Document:

SECURITIES
      PURCHASE AGREEMENT

     

    SECURITIES
      PURCHASE AGREEMENT
      (the
      "Agreement"),
      dated
      as of November 15, 2006, by and among Applied Spectrum Technologies, Inc.,
      a
      Delaware corporation, with headquarters located at 936A Beachland Boulevard,
      Suite 13, Vero Beach, Florida 32963 (the "Company"),
      Ever
      Leader Holdings, Limited, a company incorporated under the laws of Hong Kong
      SAR
      ("Ever
      Leader")
      and
      the investors listed on the Schedule of Buyers attached hereto (individually,
      a
      "Buyer"
      and
      collectively, the "Buyers").

     

    WHEREAS:

     

    A. Pursuant
      to an Exchange Agreement (the "Exchange
      Agreement"),
      dated
      as of September 7, 2006, by and among the Company, Ever Leader KI Equity
      Partners III, LLC and each of the stockholders of Ever Leader, Ever Leader
      will
      become a wholly-owned subsidiary of the Company (the "Acquisition").
      The
      targeted closing date for the Acquisition is November 15,
      2006, but in any event on or prior to December 15, 2006 (the “Closing
      Date”).
      Simultaneously with the consummation of the Acquisition, the Company shall
      change its name from Applied Spectrum Technologies, Inc. to Benda
      Pharmaceuticals, Inc. All references herein to the Company after consummation
      of
      the Acquisition shall be deemed to be references to Benda Pharmaceutical
      Inc.

     

    B. The
      Company and each Buyer is executing and delivering this Agreement in reliance
      upon the exemption from securities registration afforded by Section 4(2) of
      the
      Securities Act of 1933, as amended (the "1933
      Act"),
      and
      Rule 506 of Regulation D ("Regulation D")
      as
      promulgated by the United States Securities and Exchange Commission (the
      "SEC")
      under
      the 1933 Act. 

     

    C. Each
      Buyer wishes to purchase, and the Company wishes to sell, upon the terms and
      conditions stated in this Agreement, (i) that aggregate number of Units set
      forth opposite such Buyer's name in column (3) on the Schedule of Buyers
      attached hereto (which aggregate number for all Buyers shall be 480. As used
      herein, a "Unit" shall consist of 54,087 shares (the shares of the Common Stock
      to be issued hereunder, the "Common
      Shares")
      of the
      Company's common stock, par value $0.001 per share (the "Common
      Stock")
      (the
      shares of Common Stock to be issued hereunder, the "Common
      Shares")
      and
      (ii) warrants, in substantially the form attached hereto as Exhibit
      A
      (the
      "Warrants"),
      to
      acquire up to 54,087 additional shares of Common Stock (as exercised,
      collectively, the " Warrant
      Shares").

     

    D. Contemporaneously
      with the Closing, the parties hereto will execute and deliver a Registration
      Rights Agreement, substantially in the form attached hereto as Exhibit
      B
      (the
      "Registration
      Rights Agreement"),
      pursuant to which the Company will agree to provide certain registration rights
      with respect to the Registrable Securities (as defined in the Registration
      Rights Agreement) under the 1933 Act and the rules and regulations promulgated
      thereunder, and applicable state securities laws.

     

    E. The
      Units, the Common Shares, the Warrants and the Warrant Shares collectively
      are
      referred to herein as the "Securities".

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    F. The
      Company, Ever Leader, the Placement Agent (as defined below) and Steele
      Street State Bank (the
      “Escrow
      Agent”)
      have entered into an Escrow Agreement in the form attached hereto as
Exhibit
      C
      (the “Escrow
      Agreement”)
      to provide for the safekeeping of funds received (the "Escrow
      Funds")
      in connection with the Offering. Such
      funds shall be held in escrow until the Closing and delivered by the Escrow
      Agent on behalf of the Investors to the Company upon the satisfaction of the
      Company’s closing conditions.

     

    G. The
      Company and Computershare Trust Company, Inc. (the "Make
      Good Escrow Agent")
      will
      enter into that certain Make Good Agreement by and among the Placement
      Agent, the Company, its current and future subsidiaries, Ever Leader, its direct
      and indirect subsidiaries, Mr. Yiqing Wan, Ms. Wei Xu and Moveup Investments
      Limited in the form attached hereto as Exhibit
      H
      (the
      "Make
      Good Agreement").

     

    H. In
      connection with the Make Good Agreement, the Company, Ever Leader, its direct
      and indirect subsidiaries, Mr. Yiqing Wan, Ms. Wei Xu, Moveup Investments
      Limited the Placement Agent and the Make Good Escrow Agent will
      enter into that certain Make Good Escrow Agreement in the form attached to
      as
Exhibit
      I
      (the
      "Make
      Good Escrow Agreement").

     

    NOW,
      THEREFORE,
      the
      Company and each Buyer hereby agree as follows:

     

    1. PURCHASE
      AND SALE OF UNITS.

     

    (a) Purchase
      of Units.

     

    (i) Units. Subject
      to the satisfaction (or waiver) of the conditions set forth in Sections 6 and
      7
      below, the Company shall issue and sell to each Buyer, and each Buyer severally,
      but not jointly, agrees to purchase from the Company on the Closing Date (as
      defined below), a number of Units as is set forth opposite such Buyer's name
      in
      column (3) on the Schedule of Buyers.

     

    (ii) Closing.
      The
      date and time of the Closing shall be 10:00 a.m., New York City time, on the
      Closing Date (or such later date as is mutually agreed to by the Company and
      each Buyer) after notification of satisfaction (or waiver) of the conditions
      to
      the Closing set forth in Sections 6 and 7 below, at the offices of Schulte
      Roth
& Zabel LLP, 919 Third Avenue, New York, New York 10022.

     

    (iii) Purchase
      Price.
      The
      aggregate purchase price for the Units to be purchased by each such Buyer at
      the
      Closing (the "Purchase
      Price")
      shall
      be the amount set forth opposite each Buyer's name in column (5) of the Schedule
      of Buyers. Each Buyer shall pay $25,000 for each Unit to be purchased by such
      Buyer at the Closing.

     

    (b) Form
      of Payment.
      No
      later than five (5) Business Days prior to the Closing Date, each Buyer shall
      deposit with the Escrow Agent its Purchase Price for the Units to be sold by
      the
      Company to such Buyer, by wire transfer of immediately available funds in
      accordance with the Escrow Agent's written wire instructions. On the Closing
      Date, (i) the Escrow Agent shall release the Escrow Funds to the Company in
      accordance with the terms of the Escrow Agreement and (ii) the Company
      shall deliver to each Buyer the Common Shares and Warrants comprising the Units
      (allocated in the numbers as such Buyer shall request) which such Buyer is
      then
      purchasing hereunder duly executed on behalf of the Company and registered
      in
      the name of such Buyer or its designee.

     

    
      
        
        

      

      
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    2. BUYER'S
      REPRESENTATIONS AND WARRANTIES.
      Each
      Buyer, severally and not jointly, represents and warrants with respect to only
      itself that:

     

    (a) No
      Sale or Distribution.
      Such
      Buyer is acquiring the Units and the Common Shares and Warrants comprising
      the
      Units, and upon exercise of the Warrants (other than pursuant to a Cashless
      Exercise (as defined in the Warrants)) will acquire the Warrant Shares issuable
      upon exercise of the Warrants, for its own account and not with a view towards,
      or for resale in connection with, the public sale or distribution thereof,
      except pursuant to sales registered or exempted under the 1933 Act; provided,
      however, that by making the representations herein, such Buyer does not agree
      to
      hold any of the Securities for any minimum or other specific term and reserves
      the right to dispose of the Securities at any time in accordance with or
      pursuant to a registration statement or an exemption under the 1933 Act and
      pursuant to the applicable terms of the Transaction Documents (as defined in
      Section 3(b)). Such Buyer is acquiring the Securities hereunder in the ordinary
      course of its business. Such Buyer does not presently have any agreement or
      understanding, directly or indirectly, with any Person to distribute any of
      the
      Securities.

     

    (b) Accredited
      Investor Status.
      Such
      Buyer is an "accredited investor" as that term is defined in Rule 501(a) of
      Regulation D.

     

    (c) Reliance
      on Exemptions.
      Such
      Buyer understands that the Securities are being offered and sold to it in
      reliance on specific exemptions from the registration requirements of United
      States federal and state securities laws and that the Company is relying in
      part
      upon the truth and accuracy of, and such Buyer's compliance with, the
      representations, warranties, agreements, acknowledgments and understandings
      of
      such Buyer set forth herein in order to determine the availability of such
      exemptions and the eligibility of such Buyer to acquire the
      Securities.

     

    (d) Information.
      Such
      Buyer and its advisors, if any, have been furnished with all materials relating
      to the business, finances and operations of the Company and materials relating
      to the offer and sale of the Securities that have been requested by such Buyer.
      Such Buyer and its advisors, if any, have been afforded the opportunity to
      ask
      questions of the Company. Neither such inquiries nor any other due diligence
      investigations conducted by such Buyer or its advisors, if any, or its
      representatives shall modify, amend or affect such Buyer's right to rely on
      the
      Company's representations and warranties contained herein. Such Buyer
      understands that its investment in the Securities involves a high degree of
      risk
      and is able to afford a complete loss of such investment. Such Buyer has sought
      such accounting, legal and tax advice as it has considered necessary to make
      an
      informed investment decision with respect to its acquisition of the
      Securities.

     

    (e) No
      Governmental Review.
      Such
      Buyer understands that no United States federal or state agency or any other
      government or governmental agency has passed on or made any recommendation
      or
      endorsement of the Securities or the fairness or suitability of the investment
      in the Securities nor have such authorities passed upon or endorsed the merits
      of the offering of the Securities.

     

    
      
        
        

      

      
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    (f) Transfer
      or Resale.
      Such
      Buyer understands that except as provided in the Registration Rights Agreement:
      (i) the Securities have not been and are not being registered under the 1933
      Act
      or any state securities laws, and may not be offered for sale, sold, assigned
      or
      transferred unless (A) subsequently registered thereunder, (B) such Buyer shall
      have delivered to the Company an opinion of counsel, in a generally acceptable
      form, to the effect that such Securities to be sold, assigned or transferred
      may
      be sold, assigned or transferred pursuant to an exemption from such
      registration, or (C) such Buyer provides the Company with reasonable assurance
      that such Securities can be sold, assigned or transferred pursuant to Rule
      144
      or Rule 144A promulgated under the 1933 Act, as amended (or a successor rule
      thereto) (collectively, "Rule
      144");
      (ii)
      any sale of the Securities made in reliance on Rule 144 may be made only in
      accordance with the terms of Rule 144 and further, if Rule 144 is not
      applicable, any resale of the Securities under circumstances in which the seller
      (or the Person (as defined in Section 3(s)) through whom the sale is made)
      may
      be deemed to be an underwriter (as that term is defined in the 1933 Act) may
      require compliance with some other exemption under the 1933 Act or the rules
      and
      regulations of the SEC thereunder; and (iii) neither the Company nor any other
      Person is under any obligation to register the Securities under the 1933 Act
      or
      any state securities laws or to comply with the terms and conditions of any
      exemption thereunder. The Securities may be pledged in connection with a bona
      fide margin account or other loan or financing arrangement secured by the
      Securities and such pledge of Securities shall not be deemed to be a transfer,
      sale or assignment of the Securities hereunder, and no Buyer effecting a pledge
      of Securities shall be required to provide the Company with any notice thereof
      or otherwise make any delivery to the Company pursuant to this Agreement or
      any
      other Transaction Document (as defined in Section 3(b)), including, without
      limitation, this Section 2(f).

     

    (g) Legends.
      Such
      Buyer understands that the certificates or other instruments representing the
      Common Shares and the Warrants and, until such time as the resale of the Warrant
      Shares have been registered under the 1933 Act as contemplated by the
      Registration Rights Agreement, the stock certificates representing the Warrant
      Shares, except as set forth below, shall bear any legend as required by the
      "blue sky" laws of any state and a restrictive legend in substantially the
      following form (and a stop-transfer order may be placed against transfer of
      such
      stock certificates):

     

    [NEITHER
      THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR
      THE
      SECURITIES INTO WHICH THESE SECURITIES ARE [EXERCISABLE]
      HAVE
      BEEN][THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN]
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
      SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED
      OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR
      THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION
      OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED
      UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER
      SAID
      ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION
      WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED
      BY THE SECURITIES.

     

    
      
        
        

      

      
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    The
      legend set forth above shall be removed and the Company shall issue a
      certificate without such legend to the holder of the Securities upon which
      it is
      stamped, if, unless otherwise required by state securities laws, (i) such
      Securities are registered for resale under the 1933 Act, (ii) in connection
      with
      a sale, assignment or other transfer, such holder provides the Company with
      an
      opinion of a law firm reasonably acceptable to the Company (with Schulte Roth
      & Zabel LLP being deemed acceptable), in a generally acceptable form, to the
      effect that such sale, assignment or transfer of the Securities may be made
      without registration under the applicable requirements of the 1933 Act, or
      (iii)
      such holder provides the Company with reasonable assurance that the Securities
      can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A. If
      the
      Company shall fail for any reason or for no reason to issue to the holder of
      the
      Securities within three (3) Trading Days (as defined below) (after the
      occurrence of any of (i) through (iii) above, a certificate without such legend
      to the holder or to issue such Securities to such holder by electronic delivery
      at the applicable balance account at DTC or if the Company fails to deliver
      unlegended Securities within 3 Trading Days of the Buyer's election to receive
      such unlegended Securities pursuant to clause (ii) below, and if on or after
      such Trading Day the holder purchases (in an open market transaction or
      otherwise) shares of Common Stock to deliver in satisfaction of a sale by the
      holder of such Securities that the holder anticipated receiving without legend
      from the Company (a "Buy-In"),
      then
      the Company shall, within three (3) Business Days after the holder's request
      and
      in the holder's discretion, either (i) pay cash to the holder in an amount
      equal
      to the holder's total purchase price (including brokerage commissions, if any)
      for the shares of Common Stock so purchased (the "Buy-In
      Price"),
      at
      which point the Company's obligation to deliver such unlegended Securities
      shall
      terminate, or (ii) promptly honor its obligation to deliver to the holder such
      unlegended Securities as provided above and pay cash to the holder in an amount
      equal to the excess (if any) of the Buy-In Price over the product of (A) such
      number of shares of Common Stock, times (B) the Closing Bid Price (as defined
      in
      the Warrants) on the date of exercise.

     

    (h) Validity;
      Enforcement.
      This
      Agreement and the Registration Rights Agreement to which such Buyer is a party
      have been duly and validly authorized, executed and delivered on behalf of
      such
      Buyer and shall constitute the legal, valid and binding obligations of such
      Buyer enforceable against such Buyer in accordance with their respective terms,
      except as such enforceability may be limited by general principles of equity
      or
      to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
      and other similar laws relating to, or affecting generally, the enforcement
      of
      applicable creditors' rights and remedies.

     

    (i) No
      Conflicts.
      The
      execution, delivery and performance by such Buyer of this Agreement and the
      Registration Rights Agreement to which such Buyer is a party and the
      consummation by such Buyer of the transactions contemplated hereby and thereby
      will not (i) result in a violation of the organizational documents of such
      Buyer
      or (ii) conflict with, or constitute a default (or an event which with notice
      or
      lapse of time or both would become a default) under, or give to others any
      rights of termination, amendment, acceleration or cancellation of, any
      agreement, indenture or instrument to which such Buyer is a party, or (iii)
      result in a violation of any law, rule, regulation, order, judgment or decree
      (including federal and state securities laws) applicable to such Buyer, except
      in the case of clauses (ii) and (iii) above, for such conflicts, defaults,
      rights or violations which would not, individually or in the aggregate,
      reasonably be expected to have a material adverse effect on the ability of
      such
      Buyer to perform its obligations hereunder.

     

    
      
        
        

      

      
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    (j) Residency.
      Such
      Buyer is a resident of that jurisdiction specified below its address on the
      Schedule of Buyers.

     

    (k) Certain
      Trading Activities.
      Other
      than with respect to the transactions contemplated herein, since the time that
      such Buyer was first contacted by the Company, the Placement Agent (as defined
      below) or any other Person regarding this investment in the Company neither
      the
      Buyer nor any Affiliate of such Buyer which (x) had knowledge of the
      transactions contemplated hereby, (y) has or shares discretion relating to
      such
      Buyer's investments or trading or information concerning such Buyer's
      investments and (z) is subject to such Buyer's review or input concerning such
      Affiliate's investments or trading (collectively, "Trading
      Affiliates")
      has
      directly or indirectly, nor has any Person acting on behalf of or pursuant
      to
      any understanding with such Buyer or Trading Affiliate, effected or agreed
      to
      effect any transactions in the securities of the Company. Such Buyer hereby
      covenants and agrees not to, and shall cause its Trading Affiliates not to,
      engage, directly or indirectly, in any transactions in the securities of the
      Company or involving the Company's securities during the period from the date
      hereof until such time as (i) the transactions contemplated by this Agreement
      are first publicly announced as described in Section 4(i) hereof or (ii) this
      Agreement is terminated in full pursuant to Section 8 hereof. Notwithstanding
      the foregoing, for avoidance of doubt, nothing contained herein shall constitute
      a representation or warranty, or preclude any actions, with respect to the
      identification of the availability of, or securing of, available shares to
      borrow in order to effect short sales or similar transactions in the
      future.

     

    3. REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY.
      The
      Company represents and warrants to each of the Buyers that, as of the date
      hereof and as of the Closing Date as follows (which representations and
      warranties shall be deemed to apply, as appropriate, to each subsidiary of
      the
      Company, including, without limitation, Ever Leader assuming that the
      Acquisition has been consummated as of the date hereof):

     

    (a) Organization
      and Qualification.
      The
      Company and its "Subsidiaries"
      (which
      for purposes of this Agreement means any joint venture or any entity in which
      the Company, directly or indirectly, owns any of the capital stock or holds
      an
      equity or similar interest are entities duly organized and validly existing
      and,
      to the extent legally applicable, in good standing under the laws of the
      jurisdiction in which they are formed, and have the requisite power and
      authorization to own their properties and to carry on their business as now
      being conducted. Each of the Company and its Subsidiaries is duly qualified
      as a
      foreign entity to do business and to the extent legally applicable, is in good
      standing in every jurisdiction in which its ownership of property or the nature
      of the business conducted by it makes such qualification necessary, except
      to
      the extent that the failure to be so qualified or be in good standing would
      not
      reasonably be expected to reasonably be expected to have a Material Adverse
      Effect. As used in this Agreement, "Material
      Adverse Effect"
      means
      any material adverse effect on the business, properties, assets, operations,
      results of operations, condition (financial or otherwise) or prospects of the
      Company and its Subsidiaries, taken as a whole, or on the transactions
      contemplated hereby and the other Transaction Documents or by the agreements
      and
      instruments to be entered into in connection herewith or therewith, or on the
      authority or ability of the Company to perform its obligations under the
      Transaction Documents (as defined below). The Company has no Subsidiaries except
      as set forth on Schedule
      3(a).

     

    
      
        
        

      

      
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    (b) Authorization;
      Enforcement; Validity.
      The
      Company has the requisite corporate power and authority to enter into and
      perform its obligations under this Agreement, the Registration Rights Agreement,
      Escrow Agreement, the Irrevocable Transfer Agent Instructions (as defined in
      Section 5(b)), the Warrants, the Make Good Agreement, the Make Good Escrow
      Agreement and each of the other agreements entered into by the parties hereto
      in
      connection with the transactions contemplated by this Agreement (collectively,
      the "Transaction
      Documents")
      and to
      issue the Securities in accordance with the terms hereof and thereof. The
      execution and delivery of the Transaction Documents by the Company and the
      consummation by the Company of the transactions contemplated hereby and thereby,
      including, without limitation, the issuance of the Units and the Common Share
      and the Warrants comprising the Units, the reservation for issuance and the
      issuance of the Common Shares and the reservation for issuance and issuance
      of
      Warrant Shares issuable upon exercise of the Warrants have been duly authorized
      by the Company's Board of Directors and other than as set forth in Section
      3(e),
      no further filing, consent, or authorization is required by the Company, its
      Board of Directors or its stockholders. This Agreement and the other Transaction
      Documents of even date herewith have been duly executed and delivered by the
      Company, and constitute the legal, valid and binding obligations of the Company,
      enforceable against the Company in accordance with their respective terms,
      except as such enforceability may be limited by general principles of equity
      or
      applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
      or
      similar laws relating to, or affecting generally, the enforcement of applicable
      creditors' rights and remedies.

     

    (c) Issuance
      of Securities.
      The
      issuance of the Units and the Common Shares and Warrants comprising the Units,
      are duly authorized and upon issuance in accordance with the terms of the
      Transaction Documents shall be free from all taxes, liens and charges with
      respect to the issue thereof. As of the Closing, a number of shares of Common
      Stock shall have been duly authorized and reserved for issuance which equals
      or
      exceeds the sum of (i) 100% of the number of Common Shares issued hereunder
      and
      (ii) 150% of the maximum number of shares of Common Stock issuable upon exercise
      of the Warrants. Upon exercise in accordance with the Warrants, the Warrant
      Shares will be validly issued, fully paid and nonassessable and free from all
      preemptive or similar rights, taxes, liens and charges with respect to the
      issue
      thereof, with the holders being entitled to all rights accorded to a holder
      of
      Common Stock. Assuming the accuracy of each of the representations and
      warranties set forth in Section 2 of this Agreement, the offer and issuance
      by
      the Company of the Securities is exempt from registration under the 1933
      Act.

     

    (d) No
      Conflicts.
      The
      execution, delivery and performance of the Transaction Documents by the Company
      and the consummation by the Company of the transactions contemplated hereby
      and
      thereby (including, without limitation, the issuance of the Units and the Common
      Shares and Warrants which comprise such Units and reservation for issuance
      and
      issuance of the Warrant Shares) will not (i) result in a violation of any
      certificate of incorporation, certificate of formation, any certificate of
      designations or other constituent documents of the Company or any of its
      Subsidiaries, any capital stock of the Company or any of its Subsidiaries or
      bylaws of the Company or any of its Subsidiaries or (ii) conflict with, or
      constitute a default (or an event which with notice or lapse of time or both
      would become a default) in any respect under, or give to others any rights
      of
      termination, amendment, acceleration or cancellation of, any agreement,
      indenture or instrument to which the Company or any of its Subsidiaries is
      a
      party, or (iii) result in a violation of any law, rule, regulation, order,
      judgment or decree (including foreign, federal and state securities laws and
      regulations and the rules and regulations of the National Association of
      Securities Dealer's OTC Bulletin Board (the "Principal
      Market"))
      applicable to the Company or any of its Subsidiaries or by which any property
      or
      asset of the Company or any of its Subsidiaries is bound or affected, except
      in
      the case of clauses (ii) and (iii) above, to the extent that such violations
      conflict, default or right would not reasonably be expected to have a Material
      Adverse Effect.

     

    
      
        
        

      

      
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    (e) Consents.
      Neither
      the Company nor any of its Subsidiaries is required to obtain any consent,
      authorization or order of, or make any filing or registration with, any court,
      governmental agency or any regulatory or self-regulatory agency or any other
      Person in order for it to execute, deliver or perform any of its obligations
      under or contemplated by the Transaction Documents, in each case in accordance
      with the terms hereof or thereof, except for the filing with the SEC of one
      or
      more Registration Statements in accordance with the requirements of the
      Registration Rights Agreement (which is not required to be filed before the
      Closing). The Company and its Subsidiaries are unaware of any facts or
      circumstances that might prevent the Company from obtaining or effecting any
      of
      the registration, application or filings pursuant to the preceding sentence.
      The
      Company is not in violation of the listing requirements of the Principal Market
      and has no knowledge of any facts that would reasonably lead to delisting or
      suspension of the Common Stock in the foreseeable future. 

     

    (f) Acknowledgment
      Regarding Buyer's Purchase of Securities.
      The
      Company acknowledges and agrees that each Buyer is acting solely in the capacity
      of an arm's length purchaser with respect to the Transaction Documents and
      the
      transactions contemplated hereby and thereby and that no Buyer is (i) an officer
      or director of the Company, (ii) an "affiliate" of the Company or any of its
      Subsidiaries (as defined in Rule 144 of the 1933 Act) or (iii) to the knowledge
      of the Company, a "beneficial owner" of more than 10% of the shares of Common
      Stock (as defined for purposes of Rule 13d-3 of the Securities Exchange Act
      of
      1934, as amended (the "1934
      Act")).
      The
      Company further acknowledges that no Buyer is acting as a financial advisor
      or
      fiduciary of the Company or any of its Subsidiaries (or in any similar capacity)
      with respect to the Transaction Documents and the transactions contemplated
      hereby and thereby, and any advice given by a Buyer or any of its
      representatives or agents in connection with the Transaction Documents and
      the
      transactions contemplated hereby and thereby is merely incidental to such
      Buyer's purchase of the Securities. The Company further represents to each
      Buyer
      that the Company's decision to enter into the Transaction Documents has been
      based solely on the independent evaluation by the Company and its
      representatives.

     

    (g) No
      General Solicitation; Placement Agent's Fees.
      Neither
      the Company, nor any of its Subsidiaries or affiliates, nor any Person acting
      on
      its or their behalf, has engaged in any form of general solicitation or general
      advertising (within the meaning of Regulation D) in connection with the offer
      or
      sale of the Securities. The Company shall be responsible for the payment of
      any
      placement agent's fees, financial advisory fees, or brokers' commissions (other
      than for persons engaged by any Buyer or its investment advisor) relating to
      or
      arising out of the transactions contemplated hereby. The Company acknowledges
      that Ever Leader and the Company have engaged Keating Securities, LLC as
      placement agent (the "Placement
      Agent")
      in
      connection with the sale of the Securities. Other than the Placement Agent
      and
      as set forth on Schedule 3(g), neither the Company nor Ever Leader nor any
      of
      its Subsidiaries has engaged any placement agent or other agent in connection
      with the sale of the Securities.

     

    
      
        
        

      

      
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    (h) No
      Integrated Offering.
      None of
      the Company, its Subsidiaries, any of their affiliates, and any Person acting
      on
      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 require registration of any of the Securities under the 1933 Act or cause
      this offering of the Securities to be integrated with prior offerings by the
      Company for purposes of any applicable stockholder 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. None of the Company, its Subsidiaries, their affiliates
      and any Person acting on their behalf will take any action or steps referred
      to
      in the preceding sentence that would require registration of any of the
      Securities under the 1933 Act or cause the offering of the Securities to be
      integrated with other offerings.

     

    (i) Dilutive
      Effect.
      The
      Company understands and acknowledges that the number of Warrant Shares issuable
      upon exercise of the Warrants will increase in certain circumstances. The
      Company further acknowledges that its obligation to issue the Warrant Shares
      upon exercise of the Warrants in accordance with this Agreement and the Warrants
      is, in each case, absolute and unconditional regardless of the dilutive effect
      that such issuance may have on the ownership interests of other stockholders
      of
      the Company.

     

    (j) Application
      of Takeover Protections; Rights Agreement.
      The
      Company and its board of directors have taken all necessary action, if any,
      in
      order to render inapplicable any control share acquisition, business
      combination, poison pill (including any distribution under a rights agreement)
      or other similar anti-takeover provision under the Certificate of Incorporation
      (as defined in Section 3(r)) or the laws of the state of its incorporation
      which
      is or could become applicable to any Buyer as a result of the transactions
      contemplated by this Agreement, including, without limitation, the Company's
      issuance of the Securities and any Buyer's ownership of the Securities. The
      Company and its board of directors have taken all necessary action, if any,
      in
      order to render inapplicable any stockholder rights plan or similar arrangement
      relating to accumulations of beneficial ownership of Common Stock or a change
      in
      control of the Company.

     

    
      
        
        

      

      
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    (k) SEC
      Documents; Financial Statements.
      During
      the two (2) years prior to the date hereof, the Company has filed all reports,
      schedules, forms, statements and other documents required to be filed by it
      with
      the SEC pursuant to the reporting requirements of the 1934 Act (all of the
      foregoing filed prior to the date hereof and all exhibits included therein
      and
      financial statements, notes and schedules thereto and documents incorporated
      by
      reference therein being hereinafter referred to as the "SEC
      Documents").
      The
      Company has delivered to the Buyers or their respective representative true,
      correct and complete copies of the SEC Documents not available on the EDGAR
      system. As of their respective filing dates, the SEC Documents complied in
      all
      material respects with the requirements of the 1934 Act and the rules and
      regulations of the SEC promulgated thereunder applicable to the SEC Documents,
      and none of the SEC Documents, at the time they were filed with the SEC,
      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 the light of the circumstances under which they were made, not
      misleading. As of their respective filing dates, the financial statements of
      the
      Company included in the SEC Documents complied as to form in all material
      respects with applicable accounting requirements and the published rules and
      regulations of the SEC with respect thereto. Such financial statements have
      been
      prepared in accordance with generally accepted accounting principles,
      consistently applied, during the periods involved (except (i) as may be
      otherwise indicated in such financial statements or the notes thereto, or (ii)
      in the case of unaudited interim statements, to the extent they may exclude
      footnotes or may be condensed or summary statements) and fairly present in
      all
      material respects the financial position of the Company as of the dates thereof
      and the results of its operations and cash flows for the periods then ended
      (subject, in the case of unaudited statements, to normal year-end audit
      adjustments). No other information provided by or on behalf of the Company
      to
      the Buyers which is not included in the SEC Documents, including, without
      limitation, information referred to in Section 2(d) of this Agreement or in
      any
      disclosure schedules, contains any untrue statement of a material fact or omits
      to state any material fact necessary in order to make the statements therein,
      in
      the light of the circumstance under which they are or were made not misleading.
      

     

    (l) Absence
      of Certain Changes.
      Since
      September 30, 2005, there has been no material adverse change and no material
      adverse development in the business, properties, operations, condition
      (financial or otherwise), results of operations or prospects of the Company
      or
      its Subsidiaries. Except as disclosed in Schedule
      3(l),
      since
      September 30, 2005, the Company has not (i) declared or paid any dividends,
      (ii)
      sold any assets, individually or in the aggregate, in excess of $100,000 outside
      of the ordinary course of business or (iii) had capital expenditures,
      individually or in the aggregate, in excess of $250,000. Neither the Company
      nor
      any of its Subsidiaries has taken any steps to seek protection pursuant to
      any
      bankruptcy law nor does the Company have any knowledge or reason to believe
      that
      its creditors intend to initiate involuntary bankruptcy proceedings or any
      actual knowledge of any fact that would reasonably lead a creditor to do so.
      The
      Company and its Subsidiaries, individually and on a consolidated basis, are
      not
      as of the date hereof, and after giving effect to the transactions contemplated
      hereby to occur at the Closing, will not be Insolvent (as defined below). For
      purposes of this Section 3(l), "Insolvent"
      means,
      with respect to any Person (as defined in Section 3(s)), (i) the present fair
      saleable value of such Person's assets is less than the amount required to
      pay
      such Person's total Indebtedness (as defined in Section 3(s)), (ii) such Person
      is unable to pay its debts and liabilities, subordinated, contingent or
      otherwise, as such debts and liabilities become absolute and matured, (iii)
      such
      Person intends to incur or believes that it will incur debts that would be
      beyond its ability to pay as such debts mature or (iv) such Person has
      unreasonably small capital with which to conduct the business in which it is
      engaged as such business is now conducted and is proposed to be
      conducted.

     

    (m) No
      Undisclosed Events, Liabilities, Developments or Circumstances.
      No
      event, liability, development or circumstance has occurred or exists, or is
      contemplated to occur with respect to the Company, its Subsidiaries or their
      respective business, properties, prospects, operations or financial condition,
      that would be required to be disclosed by the Company under applicable
      securities laws on a registration statement on Form S-1 filed with the SEC
      relating to an issuance and sale by the Company of its Common Stock and which
      has not been publicly announced.

     

    
      
        
        

      

      
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    (n) Conduct
      of Business; Regulatory Permits.
      Neither
      the Company nor any of its Subsidiaries is in violation of any term of or in
      default under its Certificate of Incorporation, any certificate of designations
      of any outstanding series of preferred stock of the Company or the Bylaws or
      their organizational charter or bylaws, respectively. Neither the Company nor
      any of its Subsidiaries is in violation of any judgment, decree or order or
      any
      statute, ordinance, rule or regulation applicable to the Company or its
      Subsidiaries, and neither the Company nor any of its Subsidiaries will conduct
      its business in violation of any of the foregoing, except for possible
      violations which could not, individually or in the aggregate, reasonably be
      expected to have a Material Adverse Effect. Without limiting the generality
      of
      the foregoing, the Company is not in violation of any of the rules, regulations
      or requirements of the Principal Market and has no knowledge of any facts or
      circumstances that would reasonably lead to delisting or suspension of the
      Common Stock by the Principal Market in the foreseeable future. During the
      two
      (2) years prior to the date hereof, (i) the Common Stock has been designated
      for
      quotation on the Principal Market, (ii) trading in the Common Stock has not
      been
      suspended by the SEC or the Principal Market and (iii) the Company has received
      no communication, written or oral, from the SEC or the Principal Market
      regarding the suspension or delisting of the Common Stock from the Principal
      Market. The Company and its Subsidiaries possess all certificates,
      authorizations and permits issued by the appropriate regulatory authorities
      necessary to conduct their respective businesses, except where the failure
      to
      possess such certificates, authorizations or permits would not have,
      individually or in the aggregate, a Material Adverse Effect, and neither the
      Company nor any such Subsidiary has received any notice of proceedings relating
      to the revocation or modification of any such certificate, authorization or
      permit.

     

    (o) Foreign
      Corrupt Practices.
      Neither
      the Company nor any of its Subsidiaries nor any director, officer, agent,
      employee or other Person acting on behalf of the Company or any of its
      Subsidiaries has, in the course of its actions for, or on behalf of, the Company
      or any of its Subsidiaries (i) used any corporate funds for any unlawful
      contribution, gift, entertainment or other unlawful expenses relating to
      political activity; (ii) made any direct or indirect unlawful payment to any
      foreign or domestic government official or employee from corporate funds; (iii)
      violated or is in violation of any provision of the U.S. Foreign Corrupt
      Practices Act of 1977, as amended; or (iv) made any unlawful bribe, rebate,
      payoff, influence payment, kickback or other unlawful payment to any foreign
      or
      domestic government official or employee.

     

    (p) Sarbanes-Oxley
      Act.
      The
      Company is in compliance with any and all applicable requirements of the
      Sarbanes-Oxley Act of 2002 that are effective as of the date hereof, and any
      and
      all applicable rules and regulations promulgated by the SEC thereunder that
      are
      effective as of the date hereof.

     

    (q) Transactions
      With Affiliates.
      Except
      as set forth in the SEC Documents filed at least ten (10) days prior to the
      date
      hereof, none of the officers, directors or employees of the Company or any
      of
      its Subsidiaries is presently a party to any transaction with the Company or
      any
      of its Subsidiaries (other than for ordinary course services as employees,
      officers or 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
      such officer, director or employee or, to the knowledge of the Company or any
      of
      its Subsidiaries, any corporation, partnership, trust or other entity in which
      any such officer, director, or employee has a substantial interest or is an
      officer, director, trustee or partner.

     

    
      
        
        

      

      
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    (r) Equity
      Capitalization.
      As of
      the date hereof, the authorized capital stock of the Company consists of
      150,000,000 shares of Common Stock, of which as of the date hereof, 
      5,354,091 are issued and outstanding and no shares are reserved for issuance
      pursuant to securities (other than the aforementioned options, the Common Shares
      and the Warrants) exercisable or exchangeable for, or convertible into, shares
      of Common Stock. All of such outstanding shares have been, or upon issuance
      will
      be, validly issued and are fully paid and nonassessable. Except as disclosed
      in
Schedule
      3(r):
      (i)
      none of the Company's capital stock is subject to preemptive rights or any
      other
      similar rights or any liens or encumbrances suffered or permitted by the
      Company; (ii) there are no outstanding options, warrants, scrip, rights to
      subscribe to, calls or commitments of any character whatsoever relating to,
      or
      securities or rights convertible into, or exercisable or exchangeable for,
      any
      capital stock of the Company or any of its Subsidiaries, or contracts,
      commitments, understandings or arrangements by which the Company or any of
      its
      Subsidiaries is or may become bound to issue additional capital stock of the
      Company or any of its Subsidiaries or options, warrants, scrip, rights to
      subscribe to, calls or commitments of any character whatsoever relating to,
      or
      securities or rights convertible into, or exercisable or exchangeable for,
      any
      capital stock of the Company or any of its Subsidiaries; (iii) there are no
      outstanding debt securities, notes, credit agreements, credit facilities or
      other agreements, documents or instruments evidencing Indebtedness of the
      Company or any of its Subsidiaries or by which the Company or any of its
      Subsidiaries is or may become bound; (iv) there are no financing statements
      securing obligations in any material amounts, either singly or in the aggregate,
      filed in connection with the Company or any of its Subsidiaries; (v) there
      are
      no agreements or arrangements under which the Company or any of its Subsidiaries
      is obligated to register the sale of any of their securities under the 1933
      Act
      (except pursuant to the Registration Rights Agreement); (vi) there are no
      outstanding securities or instruments of the Company or any of its Subsidiaries
      which contain any redemption or similar provisions, and there are no contracts,
      commitments, understandings or arrangements by which the Company or any of
      its
      Subsidiaries is or may become bound to redeem a security of the Company or
      any
      of its Subsidiaries; (vii) there are no securities or instruments containing
      anti-dilution or similar provisions that will be triggered by the issuance
      of
      the Securities; (viii) the Company does not have any stock appreciation rights
      or "phantom stock" plans or agreements or any similar plan or agreement; and
      (ix) the Company and its Subsidiaries have no liabilities or obligations
      required to be disclosed in the SEC Documents but not so disclosed in the SEC
      Documents, other than those incurred in the ordinary course of the Company's
      or
      its Subsidiaries' respective businesses and which, individually or in the
      aggregate, do not or would not have a Material Adverse Effect. The Company
      has
      furnished to the Buyers true, correct and complete copies of the Company's
      Certificate of Incorporation, as amended and as in effect on the date hereof
      (the "Certificate
      of Incorporation"),
      and
      the Company's Bylaws, as amended and as in effect on the date hereof (the
      "Bylaws"),
      and
      the terms of all securities convertible into, or exercisable or exchangeable
      for, shares of Common Stock and the material rights of the holders thereof
      in
      respect thereto.

     

    
      
        
        

      

      
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    (s) Indebtedness
      and Other Contracts.
      Except
      as disclosed in Schedule
      3(s),
      neither
      the Company nor any of its Subsidiaries (i) has any outstanding Indebtedness
      (as
      defined below), (ii) is a party to any contract, agreement or instrument, the
      violation of which, or default under which, by the other party(ies) to such
      contract, agreement or instrument could reasonably be expected to result in
      a
      Material Adverse Effect, (iii) is in violation of any term of or in default
      under any contract, agreement or instrument relating to any Indebtedness, except
      where such violations and defaults would not result, individually or in the
      aggregate, in a Material Adverse Effect, or (iv) is a party to any contract,
      agreement or instrument relating to any Indebtedness, the performance of which,
      in the judgment of the Company's officers, has or is expected to have a Material
      Adverse Effect. Schedule
      3(s)
      provides
      a detailed description of the material terms of any such outstanding
      Indebtedness. For purposes of this Agreement: (x) "Indebtedness"
      of any
      Person means, without duplication (A) all indebtedness for borrowed money,
      (B)
      all obligations issued, undertaken or assumed as the deferred purchase price
      of
      property or services, including (without limitation) "capital leases" in
      accordance with generally accepted accounting principles (other than trade
      payables entered into in the ordinary course of business), (C) all reimbursement
      or payment obligations with respect to letters of credit, surety bonds and
      other
      similar instruments, (D) all obligations evidenced by notes, bonds, debentures
      or similar instruments, including obligations so evidenced incurred in
      connection with the acquisition of property, assets or businesses, (E) all
      indebtedness created or arising under any conditional sale or other title
      retention agreement, or incurred as financing, in either case with respect
      to
      any property or assets acquired with the proceeds of such indebtedness (even
      though the rights and remedies of the seller or bank under such agreement in
      the
      event of default are limited to repossession or sale of such property), (F)
      all
      monetary obligations under any leasing or similar arrangement which, in
      connection with generally accepted accounting principles, consistently applied
      for the periods covered thereby, is classified as a capital lease, (G) all
      indebtedness referred to in clauses (A) through (F) above secured by (or for
      which the holder of such Indebtedness has an existing right, contingent or
      otherwise, to be secured by) any mortgage, lien, pledge, charge, security
      interest or other encumbrance upon or in any property or assets (including
      accounts and contract rights) owned by any Person, even though the Person which
      owns such assets or property has not assumed or become liable for the payment
      of
      such indebtedness, and (H) all Contingent Obligations in respect of indebtedness
      or obligations of others of the kinds referred to in clauses (A) through (G)
      above; (y) "Contingent
      Obligation"
      means,
      as to any Person, any direct or indirect liability, contingent or otherwise,
      of
      that Person with respect to any indebtedness, lease, dividend or other
      obligation of another Person if the primary purpose or intent of the Person
      incurring such liability, or the primary effect thereof, is to provide assurance
      to the obligee of such liability that such liability will be paid or discharged,
      or that any agreements relating thereto will be complied with, or that the
      holders of such liability will be protected (in whole or in part) against loss
      with respect thereto; and (z) "Person"
      means
      an individual, a limited liability company, a partnership, a joint venture,
      a
      corporation, a trust, an unincorporated organization and a government or any
      department or agency thereof.

     

    (t) Absence
      of Litigation.
      Except
      as set forth in Schedule
      3(t),
      there
      is no action, suit, proceeding, inquiry or investigation before or by the
      Principal Market, any court, public board, government agency, self-regulatory
      organization or body pending or, to the knowledge of the Company, threatened
      against or affecting the Company or any of its Subsidiaries, the Common Stock
      or
      any of the Company's Subsidiaries or any of the Company's or its Subsidiaries'
      officers or directors. 

     

    
      
        
        

      

      
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    (u) Insurance.
      The
      Company and each of its Subsidiaries are insured by insurers of recognized
      financial responsibility against such losses and risks and in such amounts
      as
      management of the Company believes to be prudent and customary in the businesses
      in which the Company and its Subsidiaries are engaged. Neither the Company
      nor
      any such Subsidiary has been refused any insurance coverage sought or applied
      for and neither the Company nor any such 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 at a cost that would not have a Material
      Adverse Effect.

     

    (v) Employee
      Relations.
      

     

    (i) Neither
      the Company nor any of its Subsidiaries is a party to any collective bargaining
      agreement or employs any member of a union. The Company and its Subsidiaries
      believe that their relations with their employees are good. No executive officer
      of the Company or any of its Subsidiaries (as defined in Rule 501(f) of the
      1933
      Act) has notified the Company or any such Subsidiary that such officer intends
      to leave the Company or any such Subsidiary or otherwise terminate such
      officer's employment with the Company or any such Subsidiary. No executive
      officer of the Company or any of its Subsidiaries, is, or is now expected to
      be,
      in violation of any material term of any employment contract, confidentiality,
      disclosure or proprietary information agreement, non-competition agreement,
      or
      any other contract or agreement or any restrictive covenant, and the continued
      employment of each such executive officer does not subject the Company or any
      of
      its Subsidiaries to any liability with respect to any of the foregoing
      matters.

     

    (ii) The
      Company and its Subsidiaries, to their knowledge, are in compliance with all
      federal, state, local and foreign laws and regulations respecting labor,
      employment and employment practices and benefits, terms and conditions of
      employment and wages and hours, except where failure to be in compliance would
      not, either individually or in the aggregate, reasonably be expected to result
      in a Material Adverse Effect.

     

    (w) Title.
      The
      Company and its Subsidiaries have good and marketable title in fee simple to
      all
      real property and good and marketable title to all personal property owned
      by
      them which is material to the business of the Company and its Subsidiaries,
      in
      each case free and clear of all liens, encumbrances and defects except such
      as
      are described in Schedule
      3(w)
      or such
      as do not materially affect the value of such property and do not interfere
      with
      the use made and proposed to be made of such property by the Company and any
      of
      its Subsidiaries. Any real property and facilities held under lease by the
      Company and any of its Subsidiaries are held by them under valid, subsisting
      and
      enforceable leases with such exceptions as are not material and do not interfere
      with the use made and proposed to be made of such property and buildings by
      the
      Company and its Subsidiaries.

     

    
      
        
        

      

      
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    (x) Intellectual
      Property Rights.
      The
      Company and its Subsidiaries own or possess adequate rights or licenses to
      use
      all trademarks, service marks and all applications and registrations therefor,
      trade names, patents, patent rights, copyrights, original works of authorship,
      inventions, trade secrets and other intellectual property rights ("Intellectual
      Property Rights")
      necessary to conduct their respective businesses as now conducted. None of
      the
      Company's registered, or applied for, Intellectual Property Rights have expired
      or terminated or have been abandoned, or are expected to expire or terminate
      or
      expected to be abandoned, within three years from the date of this Agreement.
      The Company does not have any knowledge of any infringement by the Company
      or
      its Subsidiaries of Intellectual Property Rights of others. There is no claim,
      action or proceeding being made or brought, or to the knowledge of the Company,
      being threatened, against the Company or its Subsidiaries regarding its
      Intellectual Property Rights. Neither the Company nor any of its Subsidiaries
      is
      aware of any facts or circumstances which might give rise to any of the
      foregoing infringements or claims, actions or proceedings. The Company and
      its
      Subsidiaries have taken reasonable security measures to protect the secrecy,
      confidentiality and value of all of their Intellectual Property
      Rights.

     

    (y) Environmental
      Laws.
      The
      Company and its Subsidiaries, to their knowledge, (i) are in compliance with
      any
      and all Environmental Laws (as hereinafter defined), (ii) have received all
      permits, licenses or other approvals required of them under applicable
      Environmental Laws to conduct their respective businesses and (iii) are in
      compliance with all terms and conditions of any such permit, license or approval
      where, in each of the foregoing clauses (i), (ii) and (iii), the failure to
      so
      comply could be reasonably expected to have, individually or in the aggregate,
      a
      Material Adverse Effect. The term "Environmental
      Laws"
      means
      all federal, state, local or foreign laws relating to pollution or protection
      of
      human health or the environment (including, without limitation, ambient air,
      surface water, groundwater, land surface or subsurface strata), including,
      without limitation, laws relating to emissions, discharges, releases or
      threatened releases of chemicals, pollutants, contaminants, or toxic or
      hazardous substances or wastes (collectively, "Hazardous
      Materials") into
      the
      environment, or otherwise relating to the manufacture, processing, distribution,
      use, treatment, storage, disposal, transport or handling of Hazardous Materials,
      as well as all authorizations, codes, decrees, demands or demand letters,
      injunctions, judgments, licenses, notices or notice letters, orders, permits,
      plans or regulations issued, entered, promulgated or approved
      thereunder.

     

    (z) Subsidiary
      Rights.
      The
      Company or one of its Subsidiaries has the unrestricted right to vote, and
      (subject to limitations imposed by applicable law) to receive dividends and
      distributions on, all capital securities of its Subsidiaries as owned by the
      Company or such Subsidiary.

     

    (aa) Tax
      Status.
      The
      Company and each of its Subsidiaries (i) has made or filed all foreign, federal
      and state income and all other tax returns, reports and declarations required
      by
      any jurisdiction to which it is subject, (ii) has paid all taxes and other
      governmental assessments and charges that are material in amount, shown or
      determined to be due on such returns, reports and declarations, except those
      being contested in good faith and (iii) has set aside on its books provision
      reasonably adequate for the payment of all taxes for periods subsequent to
      the
      periods to which such returns, reports or declarations apply. There are no
      unpaid taxes in any material amount claimed to be due by the taxing authority
      of
      any jurisdiction, and the officers of the Company know of no basis for any
      such
      claim.

     

    
      
        
        

      

      
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    (bb) Internal
      Accounting and Disclosure Controls.
      The
      Company and each of its Subsidiaries maintain 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 generally accepted accounting principles and
      to
      maintain asset and liability accountability, (iii) access to assets or
      incurrence of liabilities is permitted only in accordance with management's
      general or specific authorization and (iv) the recorded accountability for
      assets and liabilities is compared with the existing assets and liabilities
      at
      reasonable intervals and appropriate action is taken with respect to any
      difference. The Company maintains disclosure controls and procedures (as such
      term is defined in Rule 13a-14 under the 1934 Act) that are effective in
      ensuring that information required to be disclosed by the Company in the reports
      that it files or submits under the 1934 Act is recorded, processed, summarized
      and reported, within the time periods specified in the rules and forms of the
      SEC, including, without limitation, controls and procedures designed in to
      ensure that information required to be disclosed by the Company in the reports
      that it files or submits under the 1934 Act is accumulated and communicated
      to
      the Company's management, including its principal executive officer or officers
      and its principal financial officer or officers, as appropriate, to allow timely
      decisions regarding required disclosure. During the twelve months prior to
      the
      date hereof neither the Company nor any of its Subsidiaries have received any
      notice or correspondence from any accountant relating to any potential material
      weakness in any part of the system of internal accounting controls of the
      Company or any of its Subsidiaries.

     

    (cc) Off
      Balance Sheet Arrangements.
      There
      is no transaction, arrangement, or other relationship between the Company and
      an
      unconsolidated or other off balance sheet entity that is required to be
      disclosed by the Company in its 1934 Act filings and is not so disclosed or
      that
      otherwise would be reasonably likely to have a Material Adverse
      Effect.

     

    (dd) Investment
      Company Status.
      The
      Company is not, and upon consummation of the sale of the Securities will not
      be,
      an "investment company," a company controlled by an "investment company" or
      an
      "affiliated person" of, or "promoter" or "principal underwriter" for, an
      "investment company" as such terms are defined in the Investment Company Act
      of
      1940, as amended.

     

    (ee) Transfer
      Taxes.
      On the
      Closing Date, all stock transfer or other taxes (other than income or similar
      taxes) which are required to be paid in connection with the sale and transfer
      of
      the Securities to be sold to each Buyer hereunder will be, or will have been,
      fully paid or provided for by the Company, and all laws imposing such taxes
      will
      be or will have been complied with.

     

    (ff) Manipulation
      of Price.
      The
      Company has not, and to its knowledge no one acting on its behalf has, (i)
      taken, directly or indirectly, any action designed to cause or to result in
      the
      stabilization or manipulation of the price of any security of the Company to
      facilitate the sale or resale of any of the Securities, (ii) other than the
      Placement Agent, sold, bid for, purchased, or paid any compensation for
      soliciting purchases of, any of the Securities, or (iii) other than the
      Placement Agent, paid or agreed to pay to any person any compensation for
      soliciting another to purchase any other securities of the Company.

     

    
      
        
        

      

      
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    (gg) Disclosure.
      The
      Company confirms that neither it nor any other Person acting on its behalf
      has
      provided any of the Buyers or their agents or counsel with any information
      that
      constitutes or could reasonably be expected to constitute material, nonpublic
      information. The Company understands and confirms that each of the Buyers will
      rely on the foregoing representations in effecting transactions in securities
      of
      the Company. All disclosure provided to the Buyers regarding the Company or
      any
      of its Subsidiaries, their business and the transactions contemplated hereby,
      including the Schedules to this Agreement, furnished by or on behalf of the
      Company is true and correct and does 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 the light of the circumstances under which they
      were
      made, not misleading. Each press release issued by the Company or any of its
      Subsidiaries during the twelve (12) months preceding the date of this Agreement
      did not at the time of release contain any untrue statement of a material fact
      or omit to state a material fact required to be stated therein or necessary
      in
      order to make the statements therein, in the light of the circumstances under
      which they were made, not misleading. No event or circumstance has occurred
      or
      information exists with respect to the Company or any of its Subsidiaries or
      its
      or their business, properties, prospects, operations or financial conditions,
      which, under applicable law, rule or regulation, requires public disclosure
      or
      announcement by the Company but which has not been so publicly announced or
      disclosed.

     

    (hh) Acknowledgement
      Regarding Buyers' Trading Activity.
      Anything in this Agreement or elsewhere herein to the contrary notwithstanding,
      but subject to compliance by the Buyers with applicable law and the provisions
      of Section 2(k) hereto, it is understood and acknowledged by the Company (i)
      that none of the Buyers have been asked by the Company or its Subsidiaries
      to
      agree, nor has any Buyer agreed with the Company or its Subsidiaries, to desist
      from purchasing or selling, long and/or short, securities of the Company, or
      "derivative" securities based on securities issued by the Company or to hold
      the
      Securities for any specified term; (ii) that past or future open market or
      other
      transactions by any Buyer, including, without limitation, short sales or
      "derivative" transactions, before or after the closing of this or future private
      placement transactions, may negatively impact the market price of the Company's
      publicly-traded securities; (iii) that any Buyer, and counter parties in
      "derivative" transactions to which any such Buyer is a party, directly or
      indirectly, presently may have a "short" position in the Common Stock, and
      (iv)
      that each Buyer shall not be deemed to have any affiliation with or control
      over
      any arm's length counter-party in any "derivative" transaction. The Company
      further understands and acknowledges that (a) one or more Buyers may engage
      in
      hedging and/or trading activities at various times during the period that the
      Securities are outstanding, including, without limitation, during the periods
      that the value of the Warrant Shares deliverable with respect to Securities
      are
      being determined and (b) such hedging and/or trading activities (if any) could
      reduce the value of the existing stockholders' equity interests in the Company
      at and after the time that the hedging and/or trading activities are being
      conducted.

     

    (ii) U.S.
      Real Property Holding Corporation.
      The
      Company is not, nor has it ever been, a U.S. real property holding corporation
      within the meaning of Section 897 of the Internal Revenue Code of 1986, as
      amended, and the Company shall so certify upon any Buyer's request.

     

    (jj) Representations
      Incorporated by Reference.
      In
      addition to the representations and warranties otherwise set forth herein,
      all
      representations and warranties of the Company and Ever Leader contained in
      (i)
      that certain Placement Agreement dated as of October 17, 2006, by and among
      the
      Company, Ever Leader and Keating Securities, LLC and (ii) the Exchange Agreement
      are hereby incorporated by reference for the benefit of the Buyers as if such
      representations and warranties were repeated herein and addressed to the
      Buyers.

     

    
      
        
        

      

      
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    (kk) Exchange
      Agreement.
      The
      Exchange Agreement has not been amended in any way and no provisions thereof
      have been waived.

     

    4. COVENANTS.

     

    (a) Best
      Efforts.
      Each
      party shall use its best efforts timely to satisfy each of the conditions to
      be
      satisfied by it as provided in Sections 6 and 7 of this Agreement.

     

    (b) Form
      D
      and Blue Sky.
      The
      Company agrees to file a Form D with respect to the Securities as required
      under
      Regulation D and to provide a copy thereof to each Buyer promptly after such
      filing. The Company shall, on or before the Closing Date, take such action
      as
      the Company shall reasonably determine is necessary in order to obtain an
      exemption for or to qualify the Securities for sale to the Buyers at the Closing
      pursuant to this Agreement under applicable securities or "Blue Sky" laws of
      the
      states of the United States (or to obtain an exemption from such qualification),
      and shall provide evidence of any such action so taken to the Buyers on or
      prior
      to the Closing Date. The Company shall make all filings and reports relating
      to
      the offer and sale of the Securities required under applicable securities or
      "Blue Sky" laws of the states of the United States following the Closing Date.
      

     

    (c) Reporting
      Status.
      Until
      the date on which the Investors (as defined in the Registration Rights
      Agreement) shall have sold all the Common Shares and Warrant Shares and
      none
      of the Warrants is outstanding, (the "Reporting
      Period"),
      the
      Company shall timely file all reports required to be filed with the SEC pursuant
      to the 1934 Act, and the Company shall not terminate its status as an issuer
      required to file reports under the 1934 Act even if the 1934 Act or the rules
      and regulations thereunder would permit such termination.

     

    (d) Use
      of
      Proceeds.
      The
      Company will use the proceeds from the sale of the Securities as set forth
      on
Schedule
      4(d),
      and not
      for any other purposes.

     

    (e) Financial
      Information.
      The
      Company agrees to send the following to each Investor (as defined in the
      Registration Rights Agreement) during the Reporting Period (i) unless the
      following are filed with the SEC through EDGAR and are available to the public
      through the EDGAR system, within one (1) Business Day after the filing thereof
      with the SEC, a copy of its Annual Reports and Quarterly Reports on Form 10-K,
      10-KSB, 10-Q or 10-QSB, any interim reports or any consolidated balance sheets,
      income statements, stockholders' equity statements and/or cash flow statements
      for any period other than annual, any Current Reports on Form 8-K and any
      registration statements (other than on Form S-8) or amendments filed pursuant
      to
      the 1933 Act, (ii) on the same day as the release thereof, facsimile or e-mailed
      copies of all press releases issued by the Company or any of its Subsidiaries,
      and (iii) copies of any notices and other information made available or given
      to
      the stockholders of the Company generally, contemporaneously with the making
      available or giving thereof to the stockholders. As used herein, "Business
      Day"
      means
      any day other than Saturday, Sunday or other day on which commercial banks
      in
      The City of New York are authorized or required by law to remain
      closed.

     

    
      
        
        

      

      
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    (f) Listing.
      The
      Company shall promptly secure the listing of all of the Registrable Securities
      (as defined in the Registration Rights Agreement) upon each national securities
      exchange and automated quotation system, if any, upon which the Common Stock
      is
      then listed (subject to official notice of issuance) and shall maintain, in
      accordance with the Warrants, such listing of all Registrable Securities from
      time to time issuable under the terms of the Transaction Documents. The Company
      shall maintain the Common Stocks' authorization for quotation on the Principal
      Market. Neither the Company nor any of its Subsidiaries shall take any action
      which would be reasonably expected to result in the delisting or suspension
      of
      the Common Stock on the Principal Market. The Company shall pay all fees and
      expenses in connection with satisfying its obligations under this Section
      4(f).

     

    (g) Fees.
      The
      Company shall be responsible for the payment of any placement agent's fees,
      financial advisory fees, or broker's commissions relating to or arising out
      of
      the transactions contemplated hereby, including, without limitation, any fees
      payable to the Placement Agent. The Company and Ever Leader shall pay, and
      hold
      each Buyer harmless against, any liability, loss or expense (including, without
      limitation, reasonable attorney's fees and out-of-pocket expenses) arising
      in
      connection with any claim relating to any such payment. 

     

    (h) Pledge
      of Securities.
      The
      Company acknowledges and agrees that the Securities may be pledged by an
      Investor (as defined in the Registration Rights Agreement) in connection with
      a
      bona fide margin agreement or other loan or financing arrangement that is
      secured by the Securities. The pledge of Securities shall not be deemed to
      be a
      transfer, sale or assignment of the Securities hereunder, and no Investor
      effecting a pledge of Securities shall be required to provide the Company with
      any notice thereof or otherwise make any delivery to the Company pursuant to
      this Agreement or any other Transaction Document, including, without limitation,
      Section 2(f) hereof; provided that an Investor and its pledgee shall be required
      to comply with the provisions of Section 2(f) hereof in order to effect a sale,
      transfer or assignment of Securities to such pledgee. The Company hereby agrees
      to execute and deliver such documentation as a pledgee of the Securities may
      reasonably request in connection with a pledge of the Securities to such pledgee
      by an Investor.

     

    
      
        
        

      

      
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    (i) Disclosure
      of Transactions and Other Material Information.
      On or
      before 8:30 a.m., New York City time, on the first Business Day following the
      Closing Date, the Company shall issue a press release and file a Current Report
      on Form 8-K describing the terms of the transactions contemplated by the
      Transaction Documents and the Exchange Agreement in the form required by the
      1934 Act and attaching the material Transaction Documents (including, without
      limitation, this Agreement, the form of Warrant, the form of Escrow Agreement,
      the form of Make Good Agreement, the form of Make Good Escrow Agreement and
      the
      form of the Registration Rights Agreement and such financial statements and
      other information as required in connection with the Exchange Agreement) as
      exhibits to such filing (including all attachments, the "8-K
      Filing").
      From
      and after the filing of the 8-K Filing with the SEC, no Buyer shall be in
      possession of any material, nonpublic information received from the Company,
      any
      of its Subsidiaries or any of their respective officers, directors, employees
      or
      agents that is not disclosed in the 8-K Filing. The Company shall not, and
      shall
      cause each of its Subsidiaries and its and each of their respective officers,
      directors, employees and agents, not to, provide any Buyer with any material,
      nonpublic information regarding the Company or any of its Subsidiaries from
      and
      after the filing of the 8-K Filing with the SEC without the express written
      consent of such Buyer. If a Buyer has, or believes it has, received any such
      material, nonpublic information regarding the Company or any of its
      Subsidiaries, it shall provide the Company with written notice thereof. The
      Company shall, within five (5) Trading Days (as defined in the Warrants) of
      receipt of such notice, make public disclosure of such material, nonpublic
      information. In the event of a breach of the foregoing covenant by the Company,
      any of its Subsidiaries, or any of its or their respective officers, directors,
      employees and agents, in addition to any other remedy provided herein or in
      the
      Transaction Documents, a Buyer shall have the right to make a public disclosure,
      in the form of a press release, public advertisement or otherwise, of such
      material, nonpublic information without the prior approval by the Company,
      its
      Subsidiaries, or any of its or their respective officers, directors, employees
      or agents. No Buyer shall have any liability to the Company, its Subsidiaries,
      or any of its or their respective officers, directors, employees, stockholders
      or agents for any such disclosure. Subject to the foregoing, neither the
      Company, its Subsidiaries nor any Buyer shall issue any press releases or any
      other public statements with respect to the transactions contemplated hereby;
      provided, however, that the Company shall be entitled, without the prior
      approval of any Buyer, to make any press release or other public disclosure
      with
      respect to such transactions (i) in substantial conformity with the 8-K Filing
      and contemporaneously therewith and (ii) as is required by applicable law and
      regulations (provided that in the case of clause (i) each Buyer shall be
      consulted by the Company in connection with any such press release or other
      public disclosure prior to its release). Without the prior written consent
      of
      any applicable Buyer, neither the Company nor any of its Subsidiaries or
      affiliates shall disclose the name of such Buyer in any filing, announcement,
      release or otherwise, unless required by law.

     

    (j) Variable
      Securities; Dilutive Issuances.
      So long
      as any Buyer beneficially owns any Warrants, the Company will not issue any
      other securities that would cause a breach or default under the Warrants. For
      so
      long as any Warrants remain outstanding, the Company shall not, in any manner,
      issue or sell any rights, warrants or options to subscribe for or purchase
      Common Stock or directly or indirectly convertible into or exchangeable or
      exercisable for Common Stock at a price which varies or may vary with the market
      price of the Common Stock, including by way of one or more reset(s) to any
      fixed
      price unless the conversion, exchange or exercise price of any such security
      cannot be less than the then applicable Exercise Price (as defined in the
      Warrants) with respect to the Common Stock into which any Warrant is
      exercisable. For so long as any Warrants remain outstanding, the Company shall
      not, in any manner, enter into or affect any Dilutive Issuances (as defined
      in
      the Warrants) if the effect of such Dilutive Issuance is to cause the Company
      to
      be required to issue upon exercise of any Warrant any shares of Common Stock
      in
      excess of that number of shares of Common Stock which the Company may issue
      upon
      exercise of the Warrants without breaching the Company's obligations under
      the
      rules or regulations of the Principal Market.

     

    
      
        
        

      

      
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          20 -

        
          

        

      

      
        
        

      

    

    (k) Corporate
      Existence.
      So long
      as any Buyer beneficially owns any Securities, the Company shall not be party
      to
      any Fundamental Transaction (as defined in the Warrants) unless the Company
      is
      in compliance with the applicable provisions governing Fundamental Transactions
      set forth in the Warrants.

     

    (l) Reservation
      of Shares.
      The
      Company shall take all action necessary to at all times have authorized, and
      reserved for the purpose of issuance, no less than (i) 100% of the number of
      Common Shares issuable hereunder and (ii) 150% of the maximum number of shares
      of Common Stock issuable upon exercise of the Warrants issued at the Closing
      (without taking into account any limitations on the exercise of the Warrants
      set
      forth in the Warrants).

     

    (m) Conduct
      of Business.
      The
      business of the Company and its Subsidiaries shall not be conducted in violation
      of any law, ordinance or regulation of any governmental entity, except where
      such violations would not result, either individually or in the aggregate,
      in a
      Material Adverse Effect. 

     

    (n) Additional
      Issuances of Securities.

     

    (i) For
      purposes of this Section 4(n), the following definitions shall
      apply.

     

    (1) "Convertible
      Securities"
      means
      any stock or securities (other than Options) convertible into or exercisable
      or
      exchangeable for shares of Common
      Stock.

     

    (2) "Options"
      means
      any rights, warrants or options to subscribe for or purchase shares of
Common
      Stock or
      Convertible Securities.

     

    (3) "Common
      Stock Equivalents"
      means,
      collectively, Options and Convertible Securities.

     

    (ii) From
      the
      date hereof until the date that is one hundred and eighty (180) Trading Days
      (as
      defined in the Warrants) following the Effective Date (as defined in the
      Registration Rights Agreement) (the "Trigger
      Date"),
      the
      Company will not, directly or indirectly, file any registration statement with
      the SEC other than the Registration Statement (as defined in the Registration
      Rights Agreement). From the date hereof until the Trigger Date, the Company
      will
      not, directly or indirectly, offer, sell, grant any option to purchase, or
      otherwise dispose of (or announce any offer, sale, grant or any option to
      purchase or other disposition of) any of its or its Subsidiaries' equity or
      equity equivalent securities, including without limitation any debt, preferred
      stock or other instrument or security that is, at any time during its life
      and
      under any circumstances, convertible into or exchangeable or exercisable for
      shares of Common Stock or Common Stock Equivalents (any such offer, sale, grant,
      disposition or announcement being referred to as a "Subsequent
      Placement").

     

    (iii) From
      the
      Trigger Date until the second anniversary of the Closing Date, the Company
      will
      not, directly or indirectly, effect any Subsequent Placement unless the Company
      shall have first complied with this Section 4(n)(iii). 

     

    
      
        
        

      

      
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          21 -

        
          

        

      

      
        
        

      

    

    (1) The
      Company shall deliver to each Buyer an irrevocable written notice
      (the "Offer
      Notice")
      of any
      proposed or intended issuance or sale or exchange (the "Offer")
      of the
      securities being offered (the "Offered
      Securities")
      in a
      Subsequent Placement, which Offer Notice shall (w) identify and describe the
      Offered Securities, (x) describe the price and other terms upon which they
      are to be issued, sold or exchanged, and the number or amount of the Offered
      Securities to be issued, sold or exchanged, (y) identify the persons or
      entities (if known) to which or with which the Offered Securities are to be
      offered, issued, sold or exchanged and (z) offer to issue and sell to or
      exchange with such Buyers the Offered Securities, allocated among such Buyers
      (a) based on such Buyer's pro rata portion of the number of Common Shares
      purchased hereunder (the "Basic
      Amount"),
      and
      (b) with respect to each Buyer that elects to purchase its Basic Amount, any
      additional portion of the Offered Securities attributable to the Basic Amounts
      of other Buyers as such Buyer shall indicate it will purchase or acquire should
      the other Buyers subscribe for less than their Basic Amounts (the "Undersubscription
      Amount"),
      which
      process shall be repeated until the Buyers shall have an opportunity to
      subscribe for any remaining Undersubscription Amount.

     

    (2) To
      accept
      an Offer, in whole or in part, such Buyer must deliver a written notice to
      the
      Company prior to the end of the tenth (10th)
      Business Day after such Buyer's receipt of the Offer Notice (the "Offer
      Period"),
      setting forth the portion of such Buyer's Basic Amount that such Buyer elects
      to
      purchase and, if such Buyer shall elect to purchase all of its Basic Amount,
      the
      Undersubscription Amount, if any, that such Buyer elects to purchase (in either
      case, the "Notice
      of Acceptance");
      provided,
      however,
      that
      such Buyers may not accept an Offer by electing to purchase less than 5% of
      the
      Offered Securities on an aggregate basis. If the Basic Amounts subscribed for
      by
      all Buyers are less than the total of all of the Basic Amounts, then each Buyer
      who has set forth an Undersubscription Amount in its Notice of Acceptance shall
      be entitled to purchase, in addition to the Basic Amounts subscribed for, the
      Undersubscription Amount it has subscribed for; provided,
      however,
      that if
      the Undersubscription Amounts subscribed for exceed the difference between
      the
      total of all the Basic Amounts and the Basic Amounts subscribed for (the
      "Available
      Undersubscription Amount"),
      each
      Buyer who has subscribed for any Undersubscription Amount shall be entitled
      to
      purchase only that portion of the Available Undersubscription Amount as the
      Basic Amount of such Buyer bears to the total Basic Amounts of all Buyers that
      have subscribed for Undersubscription Amounts, subject to rounding by the
      Company to the extent its deems reasonably necessary.

     

    (3) The
      Company shall have fifteen (15) Business Days from the expiration of the Offer
      Period above to offer, issue, sell or exchange all or any part of such Offered
      Securities as to which a Notice of Acceptance has not been given by the Buyers
      (the "Refused
      Securities"),
      but
      only to the offerees described in the Offer Notice (if so described therein)
      and
      only upon terms and conditions (including, without limitation, unit prices
      and
      interest rates) that are not more favorable to the acquiring person or persons
      or less favorable to the Company than those set forth in the Offer Notice and
      (ii) to publicly announce (a) the execution of such Subsequent Placement
      Agreement, and (b) either (x) the consummation of the transactions contemplated
      by such Subsequent Placement Agreement or (y) the termination of such Subsequent
      Placement Agreement, which shall be filed with the SEC on a Current Report
      on
      Form 8-K with such Subsequent Placement Agreement and any documents contemplated
      therein filed as exhibits thereto.

     

    
      
        
        

      

      
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          22 -

        
          

        

      

      
        
        

      

    

    (4) In
      the
      event the Company shall propose to sell less than all the Refused Securities
      (any such sale to be in the manner and on the terms specified in Section
      4(n)(iii)(3) above), then each Buyer may, at its sole option and in its sole
      discretion, reduce the number or amount of the Offered Securities specified
      in
      its Notice of Acceptance to an amount that shall be not less than the number
      or
      amount of the Offered Securities that such Buyer elected to purchase pursuant
      to
      Section 4(n)(iii)(2) above multiplied by a fraction, (i) the numerator of which
      shall be the number or amount of Offered Securities the Company actually
      proposes to issue, sell or exchange (including Offered Securities to be issued
      or sold to Buyers pursuant to Section 4(n)(iii)(3) above prior to such
      reduction) and (ii) the denominator of which shall be the original amount of
      the
      Offered Securities. In the event that any Buyer so elects to reduce the number
      or amount of Offered Securities specified in its Notice of Acceptance, the
      Company may not issue, sell or exchange more than the reduced number or amount
      of the Offered Securities unless and until such securities have again been
      offered to the Buyers in accordance with Section 4(n)(iii)(1)
      above.

     

    (5) Upon
      the
      closing of the issuance, sale or exchange of all or less than all of the Refused
      Securities, the Buyers shall acquire from the Company, and the Company shall
      issue to the Buyers, the number or amount of Offered Securities specified in
      the
      Notices of Acceptance, as reduced pursuant to Section 4(p)(iii)(3) above if
      the
      Buyers have so elected, upon the terms and conditions specified in the Offer.
      Notwithstanding anything to the contrary contained in this Agreement, if the
      Company does not consummate the closing of the issuance, sale or exchange of
      all
      or less than all of the Refused Securities within fifteen (15) Business Days
      of
      the expiration of the Offer Period, the Company shall issue to the Buyers the
      number or amount of Offered Securities specified in the Notices of Acceptance,
      as reduced pursuant to Section 4(n)(iii)(4) above if the Buyers have so elected,
      upon the terms and conditions specified in the Offer. The purchase by the Buyers
      of any Offered Securities is subject in all cases to the preparation, execution
      and delivery by the Company and the Buyers of a purchase agreement relating
      to
      such Offered Securities reasonably satisfactory in form and substance to the
      Buyers and their respective counsel.

     

    (6) Any
      Offered Securities not acquired by the Buyers or other persons in accordance
      with Section 4(o)(iii)(3) above may not be issued, sold or exchanged until
      they
      are again offered to the Buyers under the procedures specified in this
      Agreement.

     

    (7) The
      Company and the Buyers agree that if any Buyer elects to participate in the
      Offer, (x) neither the Subsequent Placement Agreement with respect to such
      Offer
      nor any other transaction documents related thereto (collectively, the
      "Subsequent
      Placement Documents")
      shall
      include any term or provisions whereby any Buyer shall be required to agree
      to
      any restrictions in trading as to any securities of the Company owned by such
      Buyer prior to such Subsequent Placement, and (y) any registration rights set
      forth in such Subsequent Placement Documents shall be similar in all material
      respects to the registration rights contained in the Registration Rights
      Agreement.

     

    
      
        
        

      

      
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          23 -

        
          

        

      

      
        
        

      

    

    (8) Notwithstanding
      anything to the contrary in this Section 4(o) and unless otherwise agreed to
      by
      the Buyers, the Company shall either confirm in writing to the Buyers that
      the
      transaction with respect to the Subsequent Placement has been abandoned or
      shall
      publicly disclose its intention to issue the Offered Securities, in either
      case
      in such a manner such that the Buyers will not be in possession of material
      non-public information, by the fifteen (15th)
      Business Day following delivery of the Offer Notice. If by the fifteen
      (15th)
      following delivery of the Offer Notice no public disclosure regarding a
      transaction with respect to the Offered Securities has been made, and no notice
      regarding the abandonment of such transaction has been received by the Buyers,
      such transaction shall be deemed to have been abandoned and the Buyers shall
      not
      be deemed to be in possession of any material, non-public information with
      respect to the Company. Should the Company decide to pursue such transaction
      with respect to the Offered Securities, the Company shall provide each Buyer
      with another Offer Notice and each Buyer will again have the right of
      participation set forth in this Section 4(n)(iii). The Company shall not be
      permitted to deliver more than one such Offer Notice to the Buyers in any 60
      day
      period.

     

    (iv) The
      restrictions contained in subsections (ii) and (iii) of this Section 4(n) shall
      not apply in connection with the issuance of any Excluded Securities (as defined
      in the Warrants).

     

    (o) Exchange
      Agreement.
      Neither
      the Company nor Ever Leader may amend or waive any provision of the Exchange
      Agreement without the consent of the Buyers holding at least a majority of
      the
      number of Registrable Securities issued and issuable hereunder.

     

    (p) D&O
      Insurance; Corporate Governance.
      As soon
      as practicable, but in no event later than 90 days after the Closing Date,
      the
      Company shall (i) obtain directors and officers insurance coverage for its
      directors and officers in coverage and amounts determined reasonably sufficient
      by the Company's Board of Directors, consistent with other similarly situated
      companies in the same industry and (ii) institute corporate governance
      procedures necessary to effect the listing of the Company's Common Stock on
      The
      NASDAQ Capital Market.

     

    (q) Listing
      on The NASDAQ Capital Market.
      As soon
      as practicable, but in no event later than 120 days after the Closing Date,
      the
      Company shall file a listing application with The NASDAQ Capital Market with
      respect to the Company's Common Stock and all of the Registrable Securities,
      and
      the Company shall use its best efforts to cause such securities to be listed
      on
      The NASDAQ Capital Market as soon as practicable thereafter.

     

    (r) Audited
      Financial Statements.
      On or
      prior to the date which is sixty (60) days after the Closing Date (the
      "Audited
      Financial Statement Delivery Deadline"),
      the
      Company shall deliver to the Buyers its financial statements for the years
      ending December 31, 2004 and December 31, 2005, audited by Rotenberg &
Company, LP, prepared in accordance with generally accepted accounting
      principles, consistently applied, during each year involved (except as may
      be
      otherwise indicated in such financial statements or the notes thereto) and
      fairly presenting in all material respects the financial position of the Company
      as of the dates thereof and the results of its operations and cash flows for
      each such year then ended (subject, in the case of unaudited statements, to
      normal year-end audit adjustments). 

     

    
      
        
        

      

      
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          24 -

        
          

        

      

      
        
        

      

    

    5. REGISTER;
      TRANSFER AGENT INSTRUCTIONS.

     

    (a) Register.
      The
      Company shall maintain at its principal executive offices (or such other office
      or agency of the Company as it may designate by notice to each holder of
      Securities), a register for the Units and the Common Shares and the Warrants
      that comprise the Units in which the Company shall record the name and address
      of the Person in whose name the Units, Common Shares and Warrants
      have been issued (including the name and address of each transferee) and the
      number of Warrant Shares issuable upon exercise of the Warrants held by such
      Person. The Company shall keep the register open and available at all times
      during business hours for inspection of any Buyer or its legal
      representatives.

     

    (b) Transfer
      Agent Instructions.
      The
      Company shall issue irrevocable instructions to its transfer agent, and any
      subsequent transfer agent, to issue certificates or credit shares to the
      applicable balance accounts at The Depository Trust Company ("DTC"),
      registered in the name of each Buyer or its respective nominee(s), for the
      Warrant Shares issued upon exercise of the Warrants in such amounts as specified
      from time to time by each Buyer to the Company upon exercise of the Warrants
      in
      the form of Exhibit
      D
      attached
      hereto (the "Irrevocable
      Transfer Agent Instructions").
      The
      Company warrants that no instruction other than the Irrevocable Transfer Agent
      Instructions referred to in this Section 5(b), and stop transfer instructions
      to
      give effect to Section 2(g) hereof, will be given by the Company to its transfer
      agent, and that the Securities shall otherwise be freely transferable on the
      books and records of the Company as and to the extent provided in this Agreement
      and the other Transaction Documents. If a Buyer effects a sale, assignment
      or
      transfer of the Securities in accordance with Section 2(f), the Company shall
      permit the transfer and shall promptly instruct its transfer agent to issue
      one
      or more certificates or credit shares to the applicable balance accounts at
      DTC
      in such name and in such denominations as specified by such Buyer to effect
      such
      sale, transfer or assignment. In the event that such sale, assignment or
      transfer involves Warrant Shares sold, assigned or transferred pursuant to
      an
      effective registration statement or pursuant to Rule 144, the transfer agent
      shall issue such Securities to the Buyer, assignee or transferee, as the case
      may be, without any restrictive legend. 

     

    (c) Breach.
      The
      Company acknowledges that a breach by it of its obligations hereunder will
      cause
      irreparable harm to a Buyer. Accordingly, the Company acknowledges that the
      remedy at law for a breach of its obligations under this Section 5 will be
      inadequate and agrees, in the event of a breach or threatened breach by the
      Company of the provisions of this Section 5, that a Buyer shall be entitled,
      in
      addition to all other available remedies, to an order and/or injunction
      restraining any breach and requiring immediate issuance and transfer, without
      the necessity of showing economic loss and without any bond or other security
      being required.

     

    
      
        
        

      

      
        -
          25 -

        
          

        

      

      
        
        

      

    

    (d) Additional
      Relief.
      If the
      Company shall fail for any reason or for no reason to issue to such holder
      unlegended certificates within three (3) Business Days of receipt of documents
      necessary for the removal of legend set forth above (the "Deadline
      Date"),
      then,
      in addition to all other remedies available to the holder, if on or after the
      Trading Day (as defined in the Warrant) immediately following such three
      Business Day period, the holder purchases (in an open market transaction or
      otherwise) shares of Common Stock to deliver in satisfaction of a sale by the
      holder of shares of Common Stock that the holder anticipated receiving from
      the
      Company (a "Buy-In"),
      then
      the Company shall, within three Business Days after the holder's request and
      in
      the holder's discretion, either (i) pay cash to the holder in an amount equal
      to
      the holder's total purchase price (including brokerage commissions, if any)
      for
      the shares of Common Stock so purchased (the "Buy-In
      Price"),
      at
      which point the Company's obligation to deliver such certificate (and to issue
      such shares of Common Stock) shall terminate, or (ii) promptly honor its
      obligation to deliver to the holder a certificate or certificates representing
      such shares of Common Stock and pay cash to the holder in an amount equal to
      the
      excess (if any) of the Buy-In Price over the product of (A) such number of
      shares of Common Stock, times (B) the Closing Bid Price on the Deadline Date.
      "Closing
      Bid Price"
      means,
      for any security as of any date, the last closing price for such security on
      the
      Principal Market, as reported by Bloomberg, or, if the Principal Market begins
      to operate on an extended hours basis and does not designate the closing bid
      price then the last bid price of such security prior to 4:00:00 p.m., New York
      Time, as reported by Bloomberg, or, if the Principal Market is not the principal
      securities exchange or trading market for such security, the last closing price
      of such security on the principal securities exchange or trading market where
      such security is listed or traded as reported by Bloomberg, or if the foregoing
      do not apply, the last closing price of such security in the over-the-counter
      market on the electronic bulletin board for such security as reported by
      Bloomberg, or, if no closing bid price is reported for such security by
      Bloomberg, the average of the bid prices of any market makers for such security
      as reported in the "pink sheets" by Pink Sheets LLC (formerly the National
      Quotation Bureau, Inc.). If the Closing Bid Price cannot be calculated for
      a
      security on a particular date on any of the foregoing bases, the Closing Bid
      Price of such security on such date shall be the fair market value as mutually
      determined by the Company and the holder. If the Company and the holder are
      unable to agree upon the fair market value of such security, then such dispute
      shall be resolved pursuant to Section 12 of the Warrants. All such
      determinations to be appropriately adjusted for any stock dividend, stock split,
      stock combination or other similar transaction during the applicable calculation
      period.

     

    6. CONDITIONS
      TO THE COMPANY'S OBLIGATION TO SELL.

     

    The
      obligation of the Company hereunder to issue and sell the Units to each Buyer
      at
      the Closing is subject to the satisfaction, at or before the Closing Date,
      of
      each of the following conditions, provided that these conditions are for the
      Company's sole benefit and may be waived by the Company at any time in its
      sole
      discretion by providing each Buyer with prior written notice
      thereof:

     

    (i) Such
      Buyer shall have executed each of the Transaction Documents to which it is
      a
      party and delivered the same to the Company.

     

    (ii) Such
      Buyer and each other Buyer shall have delivered to the Escrow Agent the Purchase
      Price for the Units being purchased by such Buyer at the Closing by wire
      transfer of immediately available funds pursuant to the wire instructions
      provided by the Company.

     

    
      
        
        

      

      
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          26 -

        
          

        

      

      
        
        

      

    

    (iii) The
      representations and warranties of such Buyer shall be true and correct in all
      material respects (except for those representations and warranties that are
      qualified by materiality or Material Adverse Effect, which shall be true and
      correct in all respects) as of the date when made and as of the Closing Date
      as
      though made at that time (except for representations and warranties that speak
      as of a specific date, which shall be true and correct as of such specified
      date), and such Buyer shall have performed, satisfied and complied in all
      material respects with the covenants, agreements and conditions required by
      this
      Agreement to be performed, satisfied or complied with by such Buyer at or prior
      to the Closing Date.

     

    (iv) Contemporaneously
      with the Closing, the transactions contemplated in the Exchange Agreement shall
      have been consummated. 

     

    (v) Buyers
      shall have purchased Units representing not less than $10 million of the
      aggregate Purchase Price.

     

    7. CONDITIONS
      TO EACH BUYER'S OBLIGATION TO PURCHASE.

     

    The
      obligation of each Buyer hereunder to purchase the Units at the Closing is
      subject to the satisfaction, at or before the Closing Date, of each of the
      following conditions, provided that these conditions are for each Buyer's sole
      benefit and may be waived by such Buyer at any time in its sole discretion
      by
      providing the Company with prior written notice thereof:

     

    (i) The
      Company shall have duly executed and delivered to such Buyer (i) each of the
      Transaction Documents and (ii) the Common Shares (allocated in such number
      as
      such Buyer shall request), being purchased by such Buyer at the Closing pursuant
      to this Agreement, and (iii) the related Warrants (allocated in such amounts
      as
      such Buyer shall request) being purchased by such Buyer at the Closing pursuant
      to this Agreement.

     

    (ii) Such
      Buyer shall have received the opinion of Anslow & Jaclin, LLP, Ever Leader's
      outside counsel, dated as of the Closing Date, in substantially the form of
      Exhibit E
      attached
      hereto.

     

    (iii) The
      Company shall have delivered to such Buyer a copy of the Irrevocable Transfer
      Agent Instructions, in the form of Exhibit D
      attached
      hereto, which instructions shall have been delivered to and acknowledged in
      writing by the Company's transfer agent.

     

    (iv) The
      Company shall have delivered to such Buyer a certificate evidencing the
      formation and good standing of the Company and each of its Subsidiaries in
      such
      entity's jurisdiction of formation issued by the Secretary of State (or
      comparable office) of such jurisdiction, as of a date within 10 days of the
      Closing Date.

     

    (v) The
      Company shall have delivered to such Buyer a certificate evidencing the
      Company's qualification as a foreign corporation and good standing issued by
      the
      Secretary of State (or comparable office) of each jurisdiction in which the
      Company conducts business, as of a date within 10 days of the Closing
      Date.

     

    
      
        
        

      

      
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          27 -

        
          

        

      

      
        
        

      

    

    (vi) The
      Company shall have delivered to such Buyer a certified copy of the Certificate
      of Incorporation as certified by the Secretary of State of the State of Delaware
      within ten (10) days of the Closing Date.

     

    (vii) The
      Company shall have delivered to such Buyer a certificate, executed by the
      Secretary of the Company and dated as of the Closing Date, as to (i) the
      resolutions consistent with Section 3(b) as adopted by the Company's Board
      of
      Directors in a form reasonably acceptable to such Buyer, (ii) the Certificate
      of
      Incorporation and (iii) the Bylaws, each as in effect at the Closing, in the
      form attached hereto as Exhibit F.

     

    (viii) The
      representations and warranties of the Company shall be true and correct in
      all
      material respects (except for those representations and warranties that are
      qualified by materiality or Material Adverse Effect, which shall be true and
      correct in all respects) as of the date when made and as of the Closing Date
      as
      though made at that time (except for representations and warranties that speak
      as of a specific date, which shall be true and correct as of such specified
      date) and the Company shall have performed, satisfied and complied in all
      material respects with the covenants, agreements and conditions required by
      the
      Transaction Documents to be performed, satisfied or complied with by the Company
      at or prior to the Closing Date. Such Buyer shall have received a certificate,
      executed by the Chief Executive Officer of the Company, dated as of the Closing
      Date, to the foregoing effect and as to such other matters as may be reasonably
      requested by such Buyer in the form attached hereto as Exhibit
      G.

     

    (ix) The
      Company shall have delivered to such Buyer a letter from the Company's transfer
      agent certifying the number of shares of Common Stock outstanding as of a date
      within five days of the Closing Date.

     

    (x) The
      Common Stock (I) shall be designated for quotation or listed on the Principal
      Market and (II) shall not have been suspended, as of the Closing Date, by the
      SEC or the Principal Market from trading on the Principal Market nor shall
      suspension by the SEC or the Principal Market have been threatened, as of the
      Closing Date, either (A) in writing by the SEC or the Principal Market or (B)
      by
      falling below the minimum listing maintenance requirements of the Principal
      Market, if any.

     

    (xi) The
      Company shall have obtained all governmental, regulatory or third party consents
      and approvals, if any, necessary for the sale of the Securities.

     

    (xii) The
      Company shall have executed and delivered to such Buyer a fully executed copy
      of
      the Make Good Agreement and the Make Good Escrow Agreement.

     

    (xiii) Each
      of
      Mr. Yiqing Wan, Ms. Wei Xu and Moveup Investments Limited shall have entered
      into a Lock-Up Agreement in the form attached hereto as Exhibit
      J
      (the
      "Lock-Up
      Agreements").

     

    (xiv) Prior
      to
      the Closing, the transactions contemplated by the Exchange Agreement shall
      have
      been consummated and none of the conditions to closing contained in the Exchange
      Agreement shall have been waived or amended unless the Buyers holding at least
      a
      majority of the number of Registrable Securities issued and issuable hereunder
      shall have approved such waiver or amendment. 

     

    
      
        
        

      

      
        -
          28 -

        
          

        

      

      
        
        

      

    

    (xv) Buyers
      shall have purchased Units representing not less than $10 million of the
      aggregate Purchase Price. 

     

    (xvi) Contemporaneously
      with the Closing, the Company shall file with the SEC a Current Report on Form
      8-K, which shall include financial statements of the Company and its
      Subsidiaries for the period ending September 30, 2006, which have been reviewed
      by Rotenberg & Company, LP and have been prepared in accordance with
      generally accepted accounting principles, consistently applied, during the
      periods involved (except in the case of unaudited interim statements, to the
      extent they may exclude footnotes or may be condensed or summary statements)
      and
      which fairly present in all material respects the financial position of the
      Company as of September 30, 2006 and the results of its operations and cash
      flows for the period ended September 30, 2006, subject to normal year-end audit
      adjustments.

     

    (xvii) The
      Company shall have delivered to such Buyer such other documents relating to
      the
      transactions contemplated by this Agreement as such Buyer or its counsel may
      reasonably request.

     

    8. TERMINATION.
      In
      the
      event that the Closing shall not have occurred with respect to a Buyer on or
      before five (5) Business Days from the date hereof due to the Company's or
      such
      Buyer's failure to satisfy the conditions set forth in Sections 6 and 7 above
      (and the nonbreaching party's failure to waive such unsatisfied condition(s)),
      the nonbreaching party shall have the option to terminate this Agreement with
      respect to such breaching party at the close of business on such date without
      liability of any party to any other party; provided,
      however,
      that if
      this Agreement is terminated pursuant to this Section 8, Ever Leader and the
      Company shall remain obligated to reimburse the non-breaching Buyers for the
      expenses described in Section 4(g) above.

     

    9. MISCELLANEOUS.

     

    (a) Governing
      Law; Jurisdiction; Jury Trial.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be governed by the internal laws of the State of New
      York, without giving effect to any choice of law or conflict of law provision
      or
      rule (whether of the State of New York or any other jurisdictions) that would
      cause the application of the laws of any jurisdictions other than the State
      of
      New York. Each party hereby irrevocably submits to the exclusive jurisdiction
      of
      the state and federal courts sitting in The City of New York, Borough of
      Manhattan, for the adjudication of any dispute hereunder or in connection
      herewith or with any transaction contemplated hereby or discussed herein, 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 brought in an
      inconvenient forum or that the venue of such suit, action or proceeding is
      improper. Each party hereby irrevocably waives personal service of process
      and
      consents to process being served in any such suit, action or proceeding by
      mailing a copy thereof to such party at the address for such 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 HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
      REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
      CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
      HEREBY. 

     

    
      
        
        

      

      
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          29 -

        
          

        

      

      
        
        

      

    

    (b) Counterparts.
      This
      Agreement may be executed in two or more identical counterparts, all of which
      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;
      provided that a facsimile signature shall be considered due execution and shall
      be binding upon the signatory thereto with the same force and effect as if
      the
      signature were an original, not a facsimile signature.

     

    (c) Headings.
      The
      headings of this Agreement are for convenience of reference and shall not form
      part of, or affect the interpretation of, this Agreement.

     

    (d) Severability.
      If any
      provision of this Agreement shall be invalid or unenforceable in any
      jurisdiction, such invalidity or unenforceability shall not affect the validity
      or enforceability of the remainder of this Agreement in that jurisdiction or
      the
      validity or enforceability of any provision of this Agreement in any other
      jurisdiction.

     

    (e) Entire
      Agreement; Amendments.
      This
      Agreement and the other Transaction Documents supersede all other prior oral
      or
      written agreements between the Buyers, the Company, their affiliates and Persons
      acting on their behalf with respect to the matters discussed herein, and this
      Agreement, the other Transaction Documents and the instruments referenced herein
      and therein contain the entire understanding of the parties with respect to
      the
      matters covered herein and therein and, except as specifically set forth herein
      or therein, neither the Company nor any Buyer makes any representation,
      warranty, covenant or undertaking with respect to such matters. No provision
      of
      this Agreement may be amended other than by an instrument in writing signed
      by
      the Company and the holders of at least a majority of the aggregate number
      of
      Registrable Securities issued and issuable hereunder, and any amendment to
      this
      Agreement made in conformity with the provisions of this Section 9(e) shall
      be
      binding on all Buyers and holders of Securities as applicable. No provision
      hereof may be waived other than by an instrument in writing signed by the party
      against whom enforcement is sought. No such amendment shall be effective to
      the
      extent that it applies to less than all of the holders of the applicable
      Securities then outstanding. 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 also is offered
      to
      all of the parties to the Transaction Documents, and the holders of the
      Warrants. The Company has not, directly or indirectly, made any agreements
      with
      any Buyers relating to the terms or conditions of the transactions contemplated
      by the Transaction Documents except as set forth in the Transaction Documents.
      Without limiting the foregoing, the Company confirms that, except as set forth
      in this Agreement, no Buyer has made any commitment or promise or has any other
      obligation to provide any financing to the Company or otherwise. 

     

    
      
        
        

      

      
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          30 -

        
          

        

      

      
        
        

      

    

    (f) Notices.
      Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms of this Agreement must be in writing and will be deemed
      to
      have been delivered: (i) upon receipt, when delivered personally; (ii) upon
      receipt, when sent by facsimile (provided confirmation of transmission is
      mechanically or electronically generated and kept on file by the sending party);
      or (iii) one Business Day after deposit with an overnight courier service,
      in
      each case properly addressed to the party to receive the same. The addresses
      and
      facsimile numbers for such communications shall be:

    

    If
      to
      Company (prior to consummation of the transactions contemplated by the Exchange
      Agreement): 

    

    Applied
      Spectrum Technologies, Inc., 

    936A
      Beachland Boulevard, Suite 13

    Vero
      Beach, Florida 32963

    Telephone: (720)
      889-0131

    Facsimile: (720)
      889-0135

    Attention:
       Kevin
      Keating, President

     

    and

    

    If
      to the
      Company or Ever Leader (after consummation of the transactions contemplated
      by
      the Exchange Agreement):

     

    23/F,
      Changjiang Plaza, 1 Mingquan Lu

    Wuhan
      430021, P.R. China

    Telephone: +1
      (86
      27) 8537-5532

    Facsimile: +1
      (86
      27) 8537-5851

    Attention:
       Yiqing
      Wan

    

    with
      a
      copy to:

    

    Anslow
      & Jaclin, LLP

    195
      Route
      9 South, Suite 204

    Manalapan,
      New Jersey 07726

    Telephone: 
      (732)
      409-1212 

    Facsimile: 
      (732)
      577-1188

    Attention:
       Richard
      I. Anslow, Esq.

    

    If
      to a
      Buyer, to its address and facsimile number set forth on the Schedule of Buyers,
      with copies to such Buyer's representatives as set forth on the Schedule of
      Buyers, 

     

    
      
        
        

      

      
        -
          31 -

        
          

        

      

      
        
        

      

    

    with
      a
      copy (for informational purposes only) to:

     

    Schulte
      Roth & Zabel LLP 

    919
      Third
      Avenue

    New
      York,
      New York 10022

    Telephone: (212)
      756-2000

    Facsimile: (212)
      593-5955

    Attention: Eleazer
      N. Klein, Esq.

     

    or
      to
      such other address and/or facsimile number and/or to the attention of such
      other
      Person as the recipient party has specified by written notice given to each
      other party five (5) days prior to the effectiveness of such change. Written
      confirmation of receipt (A) given by the recipient of such notice, consent,
      waiver or other communication, (B) mechanically or electronically generated
      by
      the sender's facsimile machine containing the time, date, recipient facsimile
      number and an image of the first page of such transmission or (C) provided
      by an
      overnight courier service shall be rebuttable evidence of personal service,
      receipt by facsimile or receipt from an overnight courier service in accordance
      with clause (i), (ii) or (iii) above, respectively.

     

    (g) Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their respective successors and assigns, including any purchasers of the Common
      Shares or the Warrants. The Company shall not assign this Agreement or any
      rights or obligations hereunder without the prior written consent of the holders
      of at least a majority of the aggregate number of Registrable Securities issued
      and issuable hereunder, including by way of a Fundamental Transaction (unless
      the Company is in compliance with the applicable provisions governing
      Fundamental Transactions set forth in the Warrants). A Buyer may assign some
      or
      all of its rights hereunder without the consent of the Company, in which event
      such assignee shall be deemed to be a Buyer hereunder with respect to such
      assigned rights

     

    (h) No
      Third Party Beneficiaries.
      This
      Agreement is intended for the benefit of the parties hereto and their respective
      permitted successors and assigns, and is not for the benefit of, nor may any
      provision hereof be enforced by, any other Person.

     

    (i) Survival.
      Unless
      this Agreement is terminated under Section 8, the representations and warranties
      of the Company and the Buyers contained in Sections 2 and 3, and the agreements
      and covenants set forth in Sections 4, 5 and 9 shall survive the Closing. Each
      Buyer shall be responsible only for its own representations, warranties,
      agreements and covenants hereunder.

     

    (j) Further
      Assurances.
      Each
      party shall do and perform, or cause to be done and performed, all such further
      acts and things, and shall execute and deliver all such other agreements,
      certificates, instruments and documents, as any other party may reasonably
      request in order to carry out the intent and accomplish the purposes of this
      Agreement and the consummation of the transactions contemplated
      hereby.

     

    
      
        
        

      

      
        -
          32 -

        
          

        

      

      
        
        

      

    

    (k) Indemnification.
      In
      consideration of each Buyer's execution and delivery of the Transaction
      Documents and acquiring the Securities thereunder and in addition to all of
      the
      Company's other obligations under the Transaction Documents, the Company shall
      defend, protect, indemnify and hold harmless each Buyer and each other holder
      of
      the Securities and all of their stockholders, partners, members, officers,
      directors, employees and direct or indirect investors and any of the foregoing
      Persons' agents or other representatives (including, without limitation, those
      retained in connection with the transactions contemplated by this Agreement)
      (collectively, the "Indemnitees")
      from
      and against any and all actions, causes of action, suits, claims, losses, costs,
      penalties, fees, liabilities and damages, and expenses in connection therewith
      (irrespective of whether any such Indemnitee is a party to the action for which
      indemnification hereunder is sought), and including reasonable attorneys' fees
      and disbursements (the "Indemnified
      Liabilities"),
      incurred by any Indemnitee as a result of, or arising out of, or relating to
      (a)
      any misrepresentation or breach of any representation or warranty made by the
      Company in the Transaction Documents or any other certificate, instrument or
      document contemplated hereby or thereby, (b) any breach of any covenant,
      agreement or obligation of the Company contained in the Transaction Documents
      or
      any other certificate, instrument or document contemplated hereby or thereby
      or
      (c) any cause of action, suit or claim brought or made against such Indemnitee
      by a third party (including for these purposes a derivative action brought
      on
      behalf of the Company) and arising out of or resulting from (i) the execution,
      delivery, performance or enforcement of the Transaction Documents or any other
      certificate, instrument or document contemplated hereby or thereby, (ii) any
      transaction financed or to be financed in whole or in part, directly or
      indirectly, with the proceeds of the issuance of the Securities, (iii) any
      disclosure made by such Buyer pursuant to Section 4(i), or (iv) the status
      of
      such Buyer or holder of the Securities as an investor in the Company pursuant
      to
      the transactions contemplated by the Transaction Documents. To the extent that
      the foregoing undertaking by the Company may be unenforceable for any reason,
      the Company shall make the maximum contribution to the payment and satisfaction
      of each of the Indemnified Liabilities that is permissible under applicable
      law.
      Except as otherwise set forth herein, the mechanics and procedures with respect
      to the rights and obligations under this Section 9(k) shall be the same as
      those
      set forth in Section 6 of the Registration Rights Agreement.

     

    (l) No
      Strict Construction.
      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.

     

    (m) Remedies.
      Each
      Buyer and each holder of the Securities shall have all rights and remedies
      set
      forth in the Transaction Documents and all rights and remedies which such
      holders have been granted at any time under any other agreement or contract
      and
      all of the rights which such holders have under any law. Any Person having
      any
      rights under any provision of this Agreement shall be entitled to enforce such
      rights specifically (without posting a bond or other security), to recover
      damages by reason of any breach of any provision of this Agreement and to
      exercise all other rights granted by law. Furthermore, the Company recognizes
      that in the event that it fails to perform, observe, or discharge any or all
      of
      its obligations under the Transaction Documents, any remedy at law may prove
      to
      be inadequate relief to the Buyers. The Company therefore agrees that the Buyers
      shall be entitled to seek temporary and permanent injunctive relief in any
      such
      case without the necessity of proving actual damages and without posting a
      bond
      or other security.

     

    (n) Rescission
      and
      Withdrawal Right.
      Notwithstanding anything to the contrary contained in (and without limiting
      any
      similar provisions of) the Transaction Documents, whenever any Buyer exercises
      a
      right, election, demand or option under a Transaction Document and the Company
      does not timely perform its related obligations within the periods therein
      provided, then such Buyer may rescind or withdraw, in its sole discretion from
      time to time upon written notice to the Company, any relevant notice, demand
      or
      election in whole or in part without prejudice to its future actions and
      rights.

     

    
      
        
        

      

      
        -
          33 -

        
          

        

      

      
        
        

      

    

    (o) Payment
      Set Aside.
      To the
      extent that the Company makes a payment or payments to the Buyers hereunder
      or
      pursuant to any of the other Transaction Documents or the Buyers enforce or
      exercise their rights hereunder or 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, foreign, 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.

     

    (p) Independent
      Nature of Buyers' Obligations and Rights.
      The
      obligations of each Buyer under any Transaction Document are several and not
      joint with the obligations of any other Buyer, and no Buyer shall be responsible
      in any way for the performance of the obligations of any other Buyer under
      any
      Transaction Document. Nothing contained herein or in any other Transaction
      Document, and no action taken by any Buyer pursuant hereto or thereto, shall
      be
      deemed to constitute the Buyers as, and the Company acknowledges that the Buyers
      do not so constitute, a partnership, an association, a joint venture or any
      other kind of entity, or create a presumption that the Buyers are in any way
      acting in concert or as a group, and the Company will not assert any such claim
      with respect to such obligations or the transactions contemplated by the
      Transaction Documents and the Company acknowledges that the Buyers are not
      acting in concert or as a group with respect to such obligations or the
      transactions contemplated by the Transaction Documents. The Company acknowledges
      and each Buyer confirms that it has independently participated in the
      negotiation of the transaction contemplated hereby with the advice of its own
      counsel and advisors. Each Buyer shall be entitled to independently protect
      and
      enforce its rights, including, without limitation, the rights arising out of
      this Agreement or out of any other Transaction Documents, and it shall not
      be
      necessary for any other Buyer to be joined as an additional party in any
      proceeding for such purpose.

     

    (q) Agent
      for Service of Process (i)
      Each
      of the Company and Ever Leader (the "Foreign
      Parties")
      hereby
      irrevocably appoints National Corporate Research, Ltd., of 225
      West
      34th
      Street,
      Suite 910, New York, N.Y. 10112, U.S.A. ("NCR")
      as its
      agent for the receipt of service of process in the United States. Each Foreign
      Party agrees that any document may be effectively served on it in connection
      with any action, suit or proceeding in the United States by service on its
      agents. Each of the Buyers consents and agrees that each Foreign Party may,
      in
      its reasonable discretion, irrevocably appoint a substitute agent for the
      receipt of service of process located within the Untied States, and that upon
      such appointment, the appointment of NCR may be revoked.

     

    (ii)
      Any
      document shall be deemed to have been duly served if marked for the attention
      of
      the agent at its address as set forth in this Section 9(q) or such other address
      in the United States as may be notified to the party wishing to serve the
      document and (a) left at the specified address if its receipt is acknowledged
      in
      writing; or (b) sent to the specified address by post, registered mail return
      receipt requested. In the case of (a), the document will be deemed to have
      been
      duly served when it is left and signed for. In the case of (b), the document
      shall be deemed to have been duly served when received and
      acknowledged.

     

    
      
        
        

      

      
        -
          34 -

        
          

        

      

      
        
        

      

    

    (iii)
      If
      any Foreign Party's agent at any time ceases for any reason to act as such,
      such
      Foreign Party shall promptly appoint a replacement agent having an address
      for
      service in the United States and shall promptly notify the each holder of Common
      Shares at such time of the name and address of the replacement agent. Failing
      such appointment and notification, the holders of a majority of the Common
      Shares at such time shall be entitled by notice to such Foreign Party to appoint
      a replacement agent to act on such Foreign Party's behalf. The provisions of
      this Section 9(q) applying to service on an agent apply equally to service
      on a
      replacement agent.

     

    (r) Currency.
      As used
      herein, "Dollar", "US Dollar" and "$" each mean the lawful money of the United
      States.

     

    [Signature
      Page Follows]

     

    
      
        
        

      

      
        -
          35 -

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      each
      Buyer, Ever Leader and the Company have caused their respective signature page
      to this Securities Purchase Agreement to be duly executed as of the date first
      written above.

     

    
      	 	
              COMPANY:

               

            
	 	
              APPLIED
                SPECTRUM TECHNOLOGIES, INC.

               

              By:  /s/
                Yiqing
                Wan                            
                 

              Name:
                Yiqing Wan

              Title:
                Vice President

               

            
	 	
              EVER
                LEADER:

               

            
	 	
              EVER
                LEADER HOLDINGS LIMITED

               

              By: /s/
                Yiqing
                Wan                               
                

              Name:
                Yiqing Wan

              Title:
                Chief Executive Officer

               

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                ACCELERA
                  VENTURES LIMITED

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Dennis
                  Kam Thai
                  Leong                     
                  

                Name:  Dennis
                  Kam Thai Leong

                Title:   
                  Director

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                LARS
                  B. AHLSTROM

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Lars B.
                  Ahlstrom                        
                  

                Name: 
                  Lars B. Ahlstrom

                 Title:
                  

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                ANIMA
                  S.G.R.P.A. RUBRICA - ANIMA ASIA

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Giovanni
                  Brambilla                          
                  

                Name:  Giovanni
                  Brambilla

                Title:    Fund
                  Manager

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                ANIMA
                  S.G.R.P.A. RUBRICA - ANIMA EMERGING MARKETS

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Giovanni
                  Brambilla                        
                  

                Name:  Giovanni
                  Brambilla

                Title:    Fund
                  Manager

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                BANCA
                  GESFID

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Graziano
                  Deli                            
                  

                Name: 
                  Graziano Deli

                Title:    Director

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                JOSEPH
                  F. BARLETTA

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Joseph F.
                  Barletta                              
                    

                Name:  
                  Joseph F. Barletta

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                BH
                  CAPITAL INVESTMENTS LP

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Henry
                  Brachfeld                        
                  

                Name:  Henry
                  Brachfeld

                Title:    President

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                DAVID
                  L. DOWLER

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/ 
                  David
                  L.
                  Dowler                   
                  

                Name:  
                  David L. Dowler

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                JODY
                  C. DOWLING

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Jody C.
                  Dowling                      
                  

                Name:  
                  Jody C. Dowling

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                EXCALIBER
                  LIMITED PARTNERSHIP

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  William
                  Hechter                               
                  

                Name: 
                  William Hechter

                Title:    
                  President & General Partner

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                EXCALIBER
                  LIMITED PARTNERSHIP II

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  William
                  Hechter                              
                  

                Name:  William
                  Hechter

                Title:    
                  President & General Partner

              
	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                F
                  BERDON CO LP

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Frederick
                  Berdon                      
                  

                Name:  Frederick
                  Berdon, GP  

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                ELAINE
                  P. FIELDS

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Elaine
                  P.
                  Fields                         
                  

                Name:  Elaine
                  P. Fields

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                JAMES
                  W. FULLER

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  James
                  W.
                  Fuller                     
                  

                Name:  James
                  W. Fuller

                Title:    

              
	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                JOSEPH
                  W. GREALISH

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Joseph
                  W.
                  Grealish                  
                  

                Name:  Joseph
                  W. Grealish 

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                DAVID
                  AUSTIN GROSE

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/David
                  Austin
                  Grose             
                  

                Name:  David
                  Austin Grose

                Title:    

              
	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                HALTER
                  POPE USX CHINA FUND

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Stephen
                  L.
                  Parr                     
                   

                Name:  Stephen
                  L. Parr

                Title:    President

              
	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                LINDA
                  HECHTER

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Linda
                  Hechter                          
                  

                Name:  Linda
                  Hechter

                Title:    

              
	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                HEDGE
                  CAPITAL PARTNERS LLC

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Allan
                  Rothstein                   
                   

                Name: 
                  Allan Rothstein   

                Title:    Managing
                  Member

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                 MARK
                  AND STACIA HOLLMANN

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Mark and Stacia
                  Hollmann                         
                  

                Name:  Mark
                  and Stacia Hollmann 

                Title:    

              
	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                SCOTT
                  C. HOLLMANN

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Scott
                  C.
                  Hollmann                  
                  

                Name:  Scott
                  C. Hollmann 

                Title:    

              
	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                JAYHAWK
                  PRIVATE EQUITY FUND, L.P.

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Michael D.
                  Schmitz                 
                   

                Name: 
                  Michael D. Schmitz  

                Title:    CFO
                  of GP

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                JOHN
                  K. KUPRA

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  John K.
                  Kupra                              
                  

                Name:  John
                  K. Kupra

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                PETER
                  LEVY

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Peter
                  Levy                       
                   

                Name:  Peter
                  Levy 

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                JAMES
                  A. LAVISH

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/ James
                  A.
                  Lavish                                   
                  

                Name:  James
                  A. Lavish

                Title:  
                   Chief Operating Officer; Director
                      

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                SURESH
                  MADAN & SARITA MADAN

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Suresh Madan & Sarita
                  Madan                  
                   

                Name:  Suresh
                  Madan & Sarita Madan 

                Title:    

              
	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                PAUL
                  MASTERS IRA

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Paul
                  Masters                           
                   

                Name:  Paul
                  Masters

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        IN WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                CHRISTOPHER
                  MCCARTY & JENNIFER GREY MCCARTY  

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Christopher McCarty & Jennifer Grey
                  McCarty                
                  

                Name: Christopher
                  McCarty & Jennifer Grey McCarty  

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                MCF
                  NAVIGATOR MASTER FUND, LTD.

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Gregory S.
                  Curhan                     
                  

                Name:  Gregory
                  S. Curhan

                Title:    Chief
                  Executive Officer

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                EDMUND
                  H. MELHADO

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Edmund H.
                  Melhado                  
                  

                Name: 
                  Edmund H. Melhado  

                Title:    

              
	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                GABRIEL
                  MICEK 

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Gabriel
                  Micek                  
                  

                Name: 
                  Gabriel Micek  

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                JOHN
                  MICEK 

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  John
                  Micek                       
                  

                Name: 
                  John Micek  

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                JORDAN
                  MICEK 

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Jordan
                  Micek                  
                  

                Name: 
                  Jordan Micek  

                Title:    

              
	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                MAURICE
                  & JENNIFER MICEK 

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Maurice & Jennifer
                  Micek                    
                  

                Name: Maurice
                  & Jennifer Micek  

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                PETER
                  MICEK 

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Peter
                  Micek                        
                  

                Name: 
                  Peter Micek  

                Title:    

              
	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                MIDSOUTH
                  INVESTOR FUND LP

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Lyman O.
                  Heidtke                       
                   

                Name:  Lyman
                  O. Heidtke

                Title:    

              
	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                NITE
                  CAPITAL LP

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Keith
                  Goodman                    
                   

                Name:  Keith
                  Goodman

                Title:   
                  Manager  

              
	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                MICHAEL
                  J. O’HALLORAN

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Michael J.
                  O’Halloran                     
                  

                Name:  Michael
                  J. O’Halloran

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                STEPHEN
                  B. OLORE

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Stephen B.
                  Olore                         
                   

                Name:  Stephen
                  B. Olore

                Title:    

              
	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:
                  

              
	 	 
	 	
                JERRY
                  W. PETERSON

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Jerry W.
                  Peterson                         
                   

                Name:  Jerry
                  W. Peterson

                Title:    

              
	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                POPE
                  INVESTMENTS LLC

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  William P.
                  Wells                               
                  

                Name:  William
                  P. Wells

                Title:   
                   President, Manager

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                PROFESSIONAL
                  OFFSHORE OPPORTUNITY FUND, LTD.

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Howard
                  Berger                   
                   

                Name:  Howard
                  Berger

                Title:   
                  Manager  

              
	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                STEVEN
                  R. PURVIS

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Steven R.
                  Purvis                 
                   

                Name: Steven
                  R. Purvis

                Title:    

              
	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                RFJM
                  PARTNERS LLC

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Jeffrey
                  Markowitz                      
                  

                Name:  Jeffrey
                  Markowitz

                Title:    Managing
                  Member

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                ROCK
                  ASSOCIATES

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Stuart
                  Schapiro                     
                   

                Name:  Stuart
                  Schapiro 

                Title:    Vice
                  President

              
	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                MARVIN
                  ROSENFIELD

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Marvin
                  Rosenfield                            
                   

                Name:  Marvin
                  Rosenfield

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                STEVEN
                  ROTHSTEIN

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Steven
                  Rothstein                    
                   

                Name:  
                  Steven Rothstein

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                DON
                  RUSSELL

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Don
                  Russell                        
                  

                Name:  Don
                  Russell

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                SILVER
                  ROCK I, LTD.

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Ruria
                  Salam                    
                   

                Name: 
                  Ruria Salam

                Title:    Director

              
	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                SILICON
                  PRAIRIE PARTNERS

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  John
                  Micek                                    
                   

                Name:  John
                  Micek

                Title:    Managing
                  Director

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                SIMGEST
                  SPA

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Oscar
                  Guidetti                        
                   

                Name:  Oscar
                  Guidetti

                Title:    President

              
	 	 

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                 RICHARD
                  TODD TRUITT

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/ Richard
                  Todd
                  Truitt                        
                  

                Name:  Richard
                  Todd Truitt 

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                JONATHAN
                  UNGER

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Jonathan
                  Unger                         
                   

                Name:  Jonathan
                  Unger

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                WHITE
                  SAND INVESTOR GROUP

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Elliott
                  Donnelley
                  II                         
                   

                Name:  Elliott
                  Donnelley II

                Title:    President;
                  Corporate GP

              
	 	 

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Securities Purchase Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                LISA
                  B. GORDAN & STEVEN ZELINGER

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/ Lisa
                  B. Gordan & Steven
                  Zelinger                
                   

                Name:  Lisa
                  B. Gordan & Steven Zelinger  

                Title:    

              
	 	 

      

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      OF BUYERS

    

      
        	
                (1)

              	
                (2)

              	
                (3)

              	
                (4)

              	
                (5)

              
	 	 	 	 	 
	
                Buyer

              	
                Address
                  and

                Facsimile
                  Number

              	
                Number
                  of Units

              	
                Purchase
                  Price

              	
                Legal
                  Representative's Address and Facsimile
                  Number

              

      

       

      
        	
                Accelera
                  Ventures Limited

              	
                East
                  Asia Chambers 

                P.O.
                  Box 901 

                Road
                  Town, Tortola

                B.V.I.

                Attention:
                  Dennis Kam Thai Leong

                Facsimile:
                  (852) 3428 8777

                Telephone:
                  (852) 3105 2238

                Residence:
                  Hong Kong

              	
                6

              	
                $150,000

              	
                N/A

              
	 	 	 	 	 
	
                Lars
                  B. Ahlstrom

              	
                3640
                  Partition Road

                Woodside,
                  CA 94062

                Attention:
                  Lars B. Ahlstrom

                Facsimile:
                  (650) 851-7219

                Telephone:
                  (650) 851-4016

                Residence:
                  California

              	
                1

              	
                $25,000

              	
                N/A

              
	 	 	 	 	 
	
                Anima
                  S.G.R.p.A. Rubrica - Anima Asia

              	
                Via
                  Brera, 18

                Milano,
                  MI, 20121

                Italy

                Attention:
                  Giovanni Brambilla

                Facsimile:
                  39 02 875589

                Telephone:
                  39 02 80638320

                Residence:
                  Italy

              	
                20

              	
                $500,000

              	
                N/A

              
	 	 	 	 	 
	
                Anima
                  S.G.R.p.A. Rubrica - Anima Emerging Markets

              	
                Via
                  Brera, 18

                Milano,
                  MI, 20121

                Italy

                Attention:
                  Giovanni Brambilla

                Facsimile:
                  39 02 875589

                Telephone:
                  39 02 80638320

                Residence:
                  Italy

              	
                12

              	
                $300,000

              	
                N/A

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

        
          	
                  (1)

                	
                  (2)

                	
                  (3)

                	
                  (4)

                	
                  (5)

                
	 	 	 	 	 
	
                  Buyer

                	
                  Address
                    and

                  Facsimile
                    Number

                	
                  Number
                    of Units

                	
                  Purchase
                    Price

                	
                  Legal
                    Representative's Address and Facsimile
                    Number

                

        

         

      

      
        	
                Banca
                  Gesfid

              	
                Via
                  Adamini 10a 

                Casella
                  Postale 5681

                6901,
                  CH, Lugano

                Attention:
                  Graziano Deli

                Facsimile:
                  41 91 993 0970

                Telephone:
                  41 91 985 7400

                Residence:
                  Switzerland

              	
                48

              	
                $1,200,000

              	
                N/A

              
	 	 	 	 	 
	
                Joseph
                  F. Barletta

              	
                530
                  Westgate Drive

                Napa,
                  CA 94558

                Attention:
                  Joseph F. Barletta

                Facsimile:
                  (707) 256-0877

                Telephone:
                  (707) 255-0987

                Residence:
                  California

              	
                1

              	
                $25,000

              	
                N/A

              
	 	 	 	 	 
	
                BH
                  Capital Investments LP

              	
                C/O
                  Reichman International 

                175
                  Bloor Street East

                South
                  Tower, 7th Floor 

                Toronto,
                  Ontario M4W 3RB 

                Attention:
                  Henry Brachfeld

                Facsimile:
                  (416) 646-2673

                Telephone:
                  (416) 929-1626

                Residence:
                  Canada

              	
                8

              	
                $200,000

              	
                N/A

              
	 	 	 	 	 
	
                David
                  L. Dowler

              	
                3509
                  Crescent Avenue

                Dallas,
                  TX 75205

                Attention:
                  David L. Dowler

                Facsimile:
                  (214) 559-0333

                Telephone:
                  (214) 559-0222

                Residence:
                  Texas

              	
                1

              	
                $25,000

              	
                N/A

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        	
                (1)

              	
                (2)

              	
                (3)

              	
                (4)

              	
                (5)

              
	 	 	 	 	 
	
                Buyer

              	
                Address
                  and

                Facsimile
                  Number

              	
                Number
                  of Units

              	
                Purchase
                  Price

              	
                Legal
                  Representative's Address and Facsimile
                  Number

              

      

       

      
        	
                Victor
                  J. Dowling Jr. & Jody C. Dowling

              	
                987
                  Hopmeadow Street

                Simsbury,
                  CT 06070

                Attention:
                  Victor J. Dowling Jr.

                Facsimile:
                  (860) 651-7174

                Telephone:
                  (860) 658-2231

                Residence:
                  Connecticut

              	
                6

              	
                $150,000

              	
                N/A

              
	 	 	 	 	 
	
                Excalibur
                  Limited Partnership

              	
                33
                  Prince Arthur Avenue

                Toronto,
                  Ontario M5R 1B2

                Attention:
                  William Hechter

                Facsimile:
                  (416) 964-8868

                Telephone:
                  (416) 964-9077

                Residence:
                  Canada

              	
                24

              	
                $600,000

              	
                N/A

              
	 	 	 	 	 
	
                Excalibur
                  Limited Partnership II

              	
                33
                  Prince Arthur Avenue

                Toronto,
                  Ontario M5R 1B2

                Attention:
                  William Hechter

                Facsimile:
                  (416) 964-8868

                Telephone:
                  (416) 964-9077

                Residence:
                  Canada

              	
                12

              	
                $300,000

              	
                N/A

              
	 	 	 	 	 
	
                F
                  Berdon Co LP

              	
                717
                  Post Road, Suite 105 

                Scarsdale,
                  NY 10583

                Attention:
                  Frederick Berdon

                Facsimile:
                  (914) 694-6335

                Telephone:
                  (914) 694-5857

                Residence:
                  New York

              	
                3

              	
                $75,000

              	
                N/A

              
	 	 	 	 	 
	
                Elaine
                  P. Fields

              	
                200
                  East End Avenue, Apartment 6I 

                New
                  York, NY 10128

                Attention:
                  Elaine P. Fields

                Facsimile:
                  (212) 369-5116

                Telephone:
                  (212) 289-9029

                Residence:
                  New York

              	
                2

              	
                $50,000

              	
                N/A

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

        
          	
                  (1)

                	
                  (2)

                	
                  (3)

                	
                  (4)

                	
                  (5)

                
	 	 	 	 	 
	
                  Buyer

                	
                  Address
                    and

                  Facsimile
                    Number

                	
                  Number
                    of Units

                	
                  Purchase
                    Price

                	
                  Legal
                    Representative's Address and Facsimile
                    Number

                

        

         

      

      
        	
                James
                  W. Fuller

              	
                2584
                  Filbert Street

                San
                  Francisco, CA 94123

                Attention:
                  James W. Fuller

                Facsimile:
                  (415) 977-1510

                Telephone:
                  (415) 977-1500

                Residence:
                  California

              	
                1

              	
                $25,000

              	
                N/A

              
	 	 	 	 	 
	
                Joseph
                  W. Grealish

              	
                3123
                  Lafayette Street

                Houston,
                  TX 77005

                Attention:
                  Joseph W. Grealish

                Facsimile:
                  (713) 986-0631

                Telephone:
                  (713) 899-4238

                Residence:
                  Texas

              	
                1

              	
                $25,000

              	
                N/A

              
	 	 	 	 	 
	
                David
                  Austin Grose

              	
                3327
                  Oak Knoll Drive

                Emerald
                  Hills, CA 94062

                Attention:
                  David Austin Grose

                Facsimile:
                  

                Telephone:
                  (650) 906-0015

                Residence:
                  California

              	
                1

              	
                $25,000

              	
                N/A

              
	 	 	 	 	 
	
                Halter
                  Pope USX China Fund

              	
                5100
                  Poplar Avenue, Suite 805 

                Memphis,
                  TN 38137

                Attention:
                  Stephen L. Parr

                Facsimile:
                  (901) 763-4229

                Telephone:
                  (901) 763-4001

                Residence:
                  Tennessee

              	
                4

              	
                $100,000

              	
                N/A

              
	 	 	 	 	 
	
                Linda
                  Hechter

              	
                205
                  Vesta Drive

                Toronto,
                  Ontario M5P 3A1

                Attention:
                  Linda Hechter

                Facsimile:
                  

                Telephone:
                  (416) 489-5687

                Residence:
                  Canada

              	
                3

              	
                $75,000

              	
                N/A

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

        
          	
                  (1)

                	
                  (2)

                	
                  (3)

                	
                  (4)

                	
                  (5)

                
	 	 	 	 	 
	
                  Buyer

                	
                  Address
                    and

                  Facsimile
                    Number

                	
                  Number
                    of Units

                	
                  Purchase
                    Price

                	
                  Legal
                    Representative's Address and Facsimile
                    Number

                

        

         

      

      
        	
                Hedge
                  Capital Partners LLC

              	
                78
                  Cuttermill Road 

                Suite
                  370 South

                Great
                  Neck, NY 11021

                Attention:
                  Allan Rothstein

                Facsimile:
                  (516) 570-1201

                Telephone:
                  (516) 570-1200

                Residence:
                  New York

              	
                3

              	
                $75,000

              	
                N/A

              
	 	 	 	 	 
	
                Mark
                  and Stacia Hollmann as Tenants by the Entirety

              	
                3865
                  Bird Dog Lane

                Deland,
                  FL 32724

                Attention:
                  Mark Hollmann

                Facsimile:
                  (386) 734-3343

                Telephone:
                  (386) 734-7003

                Residence:
                  Florida

              	
                1

              	
                $25,000

              	
                N/A

              
	 	 	 	 	 
	
                Scot
                  C. Hollmann

              	
                301
                  Commerce Street, Suite 1600 

                Fort
                  Worth, TX 76102

                Attention:
                  Scot C. Hollmann

                Facsimile:
                  (817) 332-4630

                Telephone:
                  (817) 332-3235

                Residence:
                  Texas

              	
                1

              	
                $25,000

              	
                N/A

              
	 	 	 	 	 
	
                Jayhawk
                  Private Equity Fund, L.P.

              	
                C/O
                  Jayhawk Capital Management, LLC 

                8201
                  Mission Road, Suite 110

                Prairie
                  Village, KS 66208

                Attention:
                  Michael D. Schmitz 

                Facsimile:
                  (913) 642-8661

                Telephone:
                  (913) 642-2611

                Residence:
                  Kansas

              	
                26

              	
                $650,000

              	
                N/A

              
	 	 	 	 	 
	
                John
                  K. Kopra

              	
                P.O.
                  Box 1429

                Brentwood,
                  TN 37024

                Attention:
                  John K. Kopra

                Facsimile:
                  (615) 515-5501

                Telephone:
                  (615) 515-4401

                Residence:
                  Tennessee

              	
                1

              	
                $25,000

              	
                N/A

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

        
          	
                  (1)

                	
                  (2)

                	
                  (3)

                	
                  (4)

                	
                  (5)

                
	 	 	 	 	 
	
                  Buyer

                	
                  Address
                    and

                  Facsimile
                    Number

                	
                  Number
                    of Units

                	
                  Purchase
                    Price

                	
                  Legal
                    Representative's Address and Facsimile
                    Number

                

        

         

      

      
        	
                Peter
                  Levy

              	
                2176
                  9th Avenue

                San
                  Francisco, CA 94116

                Attention:
                  Peter Levy

                Facsimile:
                  (415) 391-5210

                Telephone:
                  (415) 564-8272

                Residence:
                  California

              	
                1

              	
                $25,000

              	
                N/A

              
	 	 	 	 	 
	
                LKCM
                  Private Discipline Master Fund, SPC

              	
                301
                  Commerce Street, Suite 1600 

                Fort
                  Worth, TX 76102

                Attention:
                  James A. Lavish

                Facsimile:
                  (817) 332-4630

                Telephone:
                  (817) 332-3235

                Residence:
                  Cayman Islands

              	
                4

              	
                $100,000

              	
                N/A

              
	 	 	 	 	 
	
                Suresh
                  Madan & Sarita Madan

              	
                39
                  Orkney Crescent

                Toronto,
                  Ontario M9A 2T4

                Attention:
                  Suresh Madan

                Facsimile:
                  (416) 236-2331

                Telephone:
                  (416) 236-5577

                Residence:
                  Canada

              	
                2

              	
                $50,000

              	
                N/A

              
	 	 	 	 	 
	
                Paul
                  Masters IRA

              	
                100
                  South Salem Road

                Ridgefield,
                  CT 06877

                Attention:
                  Paul Masters

                Facsimile:
                  (914) 694-6335

                Telephone:
                  (914) 694-5857

                Residence:
                  Connecticut

              	
                1

              	
                $25,000

              	
                N/A

              
	 	 	 	 	 
	
                Christopher
                  McCarty & Jennifer Grey McCarty

              	
                327
                  Hopmeadow Street

                Weatogue,
                  CT 06089

                Attention:
                  Christopher McCarty

                Telephone:
                  (860) 651-0755

                Residence:
                  Connecticut

              	
                1

              	
                $25,000

              	
                N/A

              
	 	 	 	 	 
	
                MCF
                  Navigator Master Fund, Ltd.

              	
                600
                  California Street, Suite 540

                San
                  Francisco, CA 94108

                Attention:
                  Gregory S. Curhan

                Facsimile:
                  (415) 568-3949

                Telephone:
                  (415) 568-3939

                Residence:
                  Cayman Islands

              	
                4

              	
                $100,000

              	
                Merriman
                  Curhan Ford & Co. 600 California Street, 9th Floor

                San
                  Francisco, CA 94108

                Attention:
                  Christopher Aguilar

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

        

          
            	
                    (1)

                  	
                    (2)

                  	
                    (3)

                  	
                    (4)

                  	
                    (5)

                  
	 	 	 	 	 
	
                    Buyer

                  	
                    Address
                      and

                    Facsimile
                      Number

                  	
                    Number
                      of Units

                  	
                    Purchase
                      Price

                  	
                    Legal
                      Representative's Address and Facsimile
                      Number

                  

          

           

        

      

      
        	
                Edmund
                  H. Melhado

              	
                555
                  S. 68th Street

                Boulder,
                  CO 80303

                Attention:
                  Edmund H. Melhado

                Facsimile:
                  (303) 494-5859

                Telephone:
                  (303) 442-7136

                Residence:
                  Colorado

              	
                2

              	
                $50,000

              	
                N/A

              
	 	 	 	 	 
	
                Gabriel
                  Micek

              	
                1274
                  Bay Laurel Drive

                Menlo
                  Park, CA 94025

                Attention:
                  John Micek

                Facsimile:
                  

                Telephone:
                  (650) 326-6271

                Residence:
                  California

              	
                1

              	
                $25,000

              	
                N/A

              
	 	 	 	 	 
	
                John
                  Micek

              	
                1274
                  Bay Laurel Drive

                Menlo
                  Park, CA 94025

                Attention:
                  John Micek

                Facsimile:
                  

                Telephone:
                  (650) 326-6271

                Residence:
                  California

              	
                2

              	
                $50,000

              	
                N/A

              
	 	 	 	 	 
	
                Jordan
                  Micek

              	
                1274
                  Bay Laurel Drive

                Menlo
                  Park, CA 94025

                Attention:
                  John Micek

                Facsimile:
                  

                Telephone:
                  (650) 326-6271

                Residence:
                  California

              	
                1

              	
                $25,000

              	
                N/A

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

        
          	
                  (1)

                	
                  (2)

                	
                  (3)

                	
                  (4)

                	
                  (5)

                
	 	 	 	 	 
	
                  Buyer

                	
                  Address
                    and

                  Facsimile
                    Number

                	
                  Number
                    of Units

                	
                  Purchase
                    Price

                	
                  Legal
                    Representative's Address and Facsimile
                    Number

                

        

         

      

      
        	
                Maurice
                  & Jennifer Micek JTWROS

              	
                1710
                  N. 127th Street

                Omaha,
                  NE 68154

                Attention:
                  Maurice Micek

                Facsimile:
                  

                Telephone:
                  (402) 691-0629

                Residence:
                  Nebraska

              	
                1

              	
                $25,000

              	
                N/A

              
	 	 	 	 	 
	
                Peter
                  Micek

              	
                1274
                  Bay Laurel Drive

                Menlo
                  Park, CA 94025

                Attention:
                  John Micek

                Telephone:
                  (650) 326-6271

                Residence:
                  California

              	
                1

              	
                $25,000

              	
                N/A

              
	 	 	 	 	 
	
                MidSouth
                  Investor Fund LP

              	
                1776
                  Peachtree St. NW, Suite 412 North

                Atlanta,
                  GA 30309

                Attention:
                  Lyman O. Heidtke

                Facsimile:
                  (615) 254-1603

                Telephone:
                  (800) 489-9290

                Residence:
                  Tennessee

              	
                12

              	
                $300,000

              	
                N/A

              
	 	 	 	 	 
	
                Nite
                  Capital LP

              	
                100
                  East Cook Avenue, Suite 201

                Libertyville,
                  IL 60048

                Attention:
                  Keith Goodman

                Facsimile:
                  (847) 968-7648

                Telephone:
                  (847) 968-7655

                Residence:
                  Illinois

              	
                10

              	
                $250,000

              	
                N/A

              
	 	 	 	 	 
	
                Michael
                  J. O'Halloran

              	
                19
                  Madison Road

                Waltham,
                  MA 02453

                Attention:
                  Michael J. O'Halloran

                Telephone:
                  (781) 891-7304

                Residence:
                  Massachusetts

              	
                1

              	
                $25,000

              	
                N/A

              
	 	 	 	 	 
	
                Stephen
                  B. Olore

              	
                20
                  Bornheimer Place

                Scarborough,
                  ME 04074

                Attention:
                  Stephen B. Olore

                Facsimile:
                  (207) 253-5520

                Telephone:
                  (207) 883-4969

                Residence:
                  Maine

              	
                1

              	
                $25,000

              	
                N/A

              
	 	 	 	 	 
	
                Jerry
                  W. Peterson

              	
                33
                  Lynn Road

                Englewood,
                  CO 80113

                Attention:
                  Jerry W. Peterson

                Facsimile:
                  (303) 781-9122

                Telephone:
                  (303) 883-5972

                Residence:
                  Colorado 

              	
                2

              	
                $50,000

              	
                N/A

              
	 	 	 	 	 
	
                Pope
                  Investments LLC

              	
                5100
                  Poplar Avenue, Suite 805

                Memphis,
                  TN 38137

                Attention:
                  William P. Wells

                Facsimile:
                  (901) 763-4229

                Telephone:
                  (901) 763-4001

                Residence:
                  Tennessee

              	
                166

              	
                $4,150,000

              	
                N/A

              

      

      

        
          	
                  (1)

                	
                  (2)

                	
                  (3)

                	
                  (4)

                	
                  (5)

                
	 	 	 	 	 
	
                  Buyer

                	
                  Address
                    and

                  Facsimile
                    Number

                	
                  Number
                    of Units

                	
                  Purchase
                    Price

                	
                  Legal
                    Representative's Address and Facsimile
                    Number

                

        

         

      

      
        	
                Professional
                  Offshore Opportunity Fund, Ltd.

              	
                1400
                  Old Country Road, Suite 206

                Westbury,
                  NY 11590

                Attention:
                  Howard Berger

                Facsimile:
                  (516) 228-8083

                Telephone:
                  (516) 228-0070

                Residence:
                  British Virgin Islands

              	
                14

              	
                $350,000

              	
                N/A

              
	 	 	 	 	 
	
                Steven
                  R. Purvis

              	
                112
                  Chelsey Court

                Weatherford,
                  TX 76087

                Attention:
                  Steven R. Purvis

                Facsimile:
                  (817) 332-4630

                Telephone:
                  (817) 596-8706

                Residence:
                  Texas

              	
                1

              	
                $25,000

              	
                N/A

              
	 	 	 	 	 
	
                RFJM
                  Partners LLC

              	
                685
                  Fifth Avenue, 9th Floor

                New
                  York, NY 10022

                Attention:
                  Jeffrey Markowitz

                Facsimile:
                  (646) 660-9613

                Telephone:
                  (646) 660-9610

                Residence:
                  New York

              	
                2

              	
                $50,000

              	
                N/A

              
	 	 	 	 	 
	
                Rock
                  Associates

              	
                41
                  Winged Foot Drive

                Larchmont,
                  NY 10538

                Attention:
                  Stuart Schapiro

                Facsimile:
                  (212) 758-0114

                Telephone:
                  (212) 758-8211

                Residence:
                  New York

              	
                2

              	
                $50,000

              	
                N/A

              
	 	 	 	 	 
	
                Marvin
                  Rosenfield

              	
                1110
                  Finch Avenue West

                Toronto,
                  Ontario M35 2T2

                Attention:
                  Marvin Rosenfield

                Facsimile:
                  (416) 665-7779

                Telephone:
                  (416) 665-7778

                Residence:
                  Canada

              	
                1

              	
                $25,000

              	
                N/A

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

        

          
            	
                    (1)

                  	
                    (2)

                  	
                    (3)

                  	
                    (4)

                  	
                    (5)

                  
	 	 	 	 	 
	
                    Buyer

                  	
                    Address
                      and

                    Facsimile
                      Number

                  	
                    Number
                      of Units

                  	
                    Purchase
                      Price

                  	
                    Legal
                      Representative's Address and Facsimile
                      Number

                  

          

           

        

      

      
        	
                Steven
                  Rothstein

              	
                34
                  Jefferson Landing Circle

                Port
                  Jefferson, NY 11777

                Attention:
                  Steven Rothstein

                Facsimile:
                  (631) 928-1995

                Telephone:
                  (631) 928-1995

                Residence:
                  New York

              	
                1

              	
                $25,000

              	
                N/A

              
	 	 	 	 	 
	
                Don
                  Russell

              	
                1
                  Tiftgreen Circle

                Columbia,
                  SC 29223

                Attention:
                  Don Russell

                Facsimile:
                  (803) 788-9292

                Telephone:
                  (803) 788-8817

                Residence:
                  South Carolina

              	
                1

              	
                $25,000

              	
                N/A

              
	 	 	 	 	 
	
                Silver
                  Rock I, Ltd.

              	
                Nagilo
                  Building Main Street P.O. Box 765

                Road
                  Town, Tortola

                B.V.I

                Attention:
                  Ezzat Jallad

                Facsimile:
                  

                Telephone:
                  9715 03797172

                Residence:
                  British Virgin Islands

              	
                12

              	
                $300,000

              	
                N/A

              
	 	 	 	 	 
	
                Silicon
                  Prairie Partners

              	
                130
                  Lytton Avenue, Suite 210

                Palo
                  Alto, CA 94301

                Attention:
                  John Micek

                Facsimile:
                  (650) 462-8904

                Telephone:
                  (650) 462-8900

                Residence:
                  California

              	
                4

              	
                $100,000

              	
                N/A

              
	 	 	 	 	 
	
                Simgest
                  SpA

              	
                Via
                  Cairoli 11

                40121
                  - Bologna

                Italy

                Attention:
                  Oscar Guidetti

                Facsimile:
                  39 0516482333

                Telephone:
                  39 0516782311

                Residence:
                  Italy

              	
                30

              	
                $750,000

              	
                N/A

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

        
          	
                  (1)

                	
                  (2)

                	
                  (3)

                	
                  (4)

                	
                  (5)

                
	 	 	 	 	 
	
                  Buyer

                	
                  Address
                    and

                  Facsimile
                    Number

                	
                  Number
                    of Units

                	
                  Purchase
                    Price

                	
                  Legal
                    Representative's Address and Facsimile
                    Number

                

        

         

      

      
        	
                Richard
                  Todd Truitt

              	
                2816
                  Vine Street, #165

                Dallas,
                  TX 75204

                Attention:
                  Richard Todd Truitt

                Facsimile:
                  (817) 332-4630

                Telephone:
                  (817) 797-4939

                Residence:
                  Texas

              	
                1

              	
                $25,000

              	
                N/A

              
	 	 	 	 	 
	
                Jonathan
                  Ungar

              	
                7
                  Dunham Road

                Scarsdale,
                  NY 10583

                Attention:
                  Jonathan Ungar

                Facsimile:
                  

                Telephone:
                  (914) 723-0519

                Residence:
                  New York

              	
                4

              	
                $100,000

              	
                N/A

              
	 	 	 	 	 
	
                White
                  Sand Investor Group, LP

              	
                339
                  Collingwood Street 

                San
                  Francisco, CA 94114

                Attention:
                  Elliott Donnelley II

                Facsimile:
                  (415) 840-0417

                Telephone:
                  (415) 902-8095

                Residence:
                  California

              	
                6

              	
                $150,000

              	
                N/A

              
	 	 	 	 	 
	
                Steven
                  Zelinger & Lisa Gordon JTWROS

              	
                1535
                  Edgewood Drive

                Palo
                  Alto, CA 94303

                Attention:
                  Lisa Gordon

                Facsimile:
                  (650) 324-3902

                Telephone:
                  (650) 324-3900

                Residence:
                  California

              	
                2

              	
                $50,000

              	
                N/A

              

      

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBITS

    

      
        	
                Exhibit
                  A

              	
                Form
                  of Warrant

              
	
                Exhibit
                  B

              	
                Form
                  of Registration Rights Agreement

              
	
                Exhibit
                  C

              	
                Form
                  of Escrow Agreement

              
	
                Exhibit
                  D

              	
                Form
                  of Irrevocable Transfer Agent Instructions

              
	
                Exhibit
                  E-1

              	
                Form
                  of Opinion of Company’s Counsel

              
	
                Exhibit
                  E-2

              	
                Form
                  of Opinion of Ever Leader’s Counsel 

              
	
                Exhibit
                  F

              	
                Form
                  of Secretary's Certificate

              
	
                Exhibit
                  G

              	
                Form
                  of Officers Certificate

              
	
                Exhibit
                  H

              	
                Form
                  of Make Good Agreement

              
	
                Exhibit
                  I

              	
                Form
                  of Make Good Escrow Agreement

              
	
                Exhibit
                  J

              	
                Form
                  of Lock-Up Agreement

              

      

       

    

    SCHEDULES

    

      
        	
                Schedule
                  3(a)

              	
                Subsidiaries

              
	
                Schedule
                  3(g)

              	
                Agents

              
	
                Schedule
                  3(l)

              	
                Absence
                  of Certain Changes

              
	
                Schedule
                  3(r)

              	
                Equity
                  Capitalization

              
	
                Schedule
                  3(s)

              	
                Indebtedness
                  and Other Contracts

              
	
                Schedule
                  3(t)

              	
                Absence
                  of Litigation

              
	
                Schedule
                  3(w)

              	
                Title

              
	
                Schedule
                  4(d)

              	
                Use
                  of ProceedsUnassociated Document

    

    REGISTRATION
      RIGHTS AGREEMENT

     

    REGISTRATION
      RIGHTS AGREEMENT
      (this
      "Agreement"),
      dated
      as of November 15, 2006, by and among Applied Spectrum Technologies, Inc.,
      a
      Delaware corporation
      with
      headquarters located at 936A
      Beachland Boulevard, Suite 13, Vero Beach, FL 32963 (the "Company"),
      and
      the undersigned buyers (each, a "Buyer",
      and
      collectively, the "Buyers").

    

    WHEREAS:

     

    A. In
      connection with the Securities Purchase Agreement by and among the parties
      hereto and Ever Leader Holdings Limited, a company incorporated under the laws
      of Hong Kong SAR ("Ever
      Leader"),
      dated
      November 15, 2006 (the "Securities
      Purchase Agreement"),
      the
      Company has agreed, upon the terms and subject to the conditions set forth
      in
      the Securities Purchase Agreement, to issue and sell to each Buyer (i) shares
      (the "Common
      Shares")
      of the
      Company's common stock, par value $0.001 per share (the "Common
      Stock"),
      and
      (ii) warrants (the "Warrants")
      which
      will be exercisable to purchase shares of Common Stock (as exercised,
      collectively the "Warrant
      Shares")
      in
      accordance with the terms of the Warrants.

    B. To
      induce
      the Buyers to execute and deliver the Securities Purchase Agreement, the Company
      has agreed to provide certain registration rights under the Securities Act
      of
      1933, as amended, and the rules and regulations thereunder, or any similar
      successor statute (collectively, the "1933
      Act"),
      and
      applicable state securities laws.

    

    NOW,
      THEREFORE,
      in
      consideration of the premises and the mutual covenants contained herein and
      other good and valuable consideration, the receipt and sufficiency of which
      are
      hereby acknowledged, the Company and each of the Buyers hereby agree as
      follows:

     

    1. Definitions.
      

     

    Capitalized
      terms used herein and not otherwise defined herein shall have the respective
      meanings set forth in the Securities Purchase Agreement. As used in this
      Agreement, the following terms shall have the following meanings:

     

    a. "Additional
      Effectiveness Date"
      means
      the date the Additional Registration Statement is declared effective by the
      SEC.

     

    b. "Additional
      Effectiveness Deadline"
      means
      the date which is 180 days after the Additional Filing Date (as defined
      below).

     

    c. "Additional
      Filing Date"
      means
      the date on which the Additional Registration Statement (as defined below)
      is
      filed with the SEC.

     

    d. "Additional
      Filing Deadline"
      means
      the date which is 30 days after the Released Escrow Shares Release Date (as
      defined in the Make Good Agreement).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    e. "Additional
      Registrable Securities"
      means
      (i) the Released Escrow Shares (as defined in the Make Good Agreement) issued
      to
      the Buyers on the Released Escrow Shares Release Date and (ii) any share capital
      of the Company issued or issuable with respect to the Released Escrow Shares
      (as
      defined in the Make Good Agreement) as a result of any stock split, stock
      dividend, recapitalization, exchange or similar event or otherwise.

     

    f. "Additional
      Registration Statement"
      means a
      registration statement or registration statements of the Company filed under
      the
      1933 Act covering any Additional Registrable Securities.

     

    g. "Additional
      Required Registration Amount"
      means
      the number of Released Escrow Shares issued to the Buyers on the Released Escrow
      Shares Release Date as of the trading day immediately preceding the applicable
      date of determination subject to adjustment as provided in Section
      2(e).

     

    h. "Business
      Day"
      means
      any day other than Saturday, Sunday or any other day on which commercial banks
      in the City of New York are authorized or required by law to remain
      closed.

     

    i. "Closing
      Date"
      shall
      have the meaning set forth in the Securities Purchase Agreement.

     

    j. "Effective
      Date"
      means
      the Initial Effective Date and the Additional Effective Date, as
      applicable.

     

    k. "Effectiveness
      Deadline"
      means
      the Initial Effectiveness Deadline (as defined below) and the Additional
      Effectiveness Deadline, as applicable.

     

    l. "Filing
      Deadline"
      means
      the Initial Filing Deadline (as defined below) and the Additional Filing
      Deadline, as applicable.

     

    m. "Initial
      Effective Date"
      means
      the date the Initial Registration Statement is declared effective by the
      SEC.

     

    n. "Initial
      Effectiveness Deadline"
      means
      the date which is 180 days after the Closing Date.

     

    o. "Initial
      Filing Date"
      means
      the date on which the Initial Registration Statement (as defined below) is
      filed
      with the SEC.

     

    p. "Initial
      Filing Deadline"
      means
      the date which is 60 days after the Closing Date.

     

    q. "Initial
      Registrable Securities"
      means
      (i) the Common Shares, (ii) the Warrant Shares issued or issuable upon exercise
      of the Warrants (iii) the New Financial Statement Escrow Shares (as defined
      in
      the Make Good Agreement), if any, issued to the Buyers on the New Financial
      Statement Release Date and (iv) any capital stock of the Company issued or
      issuable with respect to the Common Shares, the Warrant Shares, the Warrants
      or
      the New Financial Statement Escrow Shares as a result of any stock split, stock
      dividend, recapitalization, exchange or similar event or otherwise, without
      regard to any limitations on exercise of the Warrants.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    r. "Initial
      Required Registration Amount"
      means
      the sum of (i) the number of Common Shares issued, (ii) the number of New
      Financial Statement Escrow Shares (as defined in the Make Good Agreement),
      if
      any, issued to the Buyers on the New Financial Statement Release Date and (iii)
      150% of the number of Warrant Shares issued and issuable pursuant to the
      Warrants as of the trading day immediately preceding the applicable date of
      determination, all subject to adjustment as provided in Section
      2(e).

     

    s. "Initial
      Registration Statement"
      means a
      registration statement or registration statements of the Company filed under
      the
      1933 Act covering the Initial Registrable Securities.

     

    t. "Investor"
      means a
      Buyer or any transferee or assignee thereof to whom a Buyer assigns its rights
      under this Agreement and who agrees to become bound by the provisions of this
      Agreement in accordance with Section 9 and any transferee or assignee thereof
      to
      whom a transferee or assignee assigns its rights under this Agreement and who
      agrees to become bound by the provisions of this Agreement in accordance with
      Section 9.

     

    u. "Make
      Good Agreement"
      means
      that certain Make Good Agreement, dated as of the date hereof, by and among
      Keating Securities, LLC, the Company, its current and future subsidiaries,
      Ever
      Leader Holdings, Limited, a company incorporated under the laws of Hong Kong
      SAR, its direct and indirect subsidiaries, Mr. Yiqing Wan, Ms. Wei Xu and Moveup
      Investments Limited.

     

    v. "Person"
      means
      an individual, a limited liability company, a partnership, a joint venture,
      a
      corporation, a trust, an unincorporated organization and a government or any
      department or agency thereof.

     

    w. "register,"
      "registered,"
      and
      "registration"
      refer
      to a registration effected by preparing and filing one or more Registration
      Statements (as defined below) in compliance with the 1933 Act and pursuant
      to
      Rule 415 and the declaration or ordering of effectiveness of such Registration
      Statement(s) by the SEC.

     

    x. "Registrable
      Securities"
      means
      the Initial Registrable Securities and the Additional Registrable
      Securities.

     

    y. "Registration
      Statement"
      means a
      registration statement or registration statements of the Company filed under
      the
      1933 Act covering the Registrable Securities.

     

    z. "Required
      Holders"
      means
      the holders of at least a majority of the Registrable Securities.

     

    aa. "Rule
      415"
      means
      Rule 415 under the 1933 Act or any successor rule providing for offering
      securities on a continuous or delayed basis.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    bb. "SEC"
      means
      the United States Securities and Exchange Commission.

     

    2. Registration.

     

    a. Initial
      Mandatory Registration.
      The
      Company shall prepare, and, as soon as practicable, but in no event later than
      the Initial Filing Deadline, file with the SEC the Initial Registration
      Statement on Form SB-2 covering the resale of all of the Initial Registrable
      Securities. In the event that Form SB-2 is unavailable for such a registration,
      the Company shall use such other form as is available for such a registration
      on
      another appropriate form reasonably acceptable to the Required Holders, subject
      to the provisions of Section 2(e). The Initial Registration Statement prepared
      pursuant hereto shall register for resale at least the number of shares of
      Common Stock equal to the Initial Required Registration Amount determined as
      of
      date the Registration Statement is initially filed with the SEC. The Initial
      Registration Statement shall contain (except if otherwise directed by the
      Required Holders) the "Selling
      Stockholders"
      and
      "Plan
      of Distribution"
      sections in substantially the form attached hereto as Exhibit
      B.
      The
      Company shall use its best efforts to have the Initial Registration Statement
      declared effective by the SEC as soon as practicable, but in no event later
      than
      the Initial Effectiveness Deadline. By 9:30 am on the Business Day following
      the
      Initial Effective Date,
      the Company shall file with the SEC in accordance with Rule 424 under the 1933
      Act the final prospectus to be used in connection with sales pursuant to such
      Registration Statement.

     

    b. Additional
      Mandatory Registrations.
      The
      Company shall prepare, and, as soon as practicable but in no event later than
      the Additional Filing Deadline, file with the SEC an Additional Registration
      Statement on Form SB-2 covering the resale of all of the Additional Registrable
      Securities not previously registered on an Additional Registration Statement
      hereunder. In the event that Form SB-2 is unavailable for such a registration,
      the Company shall use such other form as is available for such a registration
      on
      another appropriate form reasonably acceptable to the Required Holders, subject
      to the provisions of Section 2(e). Each Additional Registration Statement
      prepared pursuant hereto shall register for resale at least that number of
      shares of Common Stock equal to the Additional Required Registration Amount
      as
      of date the Registration Statement is initially filed with the SEC. Each
      Additional Registration Statement shall contain (except if otherwise directed
      by
      the Required Holders) the "Selling
      Stockholders"
      and
      "Plan
      of Distribution"
      sections in substantially the form attached hereto as Exhibit
      B.
      The
      Company shall use its best efforts to have each Additional Registration
      Statement declared effective by the SEC as soon as practicable, but in no event
      later than the Additional Effectiveness Deadline. By 9:30 am on the Business
      Day
      following the Additional Effective Date,
      the Company shall file with the SEC in accordance with Rule 424 under the 1933
      Act the final prospectus to be used in connection with sales pursuant to such
      Registration Statement.

     

    c. Allocation
      of Registrable Securities.
      The
      initial number of Registrable Securities included in any Registration Statement
      and any increase in the number of Registrable Securities included therein shall
      be allocated pro rata among the Investors based on the number of Registrable
      Securities held by each Investor at the time the Registration Statement covering
      such initial number of Registrable Securities or increase thereof is declared
      effective by the SEC. In the event that an Investor sells or otherwise transfers
      any of such Investor's Registrable Securities, each transferee shall be
      allocated a pro rata portion of the then remaining number of Registrable
      Securities included in such Registration Statement for such transferor. Any
      shares of Common Stock included in a Registration Statement and which remain
      allocated to any Person which ceases to hold any Registrable Securities covered
      by such Registration Statement shall be allocated to the remaining Investors,
      pro rata based on the number of Registrable Securities then held by such
      Investors which are covered by such Registration Statement. In no event shall
      the Company include any securities other than Registrable Securities on any
      Registration Statement without the prior written consent of the Required Holders
      except for up to 2,597,424 shares of Common Stock issuable by the Company upon
      exercise of warrants issued by the Company to the Placement Agent (as defined
      in
      the Securities Purchase Agreement) on the Closing Date.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    d. Legal
      Counsel.
      Subject
      to Section 5 hereof, the Required Holders shall have the right to select one
      legal counsel to review and oversee any registration pursuant to this Section
      2
      ("Legal
      Counsel"),
      which
      shall be Schulte Roth & Zabel LLP or such other counsel as thereafter
      designated by the Required Holders. The Company and Legal Counsel shall
      reasonably cooperate with each other in performing the Company's obligations
      under this Agreement.

     

    e. Ineligibility
      for Form S-3.
      In the
      event that Form S-3 is not available for the registration of the resale of
      Registrable Securities hereunder, the Company shall (i) register the resale
      of
      the Registrable Securities on another appropriate form reasonably acceptable
      to
      the Required Holders and (ii) undertake to register the Registrable Securities
      on Form S-3 as soon as such form is available, provided that the Company shall
      maintain the effectiveness of the Registration Statement then in effect until
      such time as a Registration Statement on Form S-3 covering the Registrable
      Securities has been declared effective by the SEC.

     

    f. Sufficient
      Number of Shares Registered.
      In the
      event the number of shares available under a Registration Statement filed
      pursuant to Section 2(a) is insufficient to cover all of the Registrable
      Securities required to be covered by such Registration Statement or an
      Investor's allocated portion of the Registrable Securities pursuant to Section
      2(b), the Company shall amend the applicable Registration Statement, or file
      a
      new Registration Statement (on the short form available therefor, if
      applicable), or both, so as to cover at least the Required Registration Amount
      as of the trading day immediately preceding the date of the filing of such
      amendment or new Registration Statement, in each case, as soon as practicable,
      but in any event not later than fifteen (15) days after the necessity therefor
      arises. The Company shall use its best efforts to cause such amendment and/or
      new Registration Statement to become effective as soon as practicable following
      the filing thereof. For purposes of the foregoing provision, the number of
      shares available under a Registration Statement shall be deemed "insufficient
      to
      cover all of the Registrable Securities" if at any time the number of shares
      of
      Common Stock available for resale under the Registration Statement is less
      than
      the product determined by multiplying (i) the Required Registration Amount
      as of
      such time by (ii) 0.90. The calculation set forth in the foregoing sentence
      shall be made without regard to any limitations on the exercise of the Warrants
      and such calculation shall assume that the Warrants are then exercisable for
      shares of Common Stock at the then prevailing Exercise Price (as defined in
      the
      Warrants).

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    g. Effect
      of Failure to File and Obtain and Maintain Effectiveness of Registration
      Statement.
      If (i)
      a Registration Statement covering all of the Registrable Securities required
      to
      be covered thereby and required to be filed by the Company pursuant to this
      Agreement is (A) not filed with the SEC on or before the respective Filing
      Deadline (a "Filing
      Failure")
      or (B)
      not declared effective by the SEC on or before the respective Effectiveness
      Deadline (an "Effectiveness
      Failure")
      or
      (ii) on any day after the Effective Date sales of all of the Registrable
      Securities required to be included on such Registration Statement cannot be
      made
      (other than during an Allowable Grace Period (as defined in Section 3(r))
      pursuant to such Registration Statement or otherwise (including, without
      limitation, because of a failure to keep such Registration Statement effective,
      to disclose such information as is necessary for sales to be made pursuant
      to
      such Registration Statement, to register a sufficient number of shares of Common
      Stock or to maintain the listing of the shares of Common Stock) (a "Maintenance
      Failure")
      then,
      as partial relief for the damages to any holder by reason of any such delay
      in
      or reduction of its ability to sell the underlying shares of Common Stock (which
      remedy shall not be exclusive of any other remedies available at law or in
      equity), the Company shall pay to each holder of Registrable Securities relating
      to such Registration Statement an amount in cash equal to one percent (1.0%)
      of
      the aggregate Purchase Price (as such term is defined in the Securities Purchase
      Agreement) of such Investor's Registrable Securities included in such
      Registration Statement on each of the following dates: (i) the day of a Filing
      Failure and on every thirtieth day (pro rated for periods totaling less than
      thirty days) thereafter until such Filing Failure is cured and (ii) the day
      of
      an Effectiveness Failure and on every thirtieth day (pro rated for periods
      totaling less than thirty days) thereafter until such Effectiveness Failure
      is
      cured and (iii) the initial day of a Maintenance Failure and on every thirtieth
      day (pro rated for periods totaling less than thirty days) thereafter until
      such
      Maintenance Failure is cured. The payments to which a holder shall be entitled
      pursuant to this Section 2(g) are referred to herein as "Registration
      Delay Payments."
      Registration Delay Payments shall be paid on the day of the Filing Failure,
      Effectiveness Failure or the initial day of Maintenance Failure, as applicable,
      and thereafter on the earlier of (I) the thirtieth day after the event or
      failure giving rise to the Registration Delay Payments are incurred and (II)
      the
      third Business Day after the event or failure giving rise to the Registration
      Delay Payments is cured. In the event the Company fails to make Registration
      Delay Payments in a timely manner, such Registration Delay Payments shall bear
      interest at the rate of one and one-half percent (1.5%) per month (prorated
      for
      partial months) until paid in full. Notwithstanding anything herein or in the
      Securities Purchase Agreement to the contrary in no event shall the aggregate
      amount of Registration Delay Payments (other than Registration Delay Payments
      payable pursuant to events that are within the control of the Company) exceed,
      in the aggregate, ten percent (10%) of the aggregate Purchase
      Price.

     

    3. Related
      Obligations.

     

    At
      such
      time as the Company is obligated to file a Registration Statement with the
      SEC
      pursuant to Section 2(a), 2(d) or 2(e), the Company will use its best efforts
      to
      effect the registration of the Registrable Securities in accordance with the
      intended method of disposition thereof and, pursuant thereto, the Company shall
      have the following obligations:

     

    a. The
      Company shall submit to the SEC, within two (2) Business Days after the Company
      learns that no review of a particular Registration Statement will be made by
      the
      staff of the SEC or that the staff has no further comments on a particular
      Registration Statement, as the case may be, a request for acceleration of
      effectiveness of such Registration Statement to a time and date not later than
      48 hours after the submission of such request. The Company shall keep each
      Registration Statement effective pursuant to Rule 415 at all times until the
      earlier of (i) the date as of which the Investors may sell all of the
      Registrable Securities covered by such Registration Statement without
      restriction pursuant to Rule 144(k) (or any successor thereto) promulgated
      under
      the 1933 Act and is not otherwise prohibited by the SEC or any statute, rule,
      regulation or other applicable law from selling any such Registrable Securities
      pursuant to such Rule or (ii) the date on which the Investors shall have sold
      all of the Registrable Securities covered by such Registration Statement (the
      "Registration
      Period").
      The
      Company shall ensure that each Registration Statement (including any amendments
      or supplements thereto and prospectuses contained therein) shall not contain
      any
      untrue statement of a material fact or omit to state a material fact required
      to
      be stated therein, or necessary to make the statements therein (in the case
      of
      prospectuses, in the light of the circumstances in which they were made) not
      misleading.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    b. The
      Company shall prepare and file with the SEC such amendments (including
      post-effective amendments) and supplements to a Registration Statement and
      the
      prospectus used in connection with such Registration Statement, which prospectus
      is to be filed pursuant to Rule 424 promulgated under the 1933 Act, as may
      be
      necessary to keep such Registration Statement effective at all times during
      the
      Registration Period, and, during such period, comply with the provisions of
      the
      1933 Act with respect to the disposition of all Registrable Securities of the
      Company covered by such Registration Statement until such time as all of such
      Registrable Securities shall have been disposed of in accordance with the
      intended methods of disposition by the seller or sellers thereof as set forth
      in
      such Registration Statement. In the case of amendments and supplements to a
      Registration Statement which are required to be filed pursuant to this Agreement
      (including pursuant to this Section 3(b)) by reason of the Company filing a
      report on Form 10-QSB, Form 10-KSB or any analogous report under the Securities
      Exchange Act of 1934, as amended (the "1934
      Act"),
      the
      Company shall have incorporated such report by reference into such Registration
      Statement, if applicable, or shall file such amendments or supplements with
      the
      SEC on the same day on which the 1934 Act report is filed which created the
      requirement for the Company to amend or supplement such Registration
      Statement.

     

    c. The
      Company shall (A) permit Legal Counsel to review and comment upon (i) a
      Registration Statement at least five (5) Business Days prior to its filing
      with
      the SEC and (ii) all amendments and supplements to all Registration Statements
      (except for Annual Reports on Form 10-KSB, and Reports on Form 10-QSB and any
      similar or successor reports) within a reasonable number of days prior to their
      filing with the SEC, and (B) not file any Registration Statement or amendment
      or
      supplement thereto in a form to which Legal Counsel reasonably objects. The
      Company shall not submit a request for acceleration of the effectiveness of
      a
      Registration Statement or any amendment or supplement thereto without the prior
      approval of Legal Counsel, which consent shall not be unreasonably withheld.
      The
      Company shall furnish to Legal Counsel, without charge, (i) copies of any
      correspondence from the SEC or the staff of the SEC to the Company or its
      representatives relating to any Registration Statement, (ii) promptly after
      the
      same is prepared and filed with the SEC, one copy of any Registration Statement
      and any amendment(s) thereto, including financial statements and schedules,
      all
      documents incorporated therein by reference, if requested by an Investor, and
      all exhibits and (iii) upon the effectiveness of any Registration Statement,
      one
      copy of the prospectus included in such Registration Statement and all
      amendments and supplements thereto. The Company shall reasonably cooperate
      with
      Legal Counsel in performing the Company's obligations pursuant to this Section
      3.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    d. The
      Company shall furnish to each Investor whose Registrable Securities are included
      in any Registration Statement, without charge, (i) promptly after the same
      is
      prepared and filed with the SEC, at least one copy of such Registration
      Statement and any amendment(s) thereto, including financial statements and
      schedules, all documents incorporated therein by reference, if requested by
      an
      Investor, all exhibits and each preliminary prospectus, (ii) upon the
      effectiveness of any Registration Statement, ten (10) copies of the prospectus
      included in such Registration Statement and all amendments and supplements
      thereto (or such other number of copies as such Investor may reasonably request)
      and (iii) such other documents, including copies of any preliminary or final
      prospectus, as such Investor may reasonably request from time to time in order
      to facilitate the disposition of the Registrable Securities owned by such
      Investor.

     

    e. The
      Company shall use its best efforts to (i) register and qualify, unless an
      exemption from registration and qualification applies, the resale by Investors
      of the Registrable Securities covered by a Registration Statement under such
      other securities or "blue sky" laws of all applicable jurisdictions in the
      United States, (ii) prepare and file in those jurisdictions, such amendments
      (including post-effective amendments) and supplements to such registrations
      and
      qualifications as may be necessary to maintain the effectiveness thereof during
      the Registration Period, (iii) take such other actions as may be necessary
      to
      maintain such registrations and qualifications in effect at all times during
      the
      Registration Period, and (iv) take all other actions reasonably necessary or
      advisable to qualify the Registrable Securities for sale in such jurisdictions;
      provided, however, that the Company shall not be required in connection
      therewith or as a condition thereto to (x) qualify to do business in any
      jurisdiction where it would not otherwise be required to qualify but for this
      Section 3(e), (y) subject itself to general taxation in any such jurisdiction,
      or (z) file a general consent to service of process in any such jurisdiction.
      The Company shall promptly notify Legal Counsel and each Investor who holds
      Registrable Securities of the receipt by the Company of any notification with
      respect to the suspension of the registration or qualification of any of the
      Registrable Securities for sale under the securities or "blue sky" laws of
      any
      jurisdiction in the United States or its receipt of actual notice of the
      initiation or threatening of any proceeding for such purpose.

     

    f. The
      Company shall notify Legal Counsel and each Investor in writing of the happening
      of any event, as promptly as practicable after becoming aware of such event,
      as
      a result of which the prospectus included in a Registration Statement, as then
      in effect, includes an untrue statement of a material fact or omission to state
      a material fact required to be stated therein or necessary to make the
      statements therein, in the light of the circumstances under which they were
      made, not misleading (provided that in no event shall such notice contain any
      material, nonpublic information), and, subject to Section 3(r), promptly prepare
      a supplement or amendment to such Registration Statement to correct such untrue
      statement or omission, and deliver ten (10) copies of such supplement or
      amendment to Legal Counsel and each Investor (or such other number of copies
      as
      Legal Counsel or such Investor may reasonably request). The Company shall also
      promptly notify Legal Counsel and each Investor in writing (i) when a prospectus
      or any prospectus supplement or post-effective amendment has been filed, and
      when a Registration Statement or any post-effective amendment has become
      effective (notification of such effectiveness shall be delivered to Legal
      Counsel and each Investor by facsimile on the same day of such effectiveness
      and
      by overnight mail), (ii) of any request by the SEC for amendments or supplements
      to a Registration Statement or related prospectus or related information, and
      (iii) of the Company's reasonable determination that a post-effective amendment
      to a Registration Statement would be appropriate.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    g. The
      Company shall use its best efforts to prevent the issuance of any stop order
      or
      other suspension of effectiveness of a Registration Statement, or the suspension
      of the qualification of any of the Registrable Securities for sale in any
      jurisdiction and, if such an order or suspension is issued, to obtain the
      withdrawal of such order or suspension at the earliest possible moment and
      to
      notify Legal Counsel and each Investor who holds Registrable Securities being
      sold of the issuance of such order and the resolution thereof or its receipt
      of
      actual notice of the initiation or threat of any proceeding for such
      purpose.

     

    h. If
      any
      Investor is required under applicable securities laws to be described in the
      Registration Statement as an underwriter, at the reasonable request of such
      Investor, the Company shall furnish to such Investor, on the date of the
      effectiveness of the Registration Statement and thereafter from time to time
      on
      such dates as an Investor may reasonably request (i) a letter, dated such date,
      from the Company's independent certified public accountants in form and
      substance as is customarily given by independent certified public accountants
      to
      underwriters in an underwritten public offering, addressed to the Investors,
      and
      (ii) an opinion, dated as of such date, of counsel representing the Company
      for
      purposes of such Registration Statement, in form, scope and substance as is
      customarily given in an underwritten public offering, addressed to the
      Investors.

     

    i. If
      any
      Investor is required under applicable securities laws to be described in the
      Registration Statement as an underwriter, then at the request of such Investor
      in connection with such Investor's due diligence requirements, the Company
      shall
      make available for inspection by (i) any Investor, (ii) Legal Counsel and (iii)
      one firm of accountants or other agents retained by the Investors (collectively,
      the "Inspectors"),
      all
      pertinent financial and other records, and pertinent corporate documents and
      properties of the Company (collectively, the "Records"),
      as
      shall be reasonably deemed necessary by each Inspector, and cause the Company's
      officers, directors and employees to supply all information which any Inspector
      may reasonably request; provided, however, that each Inspector shall agree
      to
      hold in strict confidence and shall not make any disclosure (except to an
      Investor) or use of any Record or other information which the Company determines
      in good faith to be confidential, and of which determination the Inspectors
      are
      so notified, unless (a) the disclosure of such Records is necessary to avoid
      or
      correct a misstatement or omission in any Registration Statement or is otherwise
      required under the 1933 Act, (b) the release of such Records is ordered pursuant
      to a final, non-appealable subpoena or order from a court or government body
      of
      competent jurisdiction, or (c) the information in such Records has been made
      generally available to the public other than by disclosure in violation of
      this
      or any other agreement of which the Inspector has knowledge. Each Investor
      agrees that it shall, upon learning that disclosure of such Records is sought
      in
      or by a court or governmental body of competent jurisdiction or through other
      means, give prompt notice to the Company and allow the Company, at its expense,
      to undertake appropriate action to prevent disclosure of, or to obtain a
      protective order for, the Records deemed confidential. Nothing herein (or in
      any
      other confidentiality agreement between the Company and any Investor) shall
      be
      deemed to limit the Investors' ability to sell Registrable Securities in a
      manner which is otherwise consistent with applicable laws and
      regulations.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    j. The
      Company shall hold in confidence and not make any disclosure of information
      concerning an Investor provided to the Company unless (i) disclosure of such
      information is necessary to comply with federal or state securities laws, (ii)
      the disclosure of such information is necessary to avoid or correct a
      misstatement or omission in any Registration Statement, (iii) the release of
      such information is ordered pursuant to a subpoena or other final,
      non-appealable order from a court or governmental body of competent
      jurisdiction, or (iv) such information has been made generally available to
      the
      public other than by disclosure in violation of this Agreement or any other
      agreement. The Company agrees that it shall, upon learning that disclosure
      of
      such information concerning an Investor is sought in or by a court or
      governmental body of competent jurisdiction or through other means, give prompt
      written notice to such Investor and allow such Investor, at the Investor's
      expense, to undertake appropriate action to prevent disclosure of, or to obtain
      a protective order for, such information.

     

    k. The
      Company shall use its best efforts either to (i) cause all of the Registrable
      Securities covered by a Registration Statement to be listed on each securities
      exchange on which securities of the same class or series issued by the Company
      are then listed, if any, if the listing of such Registrable Securities is then
      permitted under the rules of such exchange, or (ii) secure designation and
      quotation of all of the Registrable Securities covered by a Registration
      Statement on The NASDAQ Global Market or (iii) if, despite the Company's best
      efforts to satisfy, the preceding clauses (i) and (ii) the Company is
      unsuccessful in satisfying the preceding clauses (i) and (ii), to secure the
      inclusion for quotation on The NASDAQ Global Market or the American Stock
      Exchange for such Registrable Securities and, without limiting the generality
      of
      the foregoing, to use its best efforts to arrange for at least two market makers
      to register with the National Association of Securities Dealers, Inc.
      ("NASD")
      as
      such with respect to such Registrable Securities. The Company shall pay all
      fees
      and expenses in connection with satisfying its obligation under this Section
      3(k).

     

    l. The
      Company shall cooperate with the Investors who hold Registrable Securities
      being
      offered and, to the extent applicable, facilitate the timely preparation and
      delivery of certificates (not bearing any restrictive legend) representing
      the
      Registrable Securities to be offered pursuant to a Registration Statement and
      enable such certificates to be in such denominations or amounts, as the case
      may
      be, as the Investors may reasonably request and registered in such names as
      the
      Investors may request.

     

    m. If
      requested by an Investor, the Company shall (i) as soon as practicable
      incorporate in a prospectus supplement or post-effective amendment such
      information as an Investor reasonably requests to be included therein relating
      to the sale and distribution of Registrable Securities, including, without
      limitation, information with respect to the number of Registrable Securities
      being offered or sold, the purchase price being paid therefor and any other
      terms of the offering of the Registrable Securities to be sold in such offering;
      (ii) as soon as practicable make all required filings of such prospectus
      supplement or post-effective amendment after being notified of the matters
      to be
      incorporated in such prospectus supplement or post-effective amendment; and
      (iii) as soon as practicable, supplement or make amendments to any Registration
      Statement if reasonably requested by an Investor holding any Registrable
      Securities.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    n. The
      Company shall use its best efforts to cause the Registrable Securities covered
      by a Registration Statement to be registered with or approved by such other
      governmental agencies or authorities as may be necessary to consummate the
      disposition of such Registrable Securities.

     

    o. The
      Company shall make generally available to its security holders as soon as
      practical, but not later than ninety (90) days after the close of the period
      covered thereby, an earnings statement (in form complying with, and in the
      manner provided by, the provisions of Rule 158 under the 1933 Act) covering
      a
      twelve-month period beginning not later than the first day of the Company's
      fiscal quarter next following the effective date of a Registration
      Statement.

     

    p. The
      Company shall otherwise use its best efforts to comply with all applicable
      rules
      and regulations of the SEC in connection with any registration
      hereunder.

     

    q. Within
      two (2) Business Days after a Registration Statement which covers Registrable
      Securities is ordered effective by the SEC, the Company shall deliver, and
      shall
      cause legal counsel for the Company to deliver, to the transfer agent for such
      Registrable Securities (with copies to the Investors whose Registrable
      Securities are included in such Registration Statement) confirmation that such
      Registration Statement has been declared effective by the SEC in the form
      attached hereto as Exhibit
      A.

     

    r. Notwithstanding
      anything to the contrary herein, at any time after the Effective Date, the
      Company may delay the disclosure of material, non-public information concerning
      the Company the disclosure of which at the time is not, in the good faith
      opinion of the Board of Directors of the Company and its counsel, in the best
      interest of the Company and, in the opinion of counsel to the Company, otherwise
      required (a "Grace
      Period");
      provided, that the Company shall promptly (i) notify the Investors in writing
      of
      the existence of material, non-public information giving rise to a Grace Period
      (provided that in each notice the Company will not disclose the content of
      such
      material, non-public information to the Investors) and the date on which the
      Grace Period will begin, and (ii) notify the Investors in writing of the date
      on
      which the Grace Period ends; and, provided further, that no Grace Period shall
      exceed five (5) consecutive days and during any three hundred sixty five (365)
      day period such Grace Periods shall not exceed an aggregate of twenty (20)
      days
      and the first day of any Grace Period must be at least five (5) trading days
      after the last day of any prior Grace Period (each, an "Allowable
      Grace Period").
      For
      purposes of determining the length of a Grace Period above, the Grace Period
      shall begin on and include the date the Investors receive the notice referred
      to
      in clause (i) and shall end on and include the later of the date the Investors
      receive the notice referred to in clause (ii) and the date referred to in such
      notice. The provisions of Section 3(g) hereof shall not be applicable during
      the
      period of any Allowable Grace Period. Upon expiration of the Grace Period,
      the
      Company shall again be bound by the first sentence of Section 3(f) with respect
      to the information giving rise thereto unless such material, non-public
      information is no longer applicable. Notwithstanding anything to the contrary,
      the Company shall cause its transfer agent to deliver unlegended shares of
      Common Stock to a transferee of an Investor in accordance with the terms of
      the
      Securities Purchase Agreement in connection with any sale of Registrable
      Securities with respect to which an Investor has entered into a contract for
      sale, and delivered a copy of the prospectus included as part of the applicable
      Registration Statement (unless an exemption from such prospectus delivery
      requirements exists), prior to the Investor's receipt of the notice of a Grace
      Period and for which the Investor has not yet settled. 

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    4. Obligations
      of the Investors.

     

    a. At
      least
      five (5) Business Days prior to the first anticipated filing date of a
      Registration Statement, the Company shall notify each Investor in writing of
      the
      information the Company requires from each such Investor if such Investor elects
      to have any of such Investor's Registrable Securities included in such
      Registration Statement. It shall be a condition precedent to the obligations
      of
      the Company to complete the registration pursuant to this Agreement with respect
      to the Registrable Securities of a particular Investor that such Investor shall
      furnish to the Company such information regarding itself, the Registrable
      Securities held by it and the intended method of disposition of the Registrable
      Securities held by it as shall be reasonably required to effect the
      effectiveness of the registration of such Registrable Securities and shall
      execute such documents in connection with such registration as the Company
      may
      reasonably request. 

     

    b. Each
      Investor, by such Investor's acceptance of the Registrable Securities, agrees
      to
      cooperate with the Company as reasonably requested by the Company in connection
      with the preparation and filing of any Registration Statement hereunder, unless
      such Investor has notified the Company in writing of such Investor's election
      to
      exclude all of such Investor's Registrable Securities from such Registration
      Statement.

     

    c. Each
      Investor agrees that, upon receipt of any notice from the Company of the
      happening of any event of the kind described in Section 3(g) or the first
      sentence of 3(f), such Investor will immediately discontinue disposition of
      Registrable Securities pursuant to any Registration Statement(s) covering such
      Registrable Securities until such Investor's receipt of the copies of the
      supplemented or amended prospectus contemplated by Section 3(g) or the first
      sentence of 3(f) or receipt of notice that no supplement or amendment is
      required. Notwithstanding anything to the contrary, the Company shall cause
      its
      transfer agent to deliver unlegended shares of Common Stock to a transferee
      of
      an Investor in accordance with the terms of the Securities Purchase Agreement
      in
      connection with any sale of Registrable Securities with respect to which an
      Investor has entered into a contract for sale prior to the Investor's receipt
      of
      a notice from the Company of the happening of any event of the kind described
      in
      Section 3(g) or the first sentence of 3(f) and for which the Investor has not
      yet settled.

     

    d. Each
      Investor covenants and agrees that it will comply with the prospectus delivery
      requirements of the 1933 Act as applicable to it or an exemption therefrom
      in
      connection with sales of Registrable
      Securities pursuant to the Registration Statement.

     

    5. Expenses
      of Registration.

     

    All
      reasonable expenses, other than underwriting discounts and commissions, incurred
      in connection with registrations, filings or qualifications pursuant to Sections
      2 and 3, including, without limitation, all registration, listing and
      qualifications fees, printers and accounting fees, and fees and disbursements
      of
      counsel for the Company shall be paid by the Company. The Company shall also
      reimburse the Investors for the fees and disbursements of Legal Counsel in
      connection with registration, filing or qualification pursuant to Sections
      2 and
      3 of this Agreement, which amount shall be limited to $15,000.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    6. Indemnification.

     

    In
      the
      event any Registrable Securities are included in a Registration Statement under
      this Agreement:

     

    a. To
      the
      fullest extent permitted by law, the Company will, and hereby does, indemnify,
      hold harmless and defend each Investor, the directors, officers, members,
      partners, employees, agents, representatives of, and each Person, if any, who
      controls any Investor within the meaning of the 1933 Act or the 1934 Act (each,
      an "Indemnified
      Person"),
      against any losses, claims, damages, liabilities, judgments, fines, penalties,
      charges, costs, reasonable attorneys' fees, amounts paid in settlement or
      expenses, joint or several, (collectively, "Claims")
      incurred in investigating, preparing or defending any action, claim, suit,
      inquiry, proceeding, investigation or appeal taken from the foregoing by or
      before any court or governmental, administrative or other regulatory agency,
      body or the SEC, whether pending or threatened, whether or not an indemnified
      party is or may be a party thereto ("Indemnified
      Damages"),
      to
      which any of them may become subject insofar as such Claims (or actions or
      proceedings, whether commenced or threatened, in respect thereof) arise out
      of
      or are based upon: (i) any untrue statement or alleged untrue statement of
      a
      material fact in a Registration Statement or any post-effective amendment
      thereto or in any filing made in connection with the qualification of the
      offering under the securities or other "blue sky" laws of any jurisdiction
      in
      which Registrable Securities are offered ("Blue
      Sky Filing"),
      or
      the omission or alleged omission to state a material fact required to be stated
      therein or necessary to make the statements therein not misleading, (ii) any
      untrue statement or alleged untrue statement of a material fact contained in
      any
      preliminary prospectus if used prior to the effective date of such Registration
      Statement, or contained in the final prospectus (as amended or supplemented,
      if
      the Company files any amendment thereof or supplement thereto with the SEC)
      or
      the omission or alleged omission to state therein any material fact necessary
      to
      make the statements made therein, in the light of the circumstances under which
      the statements therein were made, not misleading, (iii) any violation or alleged
      violation by the Company of the 1933 Act, the 1934 Act, any other law,
      including, without limitation, any state securities law, or any rule or
      regulation thereunder relating to the offer or sale of the Registrable
      Securities pursuant to a Registration Statement or (iv) any violation of this
      Agreement (the matters in the foregoing clauses (i) through (iv) being,
      collectively, "Violations").
      Subject to Section 6(c), the Company shall reimburse the Indemnified Persons,
      promptly as such expenses are incurred and are due and payable, for any legal
      fees or other reasonable expenses incurred by them in connection with
      investigating or defending any such Claim. Notwithstanding anything to the
      contrary contained herein, the indemnification agreement contained in this
      Section 6(a): (i) shall not apply to a Claim by an Indemnified Person arising
      out of or based upon a Violation which occurs in reliance upon and in conformity
      with information furnished in writing to the Company by such Indemnified Person
      for such Indemnified Person expressly for use in connection with the preparation
      of the Registration Statement or any such amendment thereof or supplement
      thereto, if such prospectus was timely made available by the Company pursuant
      to
      Section 3(d) and (ii) shall not be available to the extent such Claim is based
      on a failure of the Investor to deliver or to cause to be delivered the
      prospectus made available by the Company, including a corrected prospectus,
      if
      such prospectus or corrected prospectus was timely made available by the Company
      pursuant to Section 3(d); and (iv) shall not apply to amounts paid in settlement
      of any Claim if such settlement is effected without the prior written consent
      of
      the Company, which consent shall not be unreasonably withheld or delayed. Such
      indemnity shall remain in full force and effect regardless of any investigation
      made by or on behalf of the Indemnified Person and shall survive the transfer
      of
      the Registrable Securities by the Investors pursuant to Section 9.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    b. In
      connection with any Registration Statement in which an Investor is
      participating, each such Investor agrees to severally and not jointly indemnify,
      hold harmless and defend, to the same extent and in the same manner as is set
      forth in Section 6(a), the Company, each of its directors, each of its officers
      who signs the Registration Statement and each Person, if any, who controls
      the
      Company within the meaning of the 1933 Act or the 1934 Act (each, an
      "Indemnified
      Party"),
      against any Claim or Indemnified Damages to which any of them may become
      subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such Claim
      or
      Indemnified Damages arise out of or are based upon any Violation, in each case
      to the extent, and only to the extent, that such Violation occurs in reliance
      upon and in conformity with written information furnished to the Company by
      such
      Investor expressly for use in connection with such Registration Statement;
      and,
      subject to Section 6(c), such Investor will reimburse any legal or other
      expenses reasonably incurred by an Indemnified Party in connection with
      investigating or defending any such Claim; provided, however, that the indemnity
      agreement contained in this Section 6(b) and the agreement with respect to
      contribution contained in Section 7 shall not apply to amounts paid in
      settlement of any Claim if such settlement is effected without the prior written
      consent of such Investor, which consent shall not be unreasonably withheld
      or
      delayed; provided, further, however, that the Investor shall be liable under
      this Section 6(b) for only that amount of a Claim or Indemnified Damages as
      does
      not exceed the net proceeds to such Investor as a result of the sale of
      Registrable Securities pursuant to such Registration Statement. Such indemnity
      shall remain in full force and effect regardless of any investigation made
      by or
      on behalf of such Indemnified Party and shall survive the transfer of the
      Registrable Securities by the Investors pursuant to Section 9.

     

    c. Promptly
      after receipt by an Indemnified Person or Indemnified Party under this Section
      6
      of notice of the commencement of any action or proceeding (including any
      governmental action or proceeding) involving a Claim, such Indemnified Person
      or
      Indemnified Party shall, if a Claim in respect thereof is to be made against
      any
      indemnifying party under this Section 6, deliver to the indemnifying party
      a
      written notice of the commencement thereof, and the indemnifying party shall
      have the right to participate in, and, to the extent the indemnifying party
      so
      desires, jointly with any other indemnifying party similarly noticed, to assume
      control of the defense thereof with counsel mutually satisfactory to the
      indemnifying party and the Indemnified Person or the Indemnified Party, as
      the
      case may be; provided, however, that an Indemnified Person or Indemnified Party
      shall have the right to retain its own counsel with the fees and expenses of
      not
      more than one counsel for such Indemnified Person or Indemnified Party to be
      paid by the indemnifying party, if, in the reasonable opinion of counsel
      retained by the indemnifying party, the representation by such counsel of the
      Indemnified Person or Indemnified Party and the indemnifying party would be
      inappropriate due to actual or potential differing interests between such
      Indemnified Person or Indemnified Party and any other party represented by
      such
      counsel in such proceeding. In the case of an Indemnified Person, legal counsel
      referred to in the immediately preceding sentence shall be selected by the
      Investors holding at least a majority in
      interest of the Registrable Securities included in the Registration Statement
      to
      which the Claim relates. The Indemnified Party or Indemnified Person shall
      cooperate fully with the indemnifying party in connection with any negotiation
      or defense of any such action or Claim by the indemnifying party and shall
      furnish to the indemnifying party all information reasonably available to the
      Indemnified Party or Indemnified Person which relates to such action or Claim.
      The indemnifying party shall keep the Indemnified Party or Indemnified Person
      reasonably apprised at all times as to the status of the defense or any
      settlement negotiations with respect thereto. No indemnifying party shall be
      liable for any settlement of any action, claim or proceeding effected without
      its prior written consent, provided, however, that the indemnifying party shall
      not unreasonably withhold, delay or condition its consent. No indemnifying
      party
      shall, without the prior written consent of the Indemnified Party or Indemnified
      Person, consent to entry of any judgment or enter into any settlement or other
      compromise which does not include as an unconditional term thereof the giving
      by
      the claimant or plaintiff to such Indemnified Party or Indemnified Person of
      a
      release from all liability in respect to such Claim or litigation, and such
      settlement shall not include any admission as to fault on the part of the
      Indemnified Party. Following indemnification as provided for hereunder, the
      indemnifying party shall be subrogated to all rights of the Indemnified Party
      or
      Indemnified Person with respect to all third parties, firms or corporations
      relating to the matter for which indemnification has been made. The failure
      to
      deliver written notice to the indemnifying party within a reasonable time of
      the
      commencement of any such action shall not relieve such indemnifying party of
      any
      liability to the Indemnified Person or Indemnified Party under this Section
      6,
      except to the extent that the indemnifying party is prejudiced in its ability
      to
      defend such action.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    d. The
      indemnification required by this Section 6 shall be made by periodic payments
      of
      the amount thereof during the course of the investigation or defense, as and
      when bills are received or Indemnified Damages are incurred.

     

    e. The
      indemnity agreements contained herein shall be in addition to (i) any cause
      of
      action or similar right of the Indemnified Party or Indemnified Person against
      the indemnifying party or others, and (ii) any liabilities the indemnifying
      party may be subject to pursuant to the law.

     

    7. Contribution.

     

    To
      the
      extent any indemnification by an indemnifying party is prohibited or limited
      by
      law, the indemnifying party agrees to make the maximum contribution with respect
      to any amounts for which it would otherwise be liable under Section 6 to the
      fullest extent permitted by law; provided, however, that: (i) no Person involved
      in the sale of Registrable Securities which Person is guilty of fraudulent
      misrepresentation (within the meaning of Section 11(f) of the 1933 Act) in
      connection with such sale shall be entitled to contribution from any Person
      involved in such sale of Registrable Securities who was not guilty of fraudulent
      misrepresentation; and (ii) contribution by any seller of Registrable Securities
      shall be limited in amount to the net amount of proceeds received by such seller
      from the sale of such Registrable Securities pursuant to such Registration
      Statement.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    8. Reports
      Under the 1934 Act.
      

     

    With
      a
      view to making available to the Investors the benefits of Rule 144 promulgated
      under the 1933 Act or any other similar rule or regulation of the SEC that
      may
      at any time permit the Investors to sell securities of the Company to the public
      without registration ("Rule
      144"),
      the
      Company agrees to:

     

    a. make
      and
      keep public information available, as those terms are understood and defined
      in
      Rule 144;

     

    b. file
      with
      the SEC in a timely manner all reports and other documents required of the
      Company under the 1933 Act and the 1934 Act so long as the Company remains
      subject to such requirements and the filing of such reports and other documents
      is required for the applicable provisions of Rule 144; and

     

    c. furnish
      to each Investor so long as such Investor owns Registrable Securities, promptly
      upon request, (i) a written statement by the Company, if true, that it has
      complied with the reporting requirements of Rule 144, the 1933 Act and the
      1934
      Act, (ii) a copy of the most recent annual or quarterly report of the Company
      and such other reports and documents so filed by the Company, and (iii) such
      other information as may be reasonably requested to permit the Investors to
      sell
      such securities pursuant to Rule 144 without registration.

     

    9. Assignment
      of Registration Rights.
      

     

    The
      rights under this Agreement shall be automatically assignable by the Investors
      to any transferee of all or any portion of such Investor's Registrable
      Securities if: (i) the Investor agrees in writing with the transferee or
      assignee to assign such rights, and a copy of such agreement is furnished to
      the
      Company within a reasonable time after such assignment; (ii) the Company is,
      within a reasonable time after such transfer or assignment, furnished with
      written notice of (a) the name and address of such transferee or assignee,
      and
      (b) the securities with respect to which such registration rights are being
      transferred or assigned; (iii) immediately following such transfer or assignment
      the further disposition of such securities by the transferee or assignee is
      restricted under the 1933 Act and applicable state securities laws; (iv) at
      or
      before the time the Company receives the written notice contemplated by clause
      (ii) of this sentence the transferee or assignee agrees in writing with the
      Company to be bound by all of the provisions contained herein; and (v) such
      transfer shall have been made in accordance with the applicable requirements
      of
      the Securities Purchase Agreement.

     

    10. Amendment
      of Registration Rights.

     

    Provisions
      of this Agreement may be amended and the observance thereof may be waived
      (either generally or in a particular instance and either retroactively or
      prospectively), only with the written consent of the Company and the Required
      Holders. Any amendment or waiver effected in accordance with this Section 10
      shall be binding upon each Investor and the Company. No such amendment shall
      be
      effective to the extent that it applies to less than all of the holders of
      the
      Registrable Securities. 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
      this
      Agreement unless the same consideration also is offered to all of the parties
      to
      this Agreement.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    11. Miscellaneous.

     

    a. A
      Person
      is deemed to be a holder of Registrable Securities whenever such Person owns
      or
      is deemed to own of record such Registrable Securities. If the Company receives
      conflicting instructions, notices or elections from two or more Persons with
      respect to the same Registrable Securities, the Company shall act upon the
      basis
      of instructions, notice or election received from the such record owner of
      such
      Registrable Securities.

     

    b. Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms of this Agreement must be in writing and will be deemed
      to
      have been delivered: (i) upon receipt, when delivered personally; (ii) upon
      receipt, when sent by facsimile (provided confirmation of transmission is
      mechanically or electronically generated and kept on file by the sending party);
      or (iii) one Business Day after deposit with a nationally recognized overnight
      delivery service, in each case properly addressed to the party to receive the
      same. The addresses and facsimile numbers for such communications shall
      be:

     

    If
      to
      Company (prior to consummation of the transactions contemplated by the Exchange
      Agreement): 

    

    Applied
      Spectrum Technologies, Inc., 

    936A
      Beachland Boulevard, Suite 13

    Vero
      Beach, Florida 32963

    Telephone: (720)
      889-0131

    Facsimile: (720)
      889-0135

    Attention:
       Kevin
      Keating, President

     

    and

     

    If
      to the
      Company or Ever Leader (after consummation of the transactions contemplated
      by
      the Exchange Agreement):

     

    23/F,
      Changjiang Plaza, 1 Mingquan Lu

    Wuhan
      430021, P.R. China

    Telephone: +1
      (86
      27) 8537-5532

    Facsimile: +1
      (86
      27) 8537-5851

    Attention:
       Yiqing
      Wan

    

    with
      a
      copy to:

    

    Anslow
      & Jaclin, LLP

    195
      Route
      9 South, Suite 204

    Manalapan,
      New Jersey 07726

    Telephone: 
      (732)
      409-1212 

    Facsimile: 
      (732)
      577-1188

    Attention:
       Richard
      I. Anslow, Esq.

    

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    

    If
      to
      Legal Counsel:

    

    
      	 	 	
              Schulte
                Roth & Zabel LLP

            

    

    
      	 	 	
              919
                Third Avenue

            

    

    
      	 	 	
              New
                York, New York 10022

            

    

    
      	 	 	
              Telephone:
                (212) 756-2000

            

    

    
      	 	 	
              Facsimile:
                (212) 593-5955

            

    

    
      	 	 	
              Attention:
                Eleazer N. Klein, Esq.

            

    

    

    If
      to a
      Buyer, to its address and facsimile number set forth on the Schedule of Buyers
      attached hereto, with copies to such Buyer's representatives as set forth on
      the
      Schedule of Buyers, or to such other address and/or facsimile number and/or
      to
      the attention of such other Person as the recipient party has specified by
      written notice given to each other party five (5) days prior to the
      effectiveness of such change. Written confirmation of receipt (A) given by
      the
      recipient of such notice, consent, waiver or other communication, (B)
      mechanically or electronically generated by the sender's facsimile machine
      containing the time, date, recipient facsimile number and an image of the first
      page of such transmission or (C) provided by a courier or overnight courier
      service shall be rebuttable evidence of personal service, receipt by facsimile
      or receipt from a nationally recognized overnight delivery service in accordance
      with clause (i), (ii) or (iii) above, respectively.

     

    c. Failure
      of any party to exercise any right or remedy under this Agreement or otherwise,
      or delay by a party in exercising such right or remedy, shall not operate as
      a
      waiver thereof.

     

    d. All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be governed by the internal laws of the State of New
      York, without giving effect to any choice of law or conflict of law provision
      or
      rule (whether of the State of New York or any other jurisdictions) that would
      cause the application of the laws of any jurisdictions other than the State
      of
      New York. Each party hereby irrevocably submits to the exclusive jurisdiction
      of
      the state and federal courts sitting in The City of New York, Borough of
      Manhattan, for the adjudication of any dispute hereunder or in connection
      herewith or with any transaction contemplated hereby or discussed herein, 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 brought in an
      inconvenient forum or that the venue of such suit, action or proceeding is
      improper. Each party hereby irrevocably waives personal service of process
      and
      consents to process being served in any such suit, action or proceeding by
      mailing a copy thereof to such party at the address for such 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.
      If any provision of this Agreement shall be invalid or unenforceable in any
      jurisdiction, such invalidity or unenforceability shall not affect the validity
      or enforceability of the remainder of this Agreement in that jurisdiction or
      the
      validity or enforceability of any provision of this Agreement in any other
      jurisdiction. EACH
      PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
      REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
      CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
      CONTEMPLATED HEREBY.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    e. This
      Agreement, the other Transaction Documents (as defined in the Securities
      Purchase Agreement) and the instruments referenced herein and therein constitute
      the entire agreement among the parties hereto with respect to the subject matter
      hereof and thereof. There are no restrictions, promises, warranties or
      undertakings, other than those set forth or referred to herein and therein.
      This
      Agreement, the other Transaction Documents and the instruments referenced herein
      and therein supersede all prior agreements and understandings among the parties
      hereto with respect to the subject matter hereof and thereof.

     

    f. Subject
      to the requirements of Section 9, this Agreement shall inure to the benefit
      of
      and be binding upon the permitted successors and assigns of each of the parties
      hereto.

     

    g. The
      headings in this Agreement are for convenience of reference only and shall
      not
      limit or otherwise affect the meaning hereof.

     

    h. This
      Agreement may be executed in identical counterparts, each of which shall be
      deemed an original but all of which shall constitute one and the same agreement.
      This Agreement, once executed by a party, may be delivered to the other party
      hereto by facsimile transmission of a copy of this Agreement bearing the
      signature of the party so delivering this Agreement.

     

    i. Each
      party shall do and perform, or cause to be done and performed, all such further
      acts and things, and shall execute and deliver all such other agreements,
      certificates, instruments and documents, as any other party may reasonably
      request in order to carry out the intent and accomplish the purposes of this
      Agreement and the consummation of the transactions contemplated
      hereby.

     

    j. All
      consents and other determinations required to be made by the Investors pursuant
      to this Agreement shall be made, unless otherwise specified in this Agreement,
      by the Required Holders.

     

    k. 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. 

     

    l. This
      Agreement is intended for the benefit of the parties hereto and their respective
      permitted successors and assigns, and is not for the benefit of, nor may any
      provision hereof be enforced by, any other Person.

     

    m. The
      obligations of each Investor hereunder are several and not joint with the
      obligations of any other Investor, and no provision of this Agreement is
      intended to confer any obligations on any Investor vis-à-vis any other Investor.
      Nothing contained herein, and no action taken by any Investor pursuant hereto,
      shall be deemed to constitute the Investors as a partnership, an association,
      a
      joint venture or any other kind of entity, or create a presumption that the
      Investors are in any way acting in concert or as a group with respect to such
      obligations or the transactions contemplated herein.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    n.     (i)
      The
      Company hereby irrevocably appoints National Corporate Research, Ltd.,
      of 225
      West
      34th
      Street,
      Suite 910, New York, N.Y. 10112, U.S.A. ("NCR")
      as its
      agent for the receipt of service of process in the United States. The Company
      agrees that any document may be effectively served on it in connection with
      any
      action, suit or proceeding in the United States by service on its agents. Each
      of the Buyers consents and agrees that the Company may, in its reasonable
      discretion, irrevocably appoint a substitute agent for the receipt of service
      of
      process located within the Untied States, and that upon such appointment, the
      appointment of NCR may be revoked.

     

    (ii)
      Any
      document shall be deemed to have been duly served if marked for the attention
      of
      the agent at its address as set forth in this Section 11(n) or such other
      address in the United States as may be notified to the party wishing to serve
      the document and (a) left at the specified address if its receipt is
      acknowledged in writing; or (b) sent to the specified address by post,
      registered mail return receipt requested. In the case of (a), the document
      will
      be deemed to have been duly served when it is left and signed for. In the case
      of (b), the document shall be deemed to have been duly served when received
      and
      acknowledged.

     

    (iii)
      If
      the Company's agent at any time ceases for any reason to act as such, the
      Company shall promptly appoint a replacement agent having an address for service
      in the United States and shall promptly notify each holder of Common Shares
      at
      such time of the name and address of the replacement agent. Failing such
      appointment and notification, the holders of a majority of the Common Shares
      (as
      defined in the Securities Purchase Agreement) at such time shall be entitled
      by
      notice to such the Company's to appoint a replacement agent to act on the
      Company's behalf. The provisions of this Section 11(n) applying to service
      on an
      agent apply equally to service on a replacement agent.

     

    o. Currency.
      As used
      herein, "Dollar", "US Dollar" and "$" each mean the lawful money of the United
      States.

     

    *
      * * * *
      *

    

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      each
      Buyer and the Company have caused their respective signature page to this
      Registration Rights Agreement to be duly executed as of the date first written
      above.

     

    
      	 	
              COMPANY:

            
	 	 
	 	
              APPLIED
                SPECTRUM TECHNOLOGIES, INC.

            
	 	 
	 	 
	 	 
	 	
              By: /s/
                Yiqing
                Wan                                  
                

              Name: 
                Yiqing Wan

              Title:   
                Vice President     

            
	 	 

    

    

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                ACCELERA
                  VENTURES LIMITED

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Dennis Kam Thai
                  Leong                     
                    

                Name:  Dennis
                  Kam Thai Leong

                Title:   
                  Director

              
	 	 

      

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                LARS
                  B. AHLSTROM

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Lars B.
                  Ahlstrom                            
                   

                Name:  Lars
                  B. Ahlstrom

                Title:
                  

              
	 	 

      

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                ANIMA
                  S.G.R.P.A. RUBRICA - ANIMA ASIA

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Giovanni
                  Brambilla                          
                   

                Name:  Giovanni
                  Brambilla

                Title:    Fund
                  Manager

              
	 	 

      

      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                ANIMA
                  S.G.R.P.A. RUBRICA - ANIMA EMERGING MARKETS

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Giovanni
                  Brambilla                       
                   

                Name:  Giovanni
                  Brambilla

                Title:    Fund
                  Manager

              
	 	 

      

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                BANCA
                  GESFID

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Graziano
                  Deli                                      
                  

                Name:  Graziano
                  Deli

                Title:    Director

              
	 	 

      

      

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                JOSEPH
                  F. BARLETTA

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Joseph F.
                  Barletta                             
                   

                Name:  Joseph
                  F. Barletta

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                BH
                  CAPITAL INVESTMENTS LP

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Henry
                  Brachfeld                          
                   

                Name:  Henry
                  Brachfeld

                Title:    President

              
	 	 

      

      

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                DAVID
                  L. DOWLER

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  David L.
                  Dowler                        
                   

                Name:  David
                  L. Dowler

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                JODY
                  C. DOWLING

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Jody C.
                  Dowling                        
                   

                Name:  Jody
                  C. Dowling

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                EXCALIBER
                  LIMITED PARTNERSHIP

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  William
                  Hechter                          
                               
                  

                Name:  William
                  Hechter

                Title:    President
                  & General Partner

              
	 	 

      

      

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                EXCALIBER
                  LIMITED PARTNERSHIP II

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  William
                  Hechter                             
                   

                Name:  William
                  Hechter

                Title:    President
                  & General Partner

              
	 	 

      

      

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                F
                  BERDON CO LP

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Frederick
                  Berdon                        
                   

                Name: 
                  Frederick Berdon, GP  

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                ELAINE
                  P. FIELDS

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Elaine P.
                  Fields                        
                   

                Name:  Elaine
                  P. Fields

                Title:    

              
	 	 

      

       

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                JAMES
                  W. FULLER

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  James W.
                  Fuller                         
                     

                Name:  James
                  W. Fuller

                Title:    

              
	 	 

      

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                JOSEPH
                  W. GREALISH

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Joseph W.
                  Grealish                 
                   

                Name:  Joseph
                  W. Grealish 

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                DAVID
                  AUSTIN GROSE

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  David Austin
                  Grose                     
                   

                Name:  David
                  Austin Grose

                Title:    

              
	 	 

      

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                HALTER
                  POPE USX CHINA FUND

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Stephen L.
                  Parr                    
                   

                Name:  Stephen
                  L. Parr

                Title:    President

              
	 	 

      

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                LINDA
                  HECHTER

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Linda
                  Hechter                              
                   

                Name:  Linda
                  Hechter

                Title:    

              
	 	 

      

       

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                HEDGE
                  CAPITAL PARTNERS LLC

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Allan
                  Rothstein                           
                     

                Name: 
                  Allan Rothstein   

                Title:    Managing
                  Member

              
	 	 

      

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                 MARK
                  AND STACIA HOLLMANN

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                   Mark and Stacia
                  Hollmann                     
                   

                Name:  
                  Mark and Stacia Hollmann 

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          21

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                SCOTT
                  C. HOLLMANN

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Scott C.
                  Hollmann                
                   

                Name:  Scott
                  C. Hollmann 

                Title:    

              
	 	 

      

       

      
        
          
          

        

        
          22

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                JAYHAWK
                  PRIVATE EQUITY FUND, L.P.

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Michael D.
                  Schmitz                       
                   

                Name: 
                  Michael D. Schmitz  

                Title: 
                    CFO of GP

              
	 	 

      

      

      
        
          
          

        

        
          23

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                JOHN
                  K. KUPRA

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  John K.
                  Kupra                       
                  

                Name:  John
                  K. Kupra

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          24

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                PETER
                  LEVY

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Peter
                  Levy                        
                   

                Name:  Peter
                  Levy 

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                JAMES
                  A. LAVISH

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  James A.
                  Lavish                                 
                   

                Name:  James
                  A. Lavish

                Title:   
                  Chief Operating Officer; Director
                      

              
	 	 

      

      

      
        
          
          

        

        
          26

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                SURESH
                  MADAN & SARITA MADAN

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Suresh Madan & Sarita
                  Madan                        
                   

                Name:  Suresh
                  Madan & Sarita Madan 

                Title:    

              
	 	 

      

       

      
        
          
          

        

        
          27

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                PAUL
                  MASTERS IRA

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Paul
                  Masters                            
                    

                Name:  Paul
                  Masters

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          28

          
            

          

        

        
          
          

        

      

      

      IN
        IN WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                CHRISTOPHER
                  MCCARTY & JENNIFER GREY MCCARTY  

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Christopher McCarty & Jennifer Grey
                  McCarty                     
                   

                Name: 
                  Christopher McCarty & Jennifer Grey McCarty  

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          29

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                MCF
                  NAVIGATOR MASTER FUND, LTD.

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Gregory S.
                  Curhan                           
                   

                Name:  Gregory
                  S. Curhan

                Title:    Chief
                  Executive Officer

              
	 	 

      

      

      
        
          
          

        

        
          30

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                EDMUND
                  H. MELHADO

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Edmund H.
                  Melhado                      
                    

                Name: 
                  Edmund H. Melhado  

                Title:    

              
	 	 

      

       

      
        
          
          

        

        
          31

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                GABRIEL
                  MICEK 

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Gabriel
                  Micek                  
                  

                Name:
                   Gabriel Micek  

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          32

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                JOHN
                  MICEK 

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  John
                  Micek                               
                  

                Name: John
                  Micek  

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          33

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                JORDAN
                  MICEK 

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Jordan
                  Micek                       
                   
                    

                Name: 
                  Jordan Micek  

                Title:    

              
	 	 

      

       

      
        
          
          

        

        
          34

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                MAURICE
                  & JENNIFER MICEK 

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Maurice & Jennifer
                  Micek                       
                  

                Name:
                   Maurice & Jennifer Micek  

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          35

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                PETER
                  MICEK 

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Peter
                  Micek                          
                  

                Name: 
                  Peter Micek  

                Title:    

              
	 	 

      

       

      
        
          
          

        

        
          36

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                MIDSOUTH
                  INVESTOR FUND LP

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Lyman O.
                  Heidtke                   
                   

                Name: 
                  Lyman O. Heidtke

                Title:    

              
	 	 

      

       

      
        
          
          

        

        
          37

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                NITE
                  CAPITAL LP

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Keith
                  Goodman                    
                     

                Name:  Keith
                  Goodman

                Title:   
                  Manager  

              
	 	 

      

      

      
        
          
          

        

        
          38

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                MICHAEL
                  J. O’HALLORAN

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Michael J.
                  O’Halloran                   
                   

                Name:  Michael
                  J. O’Halloran

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          39

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                STEPHEN
                  B. OLORE

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Stephen B.
                  Olore                          
                           

                Name:  Stephen
                  B. Olore

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          40

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:
                  

              
	 	 
	 	
                JERRY
                  W. PETERSON

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Jerry W.
                  Peterson                               
                   

                Name:  Jerry
                  W. Peterson

                Title:    

              
	 	 

      

       

      
        
          
          

        

        
          41

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                POPE
                  INVESTMENTS LLC

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  William P.
                  Wells                      
                   

                Name:  William
                  P. Wells

                Title:    President,
                  Manager

              
	 	 

      

      

      
        
          
          

        

        
          42

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                PROFESSIONAL
                  OFFSHORE OPPORTUNITY FUND, LTD.

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Howard
                  Berger                            
                               
                  

                Name:  Howard
                  Berger

                Title:   
                  Manager  

              
	 	 

      

       

      
        
          
          

        

        
          43

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                STEVEN
                  R. PURVIS

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Steven R.
                  Purvis                          
                    

                Name: 
                  Steven R. Purvis

                Title:    

              
	 	 

      

       

      
        
          
          

        

        
          44

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                RFJM
                  PARTNERS LLC

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Jeffrey
                  Markowitz                               
                  

                Name:  Jeffrey
                  Markowitz

                Title:    Managing
                  Member

              
	 	 

      

      

      
        
          
          

        

        
          45

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                ROCK
                  ASSOCIATES

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Stuart
                  Schapiro                           
                   

                Name:  Stuart
                  Schapiro 

                Title:    Vice
                  President

              
	 	 

      

      

      
        
          
          

        

        
          46

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                MARVIN
                  ROSENFIELD

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Marvin
                  Rosenfield                          
                     

                Name:  Marvin
                  Rosenfield

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          47

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                STEVEN
                  ROTHSTEIN

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Steven
                  Rothstein               
                   

                Name:  Steven
                  Rothstein

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          48

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                DON
                  RUSSELL

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Don
                  Russell                     
                    

                Name:  Don
                  Russell

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          49

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                SILVER
                  ROCK I, LTD.

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Ruria
                  Salam                                 
                   

                Name: 
                  Ruria Salam  

                Title:    Director

              
	 	 

      

      

      
        
          
          

        

        
          50

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                SILICON
                  PRAIRIE PARTNERS

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  John
                  Micek                      
                  

                Name:  John
                  Micek

                Title:    Managing
                  Director

              
	 	 

      

       

      
        
          
          

        

        
          51

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                SIMGEST
                  SPA

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Oscar
                  Guidetti                        
                  

                Name:  Oscar
                  Guidetti

                Title:    President

              
	 	 

      

      

      
        
          
          

        

        
          52

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                 RICHARD
                  TODD TRUITT

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/ Richard
                  Todd
                  Truitt                   
                  

                Name:  Richard
                  Todd Truitt 

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          53

          
            

          

        

        
          
          

        

      

       

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                JONATHAN
                  UNGER

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Jonathan
                  Unger                     
                  

                Name: 
                  Jonathan Unger

                Title:    

              
	 	 

      

      

      
        
          
          

        

        
          54

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                WHITE
                  SAND INVESTOR GROUP

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Elliott Donnelley
                  II                   
                    

                Name:  Elliott
                  Donnelley II

                Title:    President;
                  Corporate GP

              
	 	 

      

      

      
        
          
          

        

        
          55

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF,
        each
        Buyer and the Company have caused their respective signature page to this
        Registration Rights Agreement to be duly executed as of the date first written
        above.

       

      
        	 	
                BUYERS:

              
	 	 
	 	
                LISA
                  B. GORDAN & STEVEN ZELINGER

              
	 	
                Print
                  Name of Investor(s)

              
	 	 
	 	
                By: /s/
                  Lisa B. Gordan & Steven Zelinger            
                  

                Name:  Lisa
                  B. Gordan & Steven Zelinger 

                Title:    

              
	 	 

      

    

     

    
      
        
        

      

      
        56

        
          

        

      

      
        
        

      

    

     

    SCHEDULE
      OF BUYERS

     

    

      
        	
                Buyer

              	
                Buyer’s
                  Address and

                Facsimile
                  Number

              	
                Buyer’s
                  Representative's Address and Facsimile
                  Number

              

      

       

      
        	
                Accelera
                  Ventures Limited

              	
                East
                  Asia Chambers 

                P.O.
                  Box 901 

                Road
                  Town, Tortola

                B.V.I.

                Attention:
                  Dennis Kam Thai Leong

                Facsimile:
                  (852) 3428 8777

                Telephone:
                  (852) 3105 2238

                Residence:
                  Hong Kong

              	
                N/A

              
	 	 	 
	
                Lars
                  B. Ahlstrom

              	
                3640
                  Partition Road

                Woodside,
                  CA 94062

                Attention:
                  Lars B. Ahlstrom

                Facsimile:
                  (650) 851-7219

                Telephone:
                  (650) 851-4016

                Residence:
                  California

              	
                N/A

              
	 	 	 
	
                Anima
                  S.G.R.p.A. Rubrica - Anima Asia

              	
                Via
                  Brera, 18

                Milano,
                  MI, 20121

                Italy

                Attention:
                  Giovanni Brambilla

                Facsimile:
                  39 02 875589

                Telephone:
                  39 02 80638320

                Residence:
                  Italy

              	
                N/A

              
	 	 	 
	
                Anima
                  S.G.R.p.A. Rubrica - Anima Emerging Markets

              	
                Via
                  Brera, 18

                Milano,
                  MI, 20121

                Italy

                Attention:
                  Giovanni Brambilla

                Facsimile:
                  39 02 875589

                Telephone:
                  39 02 80638320

                Residence:
                  Italy

              	
                N/A

              
	 	 	 
	
                Banca
                  Gesfid

              	
                Via
                  Adamini 10a 

                Casella
                  Postale 5681

                6901,
                  CH, Lugano

                Attention:
                  Graziano Deli

                Facsimile:
                  41 91 993 0970

                Telephone:
                  41 91 985 7400

                Residence:
                  Switzerland

              	
                N/A

              

      

       

      
        
          
          

        

        
          56

          
            

          

        

        
          
          

        

      

      

        
          	
                  Buyer

                	
                  Buyer’s
                    Address and

                  Facsimile
                    Number

                	
                  Buyer’s
                    Representative's Address and Facsimile
                    Number

                

        

         

      

      
        	
                Joseph
                  F. Barletta

              	
                530
                  Westgate Drive

                Napa,
                  CA 94558

                Attention:
                  Joseph F. Barletta

                Facsimile:
                  (707) 256-0877

                Telephone:
                  (707) 255-0987

                Residence:
                  California

              	
                N/A

              
	 	 	 
	
                BH
                  Capital Investments LP

              	
                C/O
                  Reichman International 

                175
                  Bloor Street East

                South
                  Tower, 7th Floor 

                Toronto,
                  Ontario M4W 3RB 

                Attention:
                  Henry Brachfeld

                Facsimile:
                  (416) 646-2673

                Telephone:
                  (416) 929-1626

                Residence:
                  Canada

              	
                N/A

              
	 	 	 
	
                David
                  L. Dowler

              	
                3509
                  Crescent Avenue

                Dallas,
                  TX 75205

                Attention:
                  David L. Dowler

                Facsimile:
                  (214) 559-0333

                Telephone:
                  (214) 559-0222

                Residence:
                  Texas

              	
                N/A

              
	 	 	 
	
                Victor
                  J. Dowling Jr. & Jody C. Dowling

              	
                987
                  Hopmeadow Street

                Simsbury,
                  CT 06070

                Attention:
                  Victor J. Dowling Jr.

                Facsimile:
                  (860) 651-7174

                Telephone:
                  (860) 658-2231

                Residence:
                  Connecticut

              	
                N/A

              
	 	 	 
	
                Excalibur
                  Limited Partnership

              	
                33
                  Prince Arthur Avenue

                Toronto,
                  Ontario M5R 1B2

                Attention:
                  William Hechter

                Facsimile:
                  (416) 964-8868

                Telephone:
                  (416) 964-9077

                Residence:
                  Canada

              	
                N/A

              
	 	 	 
	
                Excalibur
                  Limited Partnership II

              	
                33
                  Prince Arthur Avenue

                Toronto,
                  Ontario M5R 1B2

                Attention:
                  William Hechter

                Facsimile:
                  (416) 964-8868

                Telephone:
                  (416) 964-9077

                Residence:
                  Canada

              	
                N/A

              
	 	 	 
	
                F
                  Berdon Co LP

              	
                717
                  Post Road, Suite 105 

                Scarsdale,
                  NY 10583

                Attention:
                  Frederick Berdon

                Facsimile:
                  (914) 694-6335

                Telephone:
                  (914) 694-5857

                Residence:
                  New York

              	
                N/A

              
	 	 	 
	
                Elaine
                  P. Fields

              	
                200
                  East End Avenue, Apartment 6I 

                New
                  York, NY 10128

                Attention:
                  Elaine P. Fields

                Facsimile:
                  (212) 369-5116

                Telephone:
                  (212) 289-9029

                Residence:
                  New York

              	
                N/A

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

        
          	
                  Buyer

                	
                  Buyer’s
                    Address and

                  Facsimile
                    Number

                	
                  Buyer’s
                    Representative's Address and Facsimile
                    Number

                

        

         

      

      
        	
                James
                  W. Fuller

              	
                2584
                  Filbert Street

                San
                  Francisco, CA 94123

                Attention:
                  James W. Fuller

                Facsimile:
                  (415) 977-1510

                Telephone:
                  (415) 977-1500

                Residence:
                  California

              	
                N/A

              
	 	 	 
	
                Joseph
                  W. Grealish

              	
                3123
                  Lafayette Street

                Houston,
                  TX 77005

                Attention:
                  Joseph W. Grealish

                Facsimile:
                  (713) 986-0631

                Telephone:
                  (713) 899-4238

                Residence:
                  Texas

              	
                N/A

              
	 	 	 
	
                David
                  Austin Grose

              	
                3327
                  Oak Knoll Drive

                Emerald
                  Hills, CA 94062

                Attention:
                  David Austin Grose

                Facsimile:
                  

                Telephone:
                  (650) 906-0015

                Residence:
                  California 

              	
                N/A

              
	 	 	 
	
                Halter
                  Pope USX China Fund

              	
                5100
                  Poplar Avenue, Suite 805 

                Memphis,
                  TN 38137

                Attention:
                  Stephen L. Parr

                Facsimile:
                  (901) 763-4229

                Telephone:
                  (901) 763-4001

                Residence:
                  Tennessee

              	
                N/A

              
	 	 	 
	
                Linda
                  Hechter

              	
                205
                  Vesta Drive

                Toronto,
                  Ontario M5P 3A1

                Attention:
                  Linda Hechter

                Facsimile:
                  

                Telephone:
                  (416) 489-5687

                Residence:
                  Canada

              	
                N/A

              
	 	 	 
	
                Hedge
                  Capital Partners LLC

              	
                78
                  Cuttermill Road 

                Suite
                  370 South

                Great
                  Neck, NY 11021

                Attention:
                  Allan Rothstein

                Facsimile:
                  (516) 570-1201

                Telephone:
                  (516) 570-1200

                Residence:
                  New York

              	
                N/A

              
	 	 	 
	
                Mark
                  and Stacia Hollmann as Tenants by the Entirety

              	
                3865
                  Bird Dog Lane

                Deland,
                  FL 32724

                Attention:
                  Mark Hollmann

                Facsimile:
                  (386) 734-3343

                Telephone:
                  (386) 734-7003

                Residence:
                  Florida

              	
                N/A

              
	 	 	 
	
                Scot
                  C. Hollmann

              	
                301
                  Commerce Street, Suite 1600 

                Fort
                  Worth, TX 76102

                Attention:
                  Scot C. Hollmann

                Facsimile:
                  (817) 332-4630

                Telephone:
                  (817) 332-3235

                Residence:
                  Texas

              	
                N/A

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

        
          	
                  Buyer

                	
                  Buyer’s
                    Address and

                  Facsimile
                    Number

                	
                  Buyer’s
                    Representative's Address and Facsimile
                    Number

                

        

         

      

      
        	
                Jayhawk
                  Private Equity Fund, L.P.

              	
                C/O
                  Jayhawk Capital Management, LLC 

                8201
                  Mission Road, Suite 110

                Prairie
                  Village, KS 66208

                Attention:
                  Michael D. Schmitz 

                Facsimile:
                  (913) 642-8661

                Telephone:
                  (913) 642-2611

                Residence:
                  Kansas

              	
                N/A

              
	 	 	 
	
                John
                  K. Kopra

              	
                P.O.
                  Box 1429

                Brentwood,
                  TN 37024

                Attention:
                  John K. Kopra

                Facsimile:
                  (615) 515-5501

                Telephone:
                  (615) 515-4401

                Residence:
                  Tennessee

              	
                N/A

              
	 	 	 
	
                Peter
                  Levy

              	
                2176
                  9th Avenue

                San
                  Francisco, CA 94116

                Attention:
                  Peter Levy

                Facsimile:
                  (415) 391-5210

                Telephone:
                  (415) 564-8272

                Residence:
                  California

              	
                N/A

              
	 	 	 
	
                LKCM
                  Private Discipline Master Fund, SPC

              	
                301
                  Commerce Street, Suite 1600 

                Fort
                  Worth, TX 76102

                Attention:
                  James A. Lavish

                Facsimile:
                  (817) 332-4630

                Telephone:
                  (817) 332-3235

                Residence:
                  Cayman Islands

              	
                N/A

              
	 	 	 
	
                Suresh
                  Madan & Sarita Madan

              	
                39
                  Orkney Crescent

                Toronto,
                  Ontario M9A 2T4

                Attention:
                  Suresh Madan

                Facsimile:
                  (416) 236-2331

                Telephone:
                  (416) 236-5577

                Residence:
                  Canada

              	
                N/A

              
	 	 	 
	
                Paul
                  Masters IRA

              	
                100
                  South Salem Road

                Ridgefield,
                  CT 06877

                Attention:
                  Paul Masters

                Facsimile:
                  (914) 694-6335

                Telephone:
                  (914) 694-5857

                Residence:
                  Connecticut

              	
                N/A

              
	 	 	 
	
                Christopher
                  McCarty & Jennifer Grey McCarty

              	
                327
                  Hopmeadow Street

                Weatogue,
                  CT 06089

                Attention:
                  Christopher McCarty

                Facsimile:
                  

                Telephone:
                  (860) 651-0755

                Residence:
                  Connecticut

              	
                N/A

              
	 	 	 
	
                MCF
                  Navigator Master Fund, Ltd.

              	
                600
                  California Street, Suite 540

                San
                  Francisco, CA 94108

                Attention:
                  Gregory S. Curhan

                Facsimile:
                  (415) 568-3949

                Telephone:
                  (415) 568-3939

                Residence:
                  Cayman Islands

              	
                Merriman
                  Curhan Ford & Co. 600 California Street, 9th Floor

                San
                  Francisco, CA 94108

                Attention:
                  Christopher Aguilar

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

        
          	
                  Buyer

                	
                  Buyer’s
                    Address and

                  Facsimile
                    Number

                	
                  Buyer’s
                    Representative's Address and Facsimile
                    Number

                

        

         

      

      
        	
                Edmund
                  H. Melhado

              	
                555
                  S. 68th Street

                Boulder,
                  CO 80303

                Attention:
                  Edmund H. Melhado

                Facsimile:
                  (303) 494-5859

                Telephone:
                  (303) 442-7136

                Residence:
                  Colorado

              	
                N/A

              
	 	 	 
	
                Gabriel
                  Micek

              	
                1274
                  Bay Laurel Drive

                Menlo
                  Park, CA 94025

                Attention:
                  John Micek

                Facsimile:
                  

                Telephone:
                  (650) 326-6271

                Residence:
                  California

              	
                N/A

              
	 	 	 
	
                John
                  Micek

              	
                1274
                  Bay Laurel Drive

                Menlo
                  Park, CA 94025

                Attention:
                  John Micek

                Facsimile:
                  

                Telephone:
                  (650) 326-6271

                Residence:
                  California

              	
                N/A

              
	 	 	 
	
                Jordan
                  Micek

              	
                1274
                  Bay Laurel Drive

                Menlo
                  Park, CA 94025

                Attention:
                  John Micek

                Facsimile:
                  

                Telephone:
                  (650) 326-6271

                Residence:
                  California

              	
                N/A

              
	 	 	 
	
                Maurice
                  & Jennifer Micek JTWROS

              	
                1710
                  N. 127th Street

                Omaha,
                  NE 68154

                Attention:
                  Maurice Micek

                Facsimile:
                  

                Telephone:
                  (402) 691-0629

                Residence:
                  Nebraska

              	
                N/A

              
	 	 	 
	
                Peter
                  Micek

              	
                1274
                  Bay Laurel Drive

                Menlo
                  Park, CA 94025

                Attention:
                  John Micek

                Facsimile:
                  

                Telephone:
                  (650) 326-6271

                Residence:
                  California

              	
                N/A

              
	 	 	 
	
                MidSouth
                  Investor Fund LP

              	
                1776
                  Peachtree St. NW, Suite 412 North

                Atlanta,
                  GA 30309

                Attention:
                  Lyman O. Heidtke

                Facsimile:
                  (615) 254-1603

                Telephone:
                  (800) 489-9290

                Residence:
                  Tennessee

              	
                N/A

              
	 	 	 
	
                Nite
                  Capital LP

              	
                100
                  East Cook Avenue, Suite 201

                Libertyville,
                  IL 60048

                Attention:
                  Keith Goodman

                Facsimile:
                  (847) 968-7648

                Telephone:
                  (847) 968-7655

                Residence:
                  Illinois

              	
                N/A

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

        
          	
                  Buyer

                	
                  Buyer’s
                    Address and

                  Facsimile
                    Number

                	
                  Buyer’s
                    Representative's Address and Facsimile
                    Number

                

        

         

      

      
        	
                Michael
                  J. O'Halloran

              	
                19
                  Madison Road

                Waltham,
                  MA 02453

                Attention:
                  Michael J. O'Halloran

                Telephone:
                  (781) 891-7304

                Residence:
                  Massachusetts

              	
                N/A

              
	 	 	 
	
                Stephen
                  B. Olore

              	
                20
                  Bornheimer Place

                Scarborough,
                  ME 04074

                Attention:
                  Stephen B. Olore

                Facsimile:
                  (207) 253-5520

                Telephone:
                  (207) 883-4969

                Residence:
                  Maine

              	
                N/A

              
	 	 	 
	
                Jerry
                  W. Peterson

              	
                33
                  Lynn Road

                Englewood,
                  CO 80113

                Attention:
                  Jerry W. Peterson

                Facsimile:
                  (303) 781-9122

                Telephone:
                  (303) 883-5972

                Residence:
                  Colorado

              	
                N/A

              
	 	 	 
	
                Pope
                  Investments LLC

              	
                5100
                  Poplar Avenue, Suite 805

                Memphis,
                  TN 38137

                Attention:
                  William P. Wells

                Facsimile:
                  (901) 763-4229

                Telephone:
                  (901) 763-4001

                Residence:
                  Tennessee

              	
                N/A

              
	 	 	 
	
                Professional
                  Offshore Opportunity Fund, Ltd.

              	
                1400
                  Old Country Road, Suite 206

                Westbury,
                  NY 11590

                Attention:
                  Howard Berger

                Facsimile:
                  (516) 228-8083

                Telephone:
                  (516) 228-0070

                Residence:
                  British Virgin Islands

              	
                N/A

              
	 	 	 
	
                Steven
                  R. Purvis

              	
                112
                  Chelsey Court

                Weatherford,
                  TX 76087

                Attention:
                  Steven R. Purvis

                Facsimile:
                  (817) 332-4630

                Telephone:
                  (817) 596-8706

                Residence:
                  Texas

              	
                N/A

              
	 	 	 
	
                RFJM
                  Partners LLC

              	
                685
                  Fifth Avenue, 9th Floor

                New
                  York, NY 10022

                Attention:
                  Jeffrey Markowitz

                Facsimile:
                  (646) 660-9613

                Telephone:
                  (646) 660-9610

                Residence:
                  New York

              	
                N/A

              
	 	 	 
	
                Rock
                  Associates

              	
                41
                  Winged Foot Drive

                Larchmont,
                  NY 10538

                Attention:
                  Stuart Schapiro

                Facsimile:
                  (212) 758-0114

                Telephone:
                  (212) 758-8211

                Residence:
                  New York

              	
                N/A

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

        
          	
                  Buyer

                	
                  Buyer’s
                    Address and

                  Facsimile
                    Number

                	
                  Buyer’s
                    Representative's Address and Facsimile
                    Number

                

        

         

      

      
        	
                Marvin
                  Rosenfield

              	
                1110
                  Finch Avenue West

                Toronto,
                  Ontario M35 2T2

                Attention:
                  Marvin Rosenfield

                Facsimile:
                  (416) 665-7779

                Telephone:
                  (416) 665-7778

                Residence:
                  Canada

              	
                N/A

              
	 	 	 
	
                Steven
                  Rothstein

              	
                34
                  Jefferson Landing Circle

                Port
                  Jefferson, NY 11777

                Attention:
                  Steven Rothstein

                Facsimile:
                  (631) 928-1995

                Telephone:
                  (631) 928-1995

                Residence:
                  New York

              	
                N/A

              
	 	 	 
	
                Don
                  Russell

              	
                1
                  Tiftgreen Circle

                Columbia,
                  SC 29223

                Attention:
                  Don Russell

                Facsimile:
                  (803) 788-9292

                Telephone:
                  (803) 788-8817

                Residence:
                  South Carolina

              	
                N/A

              
	 	 	 
	
                Silver
                  Rock I, Ltd.

              	
                Nagilo
                  Building Main Street P.O. Box 765

                Road
                  Town, Tortola

                B.V.I

                Attention:
                  Ezzat Jallad

                Facsimile:
                  

                Telephone:
                  9715 03797172

                Residence:
                  British Virgin Islands

              	
                N/A

              
	 	 	 
	
                Silicon
                  Prairie Partners

              	
                130
                  Lytton Avenue, Suite 210

                Palo
                  Alto, CA 94301

                Attention:
                  John Micek

                Facsimile:
                  (650) 462-8904

                Telephone:
                  (650) 462-8900

                Residence:
                  California

              	
                N/A

              
	 	 	 
	
                Simgest
                  SpA

              	
                Via
                  Cairoli 11

                40121
                  - Bologna

                Italy

                Attention:
                  Oscar Guidetti

                Facsimile:
                  39 0516482333

                Telephone:
                  39 0516782311

                Residence:
                  Italy

              	
                N/A

              
	 	 	 
	
                Richard
                  Todd Truitt

              	
                2816
                  Vine Street, #165

                Dallas,
                  TX 75204

                Attention:
                  Richard Todd Truitt

                Facsimile:
                  (817) 332-4630

                Telephone:
                  (817) 797-4939

                Residence:
                  Texas

              	
                N/A

              
	 	 	 
	
                Jonathan
                  Ungar

              	
                7
                  Dunham Road

                Scarsdale,
                  NY 10583

                Attention:
                  Jonathan Ungar

                Facsimile:
                  

                Telephone:
                  (914) 723-0519

                Residence:
                  New York

              	
                N/A

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

        
          	
                  Buyer

                	
                  Buyer’s
                    Address and

                  Facsimile
                    Number

                	
                  Buyer’s
                    Representative's Address and Facsimile
                    Number

                

        

         

      

      
        	
                White
                  Sand Investor Group, LP

              	
                339
                  Collingwood Street 

                San
                  Francisco, CA 94114

                Attention:
                  Elliott Donnelley II

                Facsimile:
                  (415) 840-0417

                Telephone:
                  (415) 902-8095

                Residence:
                  California

              	
                N/A

              
	 	 	 
	
                Steven
                  Zelinger & Lisa Gordon JTWROS

              	
                1535
                  Edgewood Drive

                Palo
                  Alto, CA 94303

                Attention:
                  Lisa Gordon

                Facsimile:
                  (650) 324-3902

                Telephone:
                  (650) 324-3900

                Residence:
                  California

              	
                N/A

              

      

       

    

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

    

    FORM
      OF NOTICE OF EFFECTIVENESS

    OF
      REGISTRATION STATEMENT

     

    Computershare
      Trust Company, Inc.

    350
      Indiana Street, Suite 800

    Golden,
      Colorado 80401

    

    Attention:
      

    

    Re: Applied
      Spectrum Technologies, Inc.

     

    Ladies
      and Gentlemen:

     

    [We
      are][I am] counsel to Applied Spectrum Technologies, Inc., a Delaware
      corporation (the "Company"),
      and
      have represented the Company in connection with that certain Securities Purchase
      Agreement (the "Securities
      Purchase Agreement")
      entered into by and among the Company and the buyers named therein
      (collectively, the "Holders")
      pursuant to which the Company issued to the Holders shares of the Company's
      common stock, par value $0.001 per share (the "Common
      Stock")
      and
      warrants exercisable for shares of Common Stock (the "Warrants").
      Pursuant to the Securities Purchase Agreement, the Company also has entered
      into
      a Registration Rights Agreement with the Holders (the "Registration
      Rights Agreement")
      pursuant to which the Company agreed, among other things, to register the
      Registrable Securities (as defined in the Registration Rights Agreement),
      including the shares of Common Stock issuable upon exercise of the Warrants,
      under the Securities Act of 1933, as amended (the "1933
      Act").
      In
      connection with the Company's obligations under the Registration Rights
      Agreement, on ____________ ___, 200_, the Company filed a Registration Statement
      on Form SB-2 (File No. 333-_____________) (the "Registration
      Statement")
      with
      the Securities and Exchange Commission (the "SEC")
      relating to the Registrable Securities which names each of the Holders as a
      selling stockholder thereunder.

     

    In
      connection with the foregoing, [we][I] advise you that a member of the SEC's
      staff has advised [us][me] by telephone that the SEC has entered an order
      declaring the Registration Statement effective under the 1933 Act at
[ENTER
      TIME OF EFFECTIVENESS]
      on
[ENTER
      DATE OF EFFECTIVENESS]
      and
      [we][I] have no knowledge, after telephonic inquiry of a member of the SEC's
      staff, that any stop order suspending its effectiveness has been issued or
      that
      any proceedings for that purpose are pending before, or threatened by, the
      SEC
      and the Registrable Securities are available for resale under the 1933 Act
      pursuant to the Registration Statement.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    This
      letter shall serve as our standing instruction to you that the shares of Common
      Stock are freely transferable by the Holders pursuant to the Registration
      Statement. You need not require further letters from us to effect any future
      legend-free issuance or reissuance of shares of Common Stock to the Holders
      as
      contemplated by the Company's Irrevocable Transfer Agent Instructions dated
      November __, 2006. 

     

    Very
      truly yours,

    [ISSUER'S
      COUNSEL]

    By:
      _____________________

     

    CC: [LIST
      NAMES OF HOLDERS]

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

    

    SELLING
      STOCKHOLDERS

     

    The
      shares of common stock being offered by the selling stockholders are those
      previously issued to the Selling Stockholders and those issuable to the Selling
      Stockholders upon exercise of the warrants. For additional information regarding
      the issuances of common stock and the warrants, see "Private Placement of Common
      Shares and Warrants" above. We are registering the shares of common stock in
      order to permit the selling stockholders to offer the shares for resale from
      time to time. Except for the ownership of the shares of common stock and the
      warrants, the selling stockholders have not had any material relationship with
      us within the past three years.

     

    The
      table
      below lists the selling stockholders and other information regarding the
      beneficial ownership of the shares of common stock by each of the selling
      stockholders. The second column lists the number of shares of common stock
      beneficially owned by each selling shareholder, based on its ownership of the
      shares of common stock and the warrants, as of ________, 2006, assuming exercise
      of the warrants held by the selling stockholders on that date, without regard
      to
      any limitations on exercise.

     

    The
      third
      column lists the shares of common stock being offered by this prospectus by
      the
      selling stockholders.

     

    In
      accordance with the terms of registration rights agreements with the holders
      of
      the shares of common stock and the warrants, this prospectus generally covers
      the resale of at least the sum of (i) the number of shares of common stock
      issued and (ii) 150% of the number of shares of common stock issued and issuable
      upon exercise of the related warrants, determined as if the outstanding warrants
      were exercised, as applicable, in full, as of the trading day immediately
      preceding the date this registration statement was initially filed with the
      SEC.
      The fourth column assumes the sale of all of the shares offered by the selling
      stockholders pursuant to this prospectus.

     

    Under
      the
      terms of the warrants, a selling stockholder may not exercise the warrants,
      to
      the extent such exercise would cause such selling stockholder, together with
      its
      affiliates, to beneficially own a number of shares of common stock which would
      exceed 4.99% of our then outstanding shares of common stock following such
      exercise, excluding for purposes of such determination shares of common stock
      issuable upon exercise of the warrants which have not been exercised. The number
      of shares in the second column does not reflect this limitation. The selling
      stockholders may sell all, some or none of their shares in this offering. See
      "Plan of Distribution."

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              Name
                of Selling Stockholder

            	 	
              Number
                of Shares of Common Stock Owned Prior to Offering

            	 	
              Maximum
                Number of Shares of Common Stock to be Sold Pursuant to this
                Prospectus

            	 	
              Number
                of Shares of Common Stock Owned After Offering

            
	 	 	 	 	 	 	 
	
              [Lead
                Buyer]

               

            	 	 	 	 	 	
              0

            
	
              [Other
                Buyers]

               

            	 	 	 	 	 	 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    PLAN
      OF DISTRIBUTION

     

    We
      are
      registering the shares of common stock previously issued and the shares of
      common stock issuable upon exercise of the warrants to permit the resale of
      these shares of common stock by the holders of the common stock and warrants
      from time to time after the date of this prospectus. We will not receive any
      of
      the proceeds from the sale by the selling stockholders of the shares of common
      stock. We will bear all fees and expenses incident to our obligation to register
      the shares of common stock.

     

    The
      selling stockholders may sell all or a portion of the shares of common stock
      beneficially owned by them and offered hereby from time to time directly or
      through one or more underwriters, broker-dealers or agents. If the shares of
      common stock are sold through underwriters or broker-dealers, the selling
      stockholders will be responsible for underwriting discounts or commissions
      or
      agent's commissions. The shares of common stock may be sold in one or more
      transactions at fixed prices, at prevailing market prices at the time of the
      sale, at varying prices determined at the time of sale, or at negotiated prices.
      These sales may be effected in transactions, which may involve crosses or block
      transactions, 

     

    on
      any
      national securities exchange or quotation service on which the securities may
      be
      listed or quoted at the time of sale;

     

    in
      the
      over-the-counter market;

     

    in
      transactions otherwise than on these exchanges or systems or in the
      over-the-counter market;

     

    through
      the writing of options, whether such options are listed on an options exchange
      or otherwise;

     

    ordinary
      brokerage transactions and transactions in which the broker-dealer solicits
      purchasers;

     

    block
      trades in which the broker-dealer will attempt to sell the shares as agent
      but
      may position and resell a portion of the block as principal to facilitate the
      transaction;

     

    purchases
      by a broker-dealer as principal and resale by the broker-dealer for its
      account;

     

    an
      exchange distribution in accordance with the rules of the applicable
      exchange;

     

    privately
      negotiated transactions;

     

    short
      sales;

     

    sales
      pursuant to Rule 144;

     

    broker-dealers
      may agree with the selling securityholders to sell a specified number of such
      shares at a stipulated price per share;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    a
      combination of any such methods of sale; and

     

    any
      other method permitted pursuant to applicable law.

     

    If
      the
      selling stockholders effect such transactions by selling shares of common stock
      to or through underwriters, broker-dealers or agents, such underwriters,
      broker-dealers or agents may receive commissions in the form of discounts,
      concessions or commissions from the selling stockholders or commissions from
      purchasers of the shares of common stock for whom they may act as agent or
      to
      whom they may sell as principal (which discounts, concessions or commissions
      as
      to particular underwriters, broker-dealers or agents may be in excess of those
      customary in the types of transactions involved). In connection with sales
      of
      the shares of common stock or otherwise, the selling stockholders may enter
      into
      hedging transactions with broker-dealers, which may in turn engage in short
      sales of the shares of common stock in the course of hedging in positions they
      assume. The selling stockholders may also sell shares of common stock short
      and
      deliver shares of common stock covered by this prospectus to close out short
      positions and to return borrowed shares in connection with such short sales.
      The
      selling stockholders may also loan or pledge shares of common stock to
      broker-dealers that in turn may sell such shares.

     

    The
      selling stockholders may pledge or grant a security interest in some or all
      of
      the warrants or shares of common stock owned by them and, if they default in
      the
      performance of their secured obligations, the pledgees or secured parties may
      offer and sell the shares of common stock from time to time pursuant to this
      prospectus or any amendment to this prospectus under Rule 424(b)(3) or other
      applicable provision of the Securities Act of 1933, as amended, amending, if
      necessary, the list of selling stockholders to include the pledgee, transferee
      or other successors in interest as selling stockholders under this prospectus.
      The selling stockholders also may transfer and donate the shares of common
      stock
      in other circumstances in which case the transferees, donees, pledgees or other
      successors in interest will be the selling beneficial owners for purposes of
      this prospectus.

     

    The
      selling stockholders and any broker-dealer participating in the distribution
      of
      the shares of common stock may be deemed to be "underwriters" within the meaning
      of the Securities Act, and any commission paid, or any discounts or concessions
      allowed to, any such broker-dealer may be deemed to be underwriting commissions
      or discounts under the Securities Act. At the time a particular offering of
      the
      shares of common stock is made, a prospectus supplement, if required, will
      be
      distributed which will set forth the aggregate amount of shares of common stock
      being offered and the terms of the offering, including the name or names of
      any
      broker-dealers or agents, any discounts, commissions and other terms
      constituting compensation from the selling stockholders and any discounts,
      commissions or concessions allowed or reallowed or paid to
      broker-dealers.

     

    Under
      the
      securities laws of some states, the shares of common stock may be sold in such
      states only through registered or licensed brokers or dealers. In addition,
      in
      some states the shares of common stock may not be sold unless such shares have
      been registered or qualified for sale in such state or an exemption from
      registration or qualification is available and is complied with.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    There
      can
      be no assurance that any selling stockholder will sell any or all of the shares
      of common stock registered pursuant to the registration statement, of which
      this
      prospectus forms a part.

     

    The
      selling stockholders and any other person participating in such distribution
      will be subject to applicable provisions of the Securities Exchange Act of
      1934,
      as amended, and the rules and regulations thereunder, including, without
      limitation, Regulation M of the Exchange Act, which may limit the timing of
      purchases and sales of any of the shares of common stock by the selling
      stockholders and any other participating person. Regulation M may also restrict
      the ability of any person engaged in the distribution of the shares of common
      stock to engage in market-making activities with respect to the shares of common
      stock. All of the foregoing may affect the marketability of the shares of common
      stock and the ability of any person or entity to engage in market-making
      activities with respect to the shares of common stock.

     

    We
      will
      pay all expenses of the registration of the shares of common stock pursuant
      to
      the registration rights agreement, estimated to be
      $[     ] in total, including, without limitation,
      Securities and Exchange Commission filing fees and expenses of compliance with
      state securities or "blue sky" laws; provided, however, that a selling
      stockholder will pay all underwriting discounts and selling commissions, if
      any.
      We will indemnify the selling stockholders against liabilities, including some
      liabilities under the Securities Act, in accordance with the registration rights
      agreements, or the selling stockholders will be entitled to contribution. We
      may
      be indemnified by the selling stockholders against civil liabilities, including
      liabilities under the Securities Act, that may arise from any written
      information furnished to us by the selling stockholder specifically for use
      in
      this prospectus, in accordance with the related registration rights agreements,
      or we may be entitled to contribution.

     

    Once
      sold
      under the registration statement, of which this prospectus forms a part, the
      shares of common stock will be freely tradable in the hands of persons other
      than our affiliates.

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