Document:

Unassociated Document

    MEDPANEL,
      INC.

    

    EMPLOYMENT
      AGREEMENT

     

    THIS
      EMPLOYMENT AGREEMENT (this “Agreement”) is entered into as of November __, 2006,
      between MEDPANEL, INC., a Delaware corporation (the “Company”), and HOWARD BRICK
      (the “Executive”).

    

    WHEREAS,
      the parties desire to enter into this Agreement setting forth the terms and
      conditions for the employment relationship of the Executive with the
      Company.

    

    NOW,
      THEREFORE, it is AGREED as follows:

    

    1. Employment.
      The
      Executive is hereby employed as Managing Director and Chief Operating Officer
      of
      the Company for a period commencing on the date hereof and ending two years
      after the date hereof. As Managing Director and Chief Operating Officer of
      the
      Company, the Executive shall handle all day to day activities of the Company
      as
      customarily performed by persons serving in such capacities. The Executive
      agrees to serve the Company faithfully and to the best of his ability and to
      devote his full time, attention, and efforts to the business and affairs of
      the
      Company during the term of his employment. The Executive hereby confirms that
      he
      is under no contractual commitments inconsistent with his obligations set forth
      in this Agreement. The Executive shall be entitled without prior written consent
      to hold positions on the Board of Directors of entities that do not compete
      with
      the Company and do not otherwise restrict the trading and business activities
      of
      the Company and its parent or sister subsidiaries. The Executive has, as of
      the
      date of this Agreement, disclosed to the Board of Directors of the Company
      the
      positions the Executive currently holds on other Boards of Directors, and the
      Company has consented to such positions.

    

    2. Location
      of Services.
      During
      the term of this Agreement, the Executive shall be principally located at the
      offices of the Company located in Boston metropolitan area of the Commonwealth
      of Massachusetts.

    

    3. Salary.
      The
      Company shall pay the Executive an annual base salary equal to One Hundred
      Sixty-Five Thousand Dollars ($165,000) as compensation for services in calendar
      year 2007 and an annual base salary equal to One Hundred Seventy-Four Thousand
      Dollars ($174,000) as compensation of services in calendar year 2008 (“Base
      Salary”). The Base Salary of the Executive shall not be decreased at any time
      during the term of this Agreement from the amount then in effect, unless the
      Executive otherwise agrees in writing. Participation in deferred compensation,
      discretionary bonus, retirement, and other employee benefit plans and in fringe
      benefits shall not reduce the Base Salary. The Base Salary shall be payable
      to
      the Executive not less frequently than monthly.

    

    4. Executive’s
      Bonus.
      The
      Executive shall be entitled to an annual bonus conditioned upon Company
      performance as more particularly described below:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    (a) For
      calendar year 2007, the Executive’s bonus compensation shall be calculated by
      application of a weighted percentage against Pre-Bonus EBITDA, Revenue and
      Revenue Growth above the Benchmark.

    

    (i) Pre-Bonus
      EBITDA is defined as the earnings determined in accordance with GAAP before
      interest, taxes, depreciation and amortization of the Company during calendar
      year 2007;

    

    (ii) Revenue
      is defined consistent with the financial statements;

    

    (iii) Revenue
      Growth is defined as the increased Revenue above the Benchmark; and

    

    (iv) Benchmark
      is defined as Company Revenue of $5,369,400.

    

    The
      Executive bonus compensation for calendar year 2007 will be equal to the sum
      of
      (I) the product of the Pre-Bonus EBITDA figure for such year multiplied by
      11.31%; plus (II) the product of the Revenue figure for such year multiplied
      by
      0.64%, plus (III) the product of the Revenue Growth above the Benchmark
      multiplied by 2.05%.

    

    This
      calculation reflects the application of weighted multiples of 25% based upon
      Pre-Bonus EBITDA; 35% based upon Revenue; and 40% based upon Revenue
      Growth
      above
      the Benchmark.

    

    (b) For
      calendar year 2008, the Executive’s bonus compensation shall be calculated by
      application of a weighted percentage against Pre-Bonus EBITDA, Revenue and
      Revenue Growth above the actual Revenue generated by Company for calendar year
      2007.

    

    The
      Executive bonus compensation for calendar year 2008 will be equal to the sum
      of
      (I) the product of the Pre-Bonus EBITDA figure multiplied by 8.45%; plus (II)
      the product of the Revenue figure multiplied by 0.38%; plus (III) the product
      of
      the Revenue Growth above the actual Revenue generated by Company for calendar
      year 2007 multiplied by 1.50%. 

    

    This
      calculation reflects the application of weighted multiples of 50% based upon
      Pre-Bonus EBITDA; 20% based upon Revenue; and 30% based upon Revenue Growth
      for
      calendar year 2007.

    

    (c) To
      the
      extent earned, the Pre-Bonus EBITDA and Revenue Growth portions of the
      Executive’s bonus will be payable at the end of each calendar year. To the
      extent earned, the Revenue portion of the Executive’s bonus will be payable at
      the end of each calendar quarter.

    

    (d) For
      the
      purpose of calculating the Executive’s bonus, the Pre-Bonus EBITDA and Revenue
      Growth portions of the calculation shall be either zero or a positive
      number.

    

    5. Participation
      in the Executive Benefit Plans.
      The
      Executive is immediately eligible to participate in all of the Company's benefit
      plans. Upon the consummation of that certain Agreement and Plan of Merger dated
      November 7, 2006 by and among the Company, MCF Corporation, Panel Intelligence,
      LLC, MedPanel Acquisition I Corp., and William J. Febbo (the “Merger
      Agreement”), the benefit plans will be provided by MCF Corporation. The benefits
      include health insurance, employee stock purchase plan, cafeteria plan and
      401k
      retirement plan.

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

     

    6. Stock
      Options.
      Upon
      the consummation of the Merger Agreement, the Executive will be granted a stock
      option entitling him to purchase 250,000 shares of common stock of MCF
      Corporation at the closing price of MCF Corporation's common stock on the day
      on
      which the Second Merger (as defined in the Merger Agreement) is closed. The
      option will vest 25% on the one-year anniversary of the Executive's employment
      and then on a monthly basis ratably (ie, 1/36th
      of the
      balance of the option grant per month) over the remaining three year period
      and
      shall be subject to the terms and conditions of the MCF Corporation Stock Option
      and Incentive Plan(s).

    

    7.  Parachute
      Payments.
      Notwithstanding any other provision of this Agreement or of any other agreement,
      contract, or understanding heretofore or hereafter entered into by the Executive
      with the Company, except an agreement, contract, or understanding hereafter
      entered into that expressly modifies or excludes application of this paragraph
      (an “Other Agreement”), and notwithstanding any formal or informal employment
      agreement or other arrangement for the direct or indirect provision of
      compensation to the Executive (including groups or classes of participants
      or
      beneficiaries of which the Executive is a member), whether or not such
      compensation is deferred, is in cash, or is in the form of a benefit to or
      for
      the Executive (a “Benefit Arrangement”), if the Executive is a “disqualified
      individual,” as defined in Section 280G(c) of the Internal Revenue Code (the
“Code”), any right to receive any payment or other benefit under this Agreement
      shall not become exercisable or vested or shall be forfeited to the extent
      that
      such right to exercise, vesting, payment, or benefit, taking into account all
      other rights, payments, or benefits to or for the Executive under this
      Agreement, all Other Agreements, and all Benefit Arrangements, would cause
      any
      payment or benefit to the Executive under this Agreement to be considered a
      “parachute payment” within the meaning of Section 280G(b)(2) of the Code as then
      in effect (a “Parachute Payment”). In the event that the receipt of any such
      right to exercise, vesting, payment, or benefit under this Agreement, in
      conjunction with all other rights, payments, or benefits to or for the Executive
      under any Other Agreement or any Benefit Arrangement would cause the Executive
      to be considered to have received a Parachute Payment under this Agreement,
      then
      the Executive shall have the right, in the Executive’s sole discretion, to
      designate those rights, payments, or benefits under this Agreement, any Other
      Agreements, and any Benefit Arrangements that should be reduced or eliminated
      so
      as to avoid having the payment or benefit to the Executive under this Agreement
      be deemed to be a Parachute Payment.

    

    8. Standards.
      The
      Executive shall perform the Executive’s duties and responsibilities under this
      Agreement in accordance with such reasonable standards as may be established
      from time to time by the Board of Directors of the Company. The reasonableness
      of such standards shall be measured against standards for executive performance
      generally prevailing in the Company’s industry.

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

     

    9. Voluntary
      Absences; Vacations.
      As a
      revenue-generating employee the Executive is not subject to the Company's
      vacation policy.

    

    10. Termination
      of Employment.

    

    (a) The
      Executive may terminate his employment at any time after the 60-day notice
      period in Section 11 has elapsed. The Board of Directors of the Company may
      terminate the Executive’s employment at any time, subject to payment of the
      compensation described below.

    

    (b) In
      the
      case of (i) any termination other than “termination for cause” as defined below
      (“Termination Without Cause”), or (ii) any termination by the Executive for
“Good Reason” as defined below (“Termination for Good Reason”), the Executive
      shall continue to receive his full Base Salary for 12 months, commencing on
      the
      date of such termination (the “Severance Period”), and any bonus that has been
      earned but not paid before termination of employment, including the Executive’s
      Bonus earned through the end of the year during which the termination occurs,
      and all other benefits and compensation that the Executive would have been
      entitled to under this Agreement in the absence of termination of employment
      (collectively, the “Severance Amount”). In the event of a Termination Without
      Cause or a Termination for Good Reason, the Company and Executive will attempt
      in good faith to agree on terms of a reference letter or statement for the
      Executive.

    

    (c) The
      Executive shall have no right to receive compensation or other benefits from
      the
      Company or MCF for any period after termination for cause by the Company or
      termination by the Executive other than Termination for Good Reason, except
      for
      any vested retirement benefits to which the Executive may be entitled under
      any
      qualified employee pension plan maintained by the Company or MCF and any
      deferred compensation to which the Executive may be entitled.

    

    (d) The
      term
“Termination for Cause” shall mean termination by the Company because of the
      Executive’s: (i) fraud or material misappropriation with respect to the business
      or assets of the Company; (ii) any violation of the Standards of Conduct
      described in Chapter 2, Dismissal for Misconduct section of the MCF Corporation
      and Subsidiaries Employee Handbook, revised and republished on May 1, 2006;
      (iii) conduct that constitutes disloyalty to the Company and which materially
      harms the Company or conduct that constitutes breach of fiduciary duty involving
      personal profit; (iv) conviction, or the entry of a plea of guilty or nolo
      contendere by the Executive, of a felony or crime, or willful violation of
      any
      law, rule, or regulation, involving moral turpitude; (v) the use of drugs or
      alcohol which interferes materially with the Executive’s performance of his
      duties; or (vi) material breach of any provision of this Agreement.

    

    (e) The
      term
“Termination for Good Reason” shall mean that Executive’s resignation occurs
      within three months of one of the following events: (i) an involuntary reduction
      of Executive’s job duties or responsibilities; (ii) the Board resolves that
      Executive report to someone other than the Board or the Chairman of the Board
      of
      the Company; (iii) any involuntary reduction of Executive’s Base Compensation;
      or (iv) the issuance of a directive requiring Executive to relocate to a new
      office located anywhere other than the Boston Metropolitan area of the
      Commonwealth of Massachusetts.

    

    (f) The
      Executive’s employment pursuant to this Agreement shall terminate automatically
      prior to the expiration of the term of this Agreement in the event of the
      Executive’s death or disability that prevents the Executive from performing his
      duties and responsibilities without a reasonable accommodation. In the event
      the
      Executive’s employment terminates prior to the expiration of the term of this
      Agreement due to his death or disability, the Executive, or his Estate, shall
      not be entitled to any further compensation under the provisions of this
      Agreement, except for his Base Salary earned through the date of termination
      and
      the portion of any bonus which previously had been approved by the Company
      but
      was unpaid as of the Executive’s death or disability. 

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

     

    11. Termination
      by the Executive.
      The
      Executive may terminate his employment at any time during the term of this
      Agreement by giving sixty (60) days’ prior written notice thereof to the Board
      of Directors of the Company. In the event of termination by the Executive under
      this Section 11, the Company may at its option elect to have the Executive
      cease to provide services immediately, provided that during such 60-day notice
      period the Executive shall be entitled to continue to receive his Base
      Salary.

    

    12. Return
      of Proprietary Property.
      The
      Executive agrees that all property in the Executive’s possession that he obtains
      or is assigned in the course of his employment with the Company, including,
      without limitation, all documents, reports, manuals, memoranda, customer lists,
      credit cards, keys, access cards, and all other property relating in any way
      to
      the business of the Company, is the exclusive property of the Company, even
      if
      the Executive authored, created, or assisted in authoring or creating such
      property. The Executive shall return to the Company all such property
      immediately upon termination of employment or at such earlier time as the
      Company may request.

    

    13. Confidential
      Information.
      Except
      as permitted or directed by the Board of Directors of the Company, during the
      time the Executive is employed by the Company or at any time thereafter, the
      Executive shall not divulge, furnish, or make accessible to anyone or use in
      any
      way (other than in the ordinary course of the business of the Company) any
      confidential or secret information or knowledge of the Company, whether
      developed by himself or by others. Such confidential and/or secret information
      encompassed by this Section 13 includes, but is not limited to, the Company’s
      customer and supplier lists, business plans, and financial, marketing, and
      personnel information. The Executive agrees to refrain from any acts or
      omissions that would reduce the value of any confidential or secret knowledge
      or
      information to the Company, both during his employment hereunder and at any
      time
      after the termination of his employment. The Executive’s obligations of
      confidentiality under this Section 13 shall not apply to any knowledge or
      information that is now published publicly or that subsequently becomes
      generally publicly known, other than as a direct or indirect result of a breach
      of this Agreement by the Executive.

    

    14. Patent
      and Related Matters.

    

    (a) The
      Executive agrees to promptly disclose in writing to the Company complete
      information concerning each and every invention, discovery, improvement, device,
      design, process, or product made, developed, perfected, devised, conceived,
      or
      first reduced to practice by the Executive, either solely or in collaboration
      with others, during the Executive’s term of employment by the Company, relating
      to the business, products, practices, or techniques of the Company (hereinafter
      referred to as “Developments”). The Executive, to the extent that the Executive
      has the legal right to do so, hereby acknowledges that any and all of said
      Developments are the property of the Company and hereby assigns and agrees
      to
      assign to the Company any and all of the Executive’s right, title, and interest
      in and to any and all of such Developments.

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

     

    (b) The
      provisions of this Section 14 shall not apply to any Development meeting the
      following conditions:

    

    (i) such
      Development was developed entirely on the Executive’s own time; and

    

    (ii) such
      Development was made without the use of any Company equipment, supplies,
      facilities, or trade secret information; and such Development does not relate
      at
      the time of conception or reduction to practice to (i) to the business of the
      Company, or (ii) to the Company’s actual or demonstrably anticipated research or
      development; and

    

    (iii) such
      Development does not result from any work performed by the Executive for the
      Company.

    

    (c) Upon
      request and without further compensation therefor, but at no expense to the
      Executive, and whether during the term of the Executive’s employment by the
      Company or thereafter, the Executive will do all lawful acts, including, but
      not
      limited to, the execution of papers and the giving of testimony, that in the
      opinion of the Company, its successors, or assigns, may be necessary or
      desirable in obtaining, sustaining, reissuing, extending, or enforcing Letters
      Patent, and for perfecting, affirming, and recording the Company’s complete
      ownership and title thereto, and to cooperate otherwise in all proceedings
      and
      matters relating thereto.

    

    15. Restrictive
      Covenants.

    

    (a) During
      the employment of the Executive under this Agreement and for a period of one
      year after termination of such employment, the Executive shall not at any time
      (i) compete on his own behalf, or on behalf of any other person or entity,
      with
      the Company within all territories in which the Company does business, with
      respect to the business of the Company as such business shall have been
      conducted on the date hereof or during the term of employment of the Executive
      under this Agreement; (ii) solicit or induce, on his own behalf or on behalf
      of
      any other person or entity, any employee of the Company to leave the employ
      of
      the Company or any of its affiliates; or (iii) solicit or induce, on his own
      behalf or on behalf of any other person or entity, any customer of the Company
      to reduce its business with the Company.

    

    (b) The
      Executive shall not at any time during or subsequent to his employment by the
      Company, on his own behalf or on behalf of any other person or entity, disclose
      any proprietary information of the Company or any of its affiliates to any
      other
      person or entity other than on behalf of the Company or in conducting its
      business, and the Executive shall not use any such proprietary information
      for
      his own personal advantage or make such proprietary information available to
      others for use, unless such information shall have come into the public domain
      other than through unauthorized disclosure.

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

     

    (c) The
      ownership by the Executive of not more than five percent (5%) of a corporation,
      partnership or other enterprise, other than MCF Corporation, shall not
      constitute a violation hereof.

    

    (d) The
      restrictions set forth in this Section 15 shall terminate without further action
      required on the part of either party upon the occurrence of any of the following
      events: (i) Termination Without Cause or Termination for Good Reason; or (ii)
      the breach by the Company or MCF Corporation of any material representation,
      warranty or covenant contained in this Agreement or the Merger
      Agreement.

    

    (e) If
      any
      portion of this Section 15 is found by a court of competent jurisdiction to
      be
      invalid or unenforceable, but would be valid and enforceable if modified, this
      Section 15 shall apply with such modifications necessary to make this Section
      15
      valid and enforceable. Any portion of this Section 15 not required to be so
      modified shall remain in full force and effect and not be affected thereby.
      The
      Executive agrees that the Company shall have the right of specific performance
      in the event of a breach by the Executive of this Section 15.

    

    16. Assignment.
      The
      rights and obligations of the Company and MCF Corporation under this Agreement
      shall inure to the benefit of and shall be binding upon the successors and
      assigns of the Company and MCF Corporation. Neither party may assign this
      Agreement or any rights hereunder; provided, however, that the Company may
      assign this Agreement to MCF Corporation or to any entity which is a successor
      to the Company as a result of the Merger Agreement. Any purported or attempted
      assignment or transfer by the Executive of this Agreement or any of the
      Executive’s duties, responsibilities, or obligations hereunder shall be
      void.

    

    17. Company
      Remedies.
      The
      Executive acknowledges that the remedy at law for any breach of any of the
      provisions of Sections 12, 13, 14 or 15 will be inadequate, and that the Company
      shall be entitled, in addition to any remedy at law or in equity, to preliminary
      and permanent injunctive relief and specific performance.

    

    18. Other
      Contracts.
      The
      Executive shall not, during the term of this Agreement, have any other paid
      employment, except (a) service on other boards of directors contemplated by
      Section 1 hereof, and (b) with the prior approval of the Board of
      Directors.

    

    19. Notices.
      All
      notices, requests, demands, consents, or other communications required or
      permitted under this Agreement shall be in writing and shall be deemed to have
      been duly given if delivered by overnight courier or express mail service or
      by
      postage prepaid registered or certified mail, return receipt requested (the
      return receipt constituting prima facie evidence the giving of such notice
      request, demand or other communication), by personal delivery, or by fax with
      confirmation of receipt and a copy mailed with postage prepaid, to the following
      address or such other address of which a party may subsequently give notice
      to
      the other party in accord with the provisions of this Section. Notice is
      effective immediately if by personal delivery or by fax with confirmation
      received and a copy mailed the same day. Notice sent by overnight courier or
      by
      registered or certified mail is effective the earlier of actual receipt or
      the
      fifth date after the date mailed as evidenced by the sender’s certified or
      registered receipt.

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

     

    
      	
              To
                the Company:

            	
              MedPanel,
                Inc.

            
	 	
              44
                Brattle Street

            
	 	
              Cambridge,
                MA 02138

            
	 	 
	
              To
                Executive:

            	
              Howard
                Brick

            
	 	
              _______________________

            
	 	 
	 	
              _______________________

            

    

     

    20. 
      Arbitration.
      Any
      dispute between the parties concerning the interpretation, validity or
      performance of this Agreement or any of its terms and provisions shall be
      submitted to binding arbitration in the State of California, City and County
      of
      San Francisco, before an arbitrator selected by the parties hereto, and the
      prevailing party in such arbitration shall have the right to have any award
      made
      by the arbitrator confirmed by a court of competent jurisdiction and shall
      be
      entitled to reimbursement for all costs and expenses incurred, thereby,
      including reasonable attorney’s fees.

    

    

    21. Amendments
      or Additions.
      No
      amendments or additions to this Agreement shall be binding unless in writing
      and
      signed by all parties hereto.

    

    22. Section
      Headings.
      The
      section headings used in this Agreement are included solely for convenience
      and
      shall not affect, or be used in connection with, the interpretation of this
      Agreement.

    

    23. Severability.
      The
      provisions of this Agreement shall be deemed severable and the invalidity or
      unenforceability of any provision shall not affect the validity or
      enforceability of the other provisions hereof.

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

     

    24. Governing
      Law.
      This
      Agreement shall be governed by the laws of the State of California (other than
      the choice of law rules thereof).

     

    
      	
              COMPANY:

               

              MEDPANEL,
                INC. 

              a
                Delaware corporation

               

              By:_________________________
                     

              Name:
                

              Title:
                

               

              MCF
                CORPORATION:

               

              By:_________________________     

              Name:
                Gregory S. Curhan

              Title:
                Executive Vice President

            	
              EXECUTIVE:

               

               

               

               

              ______________________

              Howard
                Brick

            

    

    

    
      
         

      

      
        -9-Exhibit 10.1

               AMENDED AND RESTATED REGISTRATION RIGHTS AGREEMENT

         This  Amended  and  Restated   Registration   Rights   Agreement  (this
"Agreement")  is made and entered  into as of  December  19,  2006,  between New
Century  Companies,  Inc.,  a  Delaware  corporation  (the  "Company"),  and the
purchaser signatory hereto (the "Purchaser").

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

         The Company and the Purchaser hereby agree as follows:

         1.       Definitions

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

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

                  "Effectiveness Date" means, subject to Section 6, with respect
         to the initial  Registration  Statement required to be filed hereunder,
         the 90th calendar day following the date hereof (120th  calendar day if
         such  Registration  Statement is reviewed by the Commission)  and, with
         respect to any additional Registration Statements which may be required
         pursuant to Section  3(c),  the 90th calendar day following the date on
         which the Company first knows,  or reasonably  should have known,  that
         such additional Registration Statement is required hereunder; provided,
         however,  in the event the Company is notified by the  Commission  that
         one of the above Registration  Statements will not be reviewed or is no
         longer subject to further review and comments,  the Effectiveness  Date
         as to such  Registration  Statement  shall  be the  fifth  Trading  Day
         following  the date on which the  Company is so  notified  if such date
         precedes the dates required above.

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

                  "Event" shall have the meaning set forth in Section 2(b).

                  "Event Date" shall have the meaning set forth in Section 2(b).

                  "Filing Date" means, Subject to Section 6, with respect to the
         initial  Registration  Statement required hereunder,  the 30th calendar
         day  following  the date hereof  and,  with  respect to any  additional
         Registration Statements which may be required pursuant to Section 3(c),
         the 30th day following  the date on which the Company  first knows,  or
         reasonably   should  have  known  that  such  additional   Registration
         Statement is required hereunder.

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

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

                                       1
<PAGE>

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

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

                  "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, subject to Section 6, (i) all
         of the shares of Common Stock issuable upon  conversion of the Notes or
         as interest on the Notes  assuming all of the Notes are  converted  and
         all  permissible  interest  payments are made in shares of Common Stock
         and the Notes are held  until  maturity,  (ii) all shares  issuable  as
         amortization   payments   on  the  Notes   assuming   all   permissible
         amortization  payments are made in shares of Common Stock and the Notes
         are held until maturity,  (iii) all Warrant Shares, (iv) any securities
         issued or issuable upon any stock split, dividend or other distribution
         recapitalization or similar event with respect to the foregoing and (v)
         any additional  shares  issuable in connection  with any  anti-dilution
         provisions in the Notes or the Warrants.

                  "Registration  Statement"  means the  registration  statements
         required  to  be  filed  hereunder  and  any  additional   registration
         statements  contemplated  by Sections  3(c) and 6,  including  (in each
         case) the Prospectus,  amendments and supplements to such  registration
         statement or Prospectus,  including pre- and post-effective amendments,
         all exhibits  thereto,  and all material  incorporated  by reference or
         deemed to be incorporated by reference in such registration statement.

                  "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  purpose and 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  purpose and effect as such
         Rule.

                                       2
<PAGE>

         2.       Registration

         (a)  The  Company  shall  prepare  and  file  with  the   Commission  a
Registration  Statement covering the resale of the Registrable Securities for an
offering to be made on a continuous basis pursuant to Rule 415. The Registration
Statement  shall be on Form SB-2 (except if the Company is not then  eligible to
register for resale the Registrable  Securities on Form SB-2, in which case such
registration  shall be on another  appropriate form in accordance  herewith) and
shall contain (unless otherwise directed by the Holders) substantially the "Plan
of  Distribution"  attached  hereto  as Annex A.  Subject  to the  terms of this
Agreement,  the  Company  shall use its best  efforts to cause the  Registration
Statement  to be  declared  effective  under the  Securities  Act as promptly as
possible  after the filing  thereof,  but in any event  prior to the  applicable
Effectiveness  Date,  and shall use its best  efforts to keep such  Registration
Statement  continuously effective under the Securities Act until all Registrable
Securities covered by such Registration  Statement have been sold or may be sold
without volume restrictions 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 (the
"Effectiveness  Period").  The Company shall immediately  notify the Holders via
facsimile of the  effectiveness  of the  Registration  Statement on the same day
that the Company receives notification of the effectiveness from the Commission.
Failure to so notify the Holder within 1 Trading Day of such notification  shall
be deemed an Event under Section 2(b).

         (b) If  (subject  to Section 6): (i) a  Registration  Statement  is not
filed on or prior  to its  Filing  Date  (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),  the Company  shall not be deemed to have
satisfied  this  clause  (i)),  or (ii)  the  Company  fails  to file  with  the
Commission a request for  acceleration  in accordance  with Rule 461 promulgated
under the Securities  Act, within five Trading Days of the date that the Company
is notified (orally or in writing,  whichever is earlier) by the Commission that
a  Registration  Statement  will not be  "reviewed,"  or not  subject to further
review;  or (iii) prior to its  Effectiveness  Date, the Company fails to file a
pre-effective amendment and otherwise respond in writing to comments made by the
Commission  in respect of such  Registration  Statement  within 14 calendar days
after the  receipt  of  comments  by or  notice  from the  Commission  that such
amendment  is  required  in order for a  Registration  Statement  to be declared
effective;  or (iv) a  Registration  Statement  filed  or  required  to be filed
hereunder is not declared effective by the Commission by its Effectiveness Date;
or (v) after the  Effectiveness  Date, a Registration  Statement  ceases for any
reason to remain  continuously  effective as to all  Registrable  Securities for
which it is  required to be  effective,  or the  Holders  are not  permitted  to
utilize the  Prospectus  therein to resell such  Registrable  Securities  for 10
consecutive  calendar  days but no more than an  aggregate  of 15 calendar  days
during any 12-month  period  (which need not be  consecutive  Trading Days) (any
such  failure or breach  being  referred to as an "Event",  and for  purposes of
clause  (ii) or (iv) the date on which such Event  occurs,  or for  purposes  of
clause (ii) the date on which such five Trading Day period is  exceeded,  or for
purposes of clause (iii) the date which such 14 calendar day period is exceeded,
or for  purposes  of clause  (v) the date on which  such 10 or 15  calendar  day
period, as applicable,  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 each 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 1.5% of the
outstanding  principal of the Notes for any Registrable  Securities then held by
such Holder for the first 30 days (or part thereof)  after the Event Date and an
additional 1.5% for any subsequent 30-day period (or part thereof),  thereafter.
The maximum aggregate liquidated damages that shall be payable to a Holder under
this Agreement shall be 10% of the remaining  balance of aggregate  Subscription
Amount paid by such Holder  pursuant to the Purchase  Agreement.  If the Company
fails to pay any partial  liquidated  damages  pursuant to this  Section in full
within seven days after the date payable,  the Company will pay interest thereon
at a rate of 20% per annum (or such lesser  maximum  amount that is permitted to
be paid by  applicable  law) to the  Holder,  accruing  daily from the date such
partial  liquidated  damages are due until such amounts,  plus all such interest
thereon,  are paid in full. 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.

                                       3
<PAGE>

         3.       Registration Procedures

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

         (a) Not  less  than  five  Trading  Days  prior to the  filing  of each
Registration  Statement or any related Prospectus or any amendment or supplement
thereto  (including  any  document  that would be  incorporated  or deemed to be
incorporated  therein by  reference),  the  Company  shall,  (i) furnish to each
Holder copies of all such documents proposed to be filed, which documents (other
than those  incorporated  or deemed to be  incorporated  by  reference)  will be
subject  to the  review  of such  Holders,  and  (ii)  cause  its  officers  and
directors,  counsel and independent  certified public  accountants to respond to
such inquiries as shall be necessary,  in the  reasonable  opinion of respective
counsel  to  conduct  a  reasonable  investigation  within  the  meaning  of the
Securities  Act. The Company  shall not file the  Registration  Statement or any
such Prospectus or any amendments or supplements thereto to which the Holders of
a majority of the Registrable  Securities shall reasonably object in good faith,
provided  that,  the Company is notified of such  objection  in writing no later
than 5 Trading  Days after the  Holders  have been so  furnished  copies of such
documents.   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")  not less than two Trading Days prior to the Filing Date
or by the end of the fourth  Trading Day following the date on which such Holder
receives draft materials in accordance with this Section.

         (b) (i) Prepare and file with the Commission such amendments, including
post-effective  amendments,  to a Registration Statement and the Prospectus used
in  connection  therewith as may be necessary to keep a  Registration  Statement
continuously  effective  as to the  applicable  Registrable  Securities  for the
Effectiveness  Period and prepare and file with the Commission  such  additional
Registration Statements in order to register for resale under the Securities Act
all of the  Registrable  Securities;  (ii) cause the  related  Prospectus  to be
amended or supplemented by any required  Prospectus  supplement  (subject to the
terms of this Agreement), 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 a  Registration  Statement or any
amendment  thereto and as promptly as  reasonably  possible  provide the Holders
true and  complete  copies  of all  correspondence  from  and to the  Commission
relating to a Registration  Statement;  and (iv) comply in all material respects
with the  provisions of the  Securities Act and the Exchange Act with respect to
the  disposition  of  all  Registrable  Securities  covered  by  a  Registration
Statement  during the applicable  period in accordance  (subject to the terms of
this Agreement) with the intended  methods of disposition by the Holders thereof
set forth in such Registration  Statement as so amended or in such Prospectus as
so supplemented.

                                       4
<PAGE>

         (c) Notify the  Holders of  Registrable  Securities  to be sold  (which
notice shall, pursuant to clauses (ii) through (vi) hereof, be accompanied by an
instruction  to suspend the use of the  Prospectus  until the requisite  changes
have been made) as promptly as reasonably  possible  (and, in the case of (i)(A)
below,  not less than five Trading Days prior to such filing) 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);  and (C) with
respect to a 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 or any other federal or state governmental  authority
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;  (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  a  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 a
Registration Statement,  Prospectus or other documents so that, in the case of a
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;  and
(vi) the  occurrence  or existence  of any pending  corporate  development  with
respect to the Company that the Company  believes  may be material and that,  in
the  determination  of the  Company,  makes it not in the best  interest  of the
Company  to  allow  continued  availability  of the  Registration  Statement  or
Prospectus;  provided  that  any  and  all  of  such  information  shall  remain
confidential  to each Holder until such  information  otherwise  becomes public,
unless  disclosure  by  a  Holder  is  required  by  law;   provided,   further,
notwithstanding  each Holder's agreement to keep such information  confidential,
the Holders  make no  acknowledgement  that any such  information  is  material,
non-public information.

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

                                       5
<PAGE>

         (f) Promptly deliver to each Holder,  without charge, as many copies of
the Prospectus or  Prospectuses  (including  each form of  prospectus)  and each
amendment  or  supplement  thereto as such  Persons  may  reasonably  request in
connection with resales by the Holder of Registrable Securities.  Subject to the
terms  of  this  Agreement,  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, except after
the giving on any notice pursuant to Section 3(d).

         (g) Prior to any resale of Registrable  Securities by a Holder, use its
commercially  reasonable  efforts to register or qualify or  cooperate  with the
selling  Holders  in  connection  with the  registration  or  qualification  (or
exemption from the Registration or qualification) of such Registrable Securities
for the  resale  by the  Holder  under the  securities  or Blue Sky laws of such
jurisdictions  within the United  States as any Holder  reasonably  requests  in
writing,  to keep each  registration or qualification  (or exemption  therefrom)
effective  during the  Effectiveness  Period and to do any and all other acts or
things reasonably  necessary to enable the disposition in such  jurisdictions of
the Registrable  Securities  covered by each Registration  Statement;  provided,
that the Company  shall not be required to qualify  generally  to do business in
any jurisdiction  where it is not then so qualified,  subject the Company to any
material tax in any such jurisdiction  where it is not then so subject or file a
general consent to service of process in any such jurisdiction.

         (h)  If  requested  by the  Holders,  cooperate  with  the  Holders  to
facilitate  the timely  preparation  and delivery of  certificates  representing
Registrable   Securities  to  be  delivered  to  a  transferee   pursuant  to  a
Registration  Statement,  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 this Section 3, as
promptly as reasonably possible under the circumstances  taking into account the
Company's good faith  assessment of any adverse  consequences to the Company and
its stockholders of the premature disclosure of such event, prepare a supplement
or amendment,  including a post-effective amendment, to a Registration Statement
or a supplement to the related Prospectus or any document incorporated or deemed
to be incorporated therein by reference, and file any other required document so
that,  as  thereafter  delivered,  neither  a  Registration  Statement  nor such
Prospectus will contain an untrue  statement of a material fact or omit to state
a  material  fact  required  to be  stated  therein  or  necessary  to make  the
statements  therein,  in light of the circumstances  under which they were made,
not misleading.  If the Company  notifies the Holders in accordance with clauses
(ii)  through  (v) of Section  3(d) above to suspend  the use of any  Prospectus
until the requisite  changes to such Prospectus have been made, then the Holders
shall suspend use of such  Prospectus.  The Company will use its best efforts to
ensure  that  the  use of  the  Prospectus  may be  resumed  as  promptly  as is
practicable.  The Company  shall be  entitled  to exercise  its right under this
Section  3(j) to  suspend  the  availability  of a  Registration  Statement  and
Prospectus,  subject to the payment of partial  liquidated  damages  pursuant to
Section 2(b),  for a period not to exceed 60 days (which need not be consecutive
days) in any 12 month period.

         (j) Comply with all applicable rules and regulations of the Commission.

         (k) The  Company  may  require  each  selling  Holder to furnish to the
Company a  certified  statement  as to the  number  of  shares  of Common  Stock
beneficially owned by such Holder and, if required by the Commission, the person
thereof  that has voting and  dispositive  control  over the Shares.  During any
periods  that the  Company  is unable  to meet its  obligations  hereunder  with
respect to the  registration  of the Registrable  Securities  solely because any
Holder  fails to furnish  such  information  within  three  Trading  Days of the
Company's  request,  any liquidated damages that are accruing at such time as to
such Holder only shall be tolled and any Event that may  otherwise  occur solely
because of such delay  shall be  suspended  as to such Holder  only,  until such
information is delivered to the Company.

                                       6
<PAGE>

         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
the Registration  Statement.  The fees and expenses referred to in the foregoing
sentence shall include, without limitation, (i) all registration and filing fees
(including,  without  limitation,  fees and expenses (A) with respect to filings
required  to be made with the Trading  Market on which the Common  Stock is then
listed for trading,  and (B) in compliance with applicable  state  securities or
Blue Sky laws reasonably agreed to by the Company in writing (including, without
limitation, fees and disbursements of counsel for the Company in connection with
Blue  Sky  qualifications  or  exemptions  of  the  Registrable  Securities  and
determination  of the eligibility of the  Registrable  Securities for investment
under the laws of such jurisdictions as requested by the Holders), (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 a 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.  In no event shall the Company be
responsible  for any  broker or  similar  commissions  or,  except to the extent
provided for in the Transaction Documents,  any legal fees or other costs of the
Holders.

         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,  brokers  (including  brokers  who offer and sell
Registrable  Securities  as  principal as a result of a pledge or any failure to
perform under a margin call of Common Stock),  investment advisors and employees
of each of them, each Person who controls 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 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 a 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 (i) 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 a
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 (ii) in the case of an occurrence
of an event of the type  specified  in  Section  3(d)(ii)-(vi),  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 the Advice  contemplated  in Section  6(d).  The
Company  shall  notify  the  Holders  promptly  of the  institution,  threat  or
assertion of any Proceeding  arising from or in connection with the transactions
contemplated by this Agreement of which the Company is aware.

                                       7
<PAGE>

         (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,  to the extent  arising 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 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 not
misleading (i) to the extent, but only to the extent, that such untrue statement
or omission is  contained  in any  information  so  furnished in writing by such
Holder to the Company specifically for inclusion in such Registration  Statement
or such  Prospectus  or (ii) 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(d)(ii)-(vi),  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 the Advice  contemplated  in Section 6(d). 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.

         (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 have the right to 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 prejudiced
the Indemnifying Party.

                                       8
<PAGE>

         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 reasonably believe that a material 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 the reasonable fees and expenses of one
separate  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.

         Subject  to the  terms  of this  Agreement,  all  reasonable  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;  provided,  that the Indemnified Party shall
promptly  reimburse  the  Indemnifying  Party for that  portion of such fees and
expenses  applicable  to such  actions for which such  Indemnified  Party is not
entitled to indemnification hereunder, determined based upon the relative faults
of the parties.

         (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 this  Agreement,  any reasonable  attorneys' or
other reasonable fees or expenses  incurred by such party in connection with any
Proceeding to the extent such party would have been indemnified for such fees or
expenses if the  indemnification  provided for in this Section was  available to
such party in accordance with its terms.

         The parties  hereto  agree that it would not be just and  equitable  if
contribution  pursuant  to  this  Section  5(d)  were  determined  by  pro  rata
allocation or by any other method of allocation  that does not take into account
the equitable considerations referred to in the immediately preceding paragraph.
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, except in the case of fraud by
such Holder.

                                       9
<PAGE>

               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.  Timing  of  Registration  Statements.   Anything  to  the  contrary
notwithstanding, due to Commission's current standpoint on Rule 415, the Company
shall not be subject to any liquidated damages pursuant to Section 2(b), and any
liquidated damages accrued prior to the date hereof shall be waived.  Failure to
meet the timetable set below will subject the Company to liquidated  damages set
forth in Section 2(b).

<TABLE>
<CAPTION>

Amount of Registrable Securities to be filed         Filing Date                Effectiveness Date
--------------------------------------------         -----------                ------------------
<S>                                                  <C>                        <C>

i)   All Common Stock issuable upon                  45 days after              105 days after the date
conversion of the Notes up to 33% of                 the date hereof            hereof
the Company's issued and outstanding stock

ii) All Common Stock issuable upon                   90 days after              90 days after filing
Conversion of the Notes to extent                    the  effectiveness
not registered above plus all Warrant                of the  Registration
Shares up to 33% of the  Company's                   Statement  referred to
Issued and outstanding stock                         in i) above

iii)  All  Common  Stock  issuable  upon             90 days  after             90  days  after  filing
Conversion of the Notes to extent                    the  effectiveness
not registered  above plus all  Warrant              of the  Registration
Shares up to 33% of the  Company's                   Statement referred to
Issued and outstanding stock                         in ii) above

iv) All additional Warrant Shares not
 registered above.                                   90 days  after             90 days after filing
                                                     the effectiveness
                                                     of the Registration
                                                     Statement referred to
                                                     in iii) above
</TABLE>

         7.       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.

                                       10
<PAGE>

(b) No Piggyback on Registrations. Except as set forth on Schedule 6(i), 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  the
Registration  Statement  other than the Registrable  Securities.  Each Purchaser
acknowledges and agrees that the Company may, in its sole  discretion,  file one
registration  statement to fulfill its  obligations to the Purchaser  hereunder.
The Company shall not file any other  registration  statements until the initial
Registration   Statement   required  hereunder  is  declared  effective  by  the
Commission,  provided that this Section 6(b) shall not prohibit the Company from
filing amendments to registration statements already filed.

         (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(d),  such Holder
will forthwith  discontinue  disposition of such Registrable  Securities under a
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 will use its best efforts to ensure that the use of the  Prospectus  may
be resumed as promptly as it  practicable.  The Company agrees and  acknowledges
that any  periods  during  which  the  Holder is  required  to  discontinue  the
disposition  of the  Registrable  Securities  hereunder  shall be subject to the
provisions of Section 2(b).

         (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 the stock option or other employee
benefit  plans,  then the Company shall send to each Holder a written  notice of
such  determination  and, if within  fifteen days after the date 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;  provided,  that,  the Company  shall not be
required to register any  Registrable  Securities  pursuant to this Section 6(e)
that are  eligible  for resale  pursuant  to Rule 144(k)  promulgated  under the
Securities  Act  or  that  are  the  subject  of a then  effective  Registration
Statement.

         (f) Amendments and Waivers. The provisions of this Agreement, including
the provisions of this sentence,  may not be amended,  modified or supplemented,
and waivers or  consents to  departures  from the  provisions  hereof may not be
given,  unless the same shall be in writing  and signed by the  Company and each
Holder  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 Holders and that does not
directly  or  indirectly  affect  the  rights of other  Holders  may be given by
Holders of all of the  Registrable  Securities  to which such  waiver or consent
relates;  provided,  however,  that the  provisions  of this sentence may not be
amended,  modified,  or supplemented except in accordance with the provisions of
the immediately preceding sentence.

                                       11
<PAGE>

         (g) Notices.  Any and all notices or other communications or deliveries
required or permitted to be provided  hereunder  shall be delivered as set forth
in the Purchase Agreement.

         (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
all of the Holders of the then-outstanding  Registrable Securities.  Each Holder
may assign their respective rights hereunder in the manner and to the Persons as
permitted under the Purchase Agreement.

         (i) No  Inconsistent  Agreements.  Neither  the  Company nor any of its
subsidiaries has entered, as of the date hereof, nor shall the Company or any of
its  subsidiaries,  on or  after  the  date of this  Agreement,  enter  into any
agreement  with  respect  to its  securities,  that  would  have the  effect  of
impairing  the rights  granted to the  Holders in this  Agreement  or  otherwise
conflicts  with the  provisions  hereof.  Except as set forth on Schedule  7(i),
neither the Company nor any of its subsidiaries has previously  entered into any
agreement granting any registration rights with respect to any of its securities
to any Person that have not been satisfied in full.

         (j) 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.

         (k) Governing Law. All questions concerning the construction, validity,
enforcement  and  interpretation  of this Agreement shall be determined with the
provisions of the Purchase Agreement.

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

         (m) Severability.  If any term,  provision,  covenant or restriction of
this  Agreement  is held 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  commercially  reasonable  efforts to find and employ an
alternative  means to achieve the same or substantially  the same result as that
contemplated  by such term,  provision,  covenant or  restriction.  It is hereby
stipulated  and declared to be the intention of the parties that they would have
executed the remaining terms,  provisions,  covenants and  restrictions  without
including any of such that may be hereafter declared invalid,  illegal,  void or
unenforceable.

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

                                       12
<PAGE>

         (o)  Independent  Nature  of  Holders'   Obligations  and  Rights.  The
obligations  of each  Holder  hereunder  are  several  and not  joint  with  the
obligations of any other Holder hereunder, and no Holder shall be responsible in
any way for the  performance of the  obligations of any other Holder  hereunder.
Nothing contained herein or in any other agreement or document  delivered at any
closing, and no action taken by any Holder pursuant hereto or thereto,  shall be
deemed to  constitute  the Holders as a  partnership,  an  association,  a joint
venture or any other kind of entity,  or create a  presumption  that the Holders
are in any way  acting  in  concert  with  respect  to such  obligations  or the
transactions  contemplated by this  Agreement.  Each Holder shall be entitled to
protect and enforce its rights,  including without limitation the rights arising
out of this Agreement,  and it shall not be necessary for any other Holder to be
joined as an additional party in any proceeding for such purpose.

                              ********************

                                       13
<PAGE>

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

                                        NEW CENTURY COMPANIES, INC.

                                        --------------------------------------
                                        Name:
                                        Title:

                       [SIGNATURE PAGE OF HOLDERS FOLLOWS]

                                       14
<PAGE>

            [SIGNATURE PAGE OF HOLDERS TO NEW CENTURY COMPANIES RRA]

Name of Investing Entity:  CAMOFI Master LDC
Signature of Authorized Signatory of Investing Entity: _________________________
Name of Authorized Signatory: _________________________
Title of Authorized Signatory: __________________________

                                       15
<PAGE>

                              Plan of Distribution

         Each Selling  Stockholder  (the "Selling  Stockholders")  of the common
stock ("Common Stock") of New Century  Companies,  Inc., a Delaware  corporation
(the "Company") and any of their pledgees,  assignees and successors-in-interest
may,  from time to time,  sell any or all of their shares of Common Stock on the
Trading Market or any other stock exchange,  market or trading facility on which
the shares are traded or in private transactions. These sales may be at fixed or
negotiated  prices.  A  Selling  Stockholder  may  use  any  one or  more of the
following methods when selling shares:

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

            o     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;

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

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

            o     privately negotiated transactions;

            o     settlement of short sales entered into after the date of this
                  prospectus;

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

            o     a combination of any such methods of sale;

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

            o     any other method permitted pursuant to applicable law.

         The Selling  Stockholders may also sell shares under Rule 144 under the
Securities Act of 1933, as amended (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.  Each  Selling  Stockholder  does not expect these  commissions  and
discounts  relating  to its sales of shares to exceed what is  customary  in the
types of transactions involved.

                                       16
<PAGE>

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

         The  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. Each Selling  Stockholder has
informed  the  Company  that it does not have any  agreement  or  understanding,
directly or indirectly, with any person to distribute the Common Stock.

         The Company is required to pay certain  fees and  expenses  incurred by
the Company incident to the  registration of the shares.  The Company has agreed
to indemnify the Selling  Stockholders against certain losses,  claims,  damages
and liabilities, including liabilities under the Securities Act.

         Because Selling Stockholders may be deemed to be "underwriters"  within
the  meaning of the  Securities  Act,  they will be  subject  to the  prospectus
delivery requirements of the Securities Act. In addition, any securities covered
by this  prospectus  which  qualify  for sale  pursuant  to Rule 144  under  the
Securities  Act may be sold under Rule 144  rather  than under this  prospectus.
Each  Selling  Stockholder  has advised us that they have not  entered  into any
agreements, understandings or arrangements with any underwriter or broker-dealer
regarding the sale of the resale shares. There is no underwriter or coordinating
broker acting in  connection  with the proposed sale of the resale shares by the
Selling Stockholders.

         We agreed to keep this  prospectus  effective  until the earlier of (i)
the date on which the shares may be resold by the Selling  Stockholders  without
registration  and  without  regard to any volume  limitations  by reason of Rule
144(e) under the  Securities Act or any other rule of similar effect or (ii) all
of the shares have been sold  pursuant to the  prospectus  or Rule 144 under the
Securities  Act or any other rule of similar  effect.  The resale shares will be
sold only through  registered or licensed  brokers or dealers if required  under
applicable  state securities  laws. In addition,  in certain states,  the resale
shares may not be sold unless they have been registered or qualified for sale in
the applicable  state or an exemption  from the  registration  or  qualification
requirement is available and is complied with.

         Under  applicable  rules and  regulations  under the Exchange  Act, any
person engaged in the  distribution of the resale shares may not  simultaneously
engage in market making activities with respect to our common stock for a period
of two business days prior to the commencement of the distribution. In addition,
the  Selling  Stockholders  will be  subject  to  applicable  provisions  of the
Exchange Act and the rules and regulations  thereunder,  including Regulation M,
which may limit the timing of purchases  and sales of shares of our common stock
by the Selling  Stockholders  or any other  person.  We will make copies of this
prospectus  available to the Selling  Stockholders and have informed them of the
need to deliver a copy of this  prospectus to each  purchaser at or prior to the
time of the sale.

                                       17
<PAGE>

                                                                         Annex B

                           New Century Companies, Inc.

                 Selling Securityholder Notice and Questionnaire

         The undersigned  beneficial owner of common stock, par value $0.10 (the
"Common Stock"),  of New Century  Companies,  Inc., a Delaware  corporation (the
"Company"),  (the  "Registrable  Securities")  understands  that the Company has
filed or  intends  to file with the  Securities  and  Exchange  Commission  (the
"Commission")  a  registration   statement  on  Form  SB-2  (the   "Registration
Statement") for the registration and resale under Rule 415 of the Securities Act
of 1933, as amended (the "Securities  Act"), of the Registrable  Securities,  in
accordance  with the  terms of the  Amended  and  Restated  Registration  Rights
Agreement,  dated as of December 19, 2006 (the "Registration Rights Agreement"),
among the Company and the  Purchaser  named  therein.  A copy of the Amended and
Restated  Registration  Rights  Agreement  is  available  from the Company  upon
request at the address set forth  below.  All  capitalized  terms not  otherwise
defined  herein shall have the  meanings  ascribed  thereto in the  Registration
Rights Agreement.

         Certain  legal  consequences  arise  from  being  named  as  a  selling
securityholder  in  the  Registration  Statement  and  the  related  prospectus.
Accordingly, holders and beneficial owners of Registrable Securities are advised
to consult their own securities law counsel  regarding the consequences of being
named  or not  being  named  as a  selling  securityholder  in the  Registration
Statement and the related prospectus.

                                     NOTICE

         The  undersigned  beneficial  owner (the "Selling  Securityholder")  of
Registrable Securities hereby elects to include the Registrable Securities owned
by it and listed below in Item 3 (unless otherwise  specified under such Item 3)
in the Registration Statement.

         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:

                  --------------------------------------------------------------

                                       18
<PAGE>

         (c)      Full Legal  Name of  Natural  Control  Person  (which  means a
                  natural  person  who  directly  you  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:
               -----------------------------------------------------------------

3.  Beneficial Ownership of Registrable Securities:

         (a)      Type  and   Principal   Amount   of   Registrable   Securities
                  beneficially owned:

                  --------------------------------------------------------------

                  --------------------------------------------------------------

                  --------------------------------------------------------------

4.  Broker-Dealer Status:

         (a)      Are you a broker-dealer?

                                  Yes|_| No |_|

         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|_| No |_|

         (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|_| No |_|

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

                                       19
<PAGE>

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.

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

                  --------------------------------------------------------------

                  --------------------------------------------------------------

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:

         -----------------------------------------------------------------------

         -----------------------------------------------------------------------

         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  at any time  while the  Registration  Statement
remains effective.

         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.

Dated:                              Beneficial Owner:
       ---------------------                          --------------------------

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

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

                                       20

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