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07/08/2005  LocatePlus  Registration  Rights  Agreement_#1739308.DOC

                          REGISTRATION RIGHTS AGREEMENT
                          -----------------------------

     This  Registration  Rights  Agreement (the "Agreement") is made and entered
into  as  of  this  8th  day  of  July,  2005  by  and among LocatePlus Holdings
Corporation,  a  Delaware corporation (the "Company"), and the "Investors" named
in  that  certain  Purchase Agreement by and among the Company and the Investors
(the  "Purchase  Agreement").
The  parties  hereby  agree  as  follows:
     1.     Certain  Definitions.
            --------------------
     As  used  in  this  Agreement, the following terms shall have the following
meanings:
"1933  Act"  means  the  Securities  Act  of 1933, as amended, and the rules and
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regulations  promulgated  thereunder.
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"1934  Act" means the Securities Exchange Act of 1934, as amended, and the rules
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and  regulations  promulgated  thereunder.
"Affiliate"  means,  with respect to any person, any other person which directly
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or  indirectly controls, is controlled by, or is under common control with, such
person.
"Business  Day"  means a day, other than a Saturday or Sunday, on which banks in
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New  York  City  are  open  for  the  general  transaction  of  business.
     "Common  Stock"  shall  mean  (i)  prior  to  the  consummation  of  the
      -------------
Recapitalization, the Class A Voting Common Stock, par value $0.01 per share, of
      ------
the  Company;  provided,  however,  that if, upon conversion of the Notes or the
exercise of the Warrants, as the case may be, the authorized but unissued shares
of  Class A Voting Common Stock are not sufficient to permit the full conversion
of the Notes and the full exercise of the Warrants, then the term "Common Stock"
shall  mean such shares of Class A Voting Common Stock as are then available for
issuance  plus  such number of shares of Class B Nonvoting Common Stock as shall
permit  the  full  conversion of the Notes and the full exercise of the Warrants
and  (ii)  from  and  after  the  effective  time  of  the Recapitalization, the
Recapitalization  Stock.

     "Conversion  Shares"  means  the  shares  of  Common  Stock  issuable  upon
      ------------------
conversion  of  the  Notes.
      --
"Investors"  shall  mean  the Investors identified in the Purchase Agreement and
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any Affiliate or permitted transferee of any Investor who is a subsequent holder
 -
of  any  Warrants  or  Registrable  Securities.
"Notes" means, the Company's 3% Senior Convertible Notes issued to the Investors
 -----
pursuant  to  the  Purchase  Agreement,  the  form  of  which is attached to the
Purchase  Agreement  as  Exhibit  A.
"Prospectus"  shall  mean the prospectus included in any Registration Statement,
 ----------
as  amended  or  supplemented  by any prospectus supplement, with respect to the
terms  of  the  offering of any portion of the Registrable Securities covered by
such  Registration  Statement and by all other amendments and supplements to the
prospectus, including post-effective amendments and all material incorporated by
reference  in  such  prospectus.

<PAGE>
"Recapitalization" shall mean (i) the recapitalization of each outstanding share
 ----------------
of the Company's Class A Voting Common Stock, par value $0.01 per share, and the
Company's  Class  B  Nonvoting Common Stock, par value $0.01 per share, into one
share  of a single class of voting common stock and (ii) a one-for-fifty reverse
split  of  the  Common  Stock.

"Recapitalization Stock" shall mean the common stock, par value $0.01 per share,
 ----------------------
of  the  Company  after  giving  effect  to  the  Recapitalization.

     "Register,""registered"  and "registration" refer to a registration made by
      --------   ----------        ------------
preparing  and filing a Registration Statement or similar document in compliance
with  the  1933  Act  (as  defined  below),  and  the declaration or ordering of
effectiveness  of  such  Registration  Statement  or  document.
"Registrable  Securities" shall mean (i) the Conversion Shares, (ii) the Warrant
 -----------------------
Shares  and  (iii) any other securities issued or issuable with respect to or in
exchange  for  Registrable Securities; provided, that, a security shall cease to
be  a Registrable Security upon (A) sale pursuant to a Registration Statement or
Rule  144 under the 1933 Act, or (B) such security becoming eligible for sale by
the  Investors  pursuant  to  Rule  144(k).
"Registration  Statement"  shall  mean any registration statement of the Company
 -----------------------
filed  under  the  1933  Act  that  covers  the resale of any of the Registrable
 -
Securities  pursuant  to  the  provisions  of  this  Agreement,  amendments  and
 -
supplements to such Registration Statement, including post-effective amendments,
 -
all  exhibits  and  all  material incorporated by reference in such Registration
Statement.
"Required  Investors"  means the Investors holding a majority of the Registrable
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Securities.
"Rule  144(k)" means Rule 144(k) promulgated under the 1933 Act or any successor
 ------------
provision  thereto.
"SEC"  means the U.S. Securities and Exchange Commission or any successor agency
 ---
thereto.
"Warrants"  means, the warrants to purchase shares of Common Stock issued to the
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Investors  pursuant  to the Purchase Agreement, the form of which is attached to
the  Purchase  Agreement  as  Exhibit  B.
"Warrant  Shares" means the shares of Common Stock issuable upon the exercise of
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the  Warrants.
     2.     Registration.
            ------------
     (a)          Registration  Statements.
                  ------------------------
     (i)     Promptly  following  the  closing  of  the purchase and sale of the
securities  contemplated  by  the Purchase Agreement (the "Closing Date") but no
later  than thirty (30) days after the Closing Date (the "Filing Deadline"), the
Company  shall  prepare and file with the SEC one Registration Statement on Form
SB-2  (or,  if  Form  SB-2 is not then available to the Company, on such form of
registration  statement as is then available to effect a registration for resale
of  the  Registrable  Securities),  covering  the  resale  of  the  Registrable
Securities  in  an

<PAGE>
amount  at  least  equal  to the Conversion Shares and the Warrant Shares.  Such
Registration Statement shall include the plan of distribution attached hereto as
Exhibit  A, subject to any SEC comments.  Such Registration Statement also shall
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cover,  to  the  extent  allowable  under the 1933 Act and the rules promulgated
thereunder (including Rule 416 under the 1933 Act), such indeterminate number of
additional  shares  of Common Stock resulting from stock splits, stock dividends
or similar transactions with respect to the Registrable Securities, if any.  The
Company shall use its reasonable best efforts to obtain from each person who now
has  piggyback  registration rights a waiver of those rights with respect to the
Registration  Statement.  The  Registration  Statement  (and  each  amendment or
supplement  thereto, and each request for acceleration of effectiveness thereof)
shall  be  provided  in  accordance with Section 3(c) to the Investors and their
counsel  prior  to  its filing or other submission.  If a Registration Statement
covering the Registrable Securities is not filed with the SEC on or prior to the
Filing  Deadline,  the  Company will make pro rata payments to each Investor, as
liquidated  damages  and  not  as  a  penalty, in an amount equal to 1.5% of the
aggregate  purchase  price  paid  by  such  Investor  pursuant  to  the Purchase
Agreement  for  each 30-day period or pro rata for any portion thereof following
the Filing Deadline for which no Registration Statement is filed with respect to
the  Registrable  Securities.  Such  payments  shall  constitute  the Investors'
exclusive monetary remedy for such events, but shall not affect the right of the
Investors  to  seek  injunctive  relief.  Such  payments  shall  be made to each
Investor  in  cash.
(ii)     Additional  Registrable  Securities.  Upon any change in the Conversion
         -----------------------------------
Price (as defined in the Notes) or the Warrant Price (as defined in the Warrant)
such  that additional shares of Common Stock become issuable upon the conversion
of  the  Notes  or  the  exercise of the Warrants (the "Additional Shares"), the
Company  shall prepare and file with the SEC one or more Registration Statements
on  Form  SB-2  or amend the Registration Statement filed pursuant to clause (i)
above, if such Registration Statement has not previously been declared effective
covering  the  resale  of  the  Additional  Shares (or, if Form SB-2 is not then
available  to  the  Company,  on  such form of registration statement as is then
available to effect a registration for resale of the Additional Shares), subject
to  the  Required  Investors'  consent)  covering  the  resale of the Additional
Shares, but only to the extent the Additional Shares are not at the time covered
by  an effective Registration Statement.  Such Registration Statement also shall
cover,  to  the  extent  allowable  under the 1933 Act and the rules promulgated
thereunder (including Rule 416 under the 1933 Act), such indeterminate number of
additional  shares  of Common Stock resulting from stock splits, stock dividends
or  similar  transactions  with  respect  to the Additional Shares, if any.  The
Company shall use its reasonable best efforts to obtain from each person who now
has  piggyback registration rights a waiver of those rights with respect to such
Registration  Statement.  The  Registration  Statement  (and  each  amendment or
supplement  thereto, and each request for acceleration of effectiveness thereof)
shall  be  provided  in  accordance with Section 3(c) to the Investors and their
counsel  prior  to  its filing or other submission.  If a Registration Statement
covering  the  Additional  Shares  is  required  to  be filed under this Section
2(a)(ii)  and  is  not  filed  with  the  SEC  within  five Business Days of the
occurrence  of any of the events specified in this Section 2(a)(ii), the Company
will make pro rata payments to each Investor, as liquidated damages and not as a
penalty, in an amount equal to 1.5% of the aggregate purchase price paid by such
Investor  pursuant  to the Purchase Agreement for each 30-day period or pro rata
for  any portion thereof following the date by which such Registration Statement
should have been filed for which no Registration Statement is filed with respect
to  the  Additional  Shares.  Such  payments  shall  constitute  the  Investors'
exclusive

<PAGE>
monetary remedy for such events, but shall not affect the right of the Investors
to  seek  injunctive  relief.  Such  payments  shall be made to each Investor in
cash.
               (iii)     S-3  Qualification.  Promptly  following  the date (the
                         ------------------
"Qualification  Date")  upon  which  the  Company  becomes  eligible  to  use  a
registration  statement  on  Form  S-3 to register the Registrable Securities or
Additional  Shares,  as applicable, for resale, but in no event more than thirty
(30)  days  after  the  Qualification  Date  (the "Qualification Deadline"), the
Company shall file a registration statement on Form S-3 covering the Registrable
Securities or Additional Shares, as applicable (or a post-effective amendment on
Form  S-3  to  the  registration  statement  on Form S-1) (a "Shelf Registration
Statement")  and  shall  use commercially reasonable efforts to cause such Shelf
Registration  Statement  to  be  declared  effective  as promptly as practicable
thereafter.  If  a  Shelf  Registration  Statement  covering  the  Registrable
Securities  is not filed with the SEC on or prior to the Qualification Deadline,
the  Company will make pro rata payments to each Investor, as liquidated damages
and not as a penalty, in an amount equal to 1.5% of the aggregate purchase price
paid  by such Investor pursuant to the Purchase Agreement for each 30-day period
or  pro  rata  for  any  portion  thereof following the date by which such Shelf
Registration  Statement  should  have  been  filed  for  which  no  such  Shelf
Registration  Statement  is  filed with respect to the Registrable Securities or
Additional Shares, as applicable.  Such payments shall constitute the Investors'
exclusive monetary remedy for such events, but shall not affect the right of the
Investors  to  seek  injunctive  relief.  Such  payments  shall  be made to each
Investor  in  cash.

     (b)          Expenses.  The  Company  will pay all expenses associated with
                  --------
each registration, including filing and printing fees, the Company's counsel and
accounting  fees  and  expenses,  costs associated with clearing the Registrable
Securities  for  sale under applicable state securities laws, listing fees, fees
and  expenses  of  one  counsel  to  the Investors and the Investors' reasonable
expenses  in  connection  with  the  registration,  but  excluding  discounts,
commissions,  fees  of underwriters, selling brokers, dealer managers or similar
securities  industry  professionals  with  respect to the Registrable Securities
being  sold.
(c)          Effectiveness.
             -------------
     (i)     The  Company  shall use commercially reasonable efforts to have the
Registration  Statement  declared effective as soon as practicable.  The Company
shall  notify  the  Investors by facsimile or e-mail as promptly as practicable,
and  in  any  event,  within  twenty-four  (24)  hours,  after  any Registration
Statement  is  declared effective and shall simultaneously provide the Investors
with  copies of any related Prospectus to be used in connection with the sale or
other  disposition  of the securities covered thereby.  If (A)(x) a Registration
Statement  covering  the Registrable Securities is not declared effective by the
SEC  prior to the earlier of (i) five (5) Business Days after the SEC shall have
informed  the  Company that no review of the Registration Statement will be made
or  (ii)  the  120th  day  after  the Closing Date, (y) a Registration Statement
covering  Additional  Shares  is not declared effective by the SEC within ninety
(90)  days  following  the  time  such Registration Statement was required to be
filed  pursuant to Section 2(a)(ii) or (z) a Shelf Registration Statement is not
declared  effective  by  the SEC within ninety (90) days after the Qualification
Deadline,  or  (B) after a Registration Statement has been declared effective by
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the  SEC,  sales  cannot be made pursuant to such Registration Statement for any
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reason  (including  without  limitation  by  reason  of  a  stop  order,  or the
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<PAGE>
======
Company's  failure  to  update  the  Registration  Statement), but excluding the
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inability of any Investor to sell the Registrable Securities covered thereby due
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to  market  conditions  and  except  as  excused  pursuant  to subparagraph (ii)
================================================================================
below,then  the  Company  will  make  pro  rata  payments  to  each Investor, as
=======
liquidated  damages  and  not  as  a  penalty, in an amount equal to 1.5% of the
=======
aggregate  purchase  price  paid  by  such  Investor  pursuant  to  the Purchase
=====
Agreement  for  each 30-day period or pro rata for any portion thereof following
=====
the  date  by  which such Registration Statement should have been effective (the
"Blackout  Period").  Such  payments  shall  constitute the Investors' exclusive
monetary remedy for such events, but shall not affect the right of the Investors
to  seek  injunctive relief.  The amounts payable as liquidated damages pursuant
to  this  paragraph  shall be paid monthly within three (3) Business Days of the
last  day  of each month following the commencement of the Blackout Period until
the  termination  of  the  Blackout Period.  Such payments shall be made to each
Investor  in  cash.
(ii)     For  not  more  than twenty (20) consecutive days or for a total of not
more  than forty-five (45) days in any twelve (12) month period, the Company may
delay  the disclosure of material non-public information concerning the Company,
by  suspending  the  use  of  any  Prospectus  included  in  any  registration
contemplated  by  this  Section  containing  such information, the disclosure of
which  at the time is not, in the good faith opinion of the Company, in the best
interests  of the Company (an "Allowed Delay"); provided, that the Company shall
promptly  (a)  notify  the  Investors  in writing of the existence of (but in no
event,  without  the  prior  written  consent  of an Investor, shall the Company
disclose  to such Investor any of the facts or circumstances regarding) material
non-public information giving rise to an Allowed Delay, (b) advise the Investors
in  writing to cease all sales under the Registration Statement until the end of
the  Allowed  Delay  and (c) use commercially reasonable efforts to terminate an
Allowed  Delay  as  promptly  as  practicable.
     3.     Company  Obligations.  The  Company will use commercially reasonable
            --------------------
efforts  to  effect the registration of the Registrable Securities in accordance
with  the  terms hereof, and pursuant thereto the Company will, as expeditiously
as  possible:
     (a)          use commercially reasonable efforts to cause such Registration
Statement  to become effective and to remain continuously effective for a period
that  will  terminate  upon the earlier of (i) the date on which all Registrable
Securities  covered by such Registration Statement as amended from time to time,
have been sold, and (ii) the date on which all Registrable Securities covered by
such  Registration  Statement  may  be  sold  pursuant  to  Rule  144(k)  (the
"Effectiveness  Period")  and  advise  the  Investors  in  writing  when  the
Effectiveness  Period  has  expired;
(b)          prepare  and  file  with the SEC such amendments and post-effective
amendments  to the Registration Statement and the Prospectus as may be necessary
to keep the Registration Statement effective for the Effectiveness Period and to
comply  with the provisions of the 1933 Act and the 1934 Act with respect to the
distribution  of  all  of  the  Registrable  Securities  covered  thereby;
(c)          provide  copies  to  and  permit a single counsel designated by the
Investors  to  review  each  Registration  Statement  and  all  amendments  and
supplements  thereto  no

<PAGE>
fewer  than  seven  (7) days prior to their filing with the SEC and not file any
document  to  which  such  counsel  reasonably  objects;
(d)          furnish to the Investors and their legal counsel (i) promptly after
the  same  is prepared and publicly distributed, filed with the SEC, or received
by  the Company (but not later than two (2) Business Days after the filing date,
receipt  date  or  sending  date,  as  the  case  may  be)  one  (1) copy of any
Registration  Statement  and  any amendment thereto, each preliminary prospectus
and Prospectus and each amendment or supplement thereto, and each letter written
by or on behalf of the Company to the SEC or the staff of the SEC, and each item
of correspondence from the SEC or the staff of the SEC, in each case relating to
such  Registration  Statement  (other  than  any  portion  of  any thereof which
contains  information  for which the Company has sought confidential treatment),
and  (ii)  such  number  of  copies  of  a  Prospectus,  including a preliminary
prospectus,  and all amendments and supplements thereto and such other documents
as  each  Investor may reasonably request in order to facilitate the disposition
of  the  Registrable  Securities  owned by such Investor that are covered by the
related  Registration  Statement;
(e)          use  commercially reasonable efforts to (i) prevent the issuance of
any  stop  order or other suspension of effectiveness and, (ii) if such order is
issued, obtain the withdrawal of any such order at the earliest possible moment;
(f)          prior  to  any  public  offering  of  Registrable  Securities,  use
commercially  reasonable  efforts  to  register or qualify or cooperate with the
Investors and their counsel in connection with the registration or qualification
of  such  Registrable Securities for offer and sale under the securities or blue
sky  laws  of  such  jurisdictions requested by the Investors and do any and all
other  commercially  reasonable  acts or things necessary or advisable to enable
the  distribution in such jurisdictions of the Registrable Securities covered by
the  Registration  Statement;  provided,  however, that the Company shall not be
                             ===================================================
required  in connection therewith or as a condition thereto to (i) qualify to do
   =============================================================================
business in any jurisdiction where it would not otherwise be required to qualify
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but  for  this  Section  3(f),  (ii)  subject  itself to general taxation in any
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jurisdiction  where  it  would  not otherwise be so subject but for this Section
================================================================================
3(f),  or  (iii)  file  a  general  consent  to  service  of process in any such
================================================================================
jurisdiction;
=============
(g)          use  commercially  reasonable  efforts  to  cause  all  Registrable
Securities  covered  by a Registration Statement to be listed on each securities
exchange,  interdealer  quotation  system  or  other  market  on  which  similar
securities  issued  by  the  Company  are  then  listed;
(h)          immediately  notify  the  Investors,  at any time when a Prospectus
relating  to  Registrable  Securities is required to be delivered under the 1933
Act,  upon  discovery  that,  or  upon the happening of any event (an "Amendment
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
omits  to  state any material fact required to be stated therein or necessary to
make  the  statements  therein not misleading in light of the circumstances then
existing, and at the request of any such holder, promptly prepare and furnish to
such  holder a reasonable number of copies of a supplement to or an amendment of
such  Prospectus  as  may  be  necessary so that, as thereafter delivered to the
purchasers  of  such  Registrable  Securities,  such  Prospectus  shall  not

<PAGE>
include  an untrue statement of a material fact or omit to state a material fact
required  to  be  stated therein or necessary to make the statements therein not
misleading  in  light  of  the  circumstances  then  existing;  and
(i)          otherwise  use  commercially  reasonable efforts to comply with all
applicable rules and regulations of the SEC under the 1933 Act and the 1934 Act,
take  such  other  actions  as  may  be  reasonably  necessary to facilitate the
registration  of the Registrable Securities hereunder; and make available to its
security  holders,  as  soon  as  reasonably practicable, but not later than the
Availability Date (as defined below), an earnings statement covering a period of
at  least  twelve  (12)  months,  beginning  after  the  effective  date of each
Registration Statement, which earnings statement shall satisfy the provisions of
Section  11(a)  of  the 1933 Act, including Rule 158 promulgated thereunder (for
the  purpose  of  this  subsection  3(i), "Availability Date" means the 45th day
following  the end of the fourth fiscal quarter that includes the effective date
of  such  Registration  Statement, except that, if such fourth fiscal quarter is
the  last  quarter  of  the Company's fiscal year, "Availability Date" means the
90th  day  after  the  end  of  such  fourth  fiscal  quarter).
     (j)          With  a view to making available to the Investors the benefits
of  Rule 144 (or its successor rule) and any other rule or regulation of the SEC
that  may at any time permit the Investors to sell shares of Common Stock to the
public  without registration, the Company covenants and agrees to:  (i) make and
keep  public information available, as those terms are understood and defined in
Rule  144,  until  the  earlier  of (A) six months after such date as all of the
Registrable  Securities  may be resold pursuant to Rule 144(k) or any other rule
of  similar  effect  or (B) such date as all of the Registrable Securities shall
have  been  resold;  (ii)  file  with the SEC in a timely manner all reports and
other documents required of the Company under the 1934 Act; and (iii) furnish to
each  Investor  upon  request,  as  long  as  such Investor owns any Registrable
Securities, (A) a written statement by the Company that it has complied with the
reporting  requirements of the 1934 Act, (B) a copy of the Company's most recent
Annual  Report  on  Form 10-KSB or Quarterly Report on Form 10-QSB, and (C) such
other information as may be reasonably requested in order to avail such Investor
of  any  rule  or  regulation  of  the  SEC that permits the selling of any such
Registrable  Securities  without  registration.

          4.     Due  Diligence  Review;  Information.  The  Company  shall make
                 ------------------------------------
available,  during  normal  business  hours,  for  inspection  and review by the
Investors,  advisors to and representatives of the Investors (who may or may not
be  affiliated  with  the  Investors  and  who  are reasonably acceptable to the
Company),  all  financial  and other records, all SEC Filings (as defined in the
Purchase  Agreement)  and  other  filings  with the SEC, and all other corporate
documents  and  properties of the Company as may be reasonably necessary for the
purpose  of  such  review,  and  cause  the  Company's  officers,  directors and
employees,  within  a  reasonable  time  period,  to supply all such information
reasonably  requested  by  the  Investors or any such representative, advisor or
underwriter  in  connection with such Registration Statement (including, without
limitation,  in response to all questions and other inquiries reasonably made or
submitted  by  any of them), prior to and from time to time after the filing and
effectiveness of the Registration Statement for the sole purpose of enabling the
Investors  and  such  representatives,  advisors  and  underwriters  and  their
respective  accountants  and  attorneys  to  conduct  initial  and  ongoing  due
diligence  with  respect  to  the  Company and the accuracy of such Registration
Statement.

<PAGE>
          The  Company  shall not disclose material nonpublic information to the
Investors,  or  to advisors to or representatives of the Investors, unless prior
to  disclosure  of  such  information the Company identifies such information as
being  material  nonpublic information and provides the Investors, such advisors
and  representatives  with  the  opportunity  to accept or refuse to accept such
material  nonpublic  information  for  review and any Investor wishing to obtain
such  information  enters into an appropriate confidentiality agreement with the
Company  with  respect  thereto.
5.     Obligations  of  the  Investors.
       -------------------------------
     (a)          Each  Investor  shall  furnish  in writing 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 registration of such Registrable
Securities and shall execute such documents in connection with such registration
as the Company may reasonably request.  At least five (5) Business Days prior to
the  first  anticipated  filing  date of any Registration Statement, the Company
shall  notify  each  Investor  of the information the Company requires from such
Investor  if  such  Investor  elects  to  have any of the Registrable Securities
included  in  the  Registration  Statement.  An  Investor  shall  provide  such
information  to  the  Company  at least two (2) Business Days prior to the first
anticipated  filing  date of such Registration Statement if such Investor elects
to  have  any  of  the  Registrable  Securities  included  in  the  Registration
Statement.
(b)          Each  Investor,  by  its  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  a  Registration  Statement
hereunder,  unless  such  Investor  has  notified  the Company in writing of its
election  to  exclude  all  of its Registrable Securities from such Registration
Statement.
(c)          Each  Investor  agrees  that,  upon  receipt of any notice from the
Company  of  either (i) the commencement of an Allowed Delay pursuant to Section
2(c)(ii)  or  (ii)  the  happening  of  an  Amendment  Event, such Investor will
immediately  discontinue  disposition  of Registrable Securities pursuant to the
Registration  Statement  covering  such  Registrable  Securities,  until  the
Investor's receipt of the copies of the supplemented or amended prospectus filed
with  the  SEC  and  until  any  related  post-effective  amendment  is declared
effective  and, if so directed by the Company, the Investor shall deliver to the
Company (at the expense of the Company) or destroy (and deliver to the Company a
certificate  of  destruction)  all  copies  in  the Investor's possession of the
Prospectus covering the Registrable Securities current at the time of receipt of
such  notice.
     6.     Indemnification.
            ---------------
     (a)          Indemnification  by  the  Company.  The Company will indemnify
                  ---------------------------------
and  hold harmless each Investor and its officers, directors, members, employees
and  agents, successors and assigns, and each other person, if any, who controls
such  Investor  within  the meaning of the 1933 Act, against any losses, claims,
damages or liabilities, joint or several, to which they may become subject under
the  1933  Act  or  otherwise,  insofar  as  such  losses,  claims,  damages  or
liabilities  (or actions in respect thereof) arise out of or are based upon: (i)
any  untrue statement or alleged untrue statement of any material fact contained
in  any  Registration

<PAGE>
Statement,  any preliminary prospectus or final prospectus contained therein, or
any  amendment  or  supplement  thereof;  (ii) any blue sky application or other
document  executed  by  the  Company specifically for that purpose or based upon
written  information  furnished  by  the  Company  filed  in  any state or other
jurisdiction  in order to qualify any or all of the Registrable Securities under
the  securities  laws  thereof  (any  such  application, document or information
herein  called a "Blue Sky Application"); (iii) the omission or alleged omission
to  state  therein a material fact required to be stated therein or necessary to
make the statements therein not misleading; (iv) any violation by the Company or
its  agents  of any rule or regulation promulgated under the 1933 Act applicable
to  the Company or its agents and relating to action or inaction required of the
Company  in connection with such registration; or (v) any failure to register or
qualify  the  Registrable  Securities  included  in any such Registration in any
state  where the Company or its agents has affirmatively undertaken or agreed in
writing that the Company will undertake such registration or qualification on an
Investor's  behalf  and  will  reimburse  such  Investor, and each such officer,
director  or  member  and  each  such  controlling person for any legal or other
expenses  reasonably  incurred  by  them  in  connection  with  investigating or
defending  any such loss, claim, damage, liability or action; provided, however,
                                                              --------  -------
that  the  Company will not be liable in any such case if and to the extent that
any  such loss, claim, damage or liability arises out of or is based upon (x) an
untrue  statement or alleged untrue statement or omission or alleged omission so
made  in  conformity  with  information  furnished  by such Investor or any such
controlling  person  in  writing  specifically  for  use  in  such  Registration
Statement  or  Prospectus  or  (y)  the  use  by such Investor of an outdated or
defective  Prospectus  after  the  Company  has  notified  such  Investor  of an
Amendment  Event.
(b)          Indemnification  by the Investors.  Each Investor agrees, severally
             ---------------------------------
but not jointly, to indemnify and hold harmless, to the fullest extent permitted
by  law,  the Company, its directors, officers, employees, stockholders and each
person who controls the Company (within the meaning of the 1933 Act) against any
losses,  claims, damages, liabilities and expense (including reasonable attorney
fees)  resulting  from (i) such Investor's failure to comply with the prospectus
delivery requirements of the 1933 Act or (ii) any untrue statement of a material
fact  or  any  omission  of  a  material  fact  required  to  be  stated  in the
Registration  Statement  or Prospectus or preliminary prospectus or amendment or
supplement  thereto  or necessary to make the statements therein not misleading,
to  the extent, but only to the extent that such untrue statement or omission is
contained  in  any  information  furnished  in  writing  by such Investor to the
Company  specifically for inclusion in such Registration Statement or Prospectus
or  amendment  or  supplement  thereto.  In  no  event shall the liability of an
Investor be greater in amount than the dollar amount of the proceeds (net of all
expense  paid  by  such  Investor  in connection with any claim relating to this
Section  6  and  the  amount  of  any  damages  such Investor has otherwise been
required to pay by reason of such untrue statement or omission) received by such
Investor  upon  the  sale  of  the  Registrable  Securities  included  in  the
Registration  Statement  giving  rise  to  such  indemnification  obligation.
(c)          Conduct  of  Indemnification  Proceedings.  Any  person entitled to
             -----------------------------------------
indemnification hereunder shall (i) give prompt notice to the indemnifying party
of any claim with respect to which it seeks indemnification and (ii) permit such
indemnifying  party  to assume the defense of such claim with counsel reasonably
satisfactory  to  the  indemnified  party;  provided that any person entitled to
                                            --------
indemnification hereunder shall have the right to employ separate counsel and to
participate  in  the  defense  of  such  claim,  but  the  fees  and expenses of

<PAGE>
such  counsel shall be at the expense of such person unless (a) the indemnifying
party  has  agreed  to  pay such fees or expenses, or (b) the indemnifying party
shall  have  failed  to  assume  the  defense  of  such claim and employ counsel
reasonably  satisfactory to such person or (c) in the reasonable judgment of any
such  person,  based  upon written advice of its counsel, a conflict of interest
exists  between  such  person  and  the  indemnifying party with respect to such
claims  (in which case, if the person notifies the indemnifying party in writing
that  such  person  elects  to  employ  separate  counsel  at the expense of the
indemnifying  party,  the  indemnifying party shall not have the right to assume
the defense of such claim on behalf of such person); and provided, further, that
                                                         --------  -------
the failure of any indemnified party to give notice as provided herein shall not
relieve  the  indemnifying  party  of  its  obligations hereunder, except to the
extent  that  such  failure to give notice shall materially adversely affect the
indemnifying  party  in  the  defense  of  any  such claim or litigation.  It is
understood  that  the  indemnifying  party  shall  not,  in  connection with any
proceeding in the same jurisdiction, be liable for fees or expenses of more than
one separate firm of attorneys at any time for all such indemnified parties.  No
indemnifying  party  will,  except  with  the  consent of the indemnified party,
consent  to  entry  of  any  judgment or enter into any settlement that does not
include as an unconditional term thereof the giving by the claimant or plaintiff
to  such  indemnified  party  of a release from all liability in respect of such
claim  or  litigation.
(d)          Contribution.  If  for  any reason the indemnification provided for
             ------------
in  the  preceding paragraphs (a) and (b) is unavailable to an indemnified party
or  insufficient to hold it harmless, other than as expressly specified therein,
then  the  indemnifying  party shall contribute to the amount paid or payable by
the  indemnified  party  as a result of such loss, claim, damage or liability in
such  proportion  as  is  appropriate  to  reflect  the  relative  fault  of the
indemnified  party  and  the  indemnifying  party, as well as any other relevant
equitable  considerations.  No  person  guilty  of  fraudulent misrepresentation
within  the  meaning  of  Section  11(f)  of  the  1933 Act shall be entitled to
contribution  from  any  person not guilty of such fraudulent misrepresentation.
In  no  event  shall  the  contribution  obligation  of  a holder of Registrable
Securities  be  greater in amount than the dollar amount of the proceeds (net of
all  expenses  paid by such holder in connection with any claim relating to this
Section  6 and the amount of any damages such holder has otherwise been required
to  pay  by  reason  of  such  untrue or alleged untrue statement or omission or
alleged  omission)  received  by  it upon the sale of the Registrable Securities
giving  rise  to  such  contribution  obligation.
     7.     Miscellaneous.
            -------------
     (a)          Amendments and Waivers.  This Agreement may be amended only by
                  ----------------------
a  writing  signed  by  the Company and the Required Investors.  The Company may
take any action herein prohibited, or omit to perform any act herein required to
be  performed by it, only if the Company shall have obtained the written consent
to  such  amendment,  action  or  omission  to  act,  of the Required Investors.
(b)          Notices.  All  notices  and  other  communications  provided for or
             -------
permitted  hereunder  shall  be made as set forth in Section 9.4 of the Purchase
Agreement.
(c)          Assignments  and  Transfers  by  Investors.  The provisions of this
             ------------------------------------------
Agreement  shall  be  binding upon and inure to the benefit of the Investors and
their  respective

<PAGE>
successors  and  assigns.  An  Investor may transfer or assign, in whole or from
time  to time in part, to one or more persons its rights hereunder in connection
with  the  transfer  of  Registrable Securities by such Investor to such person,
provided  that  such  Investor  complies  with  all  laws applicable thereto and
provides  written  notice  of  assignment  to  the  Company  promptly after such
assignment  is  effected.
(d)          Assignments  and  Transfers by the Company.  This Agreement may not
             ------------------------------------------
be  assigned  by  the Company (whether by operation of law or otherwise) without
the prior written consent of the Required Investors, provided, however, that the
Company may assign its rights and delegate its duties hereunder to any surviving
or  successor  corporation  in  connection with a merger or consolidation of the
Company  with  another  corporation, or a sale, transfer or other disposition of
all or substantially all of the Company's assets to another corporation, without
the  prior written consent of the Required Investors, after notice duly given by
the  Company  to  each  Investor.
(e)          Benefits  of  the  Agreement.  The  terms  and  conditions  of this
             ----------------------------
Agreement  shall  inure  to  the  benefit  of and be binding upon the respective
permitted  successors  and  assigns  of the parties.  Nothing in this Agreement,
express  or implied, is intended to confer upon any party other than the parties
hereto  or  their  respective  successors  and  assigns  any  rights,  remedies,
obligations,  or  liabilities  under  or  by reason of this Agreement, except as
expressly  provided  in  this  Agreement.
(f)          Counterparts; Faxes.  This Agreement may be executed in two or more
             -------------------
counterparts,  each  of  which  shall  be  deemed  an original, but all of which
together  shall constitute one and the same instrument.  This Agreement may also
be  executed  via  facsimile,  which  shall  be  deemed  an  original.
(g)          Titles  and  Subtitles.  The  titles  and  subtitles  used  in this
             ----------------------
Agreement  are  used  for  convenience  only  and  are  not  to be considered in
construing  or  interpreting  this  Agreement.
(h)          Severability.  Any  provision  of this Agreement that is prohibited
             ------------
or  unenforceable  in  any  jurisdiction  shall,  as  to  such  jurisdiction, be
ineffective  to  the  extent  of  such  prohibition  or unenforceability without
invalidating  the  remaining provisions hereof but shall be interpreted as if it
were  written  so  as  to  be  enforceable  to  the  maximum extent permitted by
applicable law, and any such prohibition or unenforceability in any jurisdiction
shall  not  invalidate  or  render  unenforceable  such  provision  in any other
jurisdiction.  To  the  extent  permitted  by applicable law, the parties hereby
waive  any  provision  of  law which renders any provisions hereof prohibited or
unenforceable  in  any  respect.
(i)          Further Assurances.  The parties shall execute and deliver all such
             ------------------
further  instruments  and  documents  and  take  all  such  other actions as may
reasonably  be required to carry out the transactions contemplated hereby and to
evidence  the  fulfillment  of  the  agreements  herein  contained.
(j)          Entire  Agreement.  This  Agreement is intended by the parties as a
             -----------------
final  expression of their agreement and intended to be a complete and exclusive
statement  of  the

<PAGE>
agreement  and  understanding  of  the  parties hereto in respect of the subject
matter  contained  herein.  This  Agreement  supersedes all prior agreements and
understandings  between  the  parties  with  respect  to  such  subject  matter.
(k)          Governing Law; Consent to Jurisdiction; Waiver of Jury Trial.  This
             ------------------------------------------------------------
Agreement  shall  be governed by, and construed in accordance with, the internal
laws  of  the  State  of New York without regard to the choice of law principles
thereof.  Each  of  the  parties  hereto  irrevocably  submits  to the exclusive
jurisdiction  of  the courts of the State of New York located in New York County
and  the  United States District Court for the Southern District of New York for
the  purpose  of any suit, action, proceeding or judgment relating to or arising
out  of  this  Agreement  and  the transactions contemplated hereby.  Service of
process  in connection with any such suit, action or proceeding may be served on
each party hereto anywhere in the world by the same methods as are specified for
the  giving  of  notices  under  this  Agreement.  Each  of  the  parties hereto
irrevocably  consents  to  the  jurisdiction of any such court in any such suit,
action  or  proceeding  and  to  the  laying of venue in such court.  Each party
hereto irrevocably waives any objection to the laying of venue of any such suit,
action  or  proceeding  brought  in such courts and irrevocably waives any claim
that  any  such  suit,  action  or proceeding brought in any such court has been
brought  in  an inconvenient forum.  EACH OF THE PARTIES HERETO WAIVES ANY RIGHT
TO  REQUEST A TRIAL BY JURY IN ANY LITIGATION WITH RESPECT TO THIS AGREEMENT AND
REPRESENTS  THAT  COUNSEL  HAS  BEEN  CONSULTED  SPECIFICALLY AS TO THIS WAIVER.

<PAGE>
          IN WITNESS WHEREOF, the parties have executed this Agreement or caused
their  duly  authorized  officers to execute this Agreement as of the date first
above  written.
The  Company:                    LOCATEPLUS  HOLDINGS  CORPORATION

By:_________________________
Name:
Title:

<PAGE>
The  Investors:

<PAGE>
                                                                       Exhibit A
                                                                       ---------

                              PLAN OF DISTRIBUTION

     The  selling  stockholders, which as used herein includes donees, pledgees,
transferees  or  other  successors-in-interest selling shares of common stock or
interests  in  shares of common stock received after the date of this prospectus
from  a selling stockholder as a gift, pledge, partnership distribution or other
transfer,  may, from time to time, sell, transfer or otherwise dispose of any or
all  of  their  shares of common stock or interests in shares of common stock on
any stock exchange, market or trading facility on which the shares are traded or
in  private  transactions.  These  dispositions  may  be  at  fixed  prices,  at
prevailing  market  prices  at  the  time  of  sale,  at  prices  related to the
prevailing market price, at varying prices determined at the time of sale, or at
negotiated  prices.

     The  selling  stockholders may use any one or more of the following methods
when  disposing  of  shares  or  interests  therein:

     -  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 effected after the date the registration statement of which
this  Prospectus  is  a  part  is  declared  effective  by  the  SEC;

     -  through  the  writing  or  settlement  of  options  or  other  hedging
transactions,  whether  through  an  options  exchange  or  otherwise;

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

     -  a  combination  of  any  such  methods  of  sale.

     The selling stockholders may, from time to time, pledge or grant a security
interest in some or all of the 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, under
this  prospectus,  or under an amendment to this prospectus under Rule 424(b)(3)
or other applicable provision of the Securities Act amending the list of selling
stockholders  to include the pledgee, transferee or other successors in interest
as

<PAGE>
selling  stockholders  under this prospectus.  The selling stockholders also may
transfer  the  shares  of common stock in other circumstances, in which case the
transferees,  pledgees  or  other  successors  in  interest  will be the selling
beneficial  owners  for  purposes  of  this  prospectus.

     In  connection  with the sale of our common stock or interests therein, the
selling  stockholders may enter into hedging transactions with broker-dealers or
other  financial  institutions,  which  may in turn engage in short sales of the
common  stock  in  the course of hedging the positions they assume.  The selling
stockholders  may  also  sell shares of our common stock short and deliver these
securities  to  close  out  their  short positions, or loan or pledge the common
stock  to  broker-dealers  that  in turn may sell these securities.  The selling
stockholders  may  also  enter  into  option  or  other  transactions  with
broker-dealers  or  other  financial institutions or the creation of one or more
derivative  securities which require the delivery to such broker-dealer or other
financial  institution  of  shares offered by this prospectus, which shares such
broker-dealer  or  other  financial  institution  may  resell  pursuant  to this
prospectus  (as  supplemented  or  amended  to  reflect  such  transaction).

     The  aggregate  proceeds  to  the selling stockholders from the sale of the
common stock offered by them will be the purchase price of the common stock less
discounts or commissions, if any.  Each of the selling stockholders reserves the
right to accept and, together with their agents from time to time, to reject, in
whole  or  in part, any proposed purchase of common stock to be made directly or
through  agents.  We  will  not  receive any of the proceeds from this offering.
Upon  any  exercise of the warrants by payment of cash, however, we will receive
the  exercise  price  of  the  warrants.

     The  selling stockholders also may resell all or a portion of the shares in
open  market  transactions in reliance upon Rule 144 under the Securities Act of
1933,  provided  that  they meet the criteria and conform to the requirements of
that  rule.

     The  selling  stockholders  and  any underwriters, broker-dealers or agents
that  participate  in  the  sale of the common stock or interests therein may be
"underwriters"  within  the meaning of Section 2(11) of the Securities Act.  Any
discounts,  commissions,  concessions  or  profit they earn on any resale of the
shares  may  be underwriting discounts and commissions under the Securities Act.
Selling  stockholders who are "underwriters" within the meaning of Section 2(11)
of the Securities Act will be subject to the prospectus delivery requirements of
the  Securities  Act.

     To  the  extent  required,  the  shares of our common stock to be sold, the
names  of  the  selling  stockholders, the respective purchase prices and public
offering  prices, the names of any agents, dealer or underwriter, any applicable
commissions or discounts with respect to a particular offer will be set forth in
an  accompanying  prospectus  supplement  or,  if  appropriate, a post-effective
amendment  to  the  registration  statement  that  includes  this  prospectus.

     In  order to comply with the securities laws of some states, if applicable,
the  common  stock may be sold in these jurisdictions only through registered or
licensed  brokers  or dealers.  In addition, in some states the common stock may
not  be sold unless it has been registered or qualified for sale or an exemption
from  registration  or  qualification  requirements is available and is complied
with.

<PAGE>

     We  have  advised the selling stockholders that the anti-manipulation rules
of  Regulation  M  under  the  Exchange  Act may apply to sales of shares in the
market  and  to the activities of the selling stockholders and their affiliates.
In  addition,  we will make copies of this prospectus (as it may be supplemented
or  amended  from  time  to  time) available to the selling stockholders for the
purpose  of  satisfying  the  prospectus delivery requirements of the Securities
Act.  The selling stockholders may indemnify any broker-dealer that participates
in  transactions  involving  the sale of the shares against certain liabilities,
including  liabilities  arising  under  the  Securities  Act.

     We  have  agreed to indemnify the selling stockholders against liabilities,
including  liabilities  under  the  Securities  Act  and  state securities laws,
relating  to  the  registration  of  the  shares  offered  by  this  prospectus.

     We  have  agreed  with  the  selling  stockholders to keep the registration
statement  of  which  this  prospectus  constitutes  a  part effective until the
earlier  of  (1)  such time as all of the shares covered by this prospectus have
been  disposed  of pursuant to and in accordance with the registration statement
or  (2)  the date on which the shares may be sold pursuant to Rule 144(k) of the
Securities  Act.-2-
     THE  SECURITIES  REPRESENTED  HEREBY MAY NOT BE TRANSFERRED UNLESS (I) SUCH
SECURITIES HAVE BEEN REGISTERED FOR SALE PURSUANT TO THE SECURITIES ACT OF 1933,
AS  AMENDED,  (II) SUCH SECURITIES MAY BE SOLD PURSUANT TO RULE 144(K), OR (III)
THE  COMPANY  HAS  RECEIVED  AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT
THAT  SUCH  TRANSFER  MAY  LAWFULLY  BE  MADE  WITHOUT  REGISTRATION  UNDER  THE
SECURITIES  ACT OF 1933 OR QUALIFICATION UNDER APPLICABLE STATE SECURITIES LAWS.

     SUBJECT  TO THE PROVISIONS OF SECTION 10 HEREOF, THIS WARRANT SHALL BE VOID
AFTER  5:00  P.M.  EASTERN  TIME  ON  JULY  8,  2010  (THE  "EXPIRATION  DATE").

No.  __________

     LOCATEPLUS  HOLDINGS  CORPORATION

     WARRANT  TO  PURCHASE  _______  SHARES  OF
     COMMON  STOCK,  PAR  VALUE  $0.01  PER  SHARE

     For  VALUE RECEIVED, ____________________ ("Warrantholder"), is entitled to
purchase,  subject  to  the provisions of this Warrant, from LocatePlus Holdings
Corporation, a Delaware corporation ("Company"), at any time not later than 5:00
P.M.,  Eastern  time,  on the Expiration Date (as defined above), at an exercise
price per share equal to $0.15 (the exercise price in effect being herein called
the  "Warrant  Price"), ______ shares ("Warrant Shares") of the Company's Common
Stock.  The  number  of Warrant Shares purchasable upon exercise of this Warrant
and  the  Warrant  Price  shall  be  subject  to adjustment from time to time as
described  herein.  As used herein, the term "Common Stock" shall mean (i) prior
to  the  consummation  of  the  Recapitalization  (as  defined  in  the Purcahse
Agreement  referenced  below),  the Class A Voting Common Stock, par value $0.01
per  share, of the Company; provided, however, that if, upon the exercise of the
Company Warrants (as defined below), the authorized but unissued shares of Class
A  Voting  Common  Stock  are not sufficient to permit the full exercise of this
Warrant  and the other Company Warrants, then the term "Common Stock" shall mean
such  shares  of  Class A Voting Common Stock as are then available for issuance
plus such number of shares of Class B Nonvoting Common Stock as shall permit the
full  exercise  of this Warrant and the other Company Warrants and (ii) from and
after the effective time of the Recapitalization, the Recapitalization Stock (as
defined  in  the  Purchase  Agreement).

     Section  1.     Registration.  The  Company  shall  maintain  books for the
                     ------------
transfer  and  registration  of  the Warrant.  Upon the initial issuance of this
Warrant,  the  Company  shall  issue and register the Warrant in the name of the
Warrantholder.

     Section  2.     Transfers.  As  provided  herein,  this  Warrant  may  be
                     ---------
transferred only pursuant to a registration statement filed under the Securities
Act  of  1933,  as  amended  (the  "Securities  Act"), or an exemption from such
registration.  Subject  to  such  restrictions,  the Company shall transfer this
Warrant  from  time  to  time  upon  the  books  to  be  maintained  by  the

<PAGE>
Company  for that purpose, upon surrender thereof for transfer properly endorsed
or  accompanied  by  appropriate  instructions  for  transfer  and  such  other
documents  as  may be reasonably required by the Company, including, if required
by  the  Company,  an opinion of its counsel to the effect that such transfer is
exempt  from  the  registration requirements of the Securities Act, to establish
that  such transfer is being made in accordance with the terms hereof, and a new
Warrant  shall  be issued to the transferee and the surrendered Warrant shall be
canceled  by  the  Company.

     Section  3.     Exercise of Warrant.  Subject to the provisions hereof, the
                     -------------------
Warrantholder may exercise this Warrant in whole or in part at any time prior to
its expiration upon surrender of the Warrant, together with delivery of the duly
executed  Warrant  exercise  form  attached  hereto as Appendix A (the "Exercise
Agreement") and payment by cash, certified check or wire transfer of immediately
available funds (or, in certain circumstances, by cash-less exercise as provided
                ================================================================
below)for  the  aggregate  Warrant  Price for that number of Warrant Shares then
======
being  purchased  (the "Purchase Amount"), to the Company during normal business
===
hours  on any business day at the Company's principal executive offices (or such
other  office  or  agency  of  the  Company as it may designate by notice to the
Warrantholder).  The Warrant Shares so purchased shall be deemed to be issued to
the  Warrantholder  or the Warrantholder's designee, as the record owner of such
shares, as of the close of business on the date on which this Warrant shall have
been surrendered (or evidence of loss, theft or destruction thereof and security
or  indemnity  satisfactory to the Company), the Purchase Amount shall have been
paid  and  the  completed  Exercise  Agreement  shall  have  been  delivered.
Certificates  for  the  Warrant  Shares so purchased, representing the aggregate
number  of shares specified in the Exercise Agreement, shall be delivered to the
Warrantholder  within  a reasonable time, not exceeding three (3) business days,
after  this Warrant shall have been so exercised.  The certificates so delivered
shall  be  in  such  denominations  as may be requested by the Warrantholder and
shall be registered in the name of the Warrantholder or such other name as shall
be  designated  by the Warrantholder.  If this Warrant shall have been exercised
only  in  part, then, unless this Warrant has expired, the Company shall, at its
expense,  at  the  time  of  delivery  of  such  certificates,  deliver  to  the
Warrantholder  a  new  Warrant representing the number of shares with respect to
which  this  Warrant  shall  not  then  have  been  exercised.  As  used herein,
"business  day"  means a day, other than a Saturday or Sunday, on which banks in
New  York  City are open for the general transaction of business.  Each exercise
hereof  shall  constitute  the  re-affirmation  by  the  Warrantholder  that the
representations  and warranties contained in Section 5 of the Purchase Agreement
(as defined below) are true and correct in all material respects with respect to
the  Warrantholder  as  of  the  time  of  such  exercise.

     Section  4.     Compliance  with  the  Securities  Act  of  1933. Except as
                     ------------------------------------------------
provided in the Purchase Agreement (as defined below), the Company may cause the
legend  set  forth  on  the  first  page of this Warrant to be set forth on each
Warrant  or  similar  legend on any security issued or issuable upon exercise of
this  Warrant,  unless  counsel for the Company is of the opinion as to any such
security  that  such  legend  is  unnecessary.

     Section  5.     Payment  of  Taxes.  The  Company  will pay any documentary
                     ------------------
stamp taxes attributable to the initial issuance of Warrant Shares issuable upon
the  exercise  of  the Warrant; provided, however, that the Company shall not be
required  to  pay  any  tax  or  taxes  which  may  be

<PAGE>
payable  in  respect of any transfer involved in the issuance or delivery of any
certificates  for  Warrant Shares in a name other than that of the Warrantholder
in  respect of which such shares are issued, and in such case, the Company shall
not  be  required  to issue or deliver any certificate for Warrant Shares or any
Warrant  until the person requesting the same has paid to the Company the amount
of  such  tax  or  has established to the Company's reasonable satisfaction that
such tax has been paid.  The Warrantholder shall be responsible for income taxes
due  under  federal,  state  or  other  law,  if  any  such  tax  is  due.

     Section  6.     Mutilated  or Missing Warrants.  In case this Warrant shall
                     ------------------------------
be  mutilated,  lost,  stolen, or destroyed, the Company shall issue in exchange
and  substitution  of and upon cancellation of the mutilated Warrant, or in lieu
of  and substitution for the Warrant lost, stolen or destroyed, a new Warrant of
like  tenor  and  for  the purchase of a like number of Warrant Shares, but only
upon  receipt  of  evidence reasonably satisfactory to the Company of such loss,
theft  or  destruction  of  the  Warrant,  and with respect to a lost, stolen or
destroyed  Warrant,  reasonable  indemnity  or  bond  with  respect  thereto, if
requested  by  the  Company.

     Section  7.     Reservation of Common Stock.  The Company hereby represents
                     ---------------------------
and  warrants  that  there  have  been  reserved,  and  the Company shall at all
applicable  times  keep  reserved until issued (if necessary) as contemplated by
this  Section  7,  out  of  the  authorized and unissued shares of Common Stock,
sufficient  shares  to  provide  for  the  exercise  of  the  rights of purchase
represented  by this Warrant.  The Company agrees that all Warrant Shares issued
upon  due  exercise  of  the  Warrant  shall  be, at the time of delivery of the
certificates  for  such  Warrant  Shares, duly authorized, validly issued, fully
paid  and  non-assessable  shares  of  Common  Stock  of  the  Company.

     Section 8.     Adjustments.  Subject and pursuant to the provisions of this
                    -----------
Section  8,  the  Warrant  Price  and  number  of Warrant Shares subject to this
Warrant  shall  be  subject  to  adjustment  from  time  to  time  as  set forth
hereinafter.

          (a)     If  the  Company shall, at any time or from time to time while
this Warrant is outstanding, pay a dividend or make a distribution on its Common
Stock  in  shares  of  Common  Stock, subdivide its outstanding shares of Common
Stock  into  a  greater  number  of  shares or combine its outstanding shares of
Common Stock into a smaller number of shares or issue by reclassification of its
outstanding  shares  of  Common Stock any shares of its capital stock (including
any  such reclassification in connection with a consolidation or merger in which
the  Company  is  the continuing corporation), then the number of Warrant Shares
purchasable  upon  exercise  of  the  Warrant  and  the  Warrant Price in effect
immediately  prior  to  the  date upon which such change shall become effective,
shall be adjusted by the Company so that the Warrantholder thereafter exercising
the Warrant shall be entitled to receive the number of shares of Common Stock or
other  capital  stock which the Warrantholder would have received if the Warrant
had  been  exercised  immediately  prior to such event upon payment of a Warrant
Price  that  has  been adjusted to reflect a fair allocation of the economics of
such  event  to  the Warrantholder.  Such adjustments shall be made successively
whenever  any  event  listed  above  shall  occur.

          (b)     If any capital reorganization, reclassification of the capital
stock  of  the  Company,  consolidation  or  merger  of the Company with another
corporation  in  which  the

<PAGE>
Company  is  not  the survivor, or sale, transfer or other disposition of all or
substantially  all  of  the  Company's  assets  to  another corporation shall be
effected,  then,  as  a  condition  of  such  reorganization,  reclassification,
consolidation,  merger, sale, transfer or other disposition, lawful and adequate
provision  shall  be  made  whereby each Warrantholder shall thereafter have the
right  to  purchase and receive upon the basis and upon the terms and conditions
herein  specified  and  in  lieu  of  the Warrant Shares immediately theretofore
issuable  upon  exercise  of  the  Warrant,  such shares of stock, securities or
assets as would have been issuable or payable with respect to or in exchange for
a  number  of  Warrant  Shares equal to the number of Warrant Shares immediately
theretofore  issuable  upon  exercise  of  the Warrant, had such reorganization,
reclassification, consolidation, merger, sale, transfer or other disposition not
taken  place,  and  in  any  such  case appropriate provision shall be made with
respect  to  the  rights and interests of each Warrantholder to the end that the
provisions  hereof  (including,  without limitation, provision for adjustment of
the  Warrant  Price) shall thereafter be applicable, as nearly equivalent as may
be  practicable  in  relation  to  any  shares  of  stock,  securities or assets
thereafter  deliverable  upon the exercise hereof.  The Company shall not effect
any such consolidation, merger, sale, transfer or other disposition unless prior
to or simultaneously with the consummation thereof the successor corporation (if
other  than  the  Company)  resulting  from such consolidation or merger, or the
corporation  purchasing  or otherwise acquiring such assets or other appropriate
corporation  or  entity  shall  assume  the  obligation  to  deliver  to  the
Warrantholder,  at  the last address of the Warrantholder appearing on the books
of  the  Company,  such  shares of stock, securities or assets as, in accordance
with  the  foregoing  provisions, the Warrantholder may be entitled to purchase,
and  the other obligations under this Warrant.  The provisions of this paragraph
(b)  shall  similarly  apply  to  successive reorganizations, reclassifications,
consolidations,  mergers,  sales,  transfers  or  other  dispositions.

          (c)     In case the Company shall fix a payment date for the making of
a  distribution  to all holders of Common Stock (including any such distribution
made  in  connection  with a consolidation or merger in which the Company is the
continuing  corporation) of evidences of indebtedness or assets (other than cash
dividends  or  cash distributions payable out of consolidated earnings or earned
surplus  or  dividends  or  distributions  referred  to  in  Section  8(a)),  or
subscription  rights  or  warrants, the Warrant Price to be in effect after such
payment  date  shall  be  determined  by multiplying the Warrant Price in effect
immediately  prior  to  such  payment date by a fraction, the numerator of which
shall  be  the  total number of shares of Common Stock outstanding multiplied by
the  Market Price (as defined below) per share of Common Stock immediately prior
to such payment date, less the fair market value (as determined by the Company's
Board of Directors in good faith) of said assets or evidences of indebtedness so
distributed,  or of such subscription rights or warrants, and the denominator of
which shall be the total number of shares of Common Stock outstanding multiplied
by such Market Price per share of Common Stock immediately prior to such payment
date.  "Market  Price" as of a particular date (the "Valuation Date") shall mean
the  following:  (a)  if  the  Common  Stock  is then listed on a national stock
exchange,  the  closing sale price of one share of Common Stock on such exchange
on  the last trading day prior to the Valuation Date; (b) if the Common Stock is
then  quoted  on  The  Nasdaq  Stock  Market,  Inc.  ("Nasdaq"),  the  National
Association  of  Securities  Dealers,  Inc.  OTC  Bulletin  Board (the "Bulletin
Board")  or  such similar exchange or association, the closing sale price of one
share  of  Common  Stock on Nasdaq, the Bulletin Board or such other exchange or
association  on  the last trading day prior to the Valuation Date or, if no such
closing  sale  price

<PAGE>
is available, the average of the high bid and the low asked price quoted thereon
on  the last trading day prior to the Valuation Date; or (c) if the Common Stock
is  not  then  listed  on  a  national  stock  exchange or quoted on Nasdaq, the
Bulletin  Board  or such other exchange or association, the fair market value of
one  share of Common Stock as of the Valuation Date, shall be determined in good
faith  by  the  Board of Directors of the Company and the Warrantholder.  If the
Common  Stock is not then listed on a national securities exchange, the Bulletin
Board  or  such  other  exchange  or  association, the Board of Directors of the
Company  shall  respond promptly, in writing, to an inquiry by the Warrantholder
prior to the exercise hereunder as to the fair market value of a share of Common
Stock as determined by the Board of Directors of the Company.  In the event that
the  Board of Directors of the Company and the Warrantholder are unable to agree
upon the fair market value in respect of subpart (c) hereof, the Company and the
Warrantholder  shall  jointly  select  an  appraiser, who is experienced in such
matters.  The  decision of such appraiser shall be final and conclusive, and the
cost  of  such  appraiser  shall  be  borne  equally  by  the  Company  and  the
Warrantholder.  Such  adjustment  shall  be  made  successively  whenever such a
payment  date  is  fixed.

          (d)     An  adjustment  to  the  Warrant  Price shall become effective
immediately  after the payment date in the case of each dividend or distribution
and  immediately  after the effective date of each other event which requires an
adjustment.

          (e)     In  the event that, as a result of an adjustment made pursuant
to this Section 8, the Warrantholder shall become entitled to receive any shares
of capital stock of the Company other than shares of Common Stock, the number of
such  other  shares so receivable upon exercise of this Warrant shall be subject
thereafter  to  adjustment  from time to time in a manner and on terms as nearly
equivalent  as  practicable to the provisions with respect to the Warrant Shares
contained  in  this  Warrant.

          (f)     Except  as  provided in subsection (g) hereof, if and whenever
the  Company  shall  issue or sell, or is, in accordance with any of subsections
(f)(l)  through  (f)(7)  hereof,  deemed  to  have issued or sold, any shares of
Common Stock for no consideration or for a consideration per share less than the
Warrant  Price  in  effect  immediately prior to the time of such issue or sale,
then  and  in  each  such  case (a "Trigger Issuance") the then-existing Warrant
                                    ----------------
Price,  shall  be  reduced, as of the close of business on the effective date of
the  Trigger  Issuance,  to  a  price  determined  as  follows:

     Adjusted  Warrant  Price  =  (A  x  B)  +  D
                                  ---------------
                         A+C

     where

     "A"  equals  the  number  of  shares of Common Stock outstanding, including
Additional  Shares  of  Common  Stock  (as  defined  below)  deemed to be issued
hereunder,  in  both  cases  immediately  preceding  such  Trigger  Issuance;

     "B"  equals  the Warrant Price in effect immediately preceding such Trigger
Issuance;

<PAGE>

     "C" equals the number of Additional Shares of Common Stock issued or deemed
issued  hereunder  as  a  result  of  the  Trigger  Issuance;  and

     "D"  equals  the  aggregate consideration, if any, received or deemed to be
received  by  the  Company  upon  such  Trigger  Issuance;

provided,  however, that in no event shall the Warrant Price after giving effect
to  such  Trigger  Issuance be greater than the Warrant Price in effect prior to
such  Trigger  Issuance.

          For  purposes  of  this  subsection  (f), "Additional Shares of Common
Stock"  shall mean all shares of Common Stock issued by the Company or deemed to
be  issued  pursuant  to  this subsection (f), other than Excluded Issuances (as
defined  in  subsection  (g)  hereof).

          For  purposes of this subsection (f), the following subsections (f)(l)
to  (f)(7)  shall  also  be  applicable:

               (f)(1)  Issuance  of  Rights or Options.  In case at any time the
Company shall in any manner grant (directly and not by assumption in a merger or
otherwise)  any warrants or other rights to subscribe for or to purchase, or any
options  for  the purchase of, Common Stock or any stock or security convertible
into  or  exchangeable  for Common Stock (such warrants, rights or options being
called  "Options" and such convertible or exchangeable stock or securities being
called  "Convertible  Securities")  whether  or not such Options or the right to
convert or exchange any such Convertible Securities are immediately exercisable,
and  the price per share for which Common Stock is issuable upon the exercise of
such  Options  or upon the conversion or exchange of such Convertible Securities
(determined  by  dividing (i) the sum (which sum shall constitute the applicable
consideration)  of  (x)  the total amount, if any, received or receivable by the
Company  as  consideration  for  the  granting  of  such  Options,  plus (y) the
aggregate  amount  of  additional  consideration payable to the Company upon the
exercise of all such Options, plus (z), in the case of such Options which relate
to  Convertible Securities, the aggregate amount of additional consideration, if
any,  payable upon the issue or sale of such Convertible Securities and upon the
conversion  or  exchange  thereof, by (ii) the total maximum number of shares of
Common  Stock  issuable upon the exercise of such Options or upon the conversion
or  exchange  of  all  such Convertible Securities issuable upon the exercise of
such  Options)  shall be less than the Warrant Price in effect immediately prior
to  the time of the granting of such Options, then the total number of shares of
Common  Stock  issuable  upon the exercise of such Options or upon conversion or
exchange  of  the  total amount of such Convertible Securities issuable upon the
exercise  of such Options shall be deemed to have been issued for such price per
share  as  of  the  date  of  granting  of  such Options or the issuance of such
Convertible  Securities  and  thereafter  shall  be deemed to be outstanding for
purposes  of  adjusting  the  Warrant  Price.  Except  as  otherwise provided in
subsection  8(f)(3),  no  adjustment of the Warrant Price shall be made upon the
actual  issue  of  such  Common  Stock

<PAGE>
or  of  such  Convertible  Securities  upon exercise of such Options or upon the
actual  issue  of  such  Common  Stock  upon  conversion  or  exchange  of  such
Convertible  Securities.

               (f)(2)  Issuance  of Convertible Securities.  In case the Company
shall  in  any  manner  issue  (directly  and  not  by assumption in a merger or
otherwise)  or  sell  any  Convertible  Securities, whether or not the rights to
exchange or convert any such Convertible Securities are immediately exercisable,
and  the price per share for which Common Stock is issuable upon such conversion
or  exchange (determined by dividing (i) the sum (which sum shall constitute the
applicable  consideration) of (x) the total amount received or receivable by the
Company  as  consideration for the issue or sale of such Convertible Securities,
plus  (y)  the  aggregate amount of additional consideration, if any, payable to
the Company upon the conversion or exchange thereof, by (ii) the total number of
shares  of  Common  Stock  issuable  upon the conversion or exchange of all such
Convertible  Securities)  shall  be  less  than  the  Warrant  Price  in  effect
immediately  prior  to  the  time  of such issue or sale, then the total maximum
number  of  shares  of  Common Stock issuable upon conversion or exchange of all
such  Convertible  Securities shall be deemed to have been issued for such price
per share as of the date of the issue or sale of such Convertible Securities and
thereafter  shall  be  deemed  to  be  outstanding for purposes of adjusting the
Warrant  Price,  provided  that  (a)  except as otherwise provided in subsection
8(f)(3),  no  adjustment  of  the  Warrant  Price  shall be made upon the actual
issuance  of  such  Common Stock upon conversion or exchange of such Convertible
Securities  and  (b) no further adjustment of the Warrant Price shall be made by
reason  of  the  issue  or  sale  of Convertible Securities upon exercise of any
Options to purchase any such Convertible Securities for which adjustments of the
Warrant  Price  have  been  made  pursuant to the other provisions of subsection
8(f).
               (f)(3)  Change  in  Option  Price  or  Conversion Rate.  Upon the
happening of any of the following events, namely, if the purchase price provided
for  in  any  Option  referred  to  in subsection 8(f)(l) hereof, the additional
consideration,  if  any,  payable  upon  the  conversion  or  exchange  of  any
Convertible  Securities  referred  to  in subsections 8(f)(l) or 8(f)(2), or the
rate  at  which  Convertible  Securities  referred  to in subsections 8(f)(l) or
8(f)(2)  are  convertible  into or exchangeable for Common Stock shall change at
any  time  (including,  but  not  limited  to,  changes  under  or  by reason of
provisions designed to protect against dilution), the Warrant Price in effect at
the  time of such event shall forthwith be readjusted to the Warrant Price which
would  have  been  in  effect  at  such  time  had  such  Options or Convertible
Securities  still  outstanding  provided  for  such  changed  purchase  price,
additional  consideration  or  conversion  rate, as the case may be, at the time
initially  granted,  issued or sold.  On the termination of any Option for which
any adjustment was made pursuant to this subsection 8(f) or any right to convert
or exchange Convertible Securities for which any adjustment was made pursuant to
this  subsection  8(f)  (including  without  limitation  upon  the redemption or
purchase  for  consideration of such Convertible Securities by the Company), the
Warrant Price then in effect hereunder shall forthwith be changed to the Warrant
Price

<PAGE>
which  would have been in effect at the time of such termination had such Option
or  Convertible  Securities, to the extent outstanding immediately prior to such
termination,  never  been  issued.
               (f)(4)  Stock Dividends.  Subject to the other provisions of this
Section  8(f),  in  case  the Company shall declare a dividend or make any other
distribution upon any stock of the Company (other than the Common Stock) payable
in  Common  Stock,  Options  or  Convertible  Securities, then any Common Stock,
Options  or  Convertible  Securities, as the case may be, issuable in payment of
such  dividend  or  distribution  shall  be  deemed  to have been issued or sold
without  consideration.

               (f)(5)  Consideration  for  Stock.  In  case any shares of Common
Stock,  Options  or Convertible Securities shall be issued or sold for cash, the
consideration received therefor shall be deemed to be the net amount received by
the  Company therefor, after deduction therefrom of any expenses incurred or any
underwriting  commissions  or  concessions  paid  or  allowed  by the Company in
connection  therewith.  In  case  any  shares  of  Common  Stock,  Options  or
Convertible  Securities  shall  be issued or sold for a consideration other than
cash,  the  amount  of the consideration other than cash received by the Company
shall be deemed to be the fair value of such consideration as determined in good
faith  by the Board of Directors of the Company, after deduction of any expenses
incurred  or  any underwriting commissions or concessions paid or allowed by the
Company  in  connection  therewith.  In  case  any  Options  shall  be issued in
connection  with the issue and sale of other securities of the Company, together
comprising  one  integral  transaction  in  which  no  specific consideration is
allocated  to  such Options by the parties thereto, such Options shall be deemed
to  have  been  issued for such consideration as determined in good faith by the
Board  of  Directors  of  the  Company.  If Common Stock, Options or Convertible
Securities  shall be issued or sold by the Company and, in connection therewith,
other  Options  or  Convertible Securities (the "Additional Rights") are issued,
then the consideration received or deemed to be received by the Company shall be
reduced  by  the fair market value of the Additional Rights (as determined using
the  Black-Scholes  option pricing model or another method mutually agreed to by
the Company and the Warrantholder).  The Board of Directors of the Company shall
respond  promptly, in writing, to an inquiry by the Warrantholder as to the fair
market value of the Additional Rights.  In the event that the Board of Directors
of  the  Company  and the Warrantholder are unable to agree upon the fair market
value  of the Additional Rights, the Company and the Warrantholder shall jointly
select  an  appraiser, who is experienced in such matters.  The decision of such
appraiser shall be final and conclusive, and the cost of such appraiser shall be
borne  evenly  by  the  Company  and  the  Warrantholder.

               (f)(6)  Record  Date.  In case the Company shall take a record of
the holders of its Common Stock for the purpose of entitling them (i) to receive
a dividend or other distribution payable in Common Stock, Options or Convertible
Securities  or  (ii)  to  subscribe  for  or  purchase  Common Stock, Options or
Convertible

<PAGE>
Securities, then such record date shall be deemed to be the date of the issue or
sale  of  the shares of Common Stock deemed to have been issued or sold upon the
declaration  of  such  dividend  or the making of such other distribution or the
date  of the granting of such right of subscription or purchase, as the case may
be.

               (f)(7)  Treasury  Shares.  The  number  of shares of Common Stock
outstanding  at  any given time shall not include shares owned or held by or for
the  account  of  the  Company  or any of its wholly-owned subsidiaries, and the
disposition  of  any  such  shares  (other  than  the cancellation or retirement
thereof) shall be considered an issue or sale of Common Stock for the purpose of
this  subsection  (f).

          (g)     Anything  herein  to the contrary notwithstanding, the Company
shall not be required to make any adjustment of the Warrant Price in the case of
the  issuance  of(A)  capital stock, Options or Convertible Securities issued to
directors,  officers, employees or consultants of the Company in connection with
their  service  as  directors of the Company, their employment by the Company or
their retention as consultants by the Company pursuant to an equity compensation
program  approved  by  the Board of Directors of the Company or the compensation
committee  of  the Board of Directors of the Company, (B) shares of Common Stock
issued  upon  the  conversion  or  exercise of Options or Convertible Securities
issued  prior to the date hereof, provided such securities are not amended after
the  date  hereof  to  increase  the  number  of shares of Common Stock issuable
thereunder  or to lower the exercise or conversion price thereof, (C) securities
issued pursuant to that certain Purchase Agreement dated July 8, 2005, among the
Company  and  the  Investors  named  therein  (the  "Purchase  Agreement")  and
securities  issued  upon the exercise or conversion of those securities, and (D)
shares  of  Common Stock issued or issuable by reason of a dividend, stock split
or  other  distribution  on  shares of Common Stock (but only to the extent that
such  a  dividend, split or distribution results in an adjustment in the Warrant
Price pursuant to the other provisions of this Warrant) (collectively, "Excluded
Issuances").

          (h)     Upon  any  adjustment to the Warrant Price pursuant to Section
8(f) above, the number of Warrant Shares purchasable hereunder shall be adjusted
by  multiplying  such  number by a fraction, the numerator of which shall be the
Warrant Price in effect immediately prior to such adjustment and the denominator
of  which  shall  be  the  Warrant  Price  in  effect  immediately  thereafter.

     Section  9.     Fractional  Interest.  The Company shall not be required to
                     --------------------
issue  fractions  of  Warrant  Shares upon the exercise of this Warrant.  If any
fractional  share  of Common Stock would, except for the provisions of the first
sentence  of  this Section 9, be deliverable upon such exercise, the Company, in
lieu  of  delivering  such  fractional  share,  shall  pay  to  the  exercising
Warrantholder  an  amount  in  cash equal to the Market Price of such fractional
share  of  Common  Stock  on  the  date  of  exercise.

     Section  10.     Extension  of  Expiration  Date.  If  the Company fails to
                      -------------------------------
cause  any  Registration  Statement  covering  Registrable  Securities  (unless
otherwise  defined  herein, capitalized terms are as defined in the Registration
Rights  Agreement  relating  to  the  Warrant

<PAGE>
Shares  (the "Registration Rights Agreement")) to be declared effective prior to
the  applicable  dates  set  forth therein, or if any of the events specified in
Section  2(c)(ii)  of the Registration Rights Agreement occurs, and the Blackout
Period  (whether  alone,  or  in  combination  with  any  other Blackout Period)
continues for more than 60 days in any 12 month period, or for more than a total
of  90  days, then the Expiration Date of this Warrant shall be extended one day
for  each  day  beyond the 60-day or 90-day limits, as the case may be, that the
Blackout  Period  continues.

     Section  11.     Benefits.  Nothing  in  this Warrant shall be construed to
                      --------
give  any  person,  firm  or  corporation  (other  than  the  Company  and  the
Warrantholder)  any  legal  or equitable right, remedy or claim, it being agreed
that this Warrant shall be for the sole and exclusive benefit of the Company and
the  Warrantholder.

     Section  12.     Notices to Warrantholder.  Upon the happening of any event
                      ------------------------
requiring  an  adjustment  of the Warrant Price, the Company shall promptly give
written  notice  thereof  to  the  Warrantholder at the address appearing in the
records  of  the  Company,  stating  the adjusted Warrant Price and the adjusted
number  of  Warrant  Shares  resulting  from  such  event  and  setting forth in
reasonable  detail  the  method  of  calculation  and  the facts upon which such
calculation  is  based.  Failure to give such notice to the Warrantholder or any
defect  therein  shall  not  affect  the  legality  or  validity  of the subject
adjustment.

     Section  13.     Identity  of  Transfer  Agent.  The Transfer Agent for the
                      -----------------------------
Common  Stock  is  Transfer Online, Inc.  Upon the appointment of any subsequent
transfer  agent  for  the  Common Stock or other shares of the Company's capital
stock  issuable  upon  the exercise of the rights of purchase represented by the
Warrant,  the  Company  will mail to the Warrantholder a statement setting forth
the  name  and  address  of  such  transfer  agent.

     Section 14.     Notices.  Unless otherwise provided, any notice required or
                     -------
permitted  under  this  Warrant  shall  be  given in writing and shall be deemed
effectively  given  as  hereinafter described (i) if given by personal delivery,
then  such  notice  shall  be  deemed given upon such delivery, (ii) if given by
telex  or  facsimile,  then  such  notice  shall be deemed given upon receipt of
confirmation  of  complete transmittal, (iii) if given by mail, then such notice
shall  be  deemed  given  upon  the earlier of (A) receipt of such notice by the
recipient  or (B) three days after such notice is deposited in first class mail,
postage  prepaid,  and  (iv) if given by an internationally recognized overnight
air  courier,  then  such  notice  shall  be deemed given one business day after
delivery  to such carrier.  All notices shall be addressed as follows: if to the
Warrantholder,  at  its  address as set forth in the Company's books and records
and,  if  to the Company, at the address as follows, or at such other address as
the  Warrantholder  or  the  Company  may designate by ten days' advance written
notice  to  the  other:

               If  to  the  Company:

LocatePlus  Holdings  Corporation
100  Cummings  Center,  Suite  235M
Beverly,  Massachusetts  01915
Attention:  Chief  Financial  Officer
Fax:  (978)  524-8887)

<PAGE>

               With  a  copy  to:

Kirkpatrick  &  Lockhart  Nicholson  Graham  LLP
75  State  Street
Boston,  MA  02109
Attn:  Michael  A.  Hickey,  Esq.
Fax:  (617)  261-3175

     Section 15.     Registration Rights.  The initial Warrantholder is entitled
                     -------------------
to  the  benefit  of  certain  registration rights with respect to the shares of
Common  Stock  issuable  upon  the  exercise  of this Warrant as provided in the
Registration  Rights Agreement, and any subsequent Warrantholder may be entitled
to  such  rights.

     Section 16.      Successors.  All the covenants and provisions hereof by or
                     -----------
for  the benefit of the Warrantholder shall bind and inure to the benefit of its
respective  successors  and  assigns  hereunder.

     Section  17.     Governing  Law;  Consent  to  Jurisdiction; Waiver of Jury
                      ----------------------------------------------------------
Trial.  This Warrant shall be governed by, and construed in accordance with, the
    -
internal  laws  of the State of New York, without reference to the choice of law
provisions  thereof.  The  Company  and,  by  accepting  this  Warrant,  the
Warrantholder,  each  irrevocably  submits  to the exclusive jurisdiction of the
courts of the State of New York located in New York County and the United States
District  Court  for  the  Southern  District of New York for the purpose of any
suit,  action, proceeding or judgment relating to or arising out of this Warrant
and the transactions contemplated hereby.  Service of process in connection with
any  such suit, action or proceeding may be served on each party hereto anywhere
in  the  world  by  the  same methods as are specified for the giving of notices
under  this  Warrant.  The  Company  and,  by  accepting  this  Warrant,  the
Warrantholder,  each  irrevocably consents to the jurisdiction of any such court
in any such suit, action or proceeding and to the laying of venue in such court.
The  Company and, by accepting this Warrant, the Warrantholder, each irrevocably
waives  any  objection  to  the  laying  of  venue  of  any such suit, action or
proceeding brought in such courts and irrevocably waives any claim that any such
suit,  action  or  proceeding  brought  in any such court has been brought in an
inconvenient  forum.  EACH  OF  THE  COMPANY  AND, BY ITS ACCEPTANCE HEREOF, THE
WARRANTHOLDER  HEREBY  WAIVES  ANY  RIGHT  TO  REQUEST  A  TRIAL  BY JURY IN ANY
LITIGATION  WITH  RESPECT  TO  THIS WARRANT AND REPRESENTS THAT COUNSEL HAS BEEN
CONSULTED  SPECIFICALLY  AS  TO  THIS  WAIVER.

     Section  18.     Call  Provision.  Notwithstanding  any  other  provision
                      ---------------
contained  herein  to the contrary, in the event that the closing bid price of a
share of Common Stock as quoted on the Bulletin Board (or such other exchange or
stock  market  on which the Common Stock may then be listed or quoted) equals or
exceeds  $0.36 (appropriately adjusted for any stock split, reverse stock split,
stock  dividend  or  other  reclassification  or combination of the Common Stock
occurring  after  the  date  hereof)  for  twenty  (20) consecutive trading days
commencing  after  the second anniversary of the Closing Date (as defined in the
Purchase  Agreement)  and  the

<PAGE>
Registration  Statement  (as  defined  in the Registration Rights Agreement) has
been declared effective, the Company, upon thirty (30) days prior written notice
(the  "Notice  Period")  given  to  the  Warrantholder  within  one business day
       --------------
immediately  following  the end of such twenty (20) trading day period, may call
      -
this  Warrant,  in  whole but not in part, at a redemption price equal to $0.001
per  share  of  Common Stock then purchasable pursuant to this Warrant; provided
that  (i)  the  Company  simultaneously  calls  all Company Warrants (as defined
below)  on  the  same  terms,  (ii)  all  of the shares of Common Stock issuable
hereunder  either  (A)  are  registered  pursuant  to  an effective Registration
Statement  (as  defined  in  the  Registration  Rights  Agreement)  which is not
suspended  and  for  which no stop order is in effect, and pursuant to which the
Warrantholder  is  able  to sell such shares of Common Stock at all times during
the Notice Period or (B) no longer constitute Registrable Securities (as defined
in  the  Registration  Rights  Agreement)  and  (iii)  this  Warrant  is  fully
exercisable  for  the  full  amount  of  Warrant  Shares  covered  hereby.
Notwithstanding any such notice by the Company, the Warrantholder shall have the
right  to  exercise  this  Warrant  prior  to  the  end  of  the  Notice Period.

     Section  19.     Cashless  Exercise.  Notwithstanding  any  other provision
                      -------------------
contained  herein  to  the contrary, from and after the first anniversary of the
Closing  Date  (as defined in the Purchase Agreement) and so long as the Company
is  required  under  the  Registration  Rights  Agreement  to  have effected the
registration  of  the  Warrant  Shares  for  sale  to  the  public pursuant to a
Registration  Statement  (as  such  term  is  defined in the Registration Rights
Agreement),  if  the Warrant Shares may not be freely sold to the public for any
reason  (including,  but  not  limited  to,  the  failure of the Company to have
effected  the registration of the Warrant Shares or to have a current prospectus
available  for  delivery  or  otherwise, but excluding the period of any Allowed
Delay  (as  defined in the Registration Rights Agreement), the Warrantholder may
elect  to  receive,  without  the  payment by the Warrantholder of the aggregate
Warrant Price in respect of the shares of Common Stock to be acquired, shares of
Common  Stock  equal  to  the value of this Warrant or any portion hereof by the
surrender  of  this Warrant (or such portion of this Warrant being so exercised)
together  with  the  Net Issue Election Notice annexed hereto as Appendix B duly
executed,  at  the office of the Company.  Thereupon, the Company shall issue to
the  Warrantholder  such  number of fully paid, validly issued and nonassessable
shares  of  Common  Stock  as  is  computed  using  the  following  formula:

                                  X = Y (A - B)
                                      ---------
                                           A

where

     X  =     the  number  of shares of Common Stock which the Warrantholder has
then  requested  be  issued  to  the  Warrantholder;

Y =     the total number of shares of Common Stock covered by this Warrant which
the Warrantholder has surrendered at such time for cash-less exercise (including
both  shares  to  be  issued  to  the Warrantholder and shares to be canceled as
payment  therefor);

A  =     the  "Market Price" of one share of Common Stock as at the time the net
issue  election  is  made;  and

<PAGE>

     B  =     the Warrant Price in effect under this Warrant at the time the net
issue  election  is  made.

     Section  20.     No  Rights  as Stockholder.  Prior to the exercise of this
                      --------------------------
Warrant,  the  Warrantholder  shall  not  have  or  exercise  any  rights  as  a
stockholder  of  the  Company  by  virtue  of  its  ownership  of  this Warrant.

     Section  21.     Amendment;  Waiver.  This  Warrant  is  one of a series of
                      ------------------
Warrants  of like tenor issued by the Company pursuant to the Purchase Agreement
and  initially  covering  an  aggregate  of  32,000,000  shares  of Common Stock
(collectively, the "Company Warrants").  Any term of this Warrant may be amended
                    ----------------
or  waived  (including  the  adjustment provisions included in Section 8 of this
Warrant)  upon  the  written  consent  of the Company and the holders of Company
Warrants  representing at least 50% of the number of shares of Common Stock then
subject  to all outstanding Company Warrants (the "Majority Holders"); provided,
                                                   ----------------    --------
that  (x)  any  such amendment or waiver must apply to all Company Warrants; and
(y)  the number of Warrant Shares subject to this Warrant, the Warrant Price and
the  Expiration  Date may not be amended, and the right to exercise this Warrant
may  not be altered or waived, without the written consent of the Warrantholder.

     Section 22.     Section Headings.  The section headings in this Warrant are
                     ----------------
for  the  convenience  of the Company and the Warrantholder and in no way alter,
modify,  amend,  limit  or  restrict  the  provisions  hereof.

                  [Remainder of Page Intentionally Left Blank]

<PAGE>
     IN  WITNESS  WHEREOF,  the  Company  has  caused  this  Warrant  to be duly
executed,  as  of  the  8th  day  of  July,  2005.

                              LOCATEPLUS  HOLDINGS  CORPORATION

                              By:___________________________
                              Name:
                              Title:

<PAGE>
     17

                                   APPENDIX A
                         LOCATEPLUS HOLDINGS CORPORATION
                              WARRANT EXERCISE FORM

To  LocatePLUS  Holdings  Corporation:

     The undersigned hereby irrevocably elects to exercise the right of purchase
represented  by the enclosed Warrant ("Warrant") for, and to purchase thereunder
by  the  payment  of  the  Warrant  Price  and  surrender  of  the  Warrant,
_______________  shares of Common Stock ("Warrant Shares") provided for therein,
and  requests  that  certificates  for  the Warrant Shares be issued as follows:

               _______________________________
               Name
               ________________________________
               Address
               ________________________________
               ________________________________
               Federal  Tax  ID  or  Social  Security  No.

     and  delivered  by     (certified  mail  to  the  above  address,  or
     (electronically  (provide  DWAC  Instructions:___________________),  or
     (other  (specify):  __________________________________________).

and,  if  the  number  of  Warrant  Shares  shall  not be all the Warrant Shares
purchasable  upon exercise of the Warrant, that a new Warrant for the balance of
the  Warrant  Shares  purchasable upon exercise of this Warrant be registered in
the name of the undersigned Warrantholder or the undersigned's Assignee (subject
to  Section  2  of  the Warrant) as below indicated and delivered to the address
stated  below.

Dated:  ___________________,  ____

Note:  The  signature  must  correspond  with
Signature:______________________________
the  name  of  the  Warrantholder  as  written
on  the  first  page  of  the  Warrant  in  every
______________________________
particular,  without  alteration  or  enlargement          Name  (please  print)
or  any  change  whatever,  unless  the  Warrant
has  been  assigned.                         ______________________________
                                   ______________________________
                                   Address
                                   ______________________________
                                   Federal  Identification  or
                                   Social  Security  No.

                                   Assignee:
                                   _______________________________
                                   _______________________________
                                   _______________________________

<PAGE>
                                   APPENDIX B
                         LOCATEPLUS HOLDINGS CORPORATION
                            NET ISSUE ELECTION NOTICE

To:  LocatePLUS  Holdings  Corporation:

Date:[_________________________]

     The undersigned hereby elects under Section 19 of this Warrant to surrender
                                         ----------
the  right  to  purchase  [____________] shares of Common Stock pursuant to this
Warrant  and  hereby  requests  the issuance of [_____________] shares of Common
Stock.  The  certificate(s) for the shares issuable upon such net issue election
shall  be issued in the name of the undersigned or as otherwise indicated below.

_________________________________________
Signature

_________________________________________
Name  for  Registration

_________________________________________
Mailing  Address

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