Document:

Unassociated Document

    SECURITIES
      PURCHASE AGREEMENT

     

    This
      Securities Purchase Agreement (this “Agreement”)
      is
      dated as of August 1, 2007, by and among Captech Financial Group, Inc., a
      Florida corporation, and all predecessors thereto (collectively, the
“Company”)
      and the
      investors identified on the signature pages hereto (each, an “Investor”
      and
      collectively, the “Investors”).

     

    WHEREAS,
      on June 21, 2007, the Company entered into a Merger Agreement, which is attached
      to the Company’s Current Report on Form 8-K under the U.S. Securities Exchange
      Act of 1934, as amended (the “Merger
      Agreement”),
      filed
      with the Commission (as defined below) with Boo Koo Beverages Company, a Texas
      corporation (“Boo
      Koo”),
      pursuant to which the Company will, through a wholly-owned subsidiary, subject
      to the terms and conditions thereof, acquire all of the equity interest of
      Boo
      Koo and, indirectly, all of Boo Koo’s subsidiaries, in exchange for
      approximately 98.78% of the outstanding Common Stock of the Company immediately
      following the merger contemplated by the Merger Agreement (the “Merger”).
      

     

    WHEREAS,
      the closing of the Merger is conditioned, among other things, on the concurrent
      consummation of the financing contemplated by this Agreement.

     

    WHEREAS,
      subject to the terms and conditions set forth in this Agreement and pursuant
      to
      exemptions from registration under the Securities Act (as defined below), the
      Company desires to issue and sell to each Investor, and each Investor, severally
      and not jointly, desires to purchase from the Company, shares of the Company’s
      Common Stock, as more fully described in this Agreement.

     

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

     

    ARTICLE
      1.

    DEFINITIONS

     

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

     

    “Action”
      means
      any action, suit, inquiry, notice of violation, proceeding (including any
      partial proceeding such as a deposition) or investigation pending or, to the
      knowledge of Boo Koo, threatened in writing against or affecting the Company,
      any Subsidiary or any of their respective properties before or by any court,
      arbitrator, governmental or administrative agency, regulatory authority
      (federal, state, county, local or foreign), stock market, stock exchange or
      trading facility.

     

    “Additional
      Shares”
has
      the
      meaning set forth in Section 4.11(a).

     

    “Additional
      Shares Closing”
      means
      the closing of the purchase and sale of the Shares pursuant to Article
      II.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “Additional
      Shares Closing Date”
      means
      the Business Day on which all of the conditions set forth in Sections 5.3 and
      5.4 hereof are satisfied, or such other date as the parties may
      agree.

     

    “Affiliate”
      means
      any Person that, directly or indirectly through one or more intermediaries,
      controls or is controlled by or is under common control with a Person, as such
      terms are used in and construed under Rule 144.

     

    “Boo
      Koo”
      has the
      meaning set forth in the recitals to this Agreement.

     

    “Business
      Day”
      means
      any day except Saturday, Sunday and any day which is a federal legal holiday
      or
      a day on which banking institutions in the State of New York are authorized
      or
      required by law or other governmental action to close.

     

    “Buy-In”
      has
      the
      meaning set forth in Section 4.1(c).

     

    “Closing”
      means
      the closing of the purchase and sale of the Shares pursuant to Article
      II.

     

    “Closing
      Date”
      means
      the Business Day on which all of the conditions set forth in Sections 5.1 and
      5.2 hereof are satisfied, or such other date as the parties may
      agree.

     

    "Closing
      Escrow Agreement"
      means
      the Closing Escrow Agreement, dated as of the date hereof, between the Company
      and the escrow agent (the “Escrow
      Agent”)
      identified therein, in the form of Exhibit
      B
      hereto.

     

    “Commission”
      means
      the Securities and Exchange Commission.

     

    “Common
      Stock”
      means
      the common stock of the Company, no par value per share, and any securities
      into
      which such common stock may hereafter be reclassified or for which it may be
      exchanged as a class.

     

    “Company
      Counsel”
      means
      Lowenstein Sandler PC.

     

    “Company
      Deliverables”
      has the
      meaning set forth in Section 2.3(a).

     

    “Disclosure
      Materials”
      shall
      mean the SEC Reports, together with the Schedules to this
      Agreement.

     

    “Effective
      Date”
      means
      the date that the Registration Statement required by Section 2(a) of the
      Registration Rights Agreement is first declared effective by the
      Commission.

     

    “Evaluation
      Date” has
      the
      meaning set forth in Section 3.1(s).

     

    “Exchange
      Act”
      means
      the Securities Exchange Act of 1934, as amended.

     

    “GAAP”
      means
      U.S. generally accepted accounting principles.

     

    “Intellectual
      Property Rights”
      has the
      meaning set forth in Section 3.1(p).

    
      
        
        

      

      
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    “Investment
      Amount”
      means,
      with respect to each Investor, the Investment Amount indicated on such
      Investor’s signature page to this Agreement.

     

    “Investor
      Deliverables”
      has the
      meaning set forth in Section 2.3(b).

     

    “Investor
      Party”
      has the
      meaning set forth in Section 4.7.

     

    “Lien”
      means
      any lien, charge, encumbrance, security interest, right of first refusal, right
      of participation or other restrictions of any kind.

     

    “Losses”
      means
      any loss, liability, obligation, claim, contingency, damage, cost or expense,
      including all judgments, amounts paid in settlements, court costs and reasonable
      attorneys’ fees and costs of investigation related thereto.

     

    “Material
      Adverse Effect”
      means
      any of (i) a material and adverse effect on the legality, validity or
      enforceability of any Transaction Document, (ii) a material and adverse effect
      on the results of operations, assets, prospects, business or condition
      (financial or otherwise) of the Company and the Subsidiaries, taken as a whole,
      or (iii) a materially adverse impairment to the Company’s ability to perform on
      a timely basis its obligations under any Transaction Document.

     

    “Merger”
      has the
      meaning set forth in the recitals to this Agreement.

     

    “Merger
      Agreement”
      has the
      meaning set forth in the recitals to this Agreement.

     

    “New
      York Courts”
      means
      the state and federal courts sitting in the City of New York, Borough of
      Manhattan.

     

    “Notice
      of Acceptance”
      has the
      meaning set forth in Section 4.11(a).

     

    “Outside
      Date”
      means
      the sixtieth day following the date of this Agreement.

     

    “Per
      Share Purchase Price”
      equals
      $1.20.

     

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

     

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

     

    “Registration
      Rights Agreement”
      means
      the Registration Rights Agreement, dated as of the date of this Agreement,
      among
      the Company and the Investors, in the form of Exhibit
      A
      hereto.

     

    
      
        
        

      

      
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    “Registration
      Statement”
      means a
      registration statement meeting the requirements set forth in the Registration
      Rights Agreement and covering the resale by the Investors of the
      Shares.

     

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

     

    “SEC
      Reports”
      means
      all reports required to be filed by the Company under the Securities Act and
      the
      Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the
      twelve months preceding the date hereof (or such shorter period as the Company
      was required by law to file such reports).

     

    “Securities
      Act”
      means
      the Securities Act of 1933, as amended.

     

    “Share
      Delivery Date”
      has the
      meaning set forth in Section 4.1(c).

     

    “Shares”
      means
      the shares of Common Stock being offered and sold to the Investors by the
      Company hereunder.

     

    “Short
      Sales”
      include,
      without limitation, all “short sales” as defined in Rule 200 promulgated under
      Regulation SHO under the Exchange Act and all types of direct and indirect
      stock
      pledges, forward sale contracts, options, puts, calls, swaps and similar
      arrangements (including on a total return basis), and sales and other
      transactions through non-US broker dealers or foreign regulated
      brokers.

     

    “Subsidiary”
      means
      any “significant subsidiary” as defined in Rule 1-02(w) of the Regulation S-X
      promulgated by the Commission under the Exchange Act.

     

    “Trading
      Day”
      means
      (i) a day on which the Common Stock is traded on a Trading Market (other than
      the OTC Bulletin Board), or (ii) if the Common Stock is not listed on a Trading
      Market (other than the OTC Bulletin Board), a day on which the Common Stock
      is
      traded in the over-the-counter market, as reported by the OTC Bulletin Board,
      or
      (iii) if the Common Stock is not quoted on any Trading Market, a day on which
      the Common Stock is quoted in the over-the-counter market as reported by the
      Pink Sheets LLC (or any similar organization or agency succeeding to its
      functions of reporting prices); provided, that in the event that the Common
      Stock is not listed or quoted as set forth in (i), (ii) and (iii) hereof, then
      Trading Day shall mean a Business Day.

     

    “Trading
      Market”
      means
      whichever of the New York Stock Exchange, the American Stock Exchange, the
      NASDAQ Global Select Market, the NASDAQ Global Market, the NASDAQ Capital Market
      or OTC Bulletin Board on which the Common Stock is listed or quoted for trading
      on the date in question.

     

    “Transaction
      Documents”
      means
      this Agreement, the Registration Rights Agreement, the Closing Escrow Agreement
      and any other documents or agreements executed in connection with the
      transactions contemplated hereunder.

    

    “Undersubscription
      Amount”
      has the
      meaning set forth in Section 4.11(a).

     

    
      
        
        

      

      
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    ARTICLE
      2.

     

    PURCHASE
      AND SALE

     

    2.1. Closing(a).
      Subject to the terms and conditions set forth in this Agreement, at the Closing
      the Company shall issue and sell to each Investor, and each Investor shall,
      severally and not jointly, purchase from the Company, the Shares representing
      such Investor’s Investment Amount. The Closing shall take place at the offices
      of Bryan Cave LLP, 1290 Avenue of the Americas, New York, NY 10104 on the
      Closing Date or at such other location or time as the parties may
      agree.

     

    2.2. Additional
      Shares Closing.
      Subject
      to the terms and conditions set forth in this Agreement, at the Additional
      Shares, Closing the Company shall issue and sell to each Investor, and each
      Investor shall, severally and not jointly, purchase from the Company, the
      Additional Shares subscribed for by such Investor pursuant to Section 4.11(a).
      The Additional Shares Closing shall take place at the offices of Bryan Cave
      LLP,
      1290 Avenue of the Americas, New York, NY 10104 on the Additional Shares Closing
      Date or at such other location or time as the parties may agree.

     

    2.3. Closing
      Deliveries.
      i) At
      the Closing, the Company shall deliver or cause to be delivered to each Investor
      the following (the “Company
      Deliverables”):

     

    (i) a
      certificate evidencing a number of Shares equal to such Investor’s Investment
      Amount divided by the Per Share Purchase Price, registered in the name of such
      Investor;

     

    (ii) the
      Closing Escrow Agreement, duly executed by all parties thereto;

     

    (iii) the
      legal
      opinion of Company Counsel, in a form reasonably acceptable to the Investors,
      addressed to the Investors; and

     

    (iv) the
      Registration Rights Agreement, duly executed by the Company.

     

    (b) At
      the
      Closing, each Investor shall deliver or cause to be delivered the following
      (collectively, the “Investors
      Deliverables”):

     

    (i) to
      the
      Escrow Agent for deposit and disbursement in accordance with the Closing Escrow
      Agreement, its Investment Amount, in United States dollars and in immediately
      available funds, by wire transfer to an account designated in writing by the
      Company for such purpose; and

     

     

      
        

      

    

     

    
      
        
        

      

      
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    (ii) to
      the
      Company, the Registration Rights Agreement, duly executed by such
      Investor.

     

    2.4. Additional
      Shares Closing Deliveries.
      i) At
      the Additional Shares Closing, the Company shall deliver or cause to be
      delivered to each Investor a certificate evidencing the number of Additional
      Shares subscribed for by such Investor pursuant to Section 4.11(a), registered
      in the name of such Investor;

     

    (b) At
      the
      Closing, each Investor shall deliver or cause to be delivered to the Company
      an
      amount equal to the product of the number of Additional Shares subscribed for
      by
      such Investor pursuant to Section 4.11(a) multiplied by the Per Share Purchase
      Price, in United States dollars and in immediately available funds, by wire
      transfer to an account designated in writing by the Company for such
      purpose.

     

    ARTICLE
      3.

     

    REPRESENTATIONS
      AND WARRANTIES

     

    3.1. Representations
      and Warranties of the Company.
      Except
      as set forth in the Disclosure Materials, the Company hereby makes the following
      representations and warranties to each Investor with the intention and
      understanding that, as to matters pertaining to Boo Koo and its subsidiaries
      and
      the Merger, such representations and warranties are made as of the Closing
      Date
      and assuming that the Merger shall have been consummated immediately prior
      to
      the Closing.

     

    (a) Subsidiaries.
      The
      Company has no direct or indirect Subsidiaries other than as specified in
Schedule
      3.1(a).
      The
      Company owns, directly or indirectly, all of the capital stock of each
      Subsidiary free and clear of any and all Liens, and all the issued and
      outstanding shares of capital stock of each Subsidiary are validly issued and
      are fully paid, non-assessable and free of preemptive and similar rights. As
      of
      the Closing, the Company shall own, through a subsidiary, 100% of the capital
      stock of Boo Koo in accordance with the Merger Agreement, free and clear of
      all
      Liens. The term “Subsidiaries” shall be deemed to include Boo Koo and its
      subsidiaries as if the Merger shall have been consummated as of the time of
      the
      execution of this Agreement, with the effect that all references to Subsidiaries
      of the Company in this Agreement shall also refer to Boo Koo and its
      subsidiaries.

     

    (b) Organization
      and Qualification.
      The
      Company and each Subsidiary are duly incorporated or otherwise organized,
      validly existing and in good standing under the laws of the jurisdiction of
      its
      incorporation or organization (as applicable), with the requisite power and
      authority to own and use its properties and assets and to carry on its business
      as currently conducted. Neither the Company nor any Subsidiary is in violation
      of any of the provisions of its respective certificate or articles of
      incorporation, bylaws or other organizational or charter documents. The Company
      and each Subsidiary are duly qualified to conduct its respective businesses
      and
      are in good standing as a foreign corporation or other entity in each
      jurisdiction in which the nature of the business conducted or property owned
      by
      it makes such qualification necessary, except where the failure to be so
      qualified or in good standing, as the case may be, would not, individually
      or in
      the aggregate, have or reasonably be expected to result in a Material Adverse
      Effect.

    
 

    
      
        
          
          

        

        
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    (c) Authorization;
      Enforcement.
      The
      Company has the requisite corporate power and authority to enter into and to
      consummate the transactions contemplated by each of the Transaction Documents
      and otherwise to carry out its obligations thereunder. The execution and
      delivery of each of the Transaction Documents by the Company and the
      consummation by it of the transactions contemplated thereby have been duly
      authorized by all necessary action on the part of the Company and no further
      action by the Board of Directors or stockholders of the Company is required
      in
      connection therewith. Each Transaction Document has been (or upon delivery
      will
      have been) duly executed by the Company and, when delivered in accordance with
      the terms hereof, will constitute the valid and binding obligation of the
      Company enforceable against the Company in accordance with its terms, except
      as
      such enforceability may be limited by applicable bankruptcy, insolvency,
      reorganization, moratorium, liquidation or similar laws relating to, or
      affecting generally the enforcement of, creditors’ rights and remedies or by
      equitable principles of general application.

     

    (d) No
      Conflicts.
      The
      execution, delivery and performance of the Transaction Documents by the Company
      and the consummation by the Company of the transactions contemplated thereby
      do
      not and will not (i) conflict with or violate any provision of the Company’s or
      any Subsidiary’s certificate or articles of incorporation, bylaws or other
      organizational or charter documents, or (ii) conflict with, or constitute a
      default (or an event that with notice or lapse of time or both would become
      a
      default) under, or give to others any rights of termination, amendment,
      acceleration or cancellation (with or without notice, lapse of time or both)
      of,
      any material agreement, credit facility, debt or other instrument (evidencing
      a
      Company or Subsidiary debt or otherwise) or other understanding to which the
      Company or any Subsidiary is a party or by which any property or asset of the
      Company or any Subsidiary is bound or affected, or (iii) result in a violation
      of any law, rule, regulation, order, judgment, injunction, decree or other
      restriction of any court or governmental authority to which the Company or
      a
      Subsidiary is subject (including federal and state securities laws and
      regulations), or by which any property or asset of the Company or a Subsidiary
      is bound or affected; except in the case of each of clauses (ii) and (iii),
      such
      as would not, individually or in the aggregate, have or reasonably be expected
      to result in a Material Adverse Effect.

     

    (e) Filings,
      Consents and Approvals.
      The
      Company is not required to obtain any consent, waiver, authorization or order
      of, give any notice to, or make any filing or registration with, any United
      States court or other federal, state, local or other governmental authority
      or
      other Person in connection with the execution, delivery and performance by
      the
      Company of the Transaction Documents, other than (i) the filing with the
      Commission of one or more Registration Statements in accordance with the
      requirements of the Registration Rights Agreement, (ii) filings required by
      state securities laws, (iii) the filing of a Notice of Sale of Securities on
      Form D with the Commission under Regulation D of the Securities Act, (iv) the
      filings required in accordance with Section 4.5 and (v) those that have been
      made or obtained prior to the date of this Agreement. 

     

    
      
        
          
          

        

        
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    (f) Issuance
      of the Shares.
      The
      Shares have been duly authorized and, when issued and paid for in accordance
      with the Transaction Documents, will be duly and validly issued, fully paid
      and
      nonassessable, free and clear of all Liens.

     

    (g) Capitalization.
      The
      number of shares and type of all authorized, issued and outstanding capital
      stock of the Company, and all shares of Common Stock reserved for issuance
      under
      the Company’s various option and incentive plans, is specified in the Disclosure
      Materials. No securities of the Company are entitled to preemptive or similar
      rights, and no Person has any right of first refusal, preemptive right, right
      of
      participation, or any similar right to participate in the transactions
      contemplated by the Transaction Documents. Other than awards made after the
      date
      of the SEC Reports pursuant to the terms of the Company’s equity incentive
      plans, there are no outstanding options, warrants, scrip rights to subscribe
      to,
      calls or commitments of any character whatsoever relating to, or securities,
      rights or obligations convertible into or exchangeable for, or giving any Person
      any right to subscribe for or acquire, any shares of Common Stock, or contracts,
      commitments, understandings or arrangements by which the Company or any
      Subsidiary is or may become bound to issue additional shares of Common Stock,
      or
      securities or rights convertible or exchangeable into shares of Common Stock.
      The issue and sale of the Shares hereunder will not, immediately or with the
      passage of time, obligate the Company to issue shares of Common Stock or other
      securities to any Person (other than the Investors) and will not result in
      a
      right of any holder of Company securities to adjust the exercise, conversion,
      exchange or reset price under such securities.

     

    (h) Financial
      Statements.
      The Boo
      Koo Financial Statements (as defined hereafter) comply in all material respects
      with applicable accounting requirements and the rules and regulations of the
      Commission with respect thereto as in effect at the time of filing. The Boo
      Koo
      Financial Statements have been prepared in accordance with GAAP applied on
      a
      consistent basis during the periods involved, except as may be otherwise
      specified in such financial statements or the notes thereto, and fairly present
      in all material respects the financial position of Boo Koo as of and for the
      dates thereof and the results of operations and cash flows for the periods
      then
      ended. 

     

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

     

    
      
        
        

      

      
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    (j) Litigation.
      There
      is no Action which (i) adversely affects or challenges the legality, validity
      or
      enforceability of any of the Transaction Documents or the Shares or (ii) would,
      if there were an unfavorable decision, individually or in the aggregate, have
      or
      reasonably be expected to result in a Material Adverse Effect. Neither Boo
      Koo,
      nor any director or officer thereof (in his or her capacity as such), is or
      has
      been the subject of any Action involving a claim of violation of or liability
      under federal or state securities laws or a claim of breach of fiduciary duty.
      There has not been, and to the knowledge of Boo Koo, there is not pending any
      investigation by the Commission involving the Company or any current or former
      director or officer of the Company (in his or her capacity as such). To Boo
      Koo’s knowledge, the Commission has not issued any stop order or other order
      suspending the effectiveness of any registration statement filed by the Company
      or any Subsidiary under the Exchange Act or the Securities Act.

     

    (k) Labor
      Relations.
      No
      material labor dispute exists or, to the knowledge of Boo Koo, is imminent
      with
      respect to any of the employees of the Company.

     

    (l) Compliance.
      Neither
      the Company nor any Subsidiary (i) is in default under or in violation of (and
      no event has occurred that has not been waived that, with notice or lapse of
      time or both, would result in a default by the Company or any Subsidiary under),
      nor has the Company or any Subsidiary received notice of a claim that it is
      in
      default under or that it is in violation of, any indenture, loan or credit
      agreement or any other agreement or instrument to which it is a party or by
      which it or any of its properties is bound (whether or not such default or
      violation has been waived), (ii) is in violation of any order of any court,
      arbitrator or governmental body, or (iii) is or has been in violation of any
      statute, rule or regulation of any governmental authority, including without
      limitation all foreign, federal, state and local laws relating to taxes,
      environmental protection, occupational health and safety, product quality and
      safety and employment and labor matters, except in each case as would not,
      individually or in the aggregate, have or reasonably be expected to result
      in a
      Material Adverse Effect.

     

    (m) Regulatory
      Permits.
      The
      Company and the Subsidiaries possess all certificates, authorizations and
      permits issued by the appropriate federal, state, local or foreign regulatory
      authorities necessary to conduct their respective businesses, except where
      the
      failure to possess such permits would not, individually or in the aggregate,
      have or reasonably be expected to result in a Material Adverse Effect, and
      neither the Company nor any Subsidiary has received any notice of proceedings
      relating to the revocation or modification of any such permits.

     

    (n) Title
      to Assets.
      The
      Company and the Subsidiaries have good and marketable title in fee simple to
      all
      real property owned by them that is material to their respective businesses
      and
      good and marketable title in all personal property owned by them that is
      material to their respective businesses, in each case free and clear of all
      Liens, except for Liens as do not materially affect the value of such property
      and do not materially interfere with the use made and proposed to be made of
      such property by the Company and the Subsidiaries. Any real property and
      facilities held under lease by the Company and the Subsidiaries are held by
      them
      under valid, subsisting and enforceable leases of which the Company and the
      Subsidiaries are in compliance, except as would not, individually or in the
      aggregate, have or reasonably be expected to result in a Material Adverse
      Effect.

     

    
      
        
        

      

      
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    (o) Patents
      and Trademarks.
      The
      Company and the Subsidiaries have, or have rights to use, all patents, patent
      applications, trademarks, trademark applications, service marks, trade names,
      copyrights, licenses and other similar rights that are necessary or material
      for
      use in connection with their respective businesses and which the failure to
      so
      have would, individually or in the aggregate, have or reasonably be expected
      to
      result in a Material Adverse Effect (collectively, the “Intellectual
      Property Rights”).
      Neither the Company nor any Subsidiary has received a written notice that the
      Intellectual Property Rights used by the Company or any Subsidiary violates
      or
      infringes upon the rights of any Person. Except as set forth in the Disclosure
      Materials, to the knowledge of Boo Koo, all such Intellectual Property Rights
      are enforceable and there is no existing infringement by another Person of
      any
      of the Intellectual Property Rights.

     

    (p) Insurance.
      The
      Company and the Subsidiaries are insured by insurers of recognized financial
      responsibility against such losses and risks and in such amounts as the Company
      believes are prudent and customary in the businesses in which the Company and
      the Subsidiaries are engaged. The Company has no reason to believe that it
      will
      not be able to renew its and the Subsidiaries’ existing insurance coverage as
      and when such coverage expires or to obtain similar coverage from similar
      insurers as may be necessary to continue its business on terms consistent with
      market for the Company’s and such Subsidiaries’ respective lines of
      business.

     

    (q) Transactions
      With Affiliates and Employees.
      None of
      the officers or directors of Boo Koo and, to the knowledge of Boo Koo, none
      of
      the employees of Boo Koo is presently a party to any transaction with the
      Company or any Subsidiary (other than for services as employees, officers and
      directors), including any contract, agreement or other arrangement providing
      for
      the furnishing of services to or by, providing for rental of real or personal
      property to or from, or otherwise requiring payments to or from any officer,
      director or such employee or, to the knowledge of Boo Koo, any entity in which
      any officer, director, or any such employee has a substantial interest or is
      an
      officer, director, trustee or partner.

     

    (r) Internal
      Accounting Controls.
      Boo Koo
      maintains a system of internal accounting controls sufficient to provide
      reasonable assurance that (i) transactions are executed in accordance with
      management’s general or specific authorizations, (ii) transactions are recorded
      as necessary to permit preparation of financial statements in conformity with
      GAAP and to maintain asset accountability, (iii) access to assets is permitted
      only in accordance with management’s general or specific authorization, and (iv)
      the recorded accountability for assets is compared with the existing assets
      at
      reasonable intervals and appropriate action is taken with respect to any
      differences.

     

    (s) Solvency.
      Based
      on the financial condition of the Company as of the Closing Date (and assuming
      that the Closing and the transactions contemplated by the Merger Agreement
      shall
      have occurred), (i) the Company’s fair saleable value of its assets exceeds the
      amount that will be required to be paid on or in respect of the Company’s
      existing debts and other liabilities (including known contingent liabilities)
      as
      they mature, (ii) the Company’s assets do not constitute unreasonably small
      capital to carry on its business for the current fiscal year as now conducted
      and as proposed to be conducted including its capital needs taking into account
      the particular capital requirements of the business conducted by the Company,
      and projected capital requirements and capital availability thereof, and (iii)
      the current cash flow of the Company, together with the proceeds the Company
      would receive, were it to liquidate all of its assets, after taking into account
      all anticipated uses of the cash, would be sufficient to pay all amounts on
      or
      in respect of its debt when such amounts are required to be paid. The Company
      has no present intention to incur debts beyond its ability to pay such debts
      as
      they mature (taking into account the timing and amounts of cash to be payable
      on
      or in respect of its debt).

     

    
      
        
          
          

        

        
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    (t) Certain
      Fees.
      No
      brokerage or finder’s fees or commissions are or will be payable by the Company
      to any broker, financial advisor or consultant, finder, placement agent,
      investment banker, bank or other Person with respect to the transactions
      contemplated by this Agreement. The Investors shall have no obligation with
      respect to any fees or with respect to any claims (other than such fees or
      commissions owed by an Investor pursuant to written agreements executed by
      such
      Investor which fees or commissions shall be the sole responsibility of such
      Investor) made by or on behalf of other Persons for fees of a type contemplated
      in this Section that may be due in connection with the transactions contemplated
      by this Agreement.

     

    (u) Certain
      Registration Matters.
      Assuming the accuracy of the Investors’ representations and warranties set forth
      in Section 3.2(b)-(e), no registration under the Securities Act is required
      for
      the offer and sale of the Shares to the Investors under the Transaction
      Documents. The Company is eligible to register its Common Stock for resale
      by
      the Investors under Form S-1 or Form SB-2 promulgated under the Securities
      Act.
      The Company has not granted or agreed to grant to any Person any rights
      (including “piggy-back” registration rights) to have any securities of the
      Company registered with the Commission or any other governmental authority
      that
      have not been satisfied.

     

    (v) Listing
      and Maintenance Requirements.
      To the
      knowledge of Boo Koo, the Company has not, in the two years preceding the date
      hereof, received notice from any Trading Market to the effect that the Company
      is not in compliance with the listing or maintenance requirements thereof.
      The
      Company is, and has no reason to believe that it will not in the foreseeable
      future continue to be, in compliance with the listing and maintenance
      requirements for continued listing of the Common Stock on the Trading Market
      on
      which the Common Stock is currently listed or quoted. The issuance and sale
      of
      the Shares under the Transaction Documents does not contravene the rules and
      regulations of the Trading Market on which the Common Stock is currently listed
      or quoted, and no approval of the stockholders of the Company thereunder is
      required for the Company to issue and deliver to the Investors the Shares
      contemplated by the Transaction Documents.

     

    (w) Investment
      Company.
      The
      Company is not, and is not an Affiliate of, and immediately following the
      Closing will not have become, an “investment company” within the meaning of the
      Investment Company Act of 1940, as amended.

     

    (x) Application
      of Takeover Protections.
      The
      Company has taken all necessary action, if any, in order to render inapplicable
      any control share acquisition, business combination, poison pill (including
      any
      distribution under a rights agreement) or other similar anti-takeover provision
      under the Company’s Articles of Incorporation (or similar charter documents) or
      the laws of its state of incorporation that is or could become applicable to
      the
      Investors as a result of the Investors and the Company fulfilling their
      obligations or exercising their rights under the Transaction Documents,
      including without limitation the Company’s issuance of the Shares and the
      Investors’ ownership of the Shares.

    
      
        
        

      

      
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    (y) No
      Additional Agreements.
      The
      Company does not have any agreement or understanding with any Investor with
      respect to the transactions contemplated by the Transaction Documents other
      than
      as specified in the Transaction Documents.

     

    (z) Consultation
      with Auditors.
      Boo Koo
      has consulted its independent auditors concerning the accounting treatment
      of
      the transactions contemplated by the Transaction Documents, and in connection
      therewith has furnished such auditors complete copies of the Transaction
      Documents.

     

    (aa) Disclosure.
      The
      Company confirms that neither it nor any Person acting on its behalf has
      provided any Investor or its respective agents or counsel with any information
      that the Company believes constitutes material, non-public information
      concerning the Company, the Subsidiaries or their respective businesses, except
      insofar as the existence and terms of the proposed transactions contemplated
      hereunder and under the Merger Agreement may constitute such information and
      other than analysts’ reports prepared without input from the Company. The
      Company understands and confirms that the Investors will rely on the foregoing
      representations and covenants in effecting transactions in securities of the
      Company. Other than analysts’ reports prepared without input from the Company,
      all disclosure provided to the Investors regarding the Company, the Subsidiaries
      or their respective businesses and the transactions contemplated hereby,
      furnished by or on behalf of the Company (including the Company’s
      representations and warranties set forth in this Agreement) are true and correct
      in all material respects and do not contain any untrue statement of a material
      fact or omit to state any material fact necessary in order to make the
      statements made therein, in light of the circumstances under which they were
      made, not misleading.

     

    3.2. Representations
      and Warranties of the Investors.
      Each
      Investor hereby, for itself and for no other Investor, represents and warrants
      to the Company as follows:

     

    (a) Organization;
      Authority.
      Such
      Investor is an entity duly organized, validly existing and in good standing
      under the laws of the jurisdiction of its organization with the requisite
      corporate or partnership power and authority to enter into and to consummate
      the
      transactions contemplated by the applicable Transaction Documents and otherwise
      to carry out its obligations thereunder. The execution, delivery and performance
      by such Investor of the transactions contemplated by this Agreement has been
      duly authorized by all necessary corporate or, if such Investor is not a
      corporation, such partnership, limited liability company or other applicable
      like action, on the part of such Investor. Each of this Agreement and the
      Registration Rights Agreement has been duly executed by such Investor, and
      when
      delivered by such Investor in accordance with the terms hereof, will constitute
      the valid and legally binding obligation of such Investor, enforceable against
      it in accordance with its terms, except as such enforceability may be limited
      by
      applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
      or
      similar laws relating to, or affecting generally the enforcement of, creditors’
rights and remedies or by other equitable principles of general
      application.

    
      
        
        

      

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

     

    (c) Investor
      Status.
      At the
      time such Investor was offered the Shares, it was, and at the date hereof it
      is,
      an “accredited investor” as defined in Rule 501(a) under the Securities Act.
      Such Investor is not a registered broker-dealer under Section 15 of the Exchange
      Act.

     

    (d) General
      Solicitation.
      Such
      Investor is not purchasing the Shares as a result of any advertisement, article,
      notice or other communication regarding the Shares published in any newspaper,
      magazine or similar media or broadcast over television or radio or presented
      at
      any seminar or any other general solicitation or general
      advertisement.

     

    (e) Access
      to Information.
      Such
      Investor acknowledges that it has reviewed the Disclosure Materials and has
      been
      afforded (i) the opportunity to ask such questions as it has deemed necessary
      of, and to receive answers from, representatives of the Company concerning
      the
      terms and conditions of the offering of the Shares and the merits and risks
      of
      investing in the Shares; (ii) access to information about the Company and the
      Subsidiaries and their respective financial condition, results of operations,
      business, properties, management and prospects sufficient to enable it to
      evaluate its investment; and (iii) the opportunity to obtain such additional
      information that the Company possesses or can acquire without unreasonable
      effort or expense that is necessary to make an informed investment decision
      with
      respect to the investment. Neither such inquiries nor any other investigation
      conducted by or on behalf of such Investor or its representatives or counsel
      shall modify, amend or affect such Investor’s right to rely on the truth,
      accuracy and completeness of the Disclosure Materials and the Company’s
      representations and warranties contained in the Transaction Documents.

     

    (f) Certain
      Trading Activities.
      Such
      Investor has not directly or indirectly, nor has any Person acting on behalf
      of
      or pursuant to any understanding with such Investor, engaged in any transactions
      in the securities of the Company (including, without limitations, any Short
      Sales involving the Company’s securities) since the earlier to occur of (1) the
      time that such Investor was first contacted by the Company or Roth Capital
      Partners, LLC regarding an investment in the Company and (2) the 30th
      day
      prior to the date of this Agreement. Such Investor covenants that neither it
      nor
      any Person acting on its behalf or pursuant to any understanding with it will
      engage in any transactions in the securities of the Company (including Short
      Sales) prior to the time that the transactions contemplated by this Agreement
      are publicly disclosed.

    
      
        
        

      

      
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    (g) Independent
      Investment Decision.
      Such
      Investor has independently evaluated the merits of its decision to purchase
      the
      Shares pursuant to the Transaction Documents, and such Investor confirms that
      it
      has not relied on the advice of any other Investor’s business and/or legal
      counsel in making such decision. Such Investor has not relied on the business
      or
      legal advice of Roth Capital Partners, LLC or any of its agents, counsel or
      Affiliates in making its investment decision hereunder, and confirms that none
      of such Persons has made any representations or warranties to such Investor
      in
      connection with the transactions contemplated by the Transaction
      Documents.

     

    The
      Company acknowledges and agrees that no Investor has made or makes any
      representations or warranties with respect to the transactions contemplated
      hereby other than those specifically set forth in this Section 3.2.

     

    ARTICLE
      4.

     

    OTHER
      AGREEMENTS OF THE PARTIES

     

    4.1.
      (a)
      Shares
      may
      only be disposed of in compliance with state and federal securities laws. In
      connection with any transfer of the Shares other than pursuant to an effective
      registration statement, to the Company, to an Affiliate of an Investor or in
      connection with a pledge as contemplated in Section 4.1(b), the Company may
      require the transferor thereof to provide to the Company an opinion of counsel
      selected by the transferor and reasonably satisfactory to the Company, the
      form
      and substance of which opinion shall be reasonably satisfactory to the Company,
      to the effect that such transfer does not require registration of such
      transferred Shares under the Securities Act.

     

    (b) Certificates
      evidencing the Shares will contain the following legend, until such time as
      they
      are not required under Section 4.1(c):

     

    THESE
      SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
      OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
      REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
      ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
      EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
      AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
      REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
      SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
      REASONABLY SATISFACTORY TO THE COMPANY TO SUCH EFFECT, THE SUBSTANCE OF WHICH
      SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THESE SECURITIES MAY BE PLEDGED
      IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED BY SUCH
      SECURITIES.

     

    The
      Company acknowledges and agrees that an Investor may from time to time pledge,
      and/or grant a security interest in some or all of the Shares pursuant to a
      bona
      fide margin agreement in connection with a bona fide margin account and, if
      required under the terms of such agreement or account, such Investor may
      transfer pledged or secured Shares to the pledgees or secured parties. Such
      a
      pledge or transfer would not be subject to approval or consent of the Company
      and no legal opinion of legal counsel to the pledgee, secured party or pledgor
      shall be required in connection with the pledge, but such legal opinion may
      be
      required in connection with a subsequent transfer following default by the
      Investor transferee of the pledge. No notice shall be required of such pledge.
      At the appropriate Investor’s expense, the Company will execute and deliver such
      reasonable documentation as a pledgee or secured party of Shares may reasonably
      request in connection with a pledge or transfer of the Shares including the
      preparation and filing of any required prospectus supplement under Rule
      424(b)(3) of the Securities Act or other applicable provision of the Securities
      Act to appropriately amend the list of selling stockholders thereunder. Except
      as otherwise provided in Section 4.1(c), any Shares subject to a pledge or
      security interest as contemplated by this Section 4.1(b) shall continue to
      bear
      the legend set forth in this Section 4.1(b) and be subject to the restrictions
      on transfer set forth in Section 4.1(a).

     

    
      
        
        

      

      
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    (c) Certificates
      evidencing Shares shall not contain any legend (including the legend set forth
      in Section 4.1(b)): (i) following a sale or transfer of such Shares pursuant
      to
      an effective registration statement (including a Registration Statement), or
      (ii) following a sale or transfer of such Shares pursuant to Rule 144 (assuming
      the transferee is not an Affiliate of the Company), or (iii) while such Shares
      are eligible for sale under Rule 144(k). If an Investor shall make a sale or
      transfer of Shares either (x) pursuant to Rule 144 or (y) pursuant to a
      registration statement and in each case shall have delivered to the Company
      or
      the Company’s transfer agent the certificate representing Shares containing a
      restrictive legend which are the subject of such sale or transfer
      and a representation letter in customary form (the
      date of such sale or transfer and Shares delivery being the “Share
      Delivery Date”)
      and (1) the Company shall fail to deliver or cause to be delivered to such
      Investor a certificate representing such Shares that is free from all
      restrictive or other legends by the third Trading Day following the Share
      Delivery Date and (2) following such third Trading Day after the Share Delivery
      Date and prior to the time such Shares are received free from restrictive
      legends, the Investor, or any third party on behalf of such Investor, purchases
      (in an open market transaction or otherwise) shares of Common Stock to deliver
      in satisfaction of a sale by the Investor of such Shares (a "Buy-In"),
      then the Company shall pay in cash to the Investor (for costs incurred either
      directly by such Investor or on behalf of a third party) the amount by which
      the
      total purchase price paid for Common Stock as a result of the Buy-In (including
      brokerage commissions, if any) exceed the proceeds received by such Investor
      as
      a result of the sale to which such Buy-In relates. The Investor shall provide
      the Company written notice indicating the amounts payable to the Investor in
      respect of the Buy-In.

     

    4.2. Furnishing
      of Information.
      As long
      as any Investor owns the Shares, the Company covenants to timely file (or obtain
      extensions in respect thereof and file within the applicable grace period)
      all
      reports required to be filed by the Company after the date hereof pursuant
      to
      the Exchange Act. As long as any Investor owns Shares, if the Company is not
      required to file reports pursuant to such laws, it will prepare and furnish
      to
      the Investors and make publicly available in accordance with Rule 144(c) such
      information as is required for the Investors to sell the Shares under Rule
      144.

     

    
      
        
        

      

      
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    4.3. Integration.
      The
      Company shall not, and shall use its best efforts to ensure that no Affiliate
      of
      the Company shall, sell, offer for sale or solicit offers to buy or otherwise
      negotiate in respect of any security (as defined in Section 2 of the Securities
      Act) that would be integrated with the offer or sale of the Shares in a manner
      that would require the registration under the Securities Act of the sale of
      the
      Shares to the Investors, or that would be integrated with the offer or sale
      of
      the Shares for purposes of the rules and regulations of any Trading Market
      in a
      manner that would require stockholder approval of the sale of the Shares to
      the
      Investors.

     

    4.4. Subsequent
      Registrations.
      Other
      than pursuant to the Registration Rights Agreement, prior to the Effective
      Date
      of a Registration Statement resulting in all Registrable Securities (as defined
      in the Registration Rights Agreement) being registered for resale pursuant
      to
      one or more effective Registration Statements, the Company may not file any
      registration statement (other than on Form S-8) with the Commission with respect
      to any securities of the Company.

     

    4.5. Securities
      Laws Disclosure; Publicity.
      By 9:00
      a.m. (New York time) on the Trading Day following the execution of this
      Agreement, and by 9:00 a.m. (New York time) on the Trading Day following the
      Closing Date, the Company shall issue press releases disclosing the transactions
      contemplated hereby and the Closing. No later than the second Trading Day
      following the execution of this Agreement the Company will file a Current Report
      on Form 8-K disclosing the material terms of the Transaction Documents (and
      attach as exhibits thereto the Transaction Documents), and no later that the
      second Trading Day following the Closing Date the Company will file an
      additional Current Report on Form 8-K to disclose the Closing. In addition,
      the
      Company will make such other filings and notices in the manner and time required
      by the Commission and the Trading Market on which the Common Stock is listed.
      Notwithstanding the foregoing, the Company shall not publicly disclose the
      name
      of any Investor, or include the name of any Investor in any filing with the
      Commission (other than the Registration Statement and any exhibits to filings
      made in respect of this transaction in accordance with periodic filing
      requirements under the Exchange Act) or any regulatory agency or Trading Market,
      without the prior written consent of such Investor, except to the extent such
      disclosure is required by law or Trading Market regulations.

     

    4.6. Limitation
      on Issuance of Future Priced Securities.
      During
      the six months following the Closing Date, the Company shall not issue any
      “Future Priced Securities” as such term is described by NASD
      IM-4350-1.

     

    4.7. Indemnification
      of Investors(a).
      In
      addition to the indemnity provided in the Registration Rights Agreement, the
      Company will indemnify and hold the Investors and their directors, officers,
      shareholders, partners, employees and agents (each, an “Investor
      Party”)
      harmless from any and all losses, liabilities, obligations, claims,
      contingencies, damages, costs and expenses, including all judgments, amounts
      paid in settlements, court costs and reasonable attorneys’ fees and costs of
      investigation (collectively, “Losses”)
      that
      any such Investor Party may suffer or incur as a result of or relating to any
      misrepresentation, breach or inaccuracy of any representation, warranty,
      covenant or agreement made by the Company in any Transaction Document. In
      addition to the indemnity contained herein, the Company will reimburse each
      Investor Party for its reasonable legal and other expenses (including the cost
      of any investigation, preparation and travel in connection therewith) incurred
      in connection therewith, as such expenses are incurred. Except as otherwise
      set
      forth herein, the mechanics and procedures with respect to the rights and
      obligations under this Section 4.7 shall be the same as those set forth in
      Section 5 of the Registration Rights Agreement.

     

     

      
        

      

    

     

    
      
        
        

      

      
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    4.8. Non-Public
      Information.
      The
      Company covenants and agrees that after the date hereof, except as contemplated
      by Section 3.1(bb), neither it nor any other Person acting on its behalf will
      provide any Investor or its agents or counsel with any information that the
      Company believes constitutes material non-public information, unless prior
      thereto such Investor shall have executed a written agreement regarding the
      confidentiality and use of such information. The Company understands and
      confirms that each Investor shall be relying on the foregoing representations
      in
      effecting transactions in securities of the Company.

     

    4.9. Listing
      of Shares.
      The
      Company agrees, (i) if the Company applies to have the Common Stock traded
      on
      any other Trading Market, it will include in such application the Shares, and
      will take such other action as is necessary or desirable to cause the Shares
      to
      be listed on such other Trading Market as promptly as possible, and (ii) it
      will
      take all action reasonably necessary to continue the listing and trading of
      its
      Common Stock on a Trading Market and will comply in all material respects with
      the Company’s reporting, filing and other obligations under the bylaws or rules
      of the Trading Market.

     

    4.10. Use
      of
      Proceeds
      The
      Company will use the net proceeds from the sale of the Shares hereunder for
      working capital purposes and for the satisfaction of a portion of the Company’s
      debt.

     

    4.11. Additional
      Shares.
      

     

    (a) Until
      the
      45th calendar day following the Closing Date, the Investors shall have the
      right
      to purchase, at the Per Share Purchase Price, in the aggregate up to $5,000,000
      of the Common Stock of the Company (the "Additional
      Shares"). 
      Each Investor shall have the right to purchase (i) up to its pro rata portion
      (based upon such Investor’s Investment Amount relative to the Investment Amount
      of all Investors hereunder) of the Additional Shares (the “Basic
      Amount”) at
      the Per Share Purchase Price and upon the same terms and conditions set forth
      in
      the Transaction Documents as they apply to the Shares and (ii) with respect
      to
      each Investor that elects to purchase its Basic Amount, an additional portion
      of
      the Additional Shares attributable to the Basic Amounts of other
      Investors as such Investor shall indicate it will purchase or acquire should
      the
      other Investors subscribe for less than their Basic Amounts (the “Undersubscription
      Amount”).
      For a
      period of one (1) Business Day (which shall occur following the expiration
      of the 45 calendar day period referenced above) after receipt of a notice from
      the Company that all Basic Amounts have not been subscribed for, each Investor
      shall have the option, exercisable by written notice to the Company, to accept
      the Company’s offer as to, if such Investor shall elect to purchase all of its
      Basic Amount, the Undersubscription Amount, if any, that such Investor elects
      to
      purchase (in either case, the “Notice
      of Acceptance”).
      If the
      Basic Amounts subscribed for by all Investors are less than the total of all
      of
      the Basic Amounts, then each Investor who has set forth an Undersubscription
      Amount in its Notice of Acceptance shall be entitled to purchase on a pro rata
      basis, in addition to the Basic Amounts subscribed for, the Undersubscription
      Amount it has subscribed for.

     

    
      
        
          
          

        

        
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    (b) Limitations
      on Exercise.
      Notwithstanding anything to the contrary contained herein, the number of
      Additional Shares that may be acquired by an Investor pursuant to Section
      4.11(a) shall be limited to the extent necessary to insure that, following
      such
      issuance of Additional Shares, the total number of shares of Common Stock then
      beneficially owned by such Investor and its Affiliates and any other Persons
      whose beneficial ownership of Common Stock would be aggregated with the
      Investor's for purposes of Section 13(d) of the Exchange Act, does not exceed
      9.99% of the total number of issued and outstanding shares of Common Stock
      (including for such purpose the shares of Common Stock issuable upon such
      exercise). For such purposes, beneficial ownership shall be determined in
      accordance with Section 13(d) of the Exchange Act and the rules and regulations
      promulgated thereunder. This restriction may not be waived, and notwithstanding
      anything to the contrary in any Transaction Document, may not be amended by
      agreement of the parties. Notwithstanding anything to the contrary contained
      in
      this Agreement or in any other Transaction Document, (a) no term of this Section
      may be waived by any party, nor amended such that the threshold percentage
      of
      ownership would be directly or indirectly increased, (b) no amendment or
      modification to any Transaction Document may be made such that it would have
      the
      effect of modifying or waiving any term of this Section in violation of this
      restriction, (c) this restriction runs with the Agreement and may not be
      modified or waived by any subsequent holder hereof and (d) any attempted waiver,
      modification or amendment of this Section will be void ab initio.

     

    ARTICLE
      5.

    CONDITIONS
      PRECEDENT TO CLOSING

     

    5.1. Conditions
      Precedent to the Obligations of the Investors to Purchase Shares.
      The
      obligation of each Investor to acquire Shares at the Closing is subject to
      the
      satisfaction or waiver by such Investor, at or before the Closing, of each
      of
      the following conditions:

     

    (a) Representations
      and Warranties.
      The
      representations and warranties of the Company contained herein shall be true
      and
      correct in all material respects as of the date when made and as of the Closing
      as though made on and as of such date;

     

    (b) Performance.
      The
      Company shall have performed, satisfied and complied in all material respects
      with all covenants, agreements and conditions required by the Transaction
      Documents to be performed, satisfied or complied with by it at or prior to
      the
      Closing;

     

    (c) No
      Injunction.
      No
      statute, rule, regulation, executive order, decree, ruling or injunction shall
      have been enacted, entered, promulgated or endorsed by any court or governmental
      authority of competent jurisdiction that prohibits the consummation of any
      of
      the transactions contemplated by the Transaction Documents;

     

    (d) Adverse
      Changes.
      Since
      the date of execution of this Agreement, no event or series of events shall
      have
      occurred that reasonably would have or result in a Material Adverse
      Effect;

     

    (e) Boo
      Koo Financial Statements.
      Boo Koo
      shall have delivered to the Company audited financial statements for the fiscal
      years ended December 31, 2006 and 2005 (collectively, the “Boo
      Koo Financial Statements”);

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    (f) Merger
      Agreement Form 8-K.
      Concurrently with or immediately prior to the Closing, the Company shall have
      acquired all of the outstanding capital stock of Boo Koo pursuant to the Merger
      Agreement, and the Company shall provide the Investors with the Current Report
      on Form 8-K to be filed on the Trading Day following the closing date under
      the
      Merger Agreement, containing the audited financial statements of Boo Koo and
      other required disclosure with respect to Boo Koo;

     

    (g) Company
      Deliverables.
      The
      Company shall have delivered the Company Deliverables in accordance with Section
      2.3(a); and

     

    (h) Termination.
      This
      Agreement shall not have been terminated as to such Investor in accordance
      with
      Section 6.5.

     

    5.2. Conditions
      Precedent to the Obligations of the Company to Sell Shares.
      The
      obligation of the Company to sell Shares at the Closing is subject to the
      satisfaction or waiver by the Company, at or before the Closing, of each of
      the
      following conditions:

     

    (a) Representations
      and Warranties.
      The
      representations and warranties of each Investor contained herein shall be true
      and correct in all material respects as of the date when made and as of the
      Closing Date as though made on and as of such date;

     

    (b) Performance.
      Each
      Investor shall have performed, satisfied and complied in all material respects
      with all covenants, agreements and conditions required by the Transaction
      Documents to be performed, satisfied or complied with by such Investor at or
      prior to the Closing;

     

    (c) No
      Injunction.
      No
      statute, rule, regulation, executive order, decree, ruling or injunction shall
      have been enacted, entered, promulgated or endorsed by any court or governmental
      authority of competent jurisdiction that prohibits the consummation of any
      of
      the transactions contemplated by the Transaction Documents;

     

    (d) Investors
      Deliverables.
      Each
      Investor shall have delivered its Investors Deliverables in accordance with
      Section 2.3(b); and

     

    (e) Termination.
      This
      Agreement shall not have been terminated as to such Investor in accordance
      with
      Section 6.5.

     

    5.3. Conditions
      Precedent to the Obligations of the Investors to Purchase Additional
      Shares.
      The
      obligation of each Investor to acquire Additional Shares at the Additional
      Shares Closing is subject to the satisfaction or waiver by such Investor, at
      or
      before the Additional Shares Closing, of each of the following
      conditions:

     

    (a) Representations
      and Warranties.
      The
      representations and warranties of the Company contained herein shall be true
      and
      correct in all material respects as of the date when made and as of the
      Additional Shares Closing as though made on and as of such date;

     

    (b) Performance.
      The
      Company shall have performed, satisfied and complied in all material respects
      with all covenants, agreements and conditions required by the Transaction
      Documents to be performed, satisfied or complied with by it at or prior to
      the
      Additional Shares Closing;

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    (c) No
      Injunction.
      No
      statute, rule, regulation, executive order, decree, ruling or injunction shall
      have been enacted, entered, promulgated or endorsed by any court or governmental
      authority of competent jurisdiction that prohibits the consummation of any
      of
      the transactions contemplated by the Transaction Documents;

     

    (d) Adverse
      Changes.
      Since
      the date of execution of this Agreement, no event or series of events shall
      have
      occurred that reasonably would have or result in a Material Adverse
      Effect;

     

    (e) Company
      Deliverables.
      The
      Company shall have complied with Section 2.4(a); and

     

    (f) Termination.
      This
      Agreement shall not have been terminated as to such Investor in accordance
      with
      Section 6.5.

     

    5.4. Conditions
      Precedent to the Obligations of the Company to Sell Additional
      Shares.
      The
      obligation of the Company to sell Additional Shares at the Additional Shares
      Closing is subject to the satisfaction or waiver by the Company, at or before
      the Additional Shares Closing, of each of the following conditions:

     

    (a) Representations
      and Warranties.
      The
      representations and warranties of each Investor contained herein shall be true
      and correct in all material respects as of the date when made and as of the
      Additional Shares Closing Date as though made on and as of such
      date;

     

    (b) Performance.
      Each
      Investor shall have performed, satisfied and complied in all material respects
      with all covenants, agreements and conditions required by the Transaction
      Documents to be performed, satisfied or complied with by such Investor at or
      prior to the Additional Shares Closing;

     

    (c) No
      Injunction.
      No
      statute, rule, regulation, executive order, decree, ruling or injunction shall
      have been enacted, entered, promulgated or endorsed by any court or governmental
      authority of competent jurisdiction that prohibits the consummation of any
      of
      the transactions contemplated by the Transaction Documents;

     

    (d) Investors
      Deliverables.
      Each
      Investor purchasing Additional Shares shall have complied with Section 2.4(b);
      and

     

    (e) Termination.
      This
      Agreement shall not have been terminated as to such Investor in accordance
      with
      Section 6.5.

     

    ARTICLE
      6.

    MISCELLANEOUS

     

    6.1. Fees
      and Expenses.
      Each
      party shall pay the fees and expenses of its advisers, counsel, accountants
      and
      other experts, if any, and all other expenses incurred by such party incident
      to
      the negotiation, preparation, execution, delivery and performance of the
      Transaction Documents. The Company shall pay all stamp and other taxes and
      duties levied in connection with the sale of the Shares.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    6.2. Entire
      Agreement.
      The
      Transaction Documents, together with the Exhibits and Schedules thereto, contain
      the entire understanding of the parties with respect to the subject matter
      hereof and supersede all prior agreements, understandings, discussions and
      representations, oral or written, with respect to such matters, which the
      parties acknowledge have been merged into such documents, exhibits and
      schedules.

     

    6.3. Notices.
      Any and
      all notices or other communications or deliveries required or permitted to
      be
      provided hereunder shall be in writing and shall be deemed given and effective
      on the earliest of (a) the date of transmission, if such notice or communication
      is delivered via facsimile (provided the sender receives a machine-generated
      confirmation of successful transmission) at the facsimile number specified
      in
      this Section prior to 6:30 p.m. (New York City time) on a Trading Day, (b)
      the
      next Trading Day after the date of transmission, if such notice or communication
      is delivered via facsimile at the facsimile number specified in this Section
      on
      a day that is not a Trading Day or later than 6:30 p.m. (New York City time)
      on
      any Trading Day, (c) upon actual receipt by the party to whom such notice is
      required to be given, if sent by any means other than facsimile transmission.
      The address for such notices and communications shall be as
      follows:

    

      
        	
                If
                  to the Company:

              	
                Captech
                  Financial Group, Inc.

              
	 	
                4951
                  Airport Parkway, Suite 660

              
	 	
                Addison,
                  Texas 75001

              
	 	
                Facsimile:
                  (972) 930-9463

              
	 	
                Attn.:
                  Chief Financial Officer

              
	 	 
	
                With
                  a copy to:

              	
                Lowenstein
                  Sandler PC

              
	 	
                65
                  Livingston Avenue

              
	 	
                Roseland,
                  New Jersey 07068

              
	 	
                Facsimile:
                  (973) 597-2477

              
	 	
                Attn.:
                  Steven M. Skolnick, Esq.

              
	 	 
	
                If
                  to an Investor:

              	
                To
                  the address set forth under such Investor’s name on the signature pages
                  hereof;

              

      

    

     

    or
      such
      other address as may be designated in writing hereafter, in the same manner,
      by
      such Person.

     

    6.4. Amendments;
      Waivers; No Additional Consideration.
      No
      provision of this Agreement may be waived or amended except in a written
      instrument signed by the Company and the Investors holding a majority of the
      Shares. No waiver of any default with respect to any provision, condition or
      requirement of this Agreement shall be deemed to be a continuing waiver in
      the
      future or a waiver of any subsequent default or a waiver of any other provision,
      condition or requirement hereof, nor shall any delay or omission of either
      party
      to exercise any right hereunder in any manner impair the exercise of any such
      right. No consideration shall be offered or paid to any Investor to amend or
      consent to a waiver or modification of any provision of any Transaction Document
      unless the same consideration is also offered to all Investors who then hold
      Shares.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    6.5. Termination.
      This
      Agreement may be terminated prior to Closing:

     

    (a) by
      written agreement of the Investors and the Company; and

     

    (b) by
      the
      Company or an Investor (as to itself but no other Investor) upon written notice
      to the other, if the Closing shall not have taken place by 6:30 p.m. Eastern
      time on the Outside Date; provided,
      that
      the right to terminate this Agreement under this Section 6.5(b) shall not
      be available to any Person whose failure to comply with its obligations under
      this Agreement has been the cause of or resulted in the failure of the Closing
      to occur on or before such time.

     

    In
      the
      event of a termination pursuant to this Section, the Company shall promptly
      notify all non-terminating Investors. Upon a termination in accordance with
      this
      Section 6.5, the Company and the terminating Investor(s) shall not have any
      further obligation or liability (including as arising from such termination)
      to
      the other and no Investor will have any liability to any other Investor under
      the Transaction Documents as a result therefrom.

     

    6.6. Construction.
      The
      headings herein are for convenience only, do not constitute a part of this
      Agreement and shall not be deemed to limit or affect any of the provisions
      hereof. The language used in this Agreement will be deemed to be the language
      chosen by the parties to express their mutual intent, and no rules of strict
      construction will be applied against any party. This Agreement shall be
      construed as if drafted jointly by the parties, and no presumption or burden
      of
      proof shall arise favoring or disfavoring any party by virtue of the authorship
      of any provisions of this Agreement or any of the Transaction
      Documents.

     

    6.7. Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their successors and permitted assigns. The Company may not assign this
      Agreement or any rights or obligations hereunder without the prior written
      consent of the Investors. Any Investor may assign any or all of its rights
      under
      this Agreement to any Person to whom such Investor assigns or transfers any
      Shares, provided such transfer complies with applicable securities laws and
      the
      transferee agrees in writing to be bound, with respect to the transferred
      Shares, by the provisions hereof that apply to the “Investors.”

     

    6.8. No
      Third-Party Beneficiaries.
      This
      Agreement is intended for the benefit of the parties hereto and their respective
      successors and permitted assigns and is not for the benefit of, nor may any
      provision hereof be enforced by, any other Person, except as otherwise set
      forth
      in Section 4.7 (as to each Investor Party).

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    6.9. Governing
      Law.
      All
      questions concerning the construction, validity, enforcement and interpretation
      of this Agreement shall be governed by and construed and enforced in accordance
      with the internal laws of the State of New York, without regard to the
      principles of conflicts of law thereof. Each party agrees that all Proceedings
      concerning the interpretations, enforcement and defense of the transactions
      contemplated by this Agreement and any other Transaction Documents (whether
      brought against a party hereto or its respective Affiliates, employees or
      agents) shall be commenced exclusively in the New York Courts. Each party hereto
      hereby irrevocably submits to the exclusive jurisdiction of the New York Courts
      for the adjudication of any dispute hereunder or in connection herewith or
      with
      any transaction contemplated hereby or discussed herein (including with respect
      to the enforcement of the any of the Transaction Documents), and hereby
      irrevocably waives, and agrees not to assert in any Proceeding, any claim that
      it is not personally subject to the jurisdiction of any such New York Court,
      or
      that such Proceeding has been commenced in an improper or inconvenient forum.
      Each party hereto hereby irrevocably waives personal service of process and
      consents to process being served in any such Proceeding by mailing a copy
      thereof via registered or certified mail or overnight delivery (with evidence
      of
      delivery) to such party at the address in effect for notices to it under this
      Agreement and agrees that such service shall constitute good and sufficient
      service of process and notice thereof. Nothing contained herein shall be deemed
      to limit in any way any right to serve process in any manner permitted by law.
      Each party hereto hereby irrevocably waives, to the fullest extent permitted
      by
      applicable law, any and all right to trial by jury in any legal proceeding
      arising out of or relating to this Agreement or the transactions contemplated
      hereby. If either party shall commence a Proceeding to enforce any provisions
      of
      a Transaction Document, then the prevailing party in such Proceeding shall
      be
      reimbursed by the other party for its reasonable attorneys’ fees and other costs
      and expenses incurred with the investigation, preparation and prosecution of
      such Proceeding.

     

    6.10. Survival.
      The
      representations, warranties, agreements and covenants contained herein shall
      survive the Closing and the delivery of the Shares; provided,
      however, that the representations and warranties contained herein shall expire
      on the third anniversary of the Closing.

     

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

     

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

     

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

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    6.14. Replacement
      of Shares.
      If any
      certificate or instrument evidencing any Shares is mutilated, lost, stolen
      or
      destroyed, the Company shall issue or cause to be issued in exchange and
      substitution for and upon cancellation thereof, or in lieu of and substitution
      therefor, a new certificate or instrument, but only upon receipt of evidence
      reasonably satisfactory to the Company of such loss, theft or destruction and
      customary and reasonable indemnity, if requested. The applicants for a new
      certificate or instrument under such circumstances shall also pay any reasonable
      third-party costs associated with the issuance of such replacement Shares.
      If a
      replacement certificate or instrument evidencing any Shares is requested due
      to
      a mutilation thereof, the Company may require delivery of such mutilated
      certificate or instrument as a condition precedent to any issuance of a
      replacement.

     

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

     

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

     

    6.17. Independent
      Nature of Investors’ Obligations and Rights.
      The
      obligations of each Investor under any Transaction Document are several and
      not
      joint with the obligations of any other Investor, and no Investor shall be
      responsible in any way for the performance of the obligations of any other
      Investor under any Transaction Document. The decision of each Investor to
      purchase Shares pursuant to the Transaction Documents has been made by such
      Investor independently of any other Investor. Nothing contained herein or in
      any
      Transaction Document, and no action taken by any Investor pursuant thereto,
      shall be deemed to constitute the Investors as a partnership, an association,
      a
      joint venture or any other kind of entity, or create a presumption that the
      Investors are in any way acting in concert or as a group with respect to such
      obligations or the transactions contemplated by the Transaction Documents.
      Each
      Investor acknowledges that no other Investor has acted as agent for such
      Investor in connection with making its investment hereunder and that no Investor
      will be acting as agent of such Investor in connection with monitoring its
      investment in the Shares or enforcing its rights under the Transaction
      Documents. Each Investor shall be entitled to independently protect and enforce
      its rights, including without limitation the rights arising out of this
      Agreement or out of the other Transaction Documents, and it shall not be
      necessary for any other Investor to be joined as an additional party in any
      proceeding for such purpose. The Company acknowledges that each of the Investors
      has been provided with the same Transaction Documents for the purpose of closing
      a transaction with multiple Investors and not because it was required or
      requested to do so by any Investor.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    6.18. Limitation
      of Liability.
      Notwithstanding anything herein to the contrary, the Company acknowledges and
      agrees that the liability of an Investor arising directly or indirectly, under
      any Transaction Document of any and every nature whatsoever shall be satisfied
      solely out of the assets of such Investor, and that no trustee, officer, other
      investment vehicle or any other Affiliate of such Investor or any investor,
      shareholder or holder of shares of beneficial interest of such a Investor shall
      be personally liable for any liabilities of such Investor.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGES FOLLOW]

     

    
      
        
          
          

        

        
          25

          
            

          

        

        
          
          

        

      

    

    

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

     

    
      	 	 	 
	 	CAPTECH
              FINANCIAL GROUP, INC.
	 
 	 
 	 
 
	 	By:  	
              /s/
                Daniel Lee

            
	 	
              
Name:
Daniel
              Lee
	 	Title:
              CEO

    

    

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK

    SIGNATURE
      PAGE FOR INVESTORS FOLLOWS]

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

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

     

     

    
      	 	
              

              NAME
                OF INVESTOR

               

              _________________________________________
                

               

               

              By:
                _______________________________________

              Name:

              Title:

               

              Investment
                Amount: $_________________________

Tax
                ID No.:__________________________________

               

              

              ADDRESS
                FOR NOTICE

               

              c/o:_______________________________________

               

              Street:_____________________________________

               

              City/State/Zip:_______________________________

               

              Attention:___________________________________

               

              Tel:________________________________________

               

              Fax:________________________________________

               

               

              DELIVERY
                INSTRUCTIONS

              (if
                different from above)

               

              
                c/o:_______________________________________

                 

                Street:_____________________________________

                 

                City/State/Zip:_______________________________

                 

                Attention:___________________________________

                 

                Tel:________________________________________

              

            

    

     

    
      
        
        

      

      
        27Unassociated Document

     

    
      EXHIBIT
        A

      

      REGISTRATION
        RIGHTS AGREEMENT

      

      

      This
        Registration Rights Agreement (this "Agreement")
        is made
        and entered into as of August 1, 2007, by and among Captech Financial Group,
        Inc., a Florida corporation (the "Company"),
        and
        the investors signatory hereto (each a "Investor"
        and
        collectively, the "Investors").

      

      This
        Agreement is made pursuant to the Securities Purchase Agreement, dated as
        of the
        date hereof among the Company and the Investors (the "Purchase
        Agreement").

      

      The
        Company and the Investors hereby agree as follows: 

      

      1. Definitions.
        Capitalized terms used and not otherwise defined herein that are defined
        in the
        Purchase Agreement will have the meanings given such terms in the Purchase
        Agreement. As used in this Agreement, the following terms have the respective
        meanings set forth in this Section 1:

      

      “Additional
        Shares” has
        the
        meaning set forth in Section 4.11(a) of the Purchase Agreement. 

      

      "Advice"
        has
        the
        meaning set forth in Section 6(d).

      

      "Commission
        Comments" means
        written comments pertaining
        solely to Rule 415 which
        are
        received by the Company from the Commission, and a copy of which shall have
        been
        provided by the Company to the Holders, to a filed Registration Statement
        which
        either (i) requires the Company to limit the amount of shares which may be
        included therein to a number of shares which is less than such amount sought
        to
        be included thereon as filed with the Commission or (ii) requires the Company
        to
        either exclude shares held by certain Holders or deem such Holders to be
        underwriters with respect to their Registrable Securities.

      

      "Effective
        Date"
        means,
        as to a Registration Statement, the date on which such Registration Statement
        is
        first declared effective by the Commission.

      

      “Effectiveness
        Date”
        means
        the earlier of: (a)(i) the 105th
        day
        following the Closing Date; provided,
        that,
        if the Commission reviews and/or has written comments to the filed Registration
        Statement, then the Effectiveness Date under this clause (a)(i) shall be
        the
        150th
        day
        following the Closing Date, and (ii) the fifth Trading Day following the
        date on
        which the Company is notified by the Commission that the initial Registration
        Statement will not be reviewed or is no longer subject to further review
        and
        comments.

      

      "Effectiveness
        Period"
        means,
        as to any Registration Statement required to be filed pursuant to this
        Agreement, the period commencing on the Effective Date of such Registration
        Statement and ending on the earliest to occur of (a) the second anniversary
        of
        such Effective Date, (b) such time as all of the Registrable Securities covered
        by such Registration Statement have been publicly sold by the Holders of
        the
        Registrable Securities included therein, or (c) such time as all of the
        Registrable Securities covered by such Registration Statement may be sold
        by the
        Holders pursuant to Rule 144(k) as determined by the counsel to the Company
        pursuant to a written opinion letter to such effect, addressed and acceptable
        to
        the Company's transfer agent and the affected Holders.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

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

      

      "Filing
        Date"
        means
        the 60th
        day
        following the Closing Date; provided,
        however, that the Filing Date shall not occur prior to the 50th
        day
        following the Closing Date.

      

      "Holder"
        or
"Holders"
        means
        the holder or holders, as the case may be, from time to time of Registrable
        Securities.

      

      “Indemnified
        Party”
        has the
        meaning set forth in Section 5(c).

      

      “Indemnifying
        Party”
        has the
        meaning set forth in Section 5(c).

      

      “Losses”
        has the
        meaning set forth in Section 5(a).

      

      “New
        York Courts”
        means
        the state and federal courts sitting in the City of New York, Borough of
        Manhattan.

      

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

      

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

      

      "Registrable
        Securities"
        means:
        (i) the Shares, (ii) Additional Shares, (iii) any shares of Common Stock
        issuable upon exercise of warrants issued to any placement agent as compensation
        in connection with the financing that is the subject of the Purchase Agreement
        ("Placement
        Agent Warrant Shares"),
        and
        (iv) any securities issued or issuable upon any stock split, dividend or
        other
        distribution, recapitalization or similar event with respect to any of the
        securities referenced in (i), (ii), or (iii) above.

      

      "Registration
        Statement"
        means
        the registration statement required to be filed in accordance with Section
        2(a),
        including (in each case) the Prospectus, amendments and supplements to such
        registration statements or Prospectus, including pre- and post-effective
        amendments, all exhibits thereto, and all material incorporated by reference
        or
        deemed to be incorporated by reference therein.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

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

      

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

      

      "Rule
        424"
        means
        Rule 424 promulgated by the Commission pursuant to the Securities Act, as
        such
        Rule may be amended from time to time, or any similar rule or regulation
        hereafter adopted by the Commission having substantially the same effect
        as such
        Rule.

      

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

      

      "Shares"
        means
        the shares of Common Stock issued to the Investors pursuant to the Purchase
        Agreement.

      

      2. Registration.

      

      (a) On
        or
        prior to the Filing Date, the Company shall prepare and file with the Commission
        a Registration Statement covering the resale of all Registrable Securities
        not
        already covered by an existing and effective Registration Statement for an
        offering to be made on a continuous basis pursuant to Rule 415, on Form SB-2
        (or
        on such other form appropriate for such purpose). Such Registration Statement
        shall contain (except if otherwise required pursuant to written comments
        received from the Commission upon a review of such Registration Statement)
        the
        "Plan of Distribution" attached hereto as Annex A. The Company shall cause
        such
        Registration Statement to be declared effective under the Securities Act
        as
        soon as
        possible but, in any event, no later than its Effectiveness Date, and shall
        use
        its reasonable best efforts to keep the Registration Statement continuously
        effective during the entire Effectiveness Period. The Registration Statement
        shall contain 1) the Registrable Securities and 2) the securities set forth
        on
Schedule
        3.1(v)
        to the
        Purchase Agreement (the “Other
        Securities”).
        By
        5:00 p.m. (New York City time) on the Business Day immediately following
        the
        Effective Date of such Registration Statement, the Company shall file with
        the
        Commission in accordance with Rule 424 under the Securities Act the final
        prospectus to be used in connection with sales pursuant to such Registration
        Statement (whether or not such filing is technically required under such
        Rule).

      

      (b) Notwithstanding
        the other provisions of this Section 2, if the Company receives Commission
        Comments, and following discussions with the Commission in which the Company
        uses reasonable efforts and devotes a reasonable amount of time to cause
        as many
        Registrable Securities as possible to be included in the Registration Statement
        filed pursuant to Section 2(a) without characterizing any Holder as an
        underwriter, the Company is unable to cause the inclusion of all such
        Registrable Securities, then the Company will have the right, on one Trading
        Days prior notice to the Holders, to (i) remove from the Registration Statement
        such portion of the Registrable Securities and the Other Securities (the
        “Cut
        Back Shares”)
        and/or
        (ii) agree to such restrictions and limitations on the registration and resale
        of the Registrable Securities and the Other Securities as the SEC may require
        to
        assure the Company’s compliance with the requirements of Rule 415 (provided, the
        Company may not name any Holder as an underwriter without such Holder’s prior
        written consent) (collectively, the “SEC
        Restrictions”).
        Any
        cut-back imposed pursuant to this Section 2(b) shall be allocated (i) first
        to
        the Other Securities listed on Schedule 3.1(v) under the heading “First Cut
        Back,” (ii) second to the Placement Agent Warrant Shares, (iii) third to the
        Other Securities listed on Schedule 3.1(v) under the heading “Second Cut Back”
and (iv) last among the Shares of the Holders on a pro rata basis, unless
        the
        SEC Restrictions otherwise require. No liquidated damages shall accrue on
        or as
        to any Cut Back Shares until such time as the Company is able to effect the
        registration of the Cut Back Shares in accordance with any SEC Restrictions
        (such date, the “Restriction
        Termination Date”).
        From
        and after the Restriction Termination Date, all of the provisions of this
        Section 2 (including the liquidated damages provisions) shall again be
        applicable to the Cut Back Shares; provided, however, that for such purposes
        the
        Closing Date shall be deemed to be the Restriction Termination
        Date.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      (c) If:
        (i) a
        Registration Statement is not filed on or prior to its Filing Date covering
        the
        Registrable Securities required under this Agreement to
        be
        included therein (if the Company files a Registration Statement without
        affording the Holders the opportunity to review and comment on the same as
        required by Section 3(a) hereof, the Company shall not be deemed to have
        satisfied this clause (i)), or (ii) a Registration Statement is not declared
        effective by the Commission on or prior to its required Effectiveness Date,
        or
        if by the second Business Day immediately following the Effective Date the
        Company shall not have filed a “final” prospectus for the Registration Statement
        with the Commission under Rule 424(b) in accordance with Section 2(a), 2(b)
        or
        2(c) herein, as the case may be (whether or not such a prospectus is technically
        required by such Rule), or (iii) after its Effective Date, without regard
        for
        the reason thereunder or efforts therefor, such Registration Statement ceases
        for any reason to be effective and available to the Holders as to all
        Registrable Securities to which it is required to cover at any time prior
        to the
        expiration of its Effectiveness Period for more than an aggregate of 45 Trading
        Days in any 365 day period (any such failure or breach being referred to
        as an
“Event,”
        and for
        purposes of clauses (i) or (ii) the date on which such Event occurs, or for
        purposes of clause (iii) the date which such 30 Trading Day-period is exceeded,
        being referred to as “Event
        Date”),
        then
        in addition to any other rights the Holders may have hereunder or under
        applicable law: on such Event Date and on each monthly anniversary of each
        such
        Event Date (if the applicable Event shall not have been cured by such date)
        until
        the
        applicable Event is cured
        the
        Company shall pay to each Holder an amount in cash, as partial liquidated
        damages and not as a penalty, equal to 1.0% of the aggregate Investment Amount
        paid by such Holder for Shares pursuant to the Purchase Agreement. The parties
        agree that the Company will not be liable for liquidated damages under this
        Agreement with respect to any Placement Agent Warrant Shares. In no event
        will
        the Company be liable for liquidated damages under this Agreement in excess
        of
        1.0% of the aggregate Investment Amount of the Holders in any 30-day period
        and
        the maximum aggregate liquidated damages payable to a Holder under this
        Agreement shall be ten percent (10%) of the aggregate Investment Amount paid
        by
        such Holder pursuant to the Purchase Agreement. The partial liquidated damages
        pursuant to the terms hereof shall apply on a daily pro-rata basis for any
        portion of a month prior to the cure of an Event, except in the case of the
        first Event Date. 

      

      (d) Each
        Holder agrees to furnish to the Company a completed Questionnaire in the
        form
        attached to this Agreement as Annex
        B
        (a
“Selling
        Holder Questionnaire”).
        The
        Company shall not be required to include the Registrable Securities of a
        Holder
        in a Registration Statement and shall not be required to pay any liquidated
        or
        other damages under Section 2(c) to any Holder who fails to furnish to the
        Company a fully completed Selling Holder Questionnaire at least two Trading
        Days
        prior to the Filing Date (subject to the requirements set forth in Section
        3(a)). 

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      3. Registration
        Procedures.

      

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

      

      (a) Not
        less
        than four Trading Days prior to the filing of a Registration Statement or
        any
        related Prospectus or any amendment or supplement thereto, the Company shall
        furnish to each Holder copies of the “Selling Stockholders” section of such
        document, the “Plan of Distribution” and any risk factor contained in such
        document that addresses specifically this transaction or the Selling
        Stockholders, as proposed to be filed which documents will be subject to
        the
        review of such Holder. The Company shall not file a Registration Statement,
        any
        Prospectus or any amendments or supplements thereto in which the “Selling
        Stockholder” section thereof differs from the disclosure received from a Holder
        in its Selling Holder Questionnaire (as amended or supplemented). The Company
        shall not file a Registration Statement, any Prospectus or any amendments
        or
        supplements thereto in which it (i) characterizes any Holder as an
        underwriter, (ii) excludes a particular Holder due to such Holder refusing
        to be named as an underwriter, or (iii) reduces the number of Registrable
        Securities being registered on behalf of a Holder except pursuant to, in
        the
        case of subsection (iii), the Commission Comments, without, in each case,
        such
        Holder’s express written authorization.

      

      (b) (i)
        Prepare and file with the Commission such amendments, including post-effective
        amendments, to each Registration Statement and the Prospectus used in connection
        therewith as may be necessary to keep such Registration Statement continuously
        effective as to the applicable Registrable Securities for its Effectiveness
        Period and prepare and file with the Commission such additional Registration
        Statements in order to register for resale under the Securities Act all of
        the
        Registrable Securities; (ii) cause the related Prospectus to be amended or
        supplemented by any required Prospectus supplement, and as so supplemented
        or
        amended to be filed pursuant to Rule 424; (iii) respond as promptly as
        reasonably possible to any comments received from the Commission with respect
        to
        each Registration Statement or any amendment thereto and, except as provided
        in
        Section 3(c) below, as promptly as reasonably possible provide the Holders
        true
        and complete copies of all correspondence from and to the Commission relating
        to
        such Registration Statement that would not result in the disclosure to the
        Holders of material and non-public information concerning the Company; and
        (iv)
        comply in all material respects with the provisions of the Securities Act
        and
        the Exchange Act with respect to the Registration Statements and the disposition
        of all Registrable Securities covered by each Registration
        Statement.

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      (c) Notify
        the Holders as promptly as reasonably possible (and, in the case of (i)(A)
        below, not less than three Trading Days prior to such filing and, in the
        case of
        (v) below, not less than three Trading Days prior to the financial statements
        in
        any Registration Statement becoming ineligible for inclusion therein) and
        (if
        requested by any such Person) confirm such notice in writing no later than
        one
        Trading Day following the day (i)(A) when a Prospectus or any Prospectus
        supplement or post-effective amendment to a Registration Statement is proposed
        to be filed; (B) when the Commission notifies the Company whether there will
        be
        a "review" of such Registration Statement and whenever the Commission comments
        in writing on such Registration Statement (the Company shall provide true
        and
        complete copies thereof and all written responses thereto to each of the
        Holders
        that pertain to the Holders as a Selling Stockholder or to the Plan of
        Distribution, but not information which the Company believes would constitute
        material and non-public information); and (C) with respect to each Registration
        Statement or any post-effective amendment, when the same has become effective;
        (ii) of any request by the Commission or any other Federal or state governmental
        authority for amendments or supplements to a Registration Statement or
        Prospectus or for additional information; (iii) of the issuance by the
        Commission of any stop order suspending the effectiveness of a Registration
        Statement covering any or all of the Registrable Securities or the initiation
        of
        any Proceedings for that purpose; (iv) of the receipt by the Company of any
        notification with respect to the suspension of the qualification or exemption
        from qualification of any of the Registrable Securities for sale in any
        jurisdiction, or the initiation or threatening of any Proceeding for such
        purpose; and (v) of the occurrence of any event or passage of time that makes
        the financial statements included in a Registration Statement ineligible
        for
        inclusion therein or any statement made in such Registration Statement or
        Prospectus or any document incorporated or deemed to be incorporated therein
        by
        reference untrue in any material respect or that requires any revisions to
        such
        Registration Statement, Prospectus or other documents so that, in the case
        of
        such Registration Statement or the Prospectus, as the case may be, it will
        not
        contain any untrue statement of a material fact or omit to state any material
        fact required to be stated therein or necessary to make the statements therein,
        in light of the circumstances under which they were made, not
        misleading.

      

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

      

      (e) Make
        available to each Holder, without charge, at least one conformed copy of
        each
        Registration Statement and each amendment thereto and all exhibits, in either
        case, to the extent requested by such Person (including those previously
        furnished) promptly after the filing of such documents with the
        Commission.

      

      (f) Make
        available to each Holder, without charge, as many copies of each Prospectus
        or
        Prospectuses (including each form of prospectus) and each amendment or
        supplement thereto as such Persons may reasonably request. The Company hereby
        consents to the use of such Prospectus and each amendment or supplement thereto
        by each of the selling Holders in connection with the offering and sale of
        the
        Registrable Securities covered by such Prospectus and any amendment or
        supplement thereto.

      

      (g) Prior
        to
        any public offering of Registrable Securities, register or qualify such
        Registrable Securities for offer and sale under the securities or Blue Sky
        laws
        of all jurisdictions within the United States as any Holder may request,
        to keep
        each such registration or qualification (or exemption therefrom) effective
        during the Effectiveness Period and to do any and all other acts or things
        necessary or advisable to enable the disposition in such jurisdictions of
        the
        Registrable Securities covered by the Registration Statements.

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

       

      (h) Cooperate
        with the Holders to facilitate the timely preparation and delivery of
        certificates representing Registrable Securities to be delivered to a transferee
        pursuant to the Registration Statements, which certificates shall be free,
        to
        the extent permitted by the Purchase Agreement, of all restrictive legends,
        and
        to enable such Registrable Securities to be in such denominations and registered
        in such names as any such Holders may request.

      

      (i) Upon
        the
        occurrence of any event contemplated by Section 3(c)(v), as promptly as
        reasonably possible, prepare a supplement or amendment, including a
        post-effective amendment, to the affected Registration Statements or a
        supplement to the related Prospectus or any document incorporated or deemed
        to
        be incorporated therein by reference, and file any other required document
        so
        that, as thereafter delivered, no Registration Statement nor any Prospectus
        will
        contain an untrue statement of a material fact or omit to state a material
        fact
        required to be stated therein or necessary to make the statements therein,
        in
        light of the circumstances under which they were made, not
        misleading.

      

      4. Registration
        Expenses.
        All
        fees and expenses incident to the performance of or compliance with this
        Agreement by the Company shall be borne by the Company whether or not any
        Registrable Securities are sold pursuant to a Registration Statement. The
        fees
        and expenses referred to in the foregoing sentence shall include, without
        limitation, (i) all registration and filing fees (including, without limitation,
        fees and expenses (A) with respect to filings required to be made with any
        Trading Market on which the Common Stock is then listed for trading, and
        (B) in
        compliance with applicable state securities or Blue Sky laws), (ii) printing
        expenses (including, without limitation, expenses of printing certificates
        for
        Registrable Securities and of printing prospectuses if the printing of
        prospectuses is reasonably requested by the holders of a majority of the
        Registrable Securities included in the Registration Statement), (iii) messenger,
        telephone and delivery expenses, (iv) fees and disbursements of counsel for
        the
        Company, (v) Securities Act liability insurance, if the Company so desires
        such
        insurance, and (vi) fees and expenses of all other Persons retained by the
        Company in connection with the consummation of the transactions contemplated
        by
        this Agreement. In addition, the Company shall be responsible for all of
        its
        internal expenses incurred in connection with the consummation of the
        transactions contemplated by this Agreement (including, without limitation,
        all
        salaries and expenses of its officers and employees performing legal or
        accounting duties), the expense of any annual audit and the fees and expenses
        incurred in connection with the listing of the Registrable Securities on
        any
        securities exchange as required hereunder.

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      5. Indemnification.

      

      (a) Indemnification
        by the Company.
        The
        Company shall, notwithstanding any termination of this Agreement, indemnify
        and
        hold harmless each Holder, the officers, directors, agents, investment advisors,
        partners, members and employees of each of them, each Person who controls
        any
        such Holder (within the meaning of Section 15 of the Securities Act or Section
        20 of the Exchange Act) and the officers, directors, agents and employees
        of
        each such controlling Person, to the fullest extent permitted by applicable
        law,
        from and against any and all losses, claims, damages, liabilities, costs
        (including, without limitation, reasonable costs of preparation and reasonable
        attorneys' fees) and expenses (collectively, "Losses"),
        as
        incurred, arising out of or relating to any untrue or alleged untrue statement
        of a material fact contained in any Registration Statement, any Prospectus
        or
        any form of prospectus or in any amendment or supplement thereto or in any
        preliminary prospectus, or arising out of or relating to any omission or
        alleged
        omission of a material fact required to be stated therein or necessary to
        make
        the statements therein (in the case of any Prospectus or form of prospectus
        or
        supplement thereto, in light of the circumstances under which they were made)
        not misleading, except to the extent, but only to the extent, that (1) such
        untrue statements or omissions are based solely upon information regarding
        such
        Holder furnished in writing to the Company by such Holder expressly for use
        therein, or to the extent that such information relates to such Holder or
        such
        Holder's proposed method of distribution of Registrable Securities and was
        reviewed and expressly approved in writing by such Holder expressly for use
        in
        the Registration Statement, such Prospectus or such form of Prospectus or
        in any
        amendment or supplement thereto (it being understood that the Holder has
        approved Annex A hereto for this purpose) or (2) in the case of an occurrence
        of
        an event of the type specified in Section 3(c)(ii)-(v), the use by such Holder
        of an outdated or defective Prospectus after the Company has notified such
        Holder in writing that the Prospectus is outdated or defective and prior
        to the
        receipt by such Holder of an Advice or an amended or supplemented Prospectus,
        but only if and to the extent that following the receipt of the Advice or
        the
        amended or supplemented Prospectus the misstatement or omission giving rise
        to
        such Loss would have been corrected. The Company shall notify the Holders
        promptly of the institution, threat or assertion of any Proceeding of which
        the
        Company is aware in connection with the transactions contemplated by this
        Agreement.

      

      (b) Indemnification
        by Holders.
        Each
        Holder shall, severally and not jointly, indemnify and hold harmless the
        Company, its directors, officers, agents and employees, each Person who controls
        the Company (within the meaning of Section 15 of the Securities Act and Section
        20 of the Exchange Act), and the directors, officers, agents or employees
        of
        such controlling Persons, to the fullest extent permitted by applicable law,
        from and against all Losses, as incurred, arising solely out of or based
        solely
        upon: (x) such Holder's failure to comply with the prospectus delivery
        requirements of the Securities Act or (y) any untrue statement of a material
        fact contained in any Registration Statement, any Prospectus, or any form
        of
        prospectus, or in any amendment or supplement thereto, or arising solely
        out of
        or based solely upon any omission of a material fact required to be stated
        therein or necessary to make the statements therein not misleading to the
        extent, but only to the extent that, (1) such untrue statements or omissions
        are
        based solely upon information regarding such Holder furnished in writing
        to the
        Company by such Holder expressly for use therein, or to the extent that such
        information relates to such Holder or such Holder's proposed method of
        distribution of Registrable Securities and was reviewed and expressly approved
        in writing by such Holder expressly for use in the Registration Statement
        (it
        being understood that the Holder has approved Annex A hereto for this purpose),
        such Prospectus or such form of Prospectus or in any amendment or supplement
        thereto or (2) in the case of an occurrence of an event of the type specified
        in
        Section 3(c)(ii)-(v), the use by such Holder of an outdated or defective
        Prospectus after the Company has notified such Holder in writing that the
        Prospectus is outdated or defective and prior to the receipt by such Holder
        of
        an Advice or an amended or supplemented Prospectus, but only if and to the
        extent that following the receipt of the Advice or the amended or supplemented
        Prospectus the misstatement or omission giving rise to such Loss would have
        been
        corrected. In no event shall the liability of any selling Holder hereunder
        be
        greater in amount than the dollar amount of the net proceeds received by
        such
        Holder upon the sale of the Registrable Securities giving rise to such
        indemnification obligation.

       

      
        
          
          

        

        
          8

          
            

          

        

        
          
          

        

      

       

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

      

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

      

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

      

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

       

      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

       

      The
        parties hereto agree that it would not be just and equitable if contribution
        pursuant to this Section 5(d) were determined by pro rata allocation or by
        any
        other method of allocation that does not take into account the equitable
        considerations referred to in the immediately preceding paragraph.
        Notwithstanding the provisions of this Section 5(d), no Holder shall be required
        to contribute, in the aggregate, any amount in excess of the amount by which
        the
        proceeds actually received by such Holder from the sale of the Registrable
        Securities subject to the Proceeding exceeds the amount of any damages that
        such
        Holder has otherwise been required to pay by reason of such untrue or alleged
        untrue statement or omission or alleged omission.

      

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

      

      6. Miscellaneous.

      

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

      

      (b) No
        Piggyback on Registrations.
        Except
        as and to the extent specified in Schedule
        3.1(v)
        to the
        Purchase Agreement, neither the Company nor any of its security holders (other
        than the Holders in such capacity pursuant hereto) may include securities
        of the
        Company in a Registration Statement other than the Registrable
        Securities.

       

      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

       

      (c) Compliance.
        Each
        Holder covenants and agrees that it will comply with the prospectus delivery
        requirements of the Securities Act as applicable to it in connection with
        sales
        of Registrable Securities pursuant to the Registration Statement.

      

      (d) Discontinued
        Disposition.
        Each
        Holder agrees by its acquisition of such Registrable Securities that, upon
        receipt of a notice from the Company of the occurrence of any event of the
        kind
        described in Section 3(c), such Holder will forthwith discontinue disposition
        of
        such Registrable Securities under the Registration Statement until such Holder's
        receipt of the copies of the supplemented Prospectus and/or amended Registration
        Statement or until it is advised in writing (the "Advice")
        by the
        Company that the use of the applicable Prospectus may be resumed, and, in
        either
        case, has received copies of any additional or supplemental filings that
        are
        incorporated or deemed to be incorporated by reference in such Prospectus
        or
        Registration Statement. The Company may provide appropriate stop orders to
        enforce the provisions of this paragraph.

      

      (e) Piggy-Back
        Registrations.
        If at
        any time during the Effectiveness Period there is not an effective Registration
        Statement covering all of the Registrable Securities and the Company shall
        determine to prepare and file with the Commission a registration statement
        relating to an offering for its own account or the account of others under
        the
        Securities Act of any of its equity securities, other than on Form S-4 or
        Form
        S-8 (each as promulgated under the Securities Act) or their then equivalents
        relating to equity securities to be issued solely in connection with any
        acquisition of any entity or business or equity securities issuable in
        connection with stock option or other employee benefit plans, then the Company
        shall send to each Holder written notice of such determination and, if within
        fifteen calendar days after receipt of such notice, any such Holder shall
        so
        request in writing, the Company shall include in such registration statement
        all
        or any part of such Registrable Securities such holder requests to be
        registered, subject to customary underwriter cutbacks applicable to all holders
        of registration rights.

      

      (f) Amendments
        and Waivers.
        The
        provisions of this Agreement, including the provisions of this Section 6(f),
        may
        not be amended, modified or supplemented, and waivers or consents to departures
        from the provisions hereof may not be given, unless the same shall be in
        writing
        and signed by the Company and the Holders of no less than a majority in interest
        of the then outstanding Registrable Securities. Notwithstanding the foregoing,
        a
        waiver or consent to depart from the provisions hereof with respect to a
        matter
        that relates exclusively to the rights of certain Holders and that does not
        directly or indirectly affect the rights of other Holders may be given by
        Holders of at least a majority of the Registrable Securities to which such
        waiver or consent relates. Section 2(a) may not be amended or waived except
        by
        written consent of each Holder affected by such amendment or
        waiver.

      

      (g) Notices.
        Any and
        all notices or other communications or deliveries required or permitted to
        be
        provided hereunder shall be in writing and shall be deemed given and effective
        on the earliest of (a) the date of transmission, if such notice or communication
        is delivered via facsimile (provided the sender receives a machine-generated
        confirmation of successful transmission) at the facsimile number specified
        in
        this Section prior to 6:30 p.m. (New York City time) on a Trading Day, (b)
        the
        next Trading Day after the date of transmission, if such notice or communication
        is delivered via facsimile at the facsimile number specified in this Section
        on
        a day that is not a Trading Day or later than 6:30 p.m. (New York City time)
        on
        any Trading Day, (c) the Trading Day following the date of mailing, if sent
        by
        U.S. nationally recognized overnight courier service, or (d) upon actual
        receipt
        by the party to whom such notice is required to be given. The address for
        such
        notices and communications shall be as follows:

       

      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

      

        
          	
                  If
                    to the Company:

                	
                  Captech
                    Financial Group, Inc.

                
	 	
                  4951
                    Airport Parkway, Suite 660

                
	 	
                  Addison,
                    Texas 75001

                
	 	
                  Facsimile:
                    (972) 930-9463

                
	 	
                  Attn.:
                    Chief Financial Officer

                
	 	 
	
                  With
                    a copy to:

                	
                  Lowenstein
                    Sandler PC 

                
	 	
                  65
                    Livingston Avenue

                
	 	
                  Roseland,
                    New Jersey 07068

                
	 	
                  Facsimile:
                    (973) 597-2477

                
	 	
                  Attn.:
                    Steven M. Skolnick, Esq. 

                
	 	 
	
                  If
                    to a Investor: 

                	
                  To
                    the address set forth under such Investor's name on the signature
                    pages
                    hereto.

                
	 	 
	
                  If
                    to any other Person who is then the registered Holder:

                
	 	 
	 	
                  To
                    the address of such Holder as it appears in the stock transfer
                    books of
                    the Company

                

        

      

      

      or
        such
        other address as may be designated in writing hereafter, in the same manner,
        by
        such Person.

      

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

      

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

      

      (j) Governing
        Law.
        All
        questions concerning the construction, validity, enforcement and interpretation
        of this Agreement shall be governed by and construed and enforced in accordance
        with the internal laws of the State of New York, without regard to the
        principles of conflicts of law thereof. Each party agrees that all Proceedings
        concerning the interpretations, enforcement and defense of the transactions
        contemplated by this Agreement (whether brought against a party hereto or
        its
        respective Affiliates, employees or agents) will be commenced in the New
        York
        Courts. Each party hereto hereby irrevocably submits to the exclusive
        jurisdiction of the New York Courts for the adjudication of any dispute
        hereunder or in connection herewith or with any transaction contemplated
        hereby
        or discussed herein, and hereby irrevocably waives, and agrees not to assert
        in
        any Proceeding, any claim that it is not personally subject to the jurisdiction
        of any New York Court, or that such Proceeding has been commenced in an improper
        or inconvenient forum. Each party hereto hereby irrevocably waives personal
        service of process and consents to process being served in any such Proceeding
        by mailing a copy thereof via registered or certified mail or overnight delivery
        (with evidence of delivery) to such party at the address in effect for notices
        to it under this Agreement and agrees that such service shall constitute
        good
        and sufficient service of process and notice thereof. Nothing contained herein
        shall be deemed to limit in any way any right to serve process in any manner
        permitted by law. Each party hereto hereby irrevocably waives, to the fullest
        extent permitted by applicable law, any and all right to trial by jury in
        any
        Proceeding arising out of or relating to this Agreement or the transactions
        contemplated hereby. If either party shall commence a Proceeding to enforce
        any
        provisions of this Agreement, then the prevailing party in such Proceeding
        shall
        be reimbursed by the other party for its attorney’s fees and other costs and
        expenses incurred with the investigation, preparation and prosecution of
        such
        Proceeding.

       

      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

       

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

      

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

      

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

      

      (n) Independent
        Nature of Investors' Obligations and Rights.
        The
        obligations of each Investor under this Agreement are several and not joint
        with
        the obligations of each other Investor, and no Investor shall be responsible
        in
        any way for the performance of the obligations of any other Investor under
        this
        Agreement. Nothing contained herein or in any Transaction Document, and no
        action taken by any Investor pursuant thereto, shall be deemed to constitute
        the
        Investors as a partnership, an association, a joint venture or any other
        kind of
        entity, or create a presumption that the Investors are in any way acting
        in
        concert or as a group with respect to such obligations or the transactions
        contemplated by this Agreement or any other Transaction Document. Each Investor
        acknowledges that no other Investor will be acting as agent of such Investor
        in
        enforcing its rights under this Agreement. Each Investor shall be entitled
        to
        independently protect and enforce its rights, including without limitation
        the
        rights arising out of this Agreement, and it shall not be necessary for any
        other Investor to be joined as an additional party in any Proceeding for
        such
        purpose. The Company acknowledges that each of the Investors has been provided
        with the same Registration Rights Agreement for the purpose of closing a
        transaction with multiple Investors and not because it was required or requested
        to do so by any Investor.

      

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK

      SIGNATURE
        PAGES TO FOLLOW]

      

      
        
          
          

        

        
          13

          
            

          

        

        
          
          

        

      

      

      IN
        WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
        as
        of the date first written above.

       

      
        	 	 	 
	 	CAPTECH
                FINANCIAL GROUP, INC.
	 
 	 
 	 
 
	 	By:  	
                /s/
                  Daniel Lee

              
	 	
                
Name:
Daniel
                Lee
	 	Title:
                CEO

      

       

      

      [REMAINDER
        OF PAGE INTENTIONALLY LEFT BLANK

      SIGNATURE
        PAGES OF INVESTORS TO FOLLOW]

      

      
        
          
          

        

        
          14

          
            

          

        

        
          
          

        

      

      IN
        WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
        as
        of the date first written above.

      

       

      
        	 	
                NAME
                  OF INVESTING ENTITY

                 

                __________________________________________

                By: _____________________________________________

                Name:

                Title:

                

                ADDRESS
                  FOR NOTICE

                

                c/o:
                  _____________________________________________

                

                Street:
                  ___________________________________________

                

                City/State/Zip:
                  _____________________________________

                

                Attention:
                  ________________________________________

                

                Tel:
                  _____________________________________________

                

                Fax:
                  _____________________________________________

                

                Email:
                  ___________________________________________

              

      

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

      Annex
        A

      

      Plan
        of
        Distribution

      

      The
        Selling Stockholders and any of their pledgees, donees, transferees, assignees
        and successors-in-interest may, from time to time, sell any or all of their
        shares of Common Stock on any stock exchange, market or trading facility
        on
        which the shares are traded or quoted or in private transactions. These sales
        may be at fixed or negotiated prices. The Selling Stockholders may use any
        one
        or more of the following methods when selling shares:

      

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

      

      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;

      

      to
        cover
        short sales made after the date that the Registration Statement of which
        this
        prospectus is a part is declared effective by the Commission; 

      

      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 also sell shares under Rule 144 under the Securities
        Act, if available, rather than under this prospectus.

      

      Broker-dealers
        engaged by the Selling Stockholders may arrange for other brokers-dealers
        to
        participate in sales. Broker-dealers may receive commissions or discounts
        from
        the Selling Stockholders (or, if any broker-dealer acts as agent for the
        purchaser of shares, from the purchaser) in amounts to be negotiated. The
        Selling Stockholders do not expect these commissions and discounts to exceed
        what is customary in the types of transactions involved.

      

      The
        Selling Stockholders may from time to time pledge or grant a security interest
        in some or all of the Shares owned by them and, if they default in the
        performance of their secured obligations, the pledgees or secured parties
        may
        offer and sell 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 of 1933 amending the list of selling
        stockholders to include the pledgee, transferee or other successors in interest
        as selling stockholders under this prospectus.

       

      
        
          
          

        

        
          16

          
            

          

        

        
          
          

        

      

       

      Upon
        the
        Company being notified in writing by a Selling Stockholder that any material
        arrangement has been entered into with a broker-dealer for the sale of Common
        Stock through a block trade, special offering, exchange distribution or
        secondary distribution or a purchase by a broker or dealer, a supplement
        to this
        prospectus will be filed, if required, pursuant to Rule 424(b) under the
        Securities Act, disclosing (i) the name of each such Selling Stockholder
        and of
        the participating broker-dealer(s), (ii) the number of shares involved, (iii)
        the price at which such the shares of Common Stock were sold, (iv)the
        commissions paid or discounts or concessions allowed to such broker-dealer(s),
        where applicable, (v) that such broker-dealer(s) did not conduct any
        investigation to verify the information set out or incorporated by reference
        in
        this prospectus, and (vi) other facts material to the transaction. In addition,
        upon the Company being notified in writing by a Selling Stockholder that
        a donee
        or pledgee intends to sell more than 500 shares of Common Stock, a supplement
        to
        this prospectus will be filed if then required in accordance with applicable
        securities law.

      

      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.

      

      The
        Selling Stockholders and any broker-dealers or agents that are involved in
        selling the shares may be deemed to be "underwriters" within the meaning
        of the
        Securities Act in connection with such sales. In such event, any commissions
        received by such broker-dealers or agents and any profit on the resale of
        the
        shares purchased by them may be deemed to be underwriting commissions or
        discounts under the Securities Act. Discounts, concessions, commissions and
        similar selling expenses, if any, that can be attributed to the sale of Shares
        will be paid by the Selling Stockholder and/or the purchasers. Each Selling
        Stockholder has represented and warranted to the Company that it acquired
        the
        securities subject to this registration statement in the ordinary course
        of such
        Selling Stockholder’s business and, at the time of its purchase of such
        securities such Selling Stockholder had no agreements or understandings,
        directly or indirectly, with any person to distribute any such securities.
        

      

      The
        Company has advised each Selling Stockholder that it may not use shares
        registered on the Registration Statement of which this prospectus is a part
        to
        cover short sales of Common Stock made prior to the date on which the
        Registration Statement of which this prospectus is a part shall have been
        declared effective by the Commission. If a Selling Stockholder uses this
        prospectus for any sale of the Common Stock, it will be subject to the
        prospectus delivery requirements of the Securities Act. The Selling Stockholders
        will be responsible to comply with the applicable provisions of the Securities
        Act and Exchange Act, and the rules and regulations thereunder promulgated,
        including, without limitation, Regulation M, as applicable to such Selling
        Stockholders in connection with resales of their respective shares under
        this
        Registration Statement.

      

      The
        Company is required to pay all fees and expenses incident to the registration
        of
        the shares, but the Company will not receive any proceeds from the sale of
        the
        Common Stock. The Company has agreed to indemnify the Selling Stockholders
        against certain losses, claims, damages and liabilities, including liabilities
        under the Securities Act. 

       

      
        
          
          

        

        
          17

          
            

          

        

        
          
          

        

      

      Annex
        B

      

      CAPTECH
        FINANCIAL GROUP, INC.

      

      Selling
        Securityholder Notice and Questionnaire

      

      The
        undersigned beneficial owner of common stock (the “Common
        Stock”),
        of
        Captech Financial Group, Inc., a Florida corporation (the “Company”)
        understands that the Company has filed or intends to file with the Securities
        and Exchange Commission (the “Commission”)
        a
        Registration Statement for the registration and resale of the Registrable
        Securities, in accordance with the terms of the Registration Rights Agreement,
        dated as of August
        1,
        2007
        (the “Registration
        Rights Agreement”),
        among
        the Company and the Investors named therein. A copy of the Registration Rights
        Agreement is available from the Company upon request at the address set forth
        below. All capitalized terms used and not otherwise defined herein shall
        have
        the meanings ascribed thereto in the Registration Rights Agreement.

      

      The
        undersigned hereby provides the following information to the Company and
        represents and warrants that such information is accurate:

      

      QUESTIONNAIRE

      

        
          	
                  1.

                	
                  Name.

                	 
	 	 	 
	 	
                  (a)

                	
                  Full
                    Legal Name of Selling Securityholder

                
	 	 	 
	 	 	  

	 	 	 
	 	
                  (b)

                	
                  Full
                    Legal Name of Registered Holder (if not the same as (a) above)
                    through
                    which Registrable Securities Listed in Item 3 below are
                    held:

                
	 	 	 
	 	 	  

	 	 	 
	 	
                  (c)

                	
                  Full
                    Legal Name of Natural Control Person (which means a natural person
                    who
                    directly or indirectly alone or with others has power to vote
                    or dispose
                    of the securities covered by the questionnaire):

                
	 	 	 
	 	 	   

        

      

      
 

      2.
        Address for Notices to Selling Securityholder:

       

      
        	  

	  

	  

      

      
        	
                Telephone: 

              	 
	
                Fax: 

              	  

	
                Contact
                  Person: 

              	  
                

      

       

      
        
          
          

        

        
          18

          
            

          

        

        
          
          

        

      

       

      3.
        Beneficial Ownership of Registrable Securities:

      

        
          	
                   

                	
                  Type
                    and Principal Amount of Registrable Securities beneficially
                    owned:

                
	 	 
	 	  

	 	  

	 	  

        

      

       

      

      4.
        Broker-Dealer Status:

      

      
        	 	
                (a)

              	
                Are
                  you a broker-dealer?

              

      

      

        
          	 	
                  Yes  
                    o

                	
                  No  
                    o

                

        

         

      

      
        	 	
                Note:

              	
                If
                  yes, the Commission’s staff has indicated that you should be identified as
                  an underwriter in the Registration
                  Statement.

              

      

      

      
        	 	
                (b)

              	
                Are
                  you an affiliate of a
                  broker-dealer?

              

      

      
        

          
            	 	
                    Yes  
                      o

                  	
                    No  
                      o

                  

          

        

      

      

      
        	 	
                (c)

              	
                If
                  you are an affiliate of a broker-dealer, do you certify that you
                  bought
                  the Registrable Securities in the ordinary course of business,
                  and at the
                  time of the purchase of the Registrable Securities to be resold,
                  you had
                  no agreements or understandings, directly or indirectly, with any
                  person
                  to distribute the Registrable
                  Securities?

              

      

      
        

          
            	 	
                    Yes  
                      o

                  	
                    No  
                      o

                  

          

        

      

      

      
        	 	
                Note:

              	
                If
                  no, the Commission’s staff has indicated that you should be identified as
                  an underwriter in the Registration
                  Statement.

              

      

      

      5.
        Beneficial Ownership of Other Securities of the Company Owned by the Selling
        Securityholder.

      

      Except
        as set forth below in this Item 5, the undersigned is not the beneficial
        or
        registered owner of any securities of the Company other than the Registrable
        Securities listed above in Item 3.

      
        

          
            	
                     

                  	
                    
                      Type
                        and Amount of Other Securities beneficially owned by the
                        Selling
                        Securityholder:

                    

                  
	 	 
	 	  

	 	  

	 	  

          

           

        

      

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

       

      6.
        Relationships with the Company:

      

      Except
        as set forth below, neither the undersigned nor any of its affiliates, officers,
        directors or principal equity holders (owners of 5% of more of the equity
        securities of the undersigned) has held any position or office or has had
        any
        other material relationship with the Company (or its predecessors or affiliates)
        during the past three years.

      
        

          
            	
                     

                  	
                    
                      
                        State
                          any exceptions here:

                      

                    

                  
	 	 
	 	  

	 	  

          

        

      

       

      

      7.
        The
        Company has advised each Selling Stockholder that it may not use shares
        registered on the Registration Statement to cover short sales of Common Stock
        made prior to the date on which the Registration Statement is declared effective
        by the Commission, in accordance with 1997 Securities and Exchange Commission
        Manual of Publicly Available Telephone Interpretations Section A.65. If a
        Selling Stockholder uses the prospectus for any sale of the Common Stock,
        it
        will be subject to the prospectus delivery requirements of the Securities
        Act.
        The Selling Stockholders will be responsible to comply with the applicable
        provisions of the Securities Act and Exchange Act, and the rules and regulations
        thereunder promulgated, including, without limitation, Regulation M, as
        applicable to such Selling Stockholders in connection with resales of their
        respective shares under the Registration Statement.

      

      The
        undersigned agrees to promptly notify the Company of any inaccuracies or
        changes
        in the information provided herein that may occur subsequent to the date
        hereof
        and prior to the Effective Date for the Registration Statement.

      

      By
        signing below, the undersigned consents to the disclosure of the information
        contained herein in its answers to Items 1 through 6 and the inclusion of
        such
        information in the Registration Statement and the related prospectus. The
        undersigned understands that such information will be relied upon by the
        Company
        in connection with the preparation or amendment of the Registration Statement
        and the related prospectus.

      

      IN
        WITNESS WHEREOF the undersigned, by authority duly given, has caused this
        Notice
        and Questionnaire to be executed and delivered either in person or by its
        duly
        authorized agent.

       

      
        	 	 	 
	Date: ____________________________________ 	Beneficial
                Owner:
                _____________________________________
	 
 	 
 	 
 
	 	By:  	_______________________________________________
	 	Name:
	 	Title:

      

       

      
        
          
          

        

        
          20

          
            

          

        

        
          
          

        

      

       

      PLEASE
        FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN
        THE ORIGINAL BY OVERNIGHT MAIL, TO:

      

      Lowenstein
        Sandler PC

      65
        Livingston Avenue

      Roseland,
        New Jersey 07068

      Facsimile:
        (973) 597-2477

      Attn.:
        Steven M. Skolnick, Esq.

       

      
        
          
          

        

        
          21

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00127-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00127-of-00352.parquet"}]]