to any of the employees
      of the Company which could reasonably be expected to result in a Material
      Adverse Effect.

            (l) COMPLIANCE. Except as disclosed in the SEC Reports, neither the
      Company nor any Subsidiary (i) is in default under or in violation of (and
      no event has occurred that has not been waived that, with notice or lapse
      of time or both, would result in a default by the Company or any
      Subsidiary under), nor has the Company or any Subsidiary received notice
      of a claim that it is in default under or that it is in violation of, any
      indenture, loan or credit agreement or any other agreement or instrument
      to which it is a party or by which it or any of its properties is bound
      (whether or not such default or violation has been waived), (ii) is in
      violation of any order of any court, arbitrator or governmental body, or
      (iii) is or has been in violation of any statute, rule or regulation of
      any governmental authority, including without limitation all foreign,
      federal, state and local laws applicable to its business except in each
      case as could not have a Material Adverse Effect.

            (m) REGULATORY PERMITS. The Company and the Subsidiaries possess all
      certificates, authorizations and permits issued by the appropriate
      federal, state, local or foreign regulatory authorities necessary to
      conduct their respective businesses as described in the SEC Reports,
      except where the failure to possess such permits could not have or
      reasonably be expected to result in a Material Adverse Effect ("MATERIAL
      PERMITS"), and neither the Company nor any Subsidiary has received any
      notice of proceedings relating to the revocation or modification of any
      Material Permit.

            (n) TITLE TO ASSETS. The Company and the Subsidiaries have good and
      marketable title in fee simple to all real property owned by them that is
      material to the business of the Company and the Subsidiaries and good and
      marketable title in all personal property owned by them that is material
      to the business of the Company and the Subsidiaries, in each case free and
      clear of all Liens, except for Liens as do not materially affect the value
      of such property and do not materially interfere with the use made and
      proposed to be made of such property by the Company and the Subsidiaries
      and Liens for the payment of federal, state or other taxes, the payment of
      which is neither delinquent nor subject to penalties. Any real property
      and facilities held under lease by the Company and the Subsidiaries are
      held by them under valid, subsisting and enforceable leases of which the
      Company and the Subsidiaries are in compliance.

<PAGE>

            (o) PATENTS AND TRADEMARKS. To the knowledge of the Company and each
      Subsidiary, the Company and the Subsidiaries have, or have rights to use,
      all patents, patent applications, trademarks, trademark applications,
      service marks, trade names, copyrights, licenses and other similar rights
      that are necessary or material for use in connection with their respective
      businesses as described in the SEC Reports and which the failure to so
      have could have or reasonably be expected to result in a Material Adverse
      Effect (collectively, the "INTELLECTUAL PROPERTY RIGHTS"). Neither the
      Company nor any Subsidiary has received a written notice that the
      Intellectual Property Rights used by the Company or any Subsidiary
      violates or infringes upon the rights of any Person. To the knowledge of
      the Company, all such Intellectual Property Rights are enforceable and do
      not violate or infringe the Intellectual Property Rights of others.

            (p) INSURANCE. The Company and the Subsidiaries are insured by
      insurers of recognized financial responsibility against such losses and
      risks and in such amounts as are prudent and customary in the businesses
      in which the Company and the Subsidiaries are engaged. Neither the Company
      nor any Subsidiary has any reason to believe that it will not be able to
      renew its existing insurance coverage as and when such coverage expires or
      to obtain similar coverage from similar insurers as may be necessary to
      continue its business without a significant increase in cost.

            (q) TRANSACTIONS WITH AFFILIATES AND EMPLOYEES. Except as set forth
      in the SEC Reports, none of the officers or directors of the Company and,
      to the knowledge of the Company, none of the employees of the Company is
      presently a party to any transaction with the Company or any Subsidiary
      (other than for services as employees, officers and directors), including
      any contract, agreement or other arrangement providing for the furnishing
      of services to or by, providing for rental of real or personal property to
      or from, or otherwise requiring payments to or from any officer, director
      or such employee or, to the knowledge of the Company, any entity in which
      any officer, director, or any such employee has a substantial interest or
      is an officer, director, trustee or partner, in each case in excess of
      $60,000 other than (i) for payment of salary or consulting fees for
      services rendered, (ii) reimbursement for expenses incurred on behalf of
      the Company and (iii) for other employee benefits, including stock option
      agreements under any stock option plan of the Company.

            (r) INTERNAL ACCOUNTING CONTROLS. The Company and each of the
      Subsidiaries maintains a system of internal accounting controls sufficient
      to provide reasonable assurance that (i) transactions are executed in
      accordance with management's general or specific authorizations, (ii)
      transactions are recorded as necessary to permit preparation of financial
      statements in conformity with GAAP and to maintain asset accountability,
      (iii) access to assets is permitted only in accordance with management's
      general or specific authorization, and (iv) the recorded accountability
      for assets is compared with the existing assets at reasonable intervals
      and appropriate action is taken with respect to any differences. The
      Company has established disclosure controls and procedures (as defined in
      Exchange Act Rules 13a-14 and 15d-14) for the Company and designed such
      disclosure controls and procedures to ensure that material information
      relating to the Company, including the Subsidiaries, is made known to the
      certifying officers by others within those entities, particularly during
      the period in which the Company's most recently filed period report under
      the Exchange Act, as the case may be, is being prepared. The Company's
      certifying officers have evaluated the effectiveness of the Company's
      controls and procedures as of a date within 90 days prior to the filing
      date of the most recently filed periodic report under the Exchange Act
      (such date, the "EVALUATION DATE"). The Company presented in its most
      recently filed period report under the Exchange Act the conclusions of the
      certifying officers about the effectiveness of the disclosure controls and
      procedures based on their evaluations as of the Evaluation Date. Since the
      Evaluation Date, there have been no significant changes in the Company's
      internal controls (as such term is defined in Item 307(b) of Regulation
      S-K under the Exchange Act) or, to the Company's knowledge, in other
      factors that could significantly affect the Company's internal controls.
      The Company maintains and will continue to maintain a standard system of
      accounting established and administered in accordance with GAAP and the
      applicable requirements of the Exchange Act.

<PAGE>

            (s) CERTAIN FEES. No brokerage or finder's fees or commissions are
      or will be payable by the Company to any broker, financial advisor or
      consultant, finder, placement agent, investment banker, bank or other
      Person with respect to the transactions contemplated by this Agreement.
      The Purchasers shall have no obligation with respect to any fees or with
      respect to any claims made by or on behalf of other Persons for fees of a
      type contemplated in this Section that may be due in connection with the
      transactions contemplated by this Agreement.

            (t) PRIVATE PLACEMENT. Assuming the accuracy of the Purchasers
      representations and warranties set forth in Section 3.2, no registration
      under the Securities Act is required for the offer and sale of the
      Securities by the Company to the Purchasers as contemplated hereby. The
      issuance and sale of the Securities hereunder does not contravene the
      rules and regulations of the Trading Market.

            (u) INVESTMENT COMPANY. The Company is not, and is not an Affiliate
      of, and immediately after receipt of payment for the Shares, will not be
      or be an Affiliate of, an "investment company" within the meaning of the
      Investment Company Act of 1940, as amended. The Company shall conduct its
      business in a manner so that it will not become subject to the Investment
      Company Act.

            (v) REGISTRATION RIGHTS. No Person has any right to cause the
      Company to effect the registration under the Securities Act of any
      securities of the Company.

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

<PAGE>

            (x) APPLICATION OF TAKEOVER PROTECTIONS. The Company and its Board
      of Directors have not implemented any poison pill (including any
      distribution under a rights agreement) or other similar anti-takeover
      provision under the Company's Certificate of Incorporation (or similar
      charter documents) or the laws of its state of incorporation.

            (y) DISCLOSURE. Other than the terms of the transaction contemplated
      by this Agreement, the Company confirms that, neither the Company nor any
      other Person acting on its behalf has provided any of the Purchasers or
      their agents or counsel with any information that constitutes or might
      constitute material, non-public information. The Company understands and
      confirms that the Purchasers will rely on the foregoing representations
      and covenants in effecting transactions in securities of the Company. All
      disclosure provided to the Purchasers regarding the Company, its business
      and the transactions contemplated hereby, including the Disclosure
      Schedules to this Agreement, furnished by or on behalf of the Company are
      true and correct and do not contain any untrue statement of a material
      fact or omit to state any material fact necessary in order to make the
      statements made therein, in light of the circumstances under which they
      were made, not misleading.

            (z) NO INTEGRATED OFFERING. Assuming the accuracy of the Purchasers'
      representations and warranties set forth in Section 3.2, 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, under circumstances
      that would cause this offering of the Securities to be integrated with
      prior offerings by the Company for purposes of the Securities Act or any
      applicable shareholder approval provisions, including, without limitation,
      under the rules and regulations of any exchange or automated quotation
      system on which any of the securities of the Company are listed or
      designated.

            (aa) SOLVENCY. Based on the financial condition of the Company as of
      the Closing Date after giving effect to the receipt by the Company of the
      proceeds from the sale of the Securities hereunder, (i) the Company's fair
      saleable value of its assets exceeds the amount that will be required to
      be paid on or in respect of the Company's existing debts and other
      liabilities (including known contingent liabilities) as they mature; (ii)
      the Company's assets do not constitute unreasonably small capital to carry
      on its business for the current fiscal year as now conducted and as
      proposed to be conducted including its capital needs taking into account
      the particular capital requirements of the business conducted by the
      Company, and projected capital requirements and capital availability
      thereof; and (iii) the current cash flow of the Company, together with the
      proceeds the Company would receive, were it to liquidate all of its
      assets, after taking into account all anticipated uses of the cash, would
      be sufficient to pay all amounts on or in respect of its debt when such
      amounts are required to be paid. The Company does not intend to incur
      debts beyond its ability to pay such debts as they mature (taking into
      account the timing and amounts of cash to be payable on or in respect of
      its debt).

            (bb) TAXES. Except for matters that would not, individually or in
      the aggregate, have or reasonably be expected to result in a Material
      Adverse Effect, the Company and each Subsidiary has filed all necessary
      federal, state and foreign income and franchise tax returns and has paid
      or accrued all taxes shown as due thereon, and the Company has no
      knowledge of a tax deficiency which has been asserted or threatened
      against the Company or any Subsidiary.

<PAGE>

            (cc) GENERAL SOLICITATION. Neither the Company nor any person acting
      on behalf of the Company has offered or sold any of the Shares by any form
      of general solicitation or general advertising. The Company has offered
      the Shares for sale only to the Purchasers and certain other "accredited
      investors" within the meaning of Rule 501 under the Securities Act.

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

            (ee) ACCOUNTANTS. To the Company's knowledge, Dohan & Company, the
      Company's accountants, who have expressed their opinion with respect to
      the financial statements to be included in the Company's Annual Report on
      Form 10-K for the year ended December 31, 2005, are independent
      accountants as required by the Securities Act and the rules and
      regulations promulgated thereunder.

            (ff) ACKNOWLEDGMENT REGARDING PURCHASERS' PURCHASE OF SHARES. The
      Company acknowledges and agrees that each of the Purchasers is acting
      solely in the capacity of an arm's length purchaser with respect to the
      Transaction Documents and the transactions contemplated hereby. The
      Company further acknowledges that no Purchaser is acting as a financial
      advisor or fiduciary of the Company (or in any similar capacity) with
      respect to this Agreement and the transactions contemplated hereby and any
      advice given by any Purchaser or any of their respective representatives
      or agents in connection with this Agreement and the transactions
      contemplated hereby is merely incidental to the Purchasers' purchase of
      the Shares. The Company further represents to each Purchaser that the
      Company's decision to enter into this Agreement has been based solely on
      the independent evaluation of the transactions contemplated hereby by the
      Company and its representatives.

      3.2 REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS. Each Purchaser
hereby, for itself and for no other Purchaser, represents and warrants as of the
date hereof and as of the Closing Date to the Company as follows:

<PAGE>

            (a) ORGANIZATION; AUTHORITY. Such Purchaser is an entity duly
      organized, validly existing and in good standing under the laws of the
      jurisdiction of its organization with full right, corporate or partnership
      power and authority to enter into and to consummate the transactions
      contemplated by the Transaction Documents and otherwise to carry out its
      obligations thereunder. The execution, delivery and performance by such
      Purchaser of the transactions contemplated by this Agreement have been
      duly authorized by all necessary corporate or similar action on the part
      of such Purchaser. Each Transaction Document to which it is party has been
      duly executed by such Purchaser, and when delivered by such Purchaser in
      accordance with the terms hereof, will constitute the valid and legally
      binding obligation of such Purchaser, enforceable against it in accordance
      with its terms, except (i) as limited by general equitable principles and
      applicable bankruptcy, insolvency, reorganization, moratorium and other
      laws of general application affecting enforcement of creditors' rights
      generally, (ii) as limited by laws relating to the availability of
      specific performance, injunctive relief or other equitable remedies and
      (iii) insofar as indemnification and contribution provisions may be
      limited by applicable law.

            (b) INVESTMENT INTENT. Such Purchaser is acquiring the Securities as
      principal for its own account for investment purposes only and not with a
      view to or for distributing or reselling such Securities or any part
      thereof, without prejudice, however, to such Purchaser's right at all
      times to sell or otherwise dispose of all or any part of such Securities
      in compliance with applicable federal and state securities laws. Subject
      to the immediately preceding sentence, nothing contained herein shall be
      deemed a representation or warranty by such Purchaser to hold the
      Securities for any period of time. Such Purchaser is acquiring the
      Securities hereunder in the ordinary course of its business. Such
      Purchaser does not have any agreement or understanding, directly or
      indirectly, with any Person to distribute any of the Securities.

            (c) PURCHASER STATUS. At the time such Purchaser was offered the
      Securities, it was, and at the date hereof it is an "accredited investor"
      as defined in Rule 501(a) under the Securities Act. Such Purchaser is not
      required to be registered as a broker-dealer under Section 15 of the
      Exchange Act.

            (d) EXPERIENCE OF SUCH PURCHASER. Such Purchaser, either alone or
      together with its representatives, has such knowledge, sophistication and
      experience in business and financial matters so as to be capable of
      evaluating the merits and risks of the prospective investment in the
      Securities, and has so evaluated the merits and risks of such investment.
      Such Purchaser is able to bear the economic risk of an investment in the
      Securities and, at the present time, is able to afford a complete loss of
      such investment.

            (e) GENERAL SOLICITATION. Such Purchaser is not purchasing the
      Securities as a result of any advertisement, article, notice or other
      communication regarding the Securities published in any newspaper,
      magazine or similar media or broadcast over television or radio or
      presented at any seminar or any other general solicitation or general
      advertisement.

<PAGE>

      The Company acknowledges and agrees that each Purchaser does not make or
      has not made any representations or warranties with respect to the
      transactions contemplated hereby other than those specifically set forth
      in this Section 3.2.

                                   ARTICLE IV.
                         OTHER AGREEMENTS OF THE PARTIES

      4.1 TRANSFER RESTRICTIONS.

            (a) The Securities may only be disposed of in compliance with state
      and federal securities laws. In connection with any transfer of Securities
      other than pursuant to an effective registration statement or Rule 144, to
      the Company, to an Affiliate of a Purchaser or in connection with a pledge
      as contemplated in Section 4.1(b), the Company may require the transferor
      thereof to provide to the Company an opinion of counsel selected by the
      transferor, the form and substance of which opinion shall be reasonably
      satisfactory to the Company, to the effect that such transfer does not
      require registration of such transferred Securities under the Securities
      Act. As a condition of transfer, any such transferee shall be bound by the
      terms of this Agreement and shall have the rights of a Purchaser under
      this Agreement and the Registration Rights Agreement.

            (b) The Purchasers agree to the imprinting, so long as is required
      by this Section 4.1(b), of a legend on any of the Securities in the
      following form:

            THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND
            EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
            RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
            ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND, ACCORDINGLY,
            MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE
            REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
            AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
            REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE
            WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL
            OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE
            OF WHICH SHALL BE ACCEPTABLE TO THE COMPANY. THESE SECURITIES MAY BE
            PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A
            REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION
            THAT IS AN "ACCREDITED INVESTOR" AS DEFINED IN RULE 501(a) UNDER THE
            SECURITIES ACT.

            The Company acknowledges and agrees that a Purchaser may from time
      to time pledge pursuant to a bona fide margin agreement with a registered
      broker-dealer or grant a security interest in some or all of the
      Securities to a financial institution that is an "accredited investor" as
      defined in Rule 501(a) under the Securities Act and who agrees to be bound
      by the provisions of this Agreement and, if required under the terms of
      such arrangement, such Purchaser may transfer pledged or secured
      Securities to the pledgees or secured parties. Such a pledge or transfer
      would not be subject to approval of the Company and no legal opinion of
      legal counsel of the pledgee, secured party or pledgor shall be required
      in connection therewith. Further, no notice shall be required of such
      pledge. At the appropriate Purchaser's expense, the Company will execute
      and deliver such reasonable documentation as a pledgee or secured party of
      Securities may reasonably request in connection with pledge or transfer of
      the Securities.

<PAGE>

            (c) Certificates evidencing the Shares shall not contain any legend
      (including the legend set forth in Section 4.1(b)), (i) following any sale
      of such Shares pursuant to Rule 144, or (ii) if such Shares are eligible
      for sale under Rule 144(k), or (iii) if such legend is not required under
      applicable requirements of the Securities Act (including judicial
      interpretations and pronouncements issued by the Staff of the Commission).
      The Company shall cause its counsel to issue a legal opinion to the
      Company's transfer agent promptly after the Effective Date if required by
      the Company's transfer agent to effect the removal of the legend
      hereunder. The Company agrees that at such time as such legend is no
      longer required under this Section 4.1(c), it will, no later than three
      Trading Days following the delivery by a Purchaser to the Company or the
      Company's transfer agent of a certificate representing Shares or Warrant
      Shares, as the case may be, issued with a restrictive legend (such date,
      the "LEGEND REMOVAL DATE"), deliver or cause to be delivered to such
      Purchaser a certificate representing such Securities that is free from all
      restrictive and other legends. The Company may not make any notation on
      its records or give instructions to any transfer agent of the Company that
      enlarge the restrictions on transfer set forth in this Section.

            (d) In addition to such Purchaser's other available remedies, the
      Company shall pay to a Purchaser, in cash, as liquidated damages and not
      as a penalty, for each $1,000 of Shares or Warrant Shares (based on the
      Closing Price of the Common Stock on the date such Securities are
      submitted to the Company's transfer agent) subject to Section 4.1(c), $10
      per Trading Day (increasing to $20 per Trading Day five (5) Trading Days
      after such damages have begun to accrue) for each Trading Day after such
      fifth Trading Day after the Legend Removal Date until such certificate is
      delivered. Nothing herein shall limit such Purchaser's right to pursue
      actual damages for the Company's failure to deliver certificates
      representing any Securities as required by the Transaction Documents, and
      such Purchaser shall have the right to pursue all remedies available to it
      at law or in equity including, without limitation, a decree of specific
      performance and/or injunctive relief.

            (e) The Purchaser agrees that the removal of the restrictive legend
      from certificates representing Securities as set forth in this Section 4.1
      is predicated upon the Company's reliance that the Purchaser will sellany
      Securities pursuant to either the registration requirements of the
      Securities Act, including any applicable prospectus delivery requirements,
      or an exemption therefrom.

      4.2 FURNISHING OF INFORMATION. As long as any Purchaser owns Securities,
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 the Exchange Act. As long as any
Purchaser owns Securities, if the Company is not required to file reports
pursuant to the Exchange Act, it will prepare and furnish to the Purchasers and
make publicly available in accordance with Rule 144(c) such information as is
required for the Purchasers to sell the Securities under Rule 144. The Company
further covenants that it will take such further action as any holder of
Securities may reasonably request, all to the extent required from time to time
to enable such Person to sell such Securities without registration under the
Securities Act within the limitation of the exemptions provided by Rule 144.

<PAGE>

      4.3 INTEGRATION. The Company shall not sell, offer for sale or solicit
offers to buy or otherwise negotiate in respect of any security (as defined in
Section 2 of the Securities Act) that would be integrated with the offer or sale
of the Securities in a manner that would require the registration under the
Securities Act of the sale of the Securities to the Purchasers or that would be
integrated with the offer or sale of the Securities for purposes of the rules
and regulations of any Trading Market such that it would require shareholder
approval prior to the closing of such other transaction unless shareholder
approval is obtained before the closing of such subsequent transaction.

      4.4 SECURITIES LAWS DISCLOSURE; PUBLICITY. The Company shall issue a press
release or file a Current Report on Form 8-K, in each case reasonably acceptable
to each Purchaser disclosing the material terms of the transactions contemplated
hereby, prior to the opening of the principal market for the securities
purchased on the next trading day after signing. The Company and each Purchaser
shall consult with each other in issuing any press releases with respect to the
transactions contemplated hereby, and neither the Company nor any Purchaser
shall issue any such press release or otherwise make any such public statement
without the prior consent of the Company, with respect to any press release of
any Purchaser, or without the prior consent of each Purchaser, with respect to
any press release of the Company, which consent shall not unreasonably be
withheld, except if such disclosure is required by law, in which case the
disclosing party shall promptly provide the other party with prior notice of
such public statement or communication. Notwithstanding the foregoing, the
Company shall not publicly disclose the name of any Purchaser, or include the
name of any Purchaser in any filing with the Commission or any regulatory agency
or Trading Market, without the prior written consent of such Purchaser, except
to the extent such disclosure is required by law or Trading Market regulations,
in which case the Company shall provide the Purchasers with prior notice of such
disclosure.

      4.5 SHAREHOLDERS RIGHTS PLAN. No claim will be made or enforced by the
Company or, to the knowledge of the Company, any other Person that any Purchaser
is an "Acquiring Person" under any shareholders rights plan or similar plan or
arrangement in effect or hereafter adopted by the Company, or that any Purchaser
could be deemed to trigger the provisions of any such plan or arrangement, by
virtue of receiving Securities under the Transaction Documents or under any
other agreement between the Company and the Purchasers. The Company shall
conduct its business in a manner so that it will not become subject to the
Investment Company Act.

      4.6 NON-PUBLIC INFORMATION. The Company covenants and agrees that neither
it nor any other Person acting on its behalf will provide any Purchaser or its
agents or counsel with any information that the Company believes constitutes
material non-public information, unless prior thereto such Purchaser shall have
executed a written agreement regarding the confidentiality and use of such
information. The Company understands and confirms that each Purchaser shall be
relying on the foregoing representations in effecting transactions in securities
of the Company.

      4.7 USE OF PROCEEDS. Except as set forth on SCHEDULE 4.7 attached hereto,
the Company shall use the net proceeds from the sale of the Securities hereunder
for working capital purposes and not for the satisfaction of any portion of the
Company's debt (other than payment of trade payables in the ordinary course of
the Company's business and prior practices), to redeem any Company equity or
equity-equivalent securities or to settle any outstanding litigation.

<PAGE>

      4.8 INDEMNIFICATION OF PURCHASERS. The Company will indemnify and hold the
Purchasers and their directors, officers, shareholders, partners, employees and
agents (each, a "PURCHASER PARTY") harmless from any and all losses,
liabilities, obligations, claims, contingencies, damages, costs and expenses,
including all judgments, amounts paid in settlements, court costs and reasonable
attorneys' fees and costs of investigation that any such Purchaser Party may
suffer or incur as a result of or relating to: (a) any misrepresentation, breach
or inaccuracy, or any allegation by a third party that, if true, would
constitute a breach or inaccuracy, of any of the representations, warranties,
covenants or agreements made by the Company in this Agreement or in the other
Transaction Documents; or (b) any cause of action, suit or claim brought or made
against such Purchaser Party and arising solely out of or solely resulting from
the execution, delivery, performance or enforcement of this Agreement or any of
the other Transaction Documents, other than directly resulting from the gross
negligence or willful misconduct of the Purchasers. The Company will reimburse
such Purchaser for its reasonable legal and other expenses (including the cost
of any investigation, preparation and travel in connection therewith) incurred
in connection therewith, as such expenses are incurred.

      4.9 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, a sufficient number of shares of Common Stock
for the purpose of enabling the Company to issue Shares pursuant to this
Agreement and Warrant Shares pursuant to any exercise of the Warrants.

      4.10 LISTING OF COMMON STOCK. The Company hereby agrees to use
commercially reasonable efforts to maintain the listing of the Common Stock on a
Trading Market, and as soon as reasonably practicable following the Closing (but
not later than the earlier of the Effective Date and the first anniversary of
the Closing Date) to list all of the Shares and Warrant Shares on such Trading
Market. The Company further agrees, if the Company applies to have the Common
Stock traded on any other Trading Market, it will include in such application
all of the Shares and Warrant Shares, and will take such other action as is
necessary to cause all of the Shares and Warrant Shares to be listed on such
other Trading Market as promptly as possible. The Company will take all action
reasonably necessary to continue the listing and trading of its Common Stock on
a Trading Market and will comply in all respects with the Company's reporting,
filing and other obligations under the bylaws or rules of the Trading Market.

      4.11 EQUAL TREATMENT OF PURCHASERS. No consideration shall be offered or
paid to any person to amend or consent to a waiver or modification of any
provision of any of the Transaction Documents unless the same consideration is
also offered to all of the parties to the Transaction Documents. For
clarification purposes, this provision constitutes a separate right granted to
each Purchaser by the Company and negotiated separately by each Purchaser, and
is intended to treat for the Company the Purchasers as a class and shall not in
any way be construed as the Purchasers acting in concert or as a group with
respect to the purchase, disposition or voting of Securities or otherwise.

<PAGE>

                                   ARTICLE V.
                                  MISCELLANEOUS

      5.1 FEES AND EXPENSES. Each party shall pay the fees and expenses of its
advisers, counsel, accountants and other experts, if any, and all other expenses
incurred by such party incident to the negotiation, preparation, execution,
delivery and performance of this Agreement. The Company shall pay all stamp and
other taxes and duties levied in connection with the sale of the Securities.

      5.2 ENTIRE AGREEMENT. The Transaction Documents, together with the
exhibits and schedules thereto, contain the entire understanding of the parties
with respect to the subject matter hereof and supersede all prior agreements and
understandings, oral or written, with respect to such matters, which the parties
acknowledge have been merged into such documents, exhibits and schedules.

      5.3 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 earliest of (a) the date of transmission, if
such notice or communication is delivered via facsimile at the facsimile number
set forth on the signature pages attached hereto prior to 6:30 p.m. (New York
City time) on a Trading Day, (b) the next Trading Day after the date of
transmission, if such notice or communication is delivered via facsimile at the
facsimile number set forth on the signature pages attached hereto on a day that
is not a Trading Day or later than 6:30 p.m. (New York City time) on any Trading
Day, (c) the second Trading Day following the date of mailing, if sent by U.S.
nationally recognized overnight courier service, or (d) upon actual receipt by
the party to whom such notice is required to be given. The address for such
notices and communications shall be as set forth on the signature pages attached
hereto.

      5.3 AMENDMENTS; WAIVERS. No provision of this Agreement may be waived or
amended except in a written instrument signed, in the case of an amendment, by
the Company and each Purchaser or, in the case of a waiver, by the party against
whom enforcement of any such waiver is sought. No waiver of any default with
respect to any provision, condition or requirement of this Agreement shall be
deemed to be a continuing waiver in the future or a waiver of any subsequent
default or a waiver of any other provision, condition or requirement hereof, nor
shall any delay or omission of either party to exercise any right hereunder in
any manner impair the exercise of any such right.

      5.4 CONSTRUCTION. 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. The language used in this Agreement will be deemed
to be the language chosen by the parties to express their mutual intent, and no
rules of strict construction will be applied against any party.

      5.5 SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and inure
to the benefit of the parties and their successors and permitted assigns. The
Company may not assign this Agreement or any rights or obligations hereunder
without the prior written consent of each Purchaser. Any Purchaser may assign
any or all of its rights under this Agreement to any Person to whom such
Purchaser assigns or transfers any Securities, provided such transferee agrees
in writing to be bound, with respect to the transferred Securities, by the
provisions hereof that apply to the "Purchasers".

<PAGE>

      5.6 NO THIRD-PARTY BENEFICIARIES. This Agreement is intended for the
benefit of the parties hereto and their respective successors and permitted
assigns and is not for the benefit of, nor may any provision hereof be enforced
by, any other Person, except as otherwise set forth in Section 4.8.

      5.7 GOVERNING LAW. All questions concerning the construction, validity,
enforcement and interpretation of the Transaction Documents shall be governed by
and construed and enforced in accordance with the internal laws of the State of
Delaware, without regard to the principles of conflicts of law thereof. Each
party agrees that all legal proceedings concerning the interpretations,
enforcement and defense of the transactions contemplated by this Agreement and
any other Transaction Documents (whether brought against a party hereto or its
respective affiliates, directors, officers, shareholders, employees or agents)
shall be commenced exclusively in the state and federal courts sitting in the
Miami-Dade or Broward Counties, Florida. Each party hereto hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in
Miami-Dade or Broward Counties, Florida, for the adjudication of any dispute
hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein (including with respect to the enforcement of any of the
Transaction Documents), and hereby irrevocably waives, and agrees not to assert
in any suit, action or proceeding, any claim that it is not personally subject
to the jurisdiction of any such court, that such suit, action or proceeding is
improper. Each party hereto hereby irrevocably waives personal service of
process and consents to process being served in any such suit, action or
proceeding by delivering a copy thereof via overnight delivery (with evidence of
delivery) to such party at the address in effect for notices to it under this
Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law.
Each party hereto (including its affiliates, agents, officers, directors and
employees) hereby irrevocably waives, to the fullest extent permitted by
applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Agreement or the transactions contemplated
hereby. If either party shall commence an action or proceeding to enforce any
provisions of a Transaction Document, then the prevailing party in such action
or proceeding shall be reimbursed by the other party for its attorneys' fees and
other costs and expenses incurred with the investigation, preparation and
prosecution of such action or proceeding.

      5.8 SURVIVAL. The representations and warranties herein shall survive the
Closing and delivery of the Shares and Warrant Shares.

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

      5.10 SEVERABILITY. If any provision of this Agreement is held to be
invalid or unenforceable in any respect, the validity and enforceability of the
remaining terms and provisions of this Agreement shall not in any way be
affected or impaired thereby and the parties will attempt to agree upon a valid
and enforceable provision that is a reasonable substitute therefor, and upon so
agreeing, shall incorporate such substitute provision in this Agreement.

<PAGE>

      5.11 REPLACEMENT OF SECURITIES. If any certificate or instrument
evidencing any Securities is mutilated, lost, stolen or destroyed, the Company
shall issue or cause to be issued in exchange and substitution for and upon
cancellation thereof, or in lieu of and substitution therefor, a new certificate
or instrument, but only upon receipt of evidence reasonably satisfactory to the
Company of such loss, theft or destruction and customary and reasonable
indemnity, if requested. The applicants for a new certificate or instrument
under such circumstances shall also pay any reasonable third-party costs
associated with the issuance of such replacement Securities.

      5.12 REMEDIES. In addition to being entitled to exercise all rights
provided herein or granted by law, including recovery of damages, each of the
Purchasers and the Company will be entitled to specific performance under the
Transaction Documents. The parties agree that monetary damages may not be
adequate compensation for any loss incurred by reason of any breach of
obligations described in the foregoing sentence and hereby agrees to waive in
any action for specific performance of any such obligation the defense that a
remedy at law would be adequate.

      5.13 PAYMENT SET ASIDE. To the extent that the Company makes a payment or
payments to any Purchaser pursuant to any Transaction Document or a Purchaser
enforces or exercises its rights thereunder, and such payment or payments or the
proceeds of such enforcement or exercise or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside, recovered
from, disgorged by or are required to be refunded, repaid or otherwise restored
to the Company, a trustee, receiver or any other person under any law
(including, without limitation, any bankruptcy law, state or federal law, common
law or equitable cause of action), then to the extent of any such restoration
the obligation or part thereof originally intended to be satisfied shall be
revived and continued in full force and effect as if such payment had not been
made or such enforcement or setoff had not occurred.

      5.14 INDEPENDENT LEGAL COUNSEL. Both the Company and the Purchaser have
sought and have had access to independent legal counsel prior to the execution
hereof.

                            (SIGNATURE PAGE FOLLOWS)

<PAGE>

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

GLOBETEL COMMUNICATIONS CORP.                     ADDRESS FOR NOTICE:
                                                  -------------------
                                                     9010 Pines Blvd., Suite 110
                                                     Pembroke Pines, FL 33324
By:_________________________________
     Name:  TIMOTHY M. HUFF
     Title: CEO                                    Attn:  Timothy Huff
                                                   Tel:   954-241-0590
                                                   Fax:   954-272-0380

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                     SIGNATURE PAGES FOR PURCHASERS FOLLOW]

<PAGE>

      IN WITNESS WHEREOF, the undersigned have caused this Securities Purchase
Agreement to be duly executed by their respective authorized signatories as of
the date first indicated above.

PURCHASER NAME:                                      ADDRESS FOR NOTICE:
                                                     ------------------

By: ____________________________________
         Name:
         Title:                                      Attn:

Subscription Amount:  $
Shares:

WITH A COPY TO:
--------------

                         [SPA SIGNATURE PAGE CONTINUED]Exhibit
      10.47

     

    SEPARATION
      AND GENERAL RELEASE AGREEMENT

     

    THIS
      SEPARATION AND GENERAL RELEASE AGREEMENT
      (this
“Agreement”) is made between J. Robert Horton (“Horton”) and DOV Pharmaceutical,
      Inc. (“DOV” or the “Company”).

     

    WHEREAS,
      Horton
      commenced employment by DOV on July 29, 2002; 

     

    WHEREAS,
      Horton’s employment with DOV as senior vice president and general counsel will
      terminate effective May 5, 2006;

     

    WHEREAS,
      DOV has
      agreed to provide Horton with separation payments and transition benefits
      subject to the terms and conditions set forth in this Agreement.

     

    NOW,
      THEREFORE,
      DOV and
      Horton hereby agree as follows:

     

    1. Separation
      of Employment.
      Horton
      and DOV hereby ratify and affirm that Horton will retire and terminate from
      any
      and all positions he holds with DOV effective as of May 5, 2006 (the “Separation
      Date”). For option exercise purposes the termination is classified as retirement
      pursuant to Horton’s Employment Agreement with DOV. 

     

    2. Separation
      Payments.
      DOV will
      pay Horton on April 14, and 28, 2006, his regular payroll check and on the
      next
      following payroll date, May 12, 2006, his regular payroll check through May
      5,
      2006, plus 18
      days of
      accrued, unused vacation through the Separation Date.
      The
      Company will keep Horton on medical and dental benefits until May 30, 2006,
      at
      which time he will then be eligible for COBRA. Other than the foregoing, and
      subject to the following sentence, Horton agrees that he has received all salary
      and any other compensation or fringe benefits owed to him by DOV through the
      Separation Date, and agrees that he has no further claims against DOV for salary
      and any other compensation or fringe benefits through
      the Separation Date. However, in consideration of the promises made by Horton
      in
      this Agreement, including the releases given by Horton to DOV in Paragraphs
      3
      through 6 of this Agreement, the parties have agreed on the following
      post-termination benefits: 

     

    
      	 	
              (a)

            	
              DOV
                shall pay Horton at regular payroll intervals his basic compensation
                as of
                the Separation Date (based on his final basic compensation rate of
                $28,333.33 per month) for 15 months through August 5, 2007 (such
                15 month
                period referred to herein as the “Severance Period”), provided that
                if
                the parties agree that Horton is a “specified employee” within the meaning
                of Section 409A of the Code, such
                payments will
                not commence for
                six months after
                the Separation Date and
                DOV
                instead shall
                pay Horton
                on
                November 6, 2006, a lump sum payment equal to six months’ basic
                compensation plus, to the extent deferred pursuant to subparagraph
                (b),
                a
                lump sum payment equal to the
                cost to maintain and/or continue (as applicable) for such six-month
                period
                the
                medical,
                life, dental and disability insurance
                benefits
                which are provided pursuant to subparagraph (b)
                below;

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    
      	 	
              (b)

            	
              DOV
                shall (i) pay on Horton’s behalf (or if more administratively practicable,
                reimburse Horton for) all premiums associated with the continuation
                of
                medical and dental insurance coverage for the duration of the Severance
                Period for Horton and his eligible dependants pursuant to COBRA (subject
                to Horton’s proper election of and eligibility for such continuation
                coverage under COBRA); and (ii) provide Horton with continuation
                for the
                duration of the Severance Period of the life and disability insurance
                coverage Horton was receiving from DOV immediately prior to the Separation
                Date at no cost to Horton (or, to the extent such continued coverage
                is
                not permitted under the applicable policies or law, shall pay premiums
                on
                Horton’s behalf not to exceed in the case of disability the premium
                payment rate that was paid by the Company prior to the Separation
                Date
                (or, if more administratively practicable, reimburse Horton for all
                such
                premiums) associated with obtaining and providing Horton with reasonably
                comparable life and disability insurance coverage for the duration
                of the
                Severance Period); provided
                that,
                if the parties agree that it is necessary to avoid a penalty tax
                under
                Section 409A of the Code, Horton shall pay the entire cost of such
                benefits
                for the
                first six
                months,
                and DOV shall pay Horton a lump sum payment of such costs
                in
                accordance with the procedure set forth in subparagraph
                (a);

            

    

     

    
      	 	
              (c)

            	
              effective
                as of
                the Separation Date, the vesting of all stock options to acquire
                DOV
                stock held
                by Horton that are unvested shall accelerate and thereupon
                vest.
                It is the parties’ intention that such options remain exercisable for the
                longest period permissible without causing Horton to incur a penalty
                tax
                under Section 409A. Under current Internal Revenue Service proposed
                regulations, such options may, and shall
                be
                exercisable up to and including December 31, 2007, provided
                that,
                if Horton determines upon tax advice that an extension of
                time to exercise to
                a date not
                later than
                August 5, 2010, is permissible
                without incurring a penalty tax
                under Section 409A, such options shall be extended,
                to and including such later date given by notice to DOV;

            

    

     

    
      	 	
              (d)

            	
              commencing
                May 8, 2006, Horton shall be available upon reasonable notice to
                perform
                consulting services (as an independent contractor) of
                up to half-time
                during business days in May and June 2006 (the “Consulting Period”) for
                which DOV shall pay Horton $200 per hour plus reasonable out-of-pocket
                expenses; and

            

    

     

    
      	 	
              (e)

            	
              if
                a replacement general counsel has not started employment with DOV
                during
                the above Consulting Period sufficient to permit a suitable transition
                orientation, and starts employment on or prior to November 4, 2006,
                Horton
                shall provide reasonable consulting services for such purpose at
                no
                charge. 

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The
      foregoing severance payments shall be made net of standard withholdings and
      authorized deductions, except that with respect to any consulting services
      performed during the Consulting Period, Horton shall be an independent
      contractor and nothing herein, explicitly or implicitly, shall be deemed or
      construed to create a joint venture, partnership, agency or employee/employer
      relationship between Horton and DOV with respect to the Consulting Period for
      any purpose, including but not limited to taxes or employee benefits. Horton
      thus understands that he will be solely responsible for paying all federal,
      state and local taxes (including income tax, FICA, FUTA and other taxes that
      may
      be due) as a result of any consulting fees he receives pursuant to this
      Agreement; and that he will not accrue any benefits under, or be covered by,
      any
      employee benefit plans of DOV (except for any continuation coverage as otherwise
      provided in subparagraph (b) above). The severance, insurance and other payments
      and benefits provided by DOV hereunder pursuant to subparagraphs (a)-(e) are
      subject to Horton’s signing and delivering this agreement to DOV. In the event
      of Horton’s death prior to full performance by DOV of its obligation hereunder,
      severance and insurance payments if any yet to be paid, and DOV options if
      any
      not yet exercised, shall be paid to, or exercised by, his wife Anne Horton
      or if
      she dies to his or her legal representative or legatee. Horton acknowledges
      that
      the payments and benefits to be provided pursuant to subparagraphs (a)-(e)
      are
      payments and benefits to which he would not otherwise be entitled absent his
      agreement to and compliance with the terms and conditions of this
      Agreement.

     

    3. General
      Release by Horton.
      In
      consideration of the representations and covenants undertaken by DOV, including
      the payments and benefits described in Paragraph 2 of this Agreement, Horton
      releases, discharges and promises not to sue DOV and its parent, if any,
      subsidiaries, affiliates and related companies, and any of and all its current
      or former directors, officers, members, employees, attorneys, representatives,
      insurers, agents, successors, and assigns (individually and collectively the
      “DOV Releasees”), from and with respect to any and all claims, actions, suits,
      liabilities, debts, controversies, contracts, agreements, obligations, damages,
      judgments, causes of action, and contingencies whatsoever (except
      claims, etc., that arise hereunder relating to the enforcement
      hereof),
      including attorneys’ fees and costs, in law or in equity, known or unknown,
      suspected or unsuspected, asserted or unasserted, that, against the DOV
      Releasees, Horton and his heirs, administrators, executors, successors, assigns
      and attorneys ever had, now have, or hereafter can, shall, or may have for,
      upon, or by reason of any matter, cause, or thing whatsoever from the beginning
      of the world to the date of this Agreement. This includes (i) any claims for
      compensation, salary, bonus or similar benefit, severance pay, pension, vacation
      pay, life insurance, disability benefits, health or medical insurance, or any
      other fringe benefit; (ii) any claims under any federal, state, or local law,
      regulation, or ordinance, including any claims under Title VII of the Civil
      Rights Act of 1964, the Age Discrimination in Employment Act, the Americans
      with
      Disabilities Act, the Employee Retirement Income Security Act, the Fair Labor
      Standards Act, the Family Medical Leave Act, the New Jersey Law Against
      Discrimination, the New Jersey Family Leave Act, the New Jersey Conscientious
      Employee Protection Act, the New York State Human Rights Law, New York Executive
      Law § 290 or the New York City Administrative Code; (iii) any claims arising out
      of or relating to his employment with DOV, the terms and conditions of such
      employment and/or the separation of such employment; and (iv) any claims related
      to stock options, any claims for breach of contract (express or implied), and
      any claims under common law. The parties intend this release by Horton to be
      a
      general release of any and all claims to the fullest extent permissible by
      law.

     

    4. New
      Jersey LAD, FLA and CEPA Statutes Waiver.
      Horton
      recognizes that as part of his agreement to release any and all claims against
      the DOV Releasees, he is releasing claims under the New Jersey Law Against
      Discrimination, the New Jersey Family Leave Act and the New Jersey Conscientious
      Employee Protection Act, although he has never asserted such claims. By his
      signature below, Horton represents and warrants that he has been advised to
      consult with an attorney of his own choosing and that he has been given a
      reasonable period of time of at least twenty-one (21) days to consider this
      Agreement and his release of claims pursuant to this Agreement.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    5. Older
      Workers Benefit Protection Act Disclosure and Waiver.
      Horton
      recognizes that as part of his agreement to release any and all claims against
      the DOV Releasees, he is releasing claims for age discrimination under the
      Age
      Discrimination in Employment act, although he has never asserted such claims.
      Accordingly, Horton has a right to reflect upon this Agreement for a period
      of
      twenty-one (21) days before executing it, and he has an additional period of
      seven (7) days after executing this Agreement to revoke it under the terms
      of
      the Older Worker Benefit Protection Act. If Horton elects to revoke this
      Agreement, he must provide written notice of such revocation to Louis Januzzi,
      Assistant General Counsel, DOV Pharmaceutical, Inc., 433 Hackensack Avenue,
      Hackensack, NJ 07601 by no later than the end of the seventh (7th)
      day
      after Horton executed this Agreement (this seven day period referred to herein
      as the “Revocation Period”). If the last day of the Revocation Period falls on a
      Saturday, Sunday or holiday, the last day of the Revocation Period shall be
      deemed to be the next business day after such Saturday, Sunday or holiday.
      This
      Agreement shall be effective upon the expiration of the Revocation Period if
      Horton has not revoked it during the Revocation Period. By his signature below,
      Horton represents and warrants that he has been advised to consult with an
      attorney of his own choosing, that he has been given a reasonable amount of
      time
      to consider this Agreement, and that if Horton signs this Agreement prior to
      the
      expiration of the twenty-one (21) day review period, he is voluntarily and
      knowingly waiving the remainder of his twenty-one (21) day review
      period.

     

    6. Indemnification
      for Claims Filed by Horton.
      If
      Horton files a complaint, charge or lawsuit against any of the DOV Releasees
      regarding any of the claims released herein, Horton shall pay any and all costs
      required in obtaining dismissal of such complaint, charge or lawsuit, including
      the attorneys’ fees of any party against whom he has filed such a complaint,
      charge or lawsuit. This paragraph shall not apply, however, to a claim of age
      discrimination under the Age Discrimination in Employment Act.

     

    7. Return
      of DOV’s Property.
      Horton
      represents that by the Separation Date he will have returned to DOV all property
      of DOV in his possession, including, if any, all his computer equipment, access
      cards, and corporate credit cards, pagers, cellular phones and chargers, and
      other property paid for by DOV. If
      Horton
      gives to DOV books and other documents belonging to him and currently maintained
      in his legal library at DOV, he shall be accorded access thereto after the
      Separation Date upon reasonable notice should such need arise, to include
      temporary borrowing or copying at his expense. 

     

    8. Confidential
      Information of DOV.
      Horton
      recognizes and agrees that DOV’s confidential information concerning its
      business, its clients, prospects and contacts, which includes such things as
      client lists, pricing information, financial information and data, business
      development plans and strategies, and personnel policies and practices are
      valuable, special and unique assets of DOV’s business, access to and knowledge
      of which were essential to the performance of Horton’s duties while employed by
      DOV. Horton represents that he will not disclose such confidential information,
      knowledge or data that he obtained during his employment with DOV and that
      is
      not or does not become public knowledge (other than by acts of Horton or his
      representatives in violation of this Agreement).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    9. Confidential
      Nature of Agreement.
      Horton
      agrees to keep this Agreement and the provisions of this Agreement confidential
      prior to any public disclosure by DOV, except that he may disclose the existence
      and terms of this Agreement, if necessary, to his tax advisors and attorneys,
      to
      his immediate family members and as otherwise required by law. 

     

    10. Liquidated
      Damages.
      It is
      the parties’ intent to have the promises of confidentiality contained in
      Paragraphs 8 and 9 enforced to the fullest extent. Horton and DOV agree that
      money damages could not adequately compensate DOV in the case of a breach or
      threatened breach of these promises of confidentiality and that, therefore,
      DOV
      would be entitled to injunctive relief upon such breach. Horton agrees that
      if a
      court finds that he has disclosed the existence or the terms of this Agreement
      or disclosed DOV’s confidential information in violation of Paragraphs 8 and 9,
      such violation shall constitute and be treated as a material breach of this
      Agreement and, in addition, shall cause Horton to pay DOV total liquidated
      damages in the amount of the aggregate separation payments made pursuant to
      Paragraph 2, plus the actual attorneys’ fees and related costs incurred by DOV
      to enforce Paragraphs 7 and 8 of this Agreement.

     

    11. Non-Disparagement.
      The
      parties agree that neither will make any oral or written statements to any
      person, firm, corporation or other entity that reflects negatively on the other
      or on any of DOV’s officers or employees. The parties acknowledge that neither
      has and agree that neither will engage in any conduct that is injurious to
      the
      other’s reputation or interest, including publicly disparaging (or inducing or
      encouraging others to publicly disparage) the other. The term “disparage”
includes comments or statements to the press, professional associates, employees
      of DOV, or individuals or entities with whom the parties have a relationship
      or
      potential relationship that would adversely affect in any manner the reputation
      of the parties, the reputation of any of DOV’s employees or the conduct of DOV’s
      business. 

     

    12. No
      Admission.
      The
      parties expressly deny any liability, or violation of any agreement with the
      other party or of state, federal, or local laws, regulations or ordinances.
      Accordingly, while this Agreement resolves all issues if any between the parties
      relating to any liability or violation of any such agreement or state, federal,
      or local laws, regulations or ordinances, this Agreement does not constitute
      an
      adjudication or finding on the merits and is not, and shall not be construed
      as,
      an admission by the parties of liability or any violation of such agreement
      or
      of any state, federal, or local laws, regulations or ordinances. Moreover,
      neither this Agreement nor anything in this Agreement shall be construed to
      be
      or shall be admissible in any proceeding as evidence of or an admission by
      either party of any liability or violation of such agreement or of any state,
      federal, or local laws, regulations or ordinances.

     

    13. Modification.
      This
      Agreement may be modified or amended only by a written instrument duly signed
      by
      each of the parties hereto or their respective successors or
      assigns.

     

    14. Controlling
      Law.
      This
      Agreement shall be construed in accordance with and governed by the laws of
      the
      State of New Jersey, without regard to principles of conflict of
      laws.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

     

    15. Effect
      of Voiding or Revocation of Agreement.
      Horton
      agrees that if he does not return a signed and dated copy of this Agreement
      to
      DOV by May 22, 2006 or if he revokes this Agreement prior to the expiration
      of
      the Revocation Period, the provisions of this Agreement shall be void and of
      no
      further force and effect. Further, if Horton receives any compensation from
      DOV
      after May 5, 2006, and if (i) he fails to execute this Agreement by May 22,
      2006, or (ii) he revokes his acceptance of this Agreement prior to the
      expiration of the Revocation Period, Horton agrees that DOV shall have the
      right
      to collect from him the amount of any such compensation.

     

    16. Entire
      Agreement.
      This
      Agreement constitutes and contains the complete understanding of Horton and
      DOV
      with respect to the subject matter addressed in this Agreement, and supersedes
      and replaces all prior negotiations and all agreements, whether written or
      oral,
      concerning the subject matter of this Agreement. This is an integrated document.
      

     

    17. Severability.
      If
      any
      provision of this Agreement is held invalid, such invalidation shall not affect
      other provisions or applications of the Agreement that can be given effect
      without the invalid provision or application, and to this end the provisions
      of
      this Agreement are declared to be severable.

     

    18. Knowing
      and Voluntary Waiver.
      By his
      signature below, Horton represents that (i) he has been given a reasonable
      amount of time to consider this Agreement of not less than twenty-one (21)
      days;
      (ii) he fully understands the significance of the terms and conditions of this
      Agreement and has discussed them with his independent legal counsel, or has
      had
      a reasonable opportunity to have done so; (iii) he agrees to all the terms
      and
      conditions of this Agreement including, but not limited to, the releases,
      waivers and covenants in Paragraphs 3 through 6; and (iv) he has signed this
      Agreement voluntarily and of his own free will, with the full understanding
      of
      its legal consequences, and with the intent to be bound hereby.

     

    19. Necessary
      Amendments to Comply with Section 409A.
      The
      parties acknowledge that certain payments to be made hereunder may be subject
      to
      Section 409A of the Code, and that the requirements of Section 409A are still
      being developed and interpreted at this time. In the event that (i) Horton
      reasonably determines that there is an ambiguity with respect to any provision
      of this Agreement that could cause such provision to be subject to Section
      409A,
      such ambiguity shall be interpreted and resolved in the manner the parties
      agree
      to, or (ii) Horton reasonably determines that any amendment to this Agreement
      (including, but not limited to, the timing or form of payment) is necessary
      or
      appropriate in order to comply with Section 409A or avoid the application of
      Section 409A entirely, the parties agree to make such amendments, on a
      prospective or retroactive basis, provided that any such change shall be made
      in
      a manner that ensures, to the maximum extent reasonably possible, that Horton
      is
      not adversely affected by such change.

     

    IN
      WITNESS WHEREOF,
      the
      parties to this Agreement, intending to be legally bound, have caused this
      Agreement to be executed on the dates indicated below.

     

     

    
      	 	 	DOV Pharmaceutical, Inc.
	 	 	 
	
              /s/
                J. Robert Horton

            	 	By:
              /s/ Leslie Hudson
	
              J.
                Robert Horton

            	 	Name: Leslie
              Hudson
	Date: May 4, 2006	 	Title: President
              and CEO
	 	 	Date: May
              4, 2006

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