Document:

ex101.htm

    Exhibit
10.1

     

    PURCHASE
AGREEMENT

    

    

    THIS PURCHASE AGREEMENT, dated
as of April 25, 2008, is entered into by and among Inform Worldwide Holdings,
Inc., a Florida corporation with headquarters located at 2501 North Green Valley
Parkway, Suite 111, Henderson, Nevada 89014 (the “Company”), and PROFESSIONAL
OFFSHORE OPPORTUNITY FUND LTD. and any additional purchasers whose signatures
appear at the conclusion of this agreement (collectively, the
“Purchaser”).

    

    W I T N E S S E T
H:

    

    WHEREAS, the Company and the
Purchaser are executing and delivering this Agreement in accordance with and in
reliance upon the exemption from securities registration for offers and sales to
accredited investors afforded, inter alia, by Rule 506
under Regulation D (“Regulation D”) as promulgated by the United States
Securities and Exchange Commission (the “SEC”) under the Securities Act of 1933,
as amended (the “1933 Act”), and/or Section 4(2) of the 1933 Act;
and

    

    WHEREAS, the Purchaser wishes
to purchase a 12% Secured Promissory Note of the Company (the “Note”), subject
to and  upon  the terms and conditions of this Agreement and
acceptance of this Agreement by the Company, on the terms and conditions
referred to herein; and

    

    WHEREAS, , the Company’s obligations to
repay the Note will be secured by all of the assets of the Company pursuant to a
Security Agreement (the “Security Agreement”) and by certain stock (the “Pledged
Shares”) of the Company pledged by Ashvin Mascarenhas (the “Pledgor”) pursuant
to a Security Interest and Pledge Agreement (the “Pledge
Agreement”).

    

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

    

    1.           AGREEMENT
TO PURCHASE; PURCHASE PRICE.

    

    a.           Purchase.

    

    (i)           Subject
to the terms and conditions of this Agreement and the other Transaction
Documents, the Purchaser hereby agrees to purchase the Note for the sum of
$750,000 (the “Purchase Amount”).

    

    (ii)           The
Note referred to herein shall be in the form of Annex I annexed
hereto.  The Note will be secured by a pledge of all of the Company’s
assets pursuant to a Security Agreement in the form of Annex III and secured by the
pledge of the Pledged Shares under the terms of the Pledge Agreement, which
Pledge Agreement shall be substantially in the form of Annex VI hereto, which the
Company will acknowledge.

     

    
      
        
        

      

      
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    (iii)           In
consideration for the Purchaser agreeing to Purchase the Note, the Company
agrees to issue to the Purchaser the Warrant.   Additional
provisions relating to the Warrant are provided below.

    

    (iv)           The
purchase of the Note and the issuance of the Warrant to the Purchaser and the
other transactions contemplated hereby are sometimes referred to herein and in
the other Transaction Documents as the purchase and sale of the Securities (as
defined below), and are referred to collectively as the
“Transactions”.

    

    b.           Certain Definitions. As used
herein, each of the following terms has the meaning set forth below, unless the
context otherwise requires:

    

     “Affiliate”
means, with respect to a specific Person referred to in the relevant provision,
another Person who or which controls or is controlled by or is under common
control with such specified Person.

    

    “Certificate”
means the original ink-signed Note duly executed by the Company.

    

    “Closing
Date” means the date of the closing of the Transactions, as provided
herein.

    

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

     

    “Company
Control Person” means  each director, executive officer, promoter, and
such other Persons as may be deemed in control of the Company pursuant to Rule
405 under the 1933 Act or Section 20 of the 1934 Act (as defined
below).

    

    “Disclosure
Annex” means Annex V to
this Agreement; provided, however, that the Disclosure Annex shall be arranged
in sections corresponding to the identified Sections of this Agreement, but the
disclosure in any such section of the Disclosure Annex shall qualify other
provisions in this Agreement to the extent that it would be readily apparent to
an informed reader from a reading of such section of the Disclosure Annex that
it is also relevant to other provisions of this Agreement.

    

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

     

    “Holder”
means the Person holding the relevant Securities at the relevant
time.

    

    “Last
Audited Date” means June 30,
2007.

    

    “Purchaser
Control Person” means each director, executive officer, promoter, and such other
Persons as may be deemed in control of the Purchaser pursuant to Rule 405 under
the 1933 Act or Section 20 of the 1934 Act.

     

    
      
        
        

      

      
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    “Liens”
means a lien, charge, security interest, encumbrance, right of first refusal,
preemptive right or other restriction.

    

    “Material
Adverse Effect” means an event or combination of events, which individually or
in the aggregate, would reasonably be expected to (w) adversely affect the
legality, validity or enforceability of the Securities or any of the Transaction
Documents, (x)  have or result in a material adverse effect on the
results of operations, assets, prospects, or condition (financial or otherwise)
of the Company and its subsidiaries, taken as a whole, (y) adversely impair the
Company's ability to perform fully on a timely basis its obligations under any
of the Transaction Documents or the transactions contemplated thereby, or (z)
materially and adversely affect the value of the rights granted to the Purchaser
in the Transaction Documents.

    

    “Person”
means any living person or any entity, such as, but not necessarily limited to,
a corporation, partnership or trust.

    

    “Principal
Trading Market” means the Over the Counter Bulletin Board or such other market
on which the Common Stock is principally traded at the relevant time, but shall
not include the “pink sheets.”

    

    “Registrable
Securities” means all of the following: (i) the Warrant Shares, and (ii) any
shares of the Company’s common stock that are issued to the Purchaser in
connection with any other agreements between the parties hereto, except to the
extent such shares can then be sold by the Holder without volume or other
restrictions or limits.

    

    “Registration
Rights Provisions” means the piggy-back registration rights contemplated by the
terms of this Agreement, if any, including, but not necessarily limited to,
Section 4(g) hereof, and of the other Transaction Documents.

    

    “Registration
Statement” means an effective registration statement covering the Registrable
Securities.

    

    “Securities”
means the Note, the Warrant, the shares underlying the Warrant, and any shares
of common stock of the Company that may be issued to the Purchaser in connection
with any other agreements between the parties.

    

    “Security
Agreement” means the Security Agreement dated as of April 25, 2008 between the
Company and the Purchaser.

    

    “Shares”
means the shares of representing any or all of the Warrant Shares and, where
relevant, the Pledged Shares.

    

    “State of
Incorporation” means Florida.

    

    “Subsidiary”
means any subsidiary of the Company as set forth on the Disclosure
Annex.

     

    
      
        
        

      

      
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    “Subsidiary Guarantee” means the
Subsidiary Guarantee dated as of April 25, 2008 between each Subsidiary and the
Purchaser.

    

    “Trading
Day” means any day during which the Principal Trading Market shall be open for
business.

    

    “Transaction Fees” means legal and due
diligence fees incurred by the Purchaser.

    

    “Transfer
Agent” means, at any time, the transfer agent for the Company’s Common
Stock.

    

    “Transaction
Documents” means this Purchase Agreement, the Note, the Security Agreement, the
Subsidiary Guarantee, the Pledge Agreement, the Warrant and includes all
ancillary documents referred to in those agreements.

    

    “VWAP”
means, for any date, the price determined by the first of the following clauses
that applies: (a) if the Common Stock is then listed or quoted on a Trading
Market, the daily volume weighted average price of the Common Stock for such
date (or the nearest preceding date) on the primary Trading Market on which the
Common Stock is then listed or quoted as reported by Bloomberg Financial L.P.
(based on a Trading Day from 9:30 a.m. EST to 4:02 p.m. Eastern Time) using the
VAP function; (b) if the Common Stock is not then listed or quoted on the
Trading Market and if prices for the Common Stock are then reported in the “Pink
Sheets” published by the Pink Sheets, LLC (or a similar organization or agency
succeeding to its functions of reporting prices), the most recent bid price per
share of the Common Stock so reported; or (c) in all other cases, the fair
market value of a share of Common Stock as determined by a nationally
recognized-independent appraiser selected in good faith by Holders holding a
majority of the principal amount of Notes then outstanding.

    

    “Warrant
Shares” means shares of Common Stock underlying the Warrant.

    

    c.           Form of Payment; Delivery of
Certificates.

    

    (i)           The
Purchaser shall pay the Purchase Amount by delivering immediately available good
funds in United States Dollars to the Company on the Closing Date.

    

    (ii)           On
the Closing Date, the Company shall deliver the Certificates, each duly executed
on behalf of the Company to the Purchaser.

    

    (iii)           By
signing this Agreement, each of the Purchaser and the Company agrees to all of
the terms and conditions of the Transaction Documents, all of the provisions of
which are incorporated herein by this reference as if set forth in
full.

    

    d.           Method of
Payment.  Payment of the Purchase Amount shall be made by wire
transfer of funds to:

     

    [WIRE
INSTRUCTIONS]

     

    
      
        
        

      

      
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    2.  PURCHASER
REPRESENTATIONS, WARRANTIES, ETC.; ACCESS TO INFORMATION; INDEPENDENT
INVESTIGATION.

    

    The
Purchaser represents and warrants to, and covenants and agrees with, the Company
as follows:

    

    a.           Without
limiting Purchaser's right to sell the Securities pursuant to an effective
registration statement or otherwise in compliance with the 1933 Act, the
Purchaser is purchasing the Securities for its own account for investment only
and not with a view towards the public sale or distribution thereof and not with
a view to or for sale in connection with any distribution thereof.

    

    b.           The
Purchaser is (i) an “accredited investor” as that term is defined in Rule 501 of
the General Rules and Regulations under the 1933 Act by reason of Rule
501(a)(3), (ii) experienced in making investments of the kind described in this
Agreement and the related documents, (iii) able, by reason of the business and
financial experience of its officers (if an entity) and professional advisors
(who are not affiliated with or compensated in any way by the Company or any of
its Affiliates or selling agents), to protect its own interests in connection
with the transactions described in this Agreement, and the related documents,
and to evaluate the merits and risks of an investment in the Securities, and
(iv) able to afford the entire loss of its investment in the
Securities.

    

    c.           All
subsequent offers and sales of the Securities by the Purchaser shall be made
pursuant to registration of the relevant Securities under the 1933 Act or
pursuant to an exemption from registration.

    

    d.           The
Purchaser understands that the Securities are being offered and sold to it in
reliance on specific exemptions from the registration requirements of the 1933
Act and state securities laws and that the Company is relying upon the truth and
accuracy of, and the Purchaser's compliance with, the representations,
warranties, agreements, acknowledgments and understandings of the Purchaser set
forth herein in order to determine the availability of such exemptions and the
eligibility of the Purchaser to acquire the Securities.

    

    e.           The
Purchaser and its advisors, if any, have been furnished with or have been given
access to all materials relating to the business, finances and operations of the
Company and materials relating to the offer and sale of the Securities which
have been requested by the Purchaser, including those set forth on in any annex
attached hereto. The Purchaser and its advisors, if any, have been afforded the
opportunity to ask questions of the Company and its management and have received
complete and satisfactory answers to any such inquiries.  Without
limiting the generality of the foregoing, the Purchaser has also had the
opportunity to obtain and to review the Company's filings on EDGAR listed on
Annex IV hereto (the
documents listed on such Annex IV, to the extent available on EDGAR or otherwise
provided to the Purchaser as indicated on said Annex IV, collectively, the
“Company's SEC Documents”).

     

    
      
        
        

      

      
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    f.           The
Purchaser understands that its investment in the Securities involves a high
degree of risk.

    

    g.           The
Purchaser hereby represents that, in connection with its purchase of the
Securities, it has not relied on any statement or representation by the Company
or any of its officers, directors and employees or any of their respective
attorneys or agents, except as specifically set forth herein.

    

    h.           The
Purchaser understands that no United States federal or state agency or any other
government or governmental agency has passed on or made any recommendation or
endorsement of the Securities.

    

    i.           This
Agreement and the other Transaction Documents to which the Purchaser is a party,
and the transactions contemplated thereby, have been duly and validly
authorized, executed and delivered on behalf of the Purchaser and are valid and
binding agreements of the Purchaser enforceable in accordance with their
respective terms, subject as to enforceability to general principles of equity
and to bankruptcy, insolvency, moratorium and other similar laws affecting the
enforcement of creditors' rights generally.

    

    3.           COMPANY REPRESENTATIONS, ETC.
  The Company represents and warrants to the Purchaser as of
the date hereof and as of the Closing Date that, except as otherwise provided in
the Disclosure Annex:

    

    a.           Rights of Others Affecting the
Transactions.  There are no preemptive rights of any
shareholder of the Company, as such, to acquire the Note, or any shares of stock
that may be issued to the Purchaser or its designees in connection with any
agreements between the parties hereto.  No party other than a
Purchaser has a currently exercisable right of first refusal which would be
applicable to any or all of the transactions contemplated by the Transaction
Documents.

    

    b.           Status.  The Company
is a corporation duly organized, validly existing and in good standing under the
laws of the State of Incorporation and has the requisite corporate power to own
its properties and to carry on its business as now being
conducted.  The Company is duly qualified as a foreign corporation to
do business and is in good standing in each jurisdiction where the nature of the
business conducted or property owned by it makes such qualification necessary,
other than those jurisdictions in which the failure to so qualify would not have
or result in a Material Adverse Effect.  The Company has registered
its stock and is obligated to file reports pursuant to Section 12 or Section
15(d) of the Securities Exchange Act of 1934, as amended (the “1934
Act”).  The Common Stock is, or immediately following the Closing Date
will be, quoted on the Principal Trading Market.  The Company has
received no notice, either oral or written, with respect to the continued
eligibility of the Common Stock for such quotation on the Principal Trading
Market, and the Company has maintained all requirements on its part for the
continuation of such quotation.

     

    
      
        
        

      

      
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    c.           Authorized
Shares.

    

    (i)           The
authorized capital stock of the Company consists of 5,000,000,000 shares of Common Stock,
no par value, of which 45,383,713 shares are outstanding as of the date hereof,
and 500,000,000 shares of preferred stock, no par value, of which 11,000,000
shares are outstanding as of the date hereof.

    

    (ii)           All
issued and outstanding shares of Common Stock have been duly authorized and
validly issued and are fully paid and non-assessable.  The Company has
sufficient authorized and unissued shares of Common Stock as may be necessary to
effect the issuance of the Shares on the Closing Date.

    

    (iii)           As
of the Closing Date, the Shares shall have been duly authorized by all necessary
corporate action on the part of the Company, and, when issued on the Closing
Date or pursuant to other relevant provisions of the Transaction Documents, in
each case in accordance with their respective terms, will be duly and validly
issued, fully paid and non-assessable and will not subject the Holder thereof to
personal liability by reason of being such Holder.

    

    d.           Transaction Documents and
Stock.  This Agreement and each of the other Transaction
Documents, and the transactions contemplated thereby, have been duly and validly
authorized by the Company, this Agreement has been duly executed and delivered
by the Company and this Agreement is, and the Note and each of the other
Transaction Documents, when executed and delivered by the Company, will be,
valid and binding agreements of the Company enforceable in accordance with their
respective terms, subject as to enforceability to general principles of equity
and to bankruptcy, insolvency, moratorium, and other similar laws affecting the
enforcement of creditors' rights generally.

    

    e.           Non-contravention.  The
execution and delivery of this Agreement and each of the other Transaction
Documents by the Company, the issuance of the Securities, and the consummation
by the Company of the other transactions contemplated by this Agreement, each of
the Notes and the other Transaction Documents do not and will not conflict with
or result in a breach by the Company of any of the terms or provisions of, or
constitute a default under (i) the certificate of incorporation or by-laws of
the Company, each as currently in effect, (ii) any indenture, mortgage, deed of
trust, or other material agreement or instrument to which the Company is a party
or by which it or any of its properties or assets are bound, including any
listing agreement for the Common Stock except as herein set forth, or (iii) to
its knowledge, any existing applicable law, rule, or regulation or any
applicable decree, judgment, or order of any court, United States federal or
state regulatory body, administrative agency, or other governmental body having
jurisdiction over the Company or any of its properties or assets, except such
conflict, breach or default which would not have or result in a Material Adverse
Effect.

    

    f.           Approvals.  No
authorization, approval or consent of any court, governmental body, regulatory
agency, self-regulatory organization, or stock exchange or market or the
shareholders of the Company is required to be obtained by the Company for the
issuance and sale of the Securities to the Purchaser as contemplated by this
Agreement, except such authorizations, approvals and consents that have been
obtained.

     

    
      
        
        

      

      
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    g.           Filings.  None of
the Company’s SEC Documents contained, at the time they were filed, any untrue
statement of a material fact or omitted to state any material fact required to
be stated therein or necessary to make the statements made therein in light of
the circumstances under which they were made, not misleading.  Since
December 31, 2007, the Company has timely filed all requisite forms, reports and
exhibits thereto, if any, required to be filed by the Company with the
SEC.

    

    h.           Absence of Certain
Changes.  Since the Last Audited Date, there has been no
material adverse change and no Material Adverse Effect, except as disclosed in
the Company’s SEC Documents. Since the Last Audited Date, except as provided in
the Company’s SEC Documents, the Company has not (i) incurred or become subject
to any material liabilities (absolute or contingent) except liabilities incurred
in the ordinary course of business consistent with past practices; (ii)
discharged or satisfied any material lien or encumbrance or paid any material
obligation or liability (absolute or contingent), other than current liabilities
paid in the ordinary course of business consistent with past practices; (iii)
declared or made any payment or distribution of cash or other property to
shareholders with respect to its capital stock, or purchased or redeemed, or
made any agreements to purchase or redeem, any shares of its capital stock; (iv)
sold, assigned or transferred any other tangible assets, or canceled any debts
owed to the Company by any third party  or claims of the Company
against any third party, except in the ordinary course of business consistent
with past practices; (v) waived any rights of material value, whether or not in
the ordinary course of business, or suffered the loss of any material amount of
existing business; (vi) made any increases in employee compensation, except in
the ordinary course of business consistent with past practices; or (vii)
experienced any material problems with labor or management in connection with
the terms and conditions of their employment.

    

    i.           Full Disclosure.  To
the best of the Company’s knowledge, there is no fact known to the Company
(other than general economic conditions known to the public generally or as
disclosed in the Company’s SEC Documents) that has not been disclosed in writing
to the Purchaser that would reasonably be expected to have or result in a
Material Adverse Effect.

    

    j.           Absence of
Litigation.  There is no action, suit, proceeding, inquiry or
investigation before or by any court, public board or body pending or, to the
knowledge of the Company, threatened against or affecting the Company before or
by any governmental authority or nongovernmental department, commission, board,
bureau, agency or instrumentality or any other person, wherein an unfavorable
decision, ruling or finding would have a Material Adverse Effect or which would
adversely affect the validity or enforceability of, or the authority or ability
of the Company to perform its obligations under, any of the Transaction
Documents.  The Company is not aware of any valid basis for any such
claim that (either individually or in the aggregate with all other such events
and circumstances) could reasonably be expected to have a Material Adverse
Effect. There are no outstanding or unsatisfied judgments, orders, decrees,
writs, injunctions or stipulations to which the Company is a party or by which
it or any of its properties is bound, that involve the transaction contemplated
herein or that, alone or in the aggregate, could reasonably be expect to have a
Material Adverse Effect.

     

    
      
        
        

      

      
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    k.           Absence of Events of
Default.  Except as set forth in Section 3(e) and 3(g) hereof,
(i) neither the Company nor any of its subsidiaries is in default in the
performance or observance of any material obligation, agreement, covenant or
condition contained in any material indenture, mortgage, deed of trust or other
material agreement to which it is a party or by which its property is bound, and
(ii) no Event of Default (or its equivalent term), as defined in the respective
agreement to which the Company or its subsidiary is a party, and no event which,
with the giving of notice or the passage of time or both, would become an Event
of Default (or its equivalent term) (as so defined in such agreement), has
occurred and is continuing, which would have a Material Adverse
Effect.

    

    l.           Absence of Certain Company Control
Person Actions or Events.  To the Company’s knowledge, none of
the following has occurred during the past five (5) years with respect to a
Company Control Person:

    

    (1) A
petition under the federal bankruptcy laws or any state insolvency law was filed
by or against, or a receiver, fiscal agent or similar officer was appointed by a
court for the business or property of such Company Control Person, or any
partnership in which he was a general partner at or within two years before the
time of such filing, or any corporation or business association of which he was
an executive officer at or within two years before the time of such
filing;

    

    (2) Such
Company Control Person was convicted in a criminal proceeding or is a named
subject of a pending criminal proceeding (excluding traffic violations and other
minor offenses);

    

    (3) Such
Company Control Person was the subject of any order, judgment or decree, not
subsequently reversed, suspended or vacated, of any court of competent
jurisdiction, permanently or temporarily enjoining him from, or otherwise
limiting, the following activities:

    

    (i)
acting, as an investment advisor, underwriter, broker or dealer in securities,
or as an affiliated person, director or employee of any investment company,
bank, savings and loan association or insurance company, as a futures commission
merchant, introducing broker, commodity trading advisor, commodity pool
operator, floor broker, any other Person regulated by the Commodity Futures
Trading Commission (“CFTC”) or engaging in or continuing any conduct or practice
in connection with such activity;

    

    (ii)  engaging
in any type of business practice; or

    

    (iii)
engaging in any activity in connection with the purchase or sale of any security
or commodity or in connection with any violation of federal or state securities
laws or federal commodities laws;

    

    (4) Such
Company Control Person was the subject of any order, judgment or decree, not
subsequently reversed, suspended or vacated, of any federal or state authority
barring, suspending or otherwise limiting for more than 60 days the right of
such Company Control Person to engage in any activity described in paragraph (3)
of this item, or to be associated with Persons engaged in any such activity;
or

     

    
      
        
        

      

      
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    (5) Such
Company Control Person was found by a court of competent jurisdiction in a civil
action or by the CFTC or SEC to have violated any federal or state securities
law, and the judgment in such civil action or finding by the CFTC or SEC has not
been subsequently reversed, suspended, or vacated.

    

    m.           No Undisclosed Liabilities or
Events.  To the best of the Company’s knowledge, the Company
has no liabilities or obligations other than those disclosed in the Transaction
Documents or the Company's SEC Documents or those incurred in the ordinary
course of the Company's business since the Last Audited Date, or which
individually or in the aggregate, do not or would not have a Material Adverse
Effect. No event or circumstances has occurred or exists with respect to the
Company or its properties, business, operations, condition (financial or
otherwise), or results of operations, which, under applicable law, rule or
regulation, requires public disclosure or announcement prior to the date hereof
by the Company but which has not been so publicly announced or
disclosed.  There are no proposals currently under consideration or
currently anticipated to be under consideration by the Board of Directors or the
executive officers of the Company which proposal would (x) change the articles
or certificate of incorporation or other charter document or by-laws of the
Company, each as currently in effect, with or without shareholder approval,
which change would reduce or otherwise adversely affect the rights and powers of
the shareholders of the Common Stock or (y) materially or substantially change
the business, assets or capital of the Company, including its interests in
subsidiaries.

    

    n.           No Integrated
Offering.  Neither the Company nor any of its Affiliates nor
any Person acting on its or their behalf has, directly or indirectly, at any
time since March 1, 2007, made any offer or sales of any security or solicited
any offers to buy any security under circumstances that would eliminate the
availability of the exemption from registration under Regulation D in connection
with the offer and sale of the Securities as contemplated hereby.

    

    o.           Dilution.  Any
shares of stock that are issued to the Purchaser or its designees in connection
with any agreements between the parties hereto, in the event such shares are
issued, may have a dilutive effect on the ownership interests of the other
shareholders (and Persons having the right to become shareholders) of the
Company.  The Company's executive officers and directors have studied
and fully understand the nature of the Securities being sold hereby and
recognize that they have such a potential dilutive effect.  The board
of directors of the Company has concluded, in its good faith business judgment,
that such issuance is in the best interests of the Company.

    

    p.           Recognition of Pledge Agreement and
Pledged Shares.  The Company acknowledges that the execution
and delivery of the Pledge Agreement, and the fulfillment o f the terms thereof,
is a condition to the closing of the Transactions.  The Company will
recognize the terms of the Pledge Agreement and, as provided therein, the
transfer of the Pledged Shares to the Purchasers and will take no position or
give the Transfer Agent any instructions which would be inconsistent with the
rights of the Purchasers to have the Pledged Shares transferred to the
Purchasers in accordance with the terms of the Pledge Agreement.

     

    
      
        
        

      

      
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    q.           Fees to Brokers, Finders and
Others.  The Company has taken no action which would give rise
to any claim by any Person for brokerage commission, finder's fees or similar
payments by Purchaser relating to this Agreement or the transactions
contemplated hereby.  Purchaser shall have no obligation with respect
to such fees or with respect to any claims made by or on behalf of other Persons
for fees of a type contemplated in this paragraph that may be due in connection
with the transactions contemplated hereby.  The Company shall
indemnify and hold harmless each of Purchaser, its employees, officers,
directors, agents, and partners, and their respective Affiliates, from and
against all claims, losses, damages, costs (including the costs of preparation
and attorney's fees) and expenses suffered in respect of any such claimed or
existing fees, as and when incurred.

    

    r.           Confirmation.  The
Company confirms that all statements of the Company contained herein shall
survive acceptance of this Agreement by the Purchaser.  The Company
agrees that, if any events occur or circumstances exist prior to the Closing
Date or the release of the Purchase Amount to the Company which would make any
of the Company’s representations, warranties, agreements or other information
set forth herein materially untrue or materially inaccurate as of such date, the
Company shall immediately notify the Purchaser (directly or through its counsel,
if any) in writing prior to such date of such fact, specifying which
representation, warranty or covenant is affected and the reasons
therefor.

    

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

     

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

     

    
      
        
        

      

      
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    u.  Labor
Relations.  No material labor dispute exists or, to the
knowledge of the Company, is imminent with respect to any of the employees of
the Company which could reasonably be expected to result in a Material Adverse
Effect.

     

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

     

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

     

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

     

    y.           Patents and
Trademarks.  The Company and the Subsidiaries have, or have
rights to use, all patents, patent applications, trademarks, trademark
applications, service marks, trade names, copyrights, licenses and other similar
rights necessary or material for use in connection with their respective
businesses and which the failure to so have could have a Material Adverse Effect
(collectively, the “Intellectual Property
Rights”).  Neither the Company nor any Subsidiary has received
a written notice that the Intellectual Property Rights used by the Company or
any Subsidiary violates or infringes upon the rights of any Person. To the
knowledge of the Company, all such Intellectual Property Rights are enforceable
and there is no existing infringement by another Person of any of the
Intellectual Property Rights of others.

     

    
      
        
        

      

      
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    z.           Insurance.  The
Company and the Subsidiaries are insured by insurers of recognized financial
responsibility against such losses and risks and in such amounts as are prudent
and customary in the businesses in which the Company and the Subsidiaries are
engaged, at least equal to the Purchase Amount.  To the best of
Company’s knowledge, such insurance contracts and policies are accurate and
complete.  Neither the Company nor any Subsidiary has any reason to
believe that it will not be able to renew its existing insurance coverage as and
when such coverage expires or to obtain similar coverage from similar insurers
as may be necessary to continue its business without a significant increase in
cost.

     

    aa. Transactions with Affiliates and
Employees.  Except as disclosed in the SEC Reports, none of the
officers or directors of the Company and, to the knowledge of the Company, none
of the employees of the Company is presently a party to any transaction with the
Company or any Subsidiary (other than for services as employees, officers and
directors), including any contract, agreement or other arrangement providing for
the furnishing of services to or by, providing for rental of real or personal
property to or from, or otherwise requiring payments to or from any officer,
director or such employee or, to the knowledge of the Company, any entity in
which any officer, director, or any such employee has a substantial interest or
is an officer, director, trustee or partner, in each case in excess of $50,000
other than (i) for payment of salary or consulting fees for services rendered,
(ii) reimbursement for expenses incurred on behalf of the Company and (iii) for
other employee benefits, including stock option agreements under any stock
option plan of the Company.

     

    bb.           Sarbanes-Oxley; Internal Accounting
Controls.  The Company is in material compliance with all
provisions of the Sarbanes-Oxley Act of 2002 which are applicable to it as of
the Closing Date.  The Company and the Subsidiaries maintain a system
of internal accounting controls sufficient to provide reasonable assurance that
(i) transactions are executed in accordance with management's general or
specific authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with GAAP and to maintain
asset accountability, (iii) access to assets is permitted only in accordance
with management's general or specific authorization, and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable
intervals and appropriate action is taken with respect to any differences. The
Company has established disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) for the Company and designed such
disclosure controls and procedures to ensure that material information relating
to the Company, including its Subsidiaries, is made known to the certifying
officers by others within those entities, particularly during the period in
which the Company's most recently filed periodic report under the Exchange Act,
as the case may be, is being prepared.  The Company's certifying
officers have evaluated the effectiveness of the Company's controls and
procedures as of the date prior to the filing date of the most recently filed
periodic report under the Exchange Act (such date, the “Evaluation
Date”).  The Company presented in its most recently filed
periodic report under the Exchange Act the conclusions of the certifying
officers about the effectiveness of the disclosure controls and procedures based
on their evaluations as of the Evaluation Date.  Since the Evaluation
Date, there have been no significant changes in the Company's internal controls
(as such term is defined in Item 307(b) of Regulation S-K under the Exchange
Act) or, to the Company's knowledge, in other factors that could significantly
affect the Company's internal controls.

     

    
      
        
        

      

      
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    cc.           Solvency.  Based on
the financial condition of the Company as of the Closing Date after giving
effect to the receipt by the Company of the proceeds from the sale of the
Securities hereunder, (i) the Company's fair saleable value of its assets
exceeds the amount that will be required to be paid on or in respect of the
Company's existing debts and other liabilities (including known contingent
liabilities) as they mature; (ii) the Company's assets do not constitute
unreasonably small capital to carry on its business for the current fiscal year
as now conducted and as proposed to be conducted including its capital needs
taking into account the particular capital requirements of the business
conducted by the Company, and projected capital requirements and capital
availability thereof; and (iii) the current cash flow of the Company, together
with the proceeds the Company would receive, were it to liquidate all of its
assets, after taking into account all anticipated uses of the cash, would be
sufficient to pay all amounts on or in respect of its debt when such amounts are
required to be paid.  The Company does not intend to incur debts
beyond its ability to pay such debts as they mature (taking into account the
timing and amounts of cash to be payable on or in respect of its
debt).  The Company has no knowledge of any facts or circumstances
which lead it to believe that it will file for reorganization or liquidation
under the bankruptcy or reorganization laws of any jurisdiction within one year
from the Closing Date.  The financial statements of the Company set
forth as of the dates thereof all outstanding secured and unsecured Indebtedness
of the Company or any Subsidiary, or for which the Company or any Subsidiary has
commitments.  For the purposes of this Agreement, “Indebtedness” shall
mean (a) any liabilities for borrowed money or amounts owed in excess of $50,000
(other than trade accounts payable incurred in the ordinary course of business),
(b) all guaranties, endorsements and other contingent obligations in respect of
Indebtedness of others, whether or not the same are or should be reflected in
the Company's balance sheet (or the notes thereto), except guaranties by
endorsement of negotiable instruments for deposit or collection or similar
transactions in the ordinary course of business; and (c) the present value of
any lease payments in excess of $50,000 due under leases required to be
capitalized in accordance with GAAP.  Neither the Company nor any
Subsidiary is in default with respect to any Indebtedness.

     

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

     

    ee. No Disagreements with Accountants and
Lawyers.  There are no disagreements of any kind presently
existing, or reasonably anticipated by the Company to arise, between the
accountants and lawyers formerly or presently employed by the Company and the
Company is current with respect to any fees owed to its accountants and
lawyers.  By making this representation the Company does not, in any
manner, waive the attorney/client privilege or the confidentiality of the
communications between the Company and its lawyers.

     

    
      
        
        

      

      
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    ff. Accountants.  The
Company’s accountants are Stark Winter Schenkein & Co., LLP.  To
the Company’s knowledge, such accountants, who the Company expects will express
their opinion with respect to the financial statements for the fiscal year ended
June 30, 2008, are a registered public accounting firm as required by the
Securities Act.

     

    4.           CERTAIN
COVENANTS AND ACKNOWLEDGMENTS.

    

    a.           Transfer
Restrictions.  The Purchaser acknowledges that (1) the
Securities have not been and are not being registered under the provisions of
the 1933 Act and, except as provided in the Registration Rights Provisions or
otherwise included in an effective registration statement, the Shares have not
been and are not being registered under the 1933 Act, and may not be transferred
unless (A) subsequently registered thereunder or (B) the Purchaser shall have
delivered to the Company an opinion of counsel, reasonably satisfactory in form,
scope and substance to the Company, to the effect that the Securities to be sold
or transferred may be sold or transferred pursuant to an exemption from such
registration; (2) any sale of the Securities made in reliance on Rule 144
promulgated under the 1933 Act (“Rule 144") may be made only in accordance with
the terms of said Rule and further, if said Rule is not applicable, any resale
of such Securities under circumstances in which the seller, or the Person
through whom the sale is made, may be deemed to be an underwriter, as that term
is used in the 1933 Act, may require compliance with some other exemption under
the 1933 Act or the rules and regulations of the SEC thereunder; and (3) neither
the Company nor any other Person is under any obligation to register the
Securities (other than pursuant to the Registration Rights Provisions) under the
1933 Act or to comply with the terms and conditions of any exemption
thereunder.

    

    b.           Restrictive
Legend.  The Purchaser acknowledges and agrees that, until such
time as the relevant Shares have been registered under the 1933 Act, as
contemplated by the Registration Rights Provisions and sold in accordance with
an effective Registration Statement or otherwise in accordance with another
effective registration statement, the certificates and other instruments
representing any of the Securities shall bear a restrictive legend in
substantially the following form (and a stop-transfer order may be placed
against transfer of any such Securities):

    

    THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OFFERED FOR
SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES OR
AN OPINION OF COUNSEL OR OTHER EVIDENCE ACCEPTABLE TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED.

    

    c.           Filings.  The
Company undertakes and agrees to make all necessary filings in connection with
the sale of the Securities to the Purchaser under any United States laws and
regulations applicable to the Company, or by any domestic securities exchange or
trading market, and to provide a copy thereof to the Purchaser promptly after
such filing.

     

    
      
        
        

      

      
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    d.           Reporting
Status.  So long as the Purchaser beneficially owns any of the
Shares or has a security interest in the Pledged Shares, the Company shall file
all reports required to be filed with the SEC pursuant to Section 13 or 15(d) of
the 1934 Act,  shall take all reasonable action under its control to
ensure that adequate current public information with respect to the Company, as
required in accordance with Rule 144(c)(2) of the 1933 Act, is publicly
available, and shall not terminate its status as an issuer required to file
reports under the 1934 Act even if the 1934 Act or the rules and regulations
thereunder would permit such termination.  The Company will take all
reasonable action under its control to maintain the continued listing and
quotation and trading of its Common Stock (including, without limitation, all
Registrable Securities) on the Principal Trading Market or a listing on the
NASDAQ/Small Cap or National Markets and, to the extent applicable to it, will
comply in all material respects with the Company’s reporting, filing and other
obligations under the by-laws or rules of the Principal Trading Market and/or
the National Association of Securities Dealers, Inc., as the case may be,
applicable to it for so long as the Purchaser beneficially owns any of the
Shares or has a security interest in the Pledged Shares.

    

    e.           Use of
Proceeds.  The Company will use the proceeds received hereunder
(excluding amounts paid by the Company for legal fees in connection with the
sale of the Securities) for working capital.

    

    f.           Senior Debt.  The
debt incurred by the Company pursuant to the Transactions Documents shall be
senior to any Company debt presently outstanding or any debt incurred in the
future.

    

    g.           Warrant.  The
Company agrees to issue a warrant (the “Warrant”) to the Purchaser on the
Closing Date.  The terms relating to the Warrant are provided in Annex VII annexed hereto, the
terms of which are incorporated herein by reference.  All of the
Warrant Shares shall have Registration Rights Provisions.

    

    h.           Piggy-Back Rights; Rule
144.

    

    (i)           The
Purchaser shall have piggy-back registration rights with respect to the
Registrable Securities subject to the conditions set forth below. If the Company
participates (whether voluntarily or by reason of an obligation to a third
party) in the registration of any shares of the Company’s stock, the Company
shall give written notice thereof to the Holder and the Holder shall have the
right, exercisable within ten (10) Trading Days after receipt of such notice, to
demand inclusion of all or a portion of the Holder’s Registrable Securities in
such registration statement (a “Subsequent Registration Statement”), without any
cutbacks. If the Holder exercises such election, the Registrable Securities
so designated shall be included in the registration statement (without any
holdbacks) at no cost or expense to the Holder (other than any commissions, if
any, relating to the sale of Holder’s shares).   Each Holder’s
rights under this Section 4(g)(i) shall expire at such time as such Holder can
sell all of such Holder’s remaining Registrable Securities under Rule 144 (as
defined below) without volume or other restrictions or
limit.  Anything to the contrary notwithstanding, a registration
statement covering the Registrable Securities shall be filed no later than July
__, 2008.

     

    
      
        
        

      

      
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     (ii)           The
parties acknowledge that the damages which may be incurred by the Holder if the
Company does not fulfill its obligations under subparagraph (i) above, which
will affect the Holder’s ability to sell the shares, may be difficult to
ascertain.  If either (A) the Company fails to give the Purchaser the
notice referred to in the immediately preceding subparagraph (i) which results
in any of the Holder’s shares not being included in the Subsequent Registration
Statement or (B) after giving such notice, the Company fails to include all of
the Holder’s shares (to the extent requested by the Holder) in the Subsequent
Registration Statement or (C) the Company fails to file a registration statement
covering the Registrable Securities on or before July __, 2007, then the Company
will make payment to the Purchaser, for each Computation Period (as defined
below) an  amount equal to 2% of the aggregate principal amount of the
Note then outstanding (the “Periodic Amount”) provided however, that no event
shall the aggregate liquidated damages exceed 18% of the principal
amount.  The term “Computation Period” means each thirty (30) day
period commencing on the effective date of the Subsequent Registration Statement
and ending on the date on which there are one or more effective registration
statements covering the Purchaser’s sale of all of the Holder’s
shares.  The Periodic Amount shall be due without further demand or
notice from the Purchaser.  The parties agree that the amounts payable
pursuant to the foregoing provisions of this Section 4(g) represent a reasonable
estimate on the part of the parties, as of the date of this Agreement, of the
amount of such damages.

    

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

    

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

    

    (b)           file
with the SEC in a timely manner all reports and other documents required of the
Company under the 1933 Act and the 1934 Act; and

    

    (c)           furnish
to the Holder so long as such party owns Registrable Securities, promptly upon
request, (i) a written statement by the Company that it has complied with the
reporting requirements of Rule 144, the 1933 Act and the 1934 Act, (ii) if not
available on the SEC’s EDGAR system, a copy of the most recent annual or
quarterly report of the Company and such other reports and documents so filed by
the Company and (iii) such other information as may be reasonably requested to
permit the Holder to sell such securities pursuant to Rule 144 without
registration; and

    

    (d)           at
the request of any Holder then holding Registrable Securities, give the Transfer
Agent instructions (supported by an opinion of Company counsel, if required or
requested by the Transfer Agent) to the effect that, upon the Transfer Agent’s
receipt from such Holder of

    

    (i) a
certificate (a “Rule 144 Certificate”) certifying (A) that the Holder’s holding
period (as determined in accordance with the provisions of Rule 144) for the
Shares which the Holder proposes to sell (the “Securities Being Sold”) is not
less than (1) year and (B) as to such other matters as may be appropriate in
accordance with Rule 144 under the Securities Act, and

     

    
      
        
        

      

      
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    (ii) an
opinion of counsel acceptable to the Company that, based on the Rule 144
Certificate, Securities Being Sold may be sold pursuant to the provisions of
Rule 144, even in the absence of an effective registration
statement,

    

    the
Transfer Agent is to effect the transfer of the Securities Being Sold and issue
to the Purchaser(s) or transferee(s) thereof one or more stock certificates
representing the transferred Securities Being Sold without any restrictive
legend and without recording any restrictions on the transferability of such
shares on the Transfer Agent’s  books and records (except to the
extent any such legend or restriction results from facts other than the identity
of the relevant Holder, as the seller or transferor thereof, or the status,
including any relevant legends or restrictions, of the shares of the Securities
Being Sold while held by the Purchaser).  If the Transfer Agent
reasonably requires any additional documentation at the time of the transfer,
the Company shall deliver or cause to be delivered all such reasonable
additional documentation as may be necessary to effectuate the issuance of an
unlegended certificate.

    

    (iv)           Notwithstanding
the foregoing, if at any time or from time to time after the date of
effectiveness of the registration statement, the Company notifies the Holder in
writing of the existence of a Potential Material Event (as defined below), the
Holder shall not offer or sell any Registrable Securities, or engage in any
other transaction involving or relating to the Registrable Securities, from the
time of the giving of notice with respect to a Potential Material Event until
the Holder receives written notice from the Company that such Potential Material
Event either has been disclosed to the public or no longer constitutes a
Potential Material Event; provided, however, that the
Company may not so suspend such right other than during a Permitted Suspension
Period.  The term “Potential Material Event” means any of the
following: (i) the possession by the Company of material information not ripe
for disclosure in a registration statement, which shall be evidenced by
determinations in good faith by the Board of Directors of the Company that
disclosure of such information in the registration statement would be
detrimental to the business and affairs of the Company; or (ii) any material
engagement or activity by the Company which would, in the good faith
determination of the Board of Directors of the Company, be adversely affected by
disclosure in a registration statement at such time, which determination shall
be accompanied by a good faith determination by the Board of Directors of the
Company that the registration statement would be materially misleading absent
the inclusion of such information.

    

    i.           Publicity, Filings, Releases,
Etc.  Each of the parties agrees that it will not disseminate
any information relating to the Transaction Documents or the transactions
contemplated thereby, including issuing any press releases, holding any press
conferences or other forums, or filing any reports (collectively, “Publicity”),
without giving the other party reasonable advance notice and an opportunity to
comment on the contents thereof.  Neither party will include in any
such Publicity any statement or statements or other material to which the other
party reasonably objects, unless in the reasonable opinion of counsel to the
party proposing such statement, such statement is legally required to be
included.  In furtherance of the foregoing, the Company will provide
to the Purchaser drafts of the applicable text of the first filing of a Current
Report on Form 8-K or a Quarterly or Annual Report on Form 10-Q or 10-K intended
to be made with the SEC which refers to the Transaction Documents or the
transactions contemplated thereby as soon as practicable (but at least two (2)
Trading Days before such filing will be made) will not include in such filing
any statement or statements or other material to which the other party
reasonably objects, unless in the reasonable opinion of counsel to the party
proposing such statement, such statement is legally required to be
included.  Notwithstanding the foregoing, each of the parties hereby
consents to the inclusion of the text of the Transaction Documents in filings
made with the SEC as well as any descriptive text accompanying or part of such
filing which is accurate and reasonably determined by the Company’s counsel to
be legally required. Notwithstanding, but subject to, the foregoing provisions
of this  Section 4(i), the Company will, after the Closing Date,
promptly file a Current Report on Form 8-K or, if appropriate, a quarterly or
annual report on the appropriate form, referring to the transactions
contemplated by the Transaction Documents.

     

    
      
        
        

      

      
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    5.           TRANSFER
AGENT INSTRUCTIONS.

    

    a.           The
Company warrants that, with respect to the Securities, other than the stop
transfer instructions to give effect to Section 4(a) hereof, it will give its
transfer agent no instructions inconsistent with instructions to issue Common
Stock to the Holder as contemplated in the Transaction
Documents.  Except as so provided, the Shares shall otherwise be
freely transferable on the books and records of the Company as and to the extent
provided in this Agreement and the other Transaction
Documents.  Nothing in this Section shall affect in any way the
Purchaser's obligations and agreement to comply with all applicable securities
laws upon resale of the Securities.  If the Purchaser provides the
Company with an opinion of counsel reasonably satisfactory to the Company that
registration of a resale by the Purchaser of any of the Securities in accordance
with clause (1)(B) of Section 4(a) of this Agreement is not required under the
1933 Act, the Company shall (except as provided in clause (2) of Section 4(a) of
this Agreement) permit the transfer or reissue of the Shares represented by one
or more certificates for Common Stock without legend (or where applicable, by
electronic registration) in such name and in such denominations as specified by
the Purchaser.

    

    

    b.           The
Company will authorize the Transfer Agent to give information relating to the
Company directly to the Holder or the Holder’s representatives upon the request
of the Holder or any such representative, to the extent such information relates
to (i) the status of shares of Common Stock issued or claimed to be issued to
the Holder in connection with a Notice of Exercise or transfer of Pledged Shares
to the Holder, or (ii) the aggregate number of outstanding shares of Common
Stock of all shareholders (as a group, and not individually) as of a current or
other specified date.  At the request of the Holder, the Company will
provide the Holder with a copy of the authorization so given to the Transfer
Agent.

    

    6.           CLOSING
DATE.

    

    a.           The
Closing Date shall occur on the date which is the first Trading Day after each
of the conditions contemplated by Sections 7 and 8 hereof shall have either been
satisfied or been waived by the party in whose favor such conditions
run.

    

    b.           The
closing of the Transactions shall occur on the Closing Date at the offices of
the Purchaser and shall take place no later than 3:00 P.M., New York time, on
such day or such other time as is mutually agreed upon by the Company and the
Purchaser.

    

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

     

    
      
        
        

      

      
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    The
Purchaser understands that the Company's obligation to sell the Note, the Issued
Shares and the Additional Issued Shares in the event such shares are issued to
the Purchaser pursuant to this Agreement on the Closing Date is conditioned
upon:

    

    a.           The
execution and delivery of this Agreement by the Purchaser;

    

    b.           Delivery
by the Purchaser to the Company of good funds as payment in full of an amount
equal to the Purchase Amount in accordance with this Agreement;

    

    c.           The
accuracy on such Closing Date of the representations and warranties of the
Purchaser contained in this Agreement, each as if made on such date, and the
performance by the Purchaser on or before such date of all covenants and
agreements of the Purchaser required to be performed on or before such date;
and

    

    d.           There
shall not be in effect any law, rule or regulation prohibiting or restricting
the transactions contemplated hereby, or requiring any consent or approval which
shall not have been obtained.

    

    8.           CONDITIONS
TO THE PURCHASER'S OBLIGATION TO PURCHASE.

    

    The
Company understands that the Purchaser's obligation to purchase the Note on the
Closing Date is conditioned upon:

    

    a.           The
execution and delivery of this Agreement and the other Transaction Documents by
the Company;

    

    b.           Delivery
by the Company to the Purchaser of the Certificates in accordance with this
Agreement or any other agreements between the parties;

    

    c.           The
execution and delivery of the Pledge Agreement by the Pledgor, together with an
opinion of Pledgor’s counsel (which may be incorporated in the opinion referred
to in subparagraph (e) below);

    

    d. The
execution and delivery of the Security Agreement, the Subsidiary Guarantee and
UCC-1 Financing Statement on all of the Company’s assets;

    

    e.           The
execution and delivery of the Warrant;

    

    f.           The
reimbursement of the Transaction Fees and Management Fees (as set forth in the
term sheet executed by the parties hereto).

    

    g.           Delivery
by the Company of a schedule detailing all assets of the Company, their value
and their location.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    h.           Delivery
by the Company of historical financial statements of acquisitions.

    

    i.           Delivery
by the Company of consolidated pro forma and three-year
projected financial statements (income statement, balance sheet and cash flow)
inclusing acquisitions and total capital requirements.

    

    j.           The
loan contemplated by this Agreement shall be senior to all other debt of the
Company.

    

    k.           The
accuracy in all material respects on the Closing Date of the representations and
warranties of the Company contained in this Agreement, each as if made on such
date, and the performance by the Company on or before such date of all covenants
and agreements of the Company required to be performed on or before such
date;

    

    l.           On
the Closing Date, the Purchaser shall have received an opinion of counsel for
the Company, dated the Closing Date, in form, scope and substance reasonably
satisfactory to the Purchaser;

    

    m.           The
Purchaser’s determination, to its satisfaction, as to the Company’s use of the
proceeds of the Note.

    

    n.           The
Company’s financial statements and public filings must be
up-to-date.

    

    o.           There
shall not be in effect any law, rule or regulation prohibiting or restricting
the transactions contemplated hereby, or requiring any consent or approval which
shall not have been obtained; and

    

    p.           From
and after the date hereof to and including the Closing Date, each of the
following conditions will remain in effect: (i) the trading of the Common Stock
shall not have been suspended by the SEC or on the Principal Trading Market;
(ii) trading in securities generally on the Principal Trading Market shall not
have been suspended or limited; (iii) no minimum prices shall been established
for securities traded on the Principal Trading Market; and (iv) there shall not
have been any material adverse change in any financial market.

    

    
      
        
        

      

      
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    9.           INDEMNIFICATION
AND REIMBURSEMENT.

    

    a.           (i)  The
Company agrees to indemnify and hold harmless the Purchaser and its officers,
directors, employees, and agents, and each Purchaser Control Person from and
against any losses, claims, damages, liabilities or expenses incurred
(collectively, “Damages”), joint or several, and any action in respect thereof
to which the Purchaser, its partners, Affiliates, officers, directors,
employees, and duly authorized agents, and any such Purchaser Control Person
becomes subject to, resulting from, arising out of or relating to any
misrepresentation, breach of warranty or nonfulfillment of or failure to perform
any covenant or agreement on the part of Company contained in this Agreement, as
such Damages are incurred, except to the extent such Damages result primarily
from Purchaser's failure to perform any covenant or agreement contained in this
Agreement or the Purchaser's or its officer’s, director’s, employee’s, agent’s
or Purchaser Control Person’s gross negligence, recklessness or bad faith in
performing its obligations under this Agreement.

    

     (ii)           The
Company hereby agrees that, if the Purchaser, other than by reason of its gross
negligence, illegal or willful misconduct (in each case, as determined by a
non-appealable judgment to such effect), (x) becomes involved in any capacity in
any action, proceeding or investigation brought by any shareholder of the
Company, in connection with or as a result of the consummation of the
transactions contemplated by this Agreement or the other Transaction Documents,
or if the Purchaser is impleaded in any such action, proceeding or investigation
by any Person, or (y) becomes involved in any capacity in any action, proceeding
or investigation brought by the SEC, any self-regulatory organization or other
body having jurisdiction, against or involving the Company or in connection with
or as a result of the consummation of the transactions contemplated by this
Agreement or the other Transaction Documents, or (z) is impleaded in any such
action, proceeding or investigation by any Person, then in any such case, the
Company shall indemnify, defend and hold harmless the Purchaser from and against
and in respect of all losses, claims, liabilities, damages or expenses resulting
from, imposed upon or incurred by the Purchaser, directly or indirectly, and
reimburse such Purchaser for its reasonable legal and other expenses (including
the cost of any investigation and preparation) incurred in connection therewith,
as such expenses are incurred.  The indemnification and reimbursement
obligations of the Company under this paragraph shall be in addition to any
liability which the Company may otherwise have, shall extend upon the same terms
and conditions to any Affiliates of the Purchaser who are actually named in such
action, proceeding or investigation, and partners, directors, agents, employees
and Purchaser Control Persons (if any), as the case may be, of the Purchaser and
any such Affiliate, and shall be binding upon and inure to the benefit of any
successors, assigns, heirs and personal representatives of the Company, the
Purchaser, any such Affiliate and any such Person.  The Company also
agrees that neither the Purchaser nor any such Affiliate, partner, director,
agent, employee or Purchaser Control Person shall have any liability to the
Company or any Person asserting claims on behalf of or in right of the Company
in connection with or as a result of the consummation of this Agreement or the
other Transaction Documents, except as may be expressly and specifically
provided in or contemplated by this Agreement.

    

    b.           All
claims for indemnification by any Indemnified Party (as defined below) under
this Section shall be asserted and resolved as follows:

     

    
      
        
        

      

      
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    (i)           
In the event any claim or demand in respect of which any Person claiming
indemnification under any provision of this Section (an “Indemnified Party”)
might seek indemnity under paragraph (a) of this Section is asserted against or
sought to be collected from such Indemnified Party by a Person other than a
party hereto or an Affiliate thereof (a “Third Party Claim”), the Indemnified
Party shall deliver a written notification, enclosing a copy of all papers
served, if any, and specifying the nature of and basis for such Third Party
Claim and for the Indemnified Party's claim for indemnification that is being
asserted under any provision of this Section against any Person (the
“Indemnifying Party”), together with the amount or, if not then reasonably
ascertainable, the estimated amount, determined in good faith, of such Third
Party Claim (a “Claim Notice”) with reasonable promptness to the Indemnifying
Party. If the Indemnified Party fails to provide the Claim Notice with
reasonable promptness after the Indemnified Party receives notice of such Third
Party Claim, the Indemnifying Party shall not be obligated to indemnify the
Indemnified Party with respect to such Third Party Claim to the extent that the
Indemnifying Party's ability to defend has been prejudiced by such failure of
the Indemnified Party. The Indemnifying Party shall notify the Indemnified Party
as soon as practicable within the period ending thirty (30) calendar days
following receipt by the Indemnifying Party of either a Claim Notice or an
Indemnity Notice (as defined below) (the “Dispute Period”) whether the
Indemnifying Party disputes its liability or the amount of its liability to the
Indemnified Party under this Section and whether the Indemnifying Party desires,
at its sole cost and expense, to defend the Indemnified Party against such Third
Party Claim.  The following provisions shall also apply.

    

    (x)  If
the Indemnifying Party notifies the Indemnified Party within the Dispute Period
that the Indemnifying Party desires to defend the Indemnified Party with respect
to the Third Party Claim pursuant to this paragraph (b) of this Section, then
the Indemnifying Party shall have the right to defend, with counsel reasonably
satisfactory to the Indemnified Party, at the sole cost and expense of the
Indemnifying Party, such Third Party Claim by all appropriate proceedings, which
proceedings shall be vigorously and diligently prosecuted by the Indemnifying
Party to a final conclusion or will be settled at the discretion of the
Indemnifying Party (but only with the consent of the Indemnified Party in the
case of any settlement that provides for any relief other than the payment of
monetary damages or that provides for the payment of monetary damages as to
which the Indemnified Party shall not be indemnified in full pursuant to
paragraph (a) of this Section). The Indemnifying Party shall have full control
of such defense and proceedings, including any compromise or settlement thereof;
provided, however, that the Indemnified Party may, at the sole cost and expense
of the Indemnified Party, at any time prior to the Indemnifying Party's delivery
of the notice referred to in the first sentence of this subparagraph (x), file
any motion, answer or other pleadings or take any other action that the
Indemnified Party reasonably believes to be necessary or appropriate protect its
interests; and provided further, that if requested by the Indemnifying Party,
the Indemnified Party will, at the sole cost and expense of the Indemnifying
Party, provide reasonable cooperation to the Indemnifying Party in contesting
any Third Party Claim that the Indemnifying Party elects to contest. The
Indemnified Party may participate in, but not control, any defense or settlement
of any Third Party Claim controlled by the Indemnifying Party pursuant to this
subparagraph (x), and except as provided in the preceding sentence, the
Indemnified Party shall bear its own costs and expenses with respect to such
participation. Notwithstanding the foregoing, the Indemnified Party may take
over the control of the defense or settlement of a Third Party Claim at any time
if it irrevocably waives its right to indemnity under paragraph (a) of this
Section with respect to such Third Party Claim.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    (y)  If
the Indemnifying Party fails to notify the Indemnified Party within the Dispute
Period that the Indemnifying Party desires to defend the Third Party Claim
pursuant to paragraph (b) of this Section, or if the Indemnifying Party gives
such notice but fails to prosecute vigorously and diligently or settle the Third
Party Claim, or if the Indemnifying Party fails to give any notice whatsoever
within the Dispute Period, then the Indemnified Party shall have the right to
defend, at the sole cost and expense of the Indemnifying Party, the Third Party
Claim by all appropriate proceedings, which proceedings shall be prosecuted by
the Indemnified Party in a reasonable manner and in good faith or will be
settled at the discretion of the Indemnified Party (with the consent of the
Indemnifying Party, which consent will not be unreasonably withheld). The
Indemnified Party will have full control of such defense and proceedings,
including any compromise or settlement thereof; provided, however, that if
requested by the Indemnified Party, the Indemnifying Party will, at the sole
cost and expense of the Indemnifying Party, provide reasonable cooperation to
the Indemnified Party and its counsel in contesting any Third Party Claim which
the Indemnified Party is contesting. Notwithstanding the foregoing provisions of
this subparagraph (y), if the Indemnifying Party has notified the Indemnified
Party within the Dispute Period that the Indemnifying Party disputes its
liability or the amount of its liability hereunder to the Indemnified Party with
respect to such Third Party Claim and if such dispute is resolved in favor of
the Indemnifying Party in the manner provided in subparagraph(z) below, the
Indemnifying Party will not be required to bear the costs and expenses of the
Indemnified Party's defense pursuant to this subparagraph (y) or of the
Indemnifying Party's participation therein at the Indemnified Party's request,
and the Indemnified Party shall reimburse the Indemnifying Party in full for all
reasonable costs and expenses incurred by the Indemnifying Party in connection
with such litigation. The Indemnifying Party may participate in, but not
control, any defense or settlement controlled by the Indemnified Party pursuant
to this subparagraph (y), and the Indemnifying Party shall bear its own costs
and expenses with respect to such participation.

    

    (z)  If
the Indemnifying Party notifies the Indemnified Party that it does not dispute
its liability or the amount of its liability to the Indemnified Party with
respect to the Third Party Claim under paragraph (a) of this Section or fails to
notify the Indemnified Party within the Dispute Period  whether the
Indemnifying Party disputes its liability or the amount of its liability to the
Indemnified Party with respect to such Third Party Claim, the amount of Damages
specified in the Claim Notice shall be conclusively deemed a liability of the
Indemnifying Party under paragraph (a) of this Section and the Indemnifying
Party shall pay the amount of such Damages to the Indemnified Party on demand.
If the Indemnifying Party has timely disputed its liability or the amount of its
liability with respect to such claim, the Indemnifying Party and the Indemnified
Party shall proceed in good faith to negotiate a resolution of such dispute;
provided, however, that if the dispute is not resolved within thirty (30) days
after the Claim Notice, the Indemnifying Party shall be entitled to institute
such legal action as it deems appropriate.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    (ii)           In
the event any Indemnified Party should have a claim under paragraph (a) of this
Section against the Indemnifying Party that does not involve a Third Party
Claim, the Indemnified Party shall deliver a written notification of a claim for
indemnity under paragraph (a) of this Section specifying the nature of and basis
for such claim, together with the amount or, if not then reasonably
ascertainable, the estimated amount, determined in good faith, of such claim (an
"Indemnity Notice") with reasonable promptness to the Indemnifying Party. The
failure by any Indemnified Party to give the Indemnity Notice shall not impair
such party's rights hereunder except to the extent that the Indemnifying Party
demonstrates that it has been irreparably prejudiced thereby. If the
Indemnifying Party notifies the Indemnified Party that it does not dispute the
claim or the amount of the claim described in such Indemnity Notice or fails to
notify the Indemnified Party within the Dispute Period whether the Indemnifying
Party disputes the claim or the amount of the claim described in such Indemnity
Notice, the amount of Damages specified in the Indemnity Notice will be
conclusively deemed a liability of the Indemnifying Party under paragraph (a) of
this Section and the Indemnifying Party shall pay the amount of such Damages to
the Indemnified Party on demand. If the Indemnifying Party has timely disputed
its liability or the amount of its liability with respect to such claim, the
Indemnifying Party and the Indemnified Party shall proceed in good faith to
negotiate a resolution of such dispute; provided, however, that it the dispute
is not resolved within thirty (30) days after the Claim Notice, the Indemnifying
Party shall be entitled to institute such legal action as it deems
appropriate.

    

    c.           The
indemnity agreements contained herein shall be in addition to (i) any cause of
action or similar rights of the indemnified party against the indemnifying party
or others, and (ii) any liabilities the indemnifying party may be subject
to.

    

    10.           JURY TRIAL WAIVER.
  The Company and the Purchaser hereby waive a trial by jury in
any action, proceeding or counterclaim brought by either of the Parties hereto
against the other in respect of any matter arising out or in connection with the
Transaction Documents.

    

    11.           GOVERNING
LAW:  MISCELLANEOUS.

    

    a.           (i)  This
Agreement shall be governed by and interpreted in accordance with the laws of
the State of New York for contracts to be wholly performed in such state and
without giving effect to the principles thereof regarding the conflict of
laws.  Each of the parties consents to the exclusive jurisdiction of
the federal courts whose districts encompass any part of the County of New York
or the state courts of the State of New York sitting in the County of New York
in connection with any dispute arising under this Agreement or any of the other
Transaction Documents and hereby waives, to the maximum extent permitted by law,
any objection, including any objection based on forum non conveniens, to the
bringing of any such proceeding in such jurisdictions or to any claim that such
venue of the suit, action or proceeding is improper. To the extent determined by
such court, the Company shall reimburse the Purchaser for any reasonable legal
fees and disbursements incurred by the Purchaser in enforcement of or protection
of any of its rights under any of the Transaction Documents.  Nothing
in this Section shall affect or limit any right to serve process in any other
manner permitted by law.

     

    
      
        
        

      

      
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    (ii)  The
Company and the Purchaser acknowledge and agree that irreparable damage would
occur in the event that any of the provisions of this Agreement or the other
Transaction Documents were not performed in accordance with their specific terms
or were otherwise breached. It is accordingly agreed that the parties shall be
entitled to an injunction or injunctions to prevent or cure breaches of the
provisions of this Agreement and the other Transaction Documents and to enforce
specifically the terms and provisions hereof and thereof, this being in addition
to any other remedy to which any of them may be entitled by law or
equity.

    

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

    

    c.           This
Agreement shall inure to the benefit of and be binding upon the successors and
assigns of each of the parties hereto.

    

    d.           All
pronouns and any variations thereof refer to the masculine, feminine or neuter,
singular or plural, as the context may require.

    

    e.           A
facsimile transmission of this signed Agreement shall be legal and binding on
all parties hereto.

    

    f.           This
Agreement may be signed in one or more counterparts, each of which shall be
deemed an original.

    

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

    

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

    

    i.           This
Agreement may be amended only by an instrument in writing signed by the party to
be charged with enforcement thereof.

    

    j.           This
Agreement supersedes all prior agreements and understandings among the parties
hereto with respect to the subject matter hereof.

    

    12.           Agent

     

    
      
        
        

      

      
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    (a) Authorization of
Action.  Each Purchaser hereby appoints and authorizes
Professional Offshore Opportunity Fund Ltd. (the “Agent”) to be its agent in its
name and on its behalf and to exercise such rights or powers granted to the
Agent or the Purchasers (i) under the Transaction Documents to the extent
specifically provided therein and on the terms thereof, together with such
rights, powers and discretions as are reasonably incidental
thereto.  As to any matters not expressly provided for by the
Transaction Documents, the Agent shall not be required to exercise any
discretion or take any action, but shall be required to act or to refrain from
acting (and shall be fully protected in so acting or refraining from acting)
upon the instructions of the Purchasers, and any action so taken or not so taken
by the Agent shall be binding upon all Purchasers; provided, however, that the
Agent shall not be required to take any action which exposes the Agent to
liability in such capacity, which could result in the Agent incurring any costs
and expenses or which is contrary to this Agreement or applicable
law.

     

    (b) Indemnification.  Each
Purchaser hereby agrees to indemnify and hold harmless the Agent from and
against any and all liabilities, obligations, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature
whatsoever which may be imposed on, incurred by, or asserted against the Agent
(in its capacity as agent for the Purchasers) in any way relating to or arising
out of the Transaction Documents or any action taken or admitted by the Agent
under or in respect of the Transaction Documents; provided that no Purchaser
shall be liable for any portion of such liabilities, obligations, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements resulting
from the Agent’s gross negligence or willful misconduct.  Without
limiting the generality of the foregoing, each Purchaser agrees to reimburse the
Agent promptly upon demand on a pro rata basis in accordance with the then
outstanding indebtedness, liabilities and obligations owing to such Purchaser by
the Company in respect of any out-of-pocket expenses (including counsel fees)
incurred by the Agent in connection with the preservation of any rights of the
Agent or the Purchasers under, the enforcement of, or legal advice in respect of
the rights or responsibilities under, the Transaction Documents, to the extent
that the Agent is not reimbursed for such expenses by the Company or its
Subsidiaries.

     

    (c) Successor
Agent.  The Agent may, as hereinafter provided, resign at any
time by giving not less than 30 days’ written notice thereof to the Purchasers
and the Company. Upon any such resignation, the Purchasers shall have the right
to appoint a successor Agent (the “Successor Agent”), which shall be a Purchaser
and which shall be acceptable to the Company, acting reasonably.  Upon
the acceptance of any appointment as Agent hereunder by a Successor Agent, such
Successor Agent shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Agent and the retiring
Agent shall thereupon be discharged from its further duties and obligations as
Agent under the Transaction Documents. After any retiring Agent’s resignation
hereunder as Agent, the provisions of this Section 5.19 shall continue to inure
to its benefit as to any actions taken or omitted to be taken by it while it was
Agent under the Transaction Documents.   Absent such a
resignation by the Agent, the Agent’s appointment shall continue until revoked
in writing by Purchasers holding 75% of the outstanding principal amount of the
Notes, at which time such Purchasers shall appoint a new Agent.

     

    (d) Taking and Enforcement of
Remedies.

     

    (1)        Each
of the Purchasers hereby acknowledges that, to the extent permitted by
applicable law, the remedies provided under the Transaction Documents to the
Purchasers are for the benefit of the Purchasers collectively and acting
together and not severally and further acknowledges that its rights under the
Transaction Documents are to be exercised not severally, but collectively by the
Agent upon the decision of the Purchasers; accordingly, notwithstanding any of
the provisions contained in any of the Transaction Documents, each of the
Purchasers hereby covenants and agrees that it shall not be entitled to take any
action with respect to the Transaction Documents, including, without limitation,
any acceleration of the indebtedness, liabilities or obligations of the Company
or any of its Subsidiaries, but that any such action shall be taken only by the
Agent with the prior written agreement of the Purchasers, provided that,
notwithstanding the foregoing:

     

    
      
        
        

      

      
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    (2)        in
the absence of instructions from the Purchasers and where in the sole opinion of
the Agent the exigencies of the situation warrant such action, the Agent may
without notice to or consent of the Purchasers take such action on behalf of the
Purchasers as it deems appropriate or desirable in the interest of the
Purchasers; and

     

    (3)        the
commencement of litigation before any court shall be made in the name of each
Purchaser individually unless the laws of the jurisdiction of such court permit
such litigation to be commenced in the name of the Agent on behalf of the
Purchasers (whether pursuant to a specific power of attorney in favor of the
Agent or otherwise) and the Agent agrees to commence such litigation in its
name; provided, however, that no litigation shall be commenced in the name of
any Purchaser without the prior written consent of such Purchaser;

     

    (4)        each
of the Purchasers hereby further covenants and agrees that upon any such written
consent being given by the Purchasers, they shall co-operate fully with the
Agent to the extent requested by the Agent in the collective realization,
including, without limitation, the appointment of a receiver and manager to act
for their collective benefit; and each Purchaser covenants and agrees to do all
acts and things to make, execute and deliver all agreements and other
instruments, including, without limitation, any instruments necessary to effect
any registrations, so as to fully carry out the intent and purpose of this
Section 5.19; and each of the Purchasers hereby covenants and agrees that it has
not heretofore and shall not seek, take, accept or receive any security for any
of the obligations and liabilities of the Company under the Transaction
Documents or under any other document, instrument, writing or agreement
ancillary thereto other than such security as is provided hereunder and shall
not enter into any agreement with the Company or any of its Subsidiaries
relating in any manner whatsoever to the transactions contemplated hereunder,
unless all of the Purchasers shall at the same time obtain the benefit of any
such security or agreement, as the case may be.

     

    (5)                  Notwithstanding any other provision
contained in the Transaction Documents, no Purchaser shall be required to be
joined as a party to any litigation commenced against the Company or any of its
Subsidiaries by the Agent under the Transaction Documents (unless otherwise
required by any court of competent jurisdiction) if it elects not to be so
joined in which event any such litigation shall not include claims in respect of
the rights of such Purchaser against the Company or any of its Subsidiaries
under the Transaction Documents until such time as such Purchaser does elect to
be so joined; provided that if at the time of such subsequent election it is not
possible or practicable for such Purchaser to be so joined, then such Purchaser
may commence proceedings in its own name in respect of its rights against the
Company or any of its Subsidiaries.

    

    13.           NOTICES.  Any notice
required or permitted hereunder shall be given in writing (unless otherwise
specified herein) and shall be deemed effectively given on the earliest
of

    

    (a) the
date delivered, if delivered by personal delivery as against written receipt
therefor or by confirmed facsimile transmission,

    

    (b) the
fifth Trading Day after deposit, postage prepaid, in the United States Postal
Service by registered or certified mail, or

     

    
      
        
        

      

      
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    (c) the
third Trading Day after mailing by domestic or international express courier,
with delivery costs and fees prepaid,

    

    in each
case, addressed to each of the other parties thereunto entitled at the following
addresses (or at such other addresses as such party may designate by ten (10)
days’ advance written notice similarly given to each of the other parties
hereto):

    

    COMPANY:                          At
the address set forth at the head of this Agreement.

    Attn: Ash
Mascarenhas

    Telephone
No.: 772-410-0205

    Telecopier
No.:  702-974-0388

    

    

    PURCHASER:                     
PROFESSIONAL OFFSHORE OPPORTUNITY FUND LTD.

    1400 Old Country Road

    Suite 206

    Westbury, New York 11591

    Attention:
Howard Berger

    

    

    14.           SURVIVAL OF REPRESENTATIONS AND
WARRANTIES. The Company’s and the Purchaser’s representations and
warranties herein shall survive the execution and delivery of this Agreement and
the delivery of the Certificates and the payment of the Purchase Amount, and
shall inure to the benefit of the Purchaser and the Company and their respective
successors and assigns.

    

    [Balance
of page intentionally left blank]

     

    
      
        
        

      

      
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    IN WITNESS WHEREOF, this
Agreement has been duly executed by the Purchaser and the Company as of the date
set first above written.

    

    

    
      
        	 	PROFESSIONAL
      OFFSHORE	 
	 	OPPORTUNITY FUND
      LTD.	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

      

     

    
      
        	 	INFORM WORLDWIDE HOLDINGS,
      INC.	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

      

    

    

    

     

    

    
      
        
        

      

      
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              ANNEX
    I

            	FORM OF
    NOTE	 	 
	 	 	 	 
	
              ANNEX
    II

            	INTENTIONALLY LEFT
      BLANK	 	 
	 	 	 	 
	
              ANNEX
      III

            	SECURITY
      AGREEMENT	 	 
	 	 	 	 
	
              ANNEX
    IV

            	COMPANY’S SEC
      DOCUMENTS AVAILABLE ON EDGAR	 	 
	 	 	 	 
	
              ANNEX
    V

            	COMPANY DISCLOSURE
      MATERIALS	 	 
	 	 	 	 
	
              ANNEX
    VI

            	PLEDGE
      AGREEMENT	 	 
	 	 	 	 
	
              ANNEX
      VII

            	WARRANT	 	 
	 	 	 	 
	
              ANNEX
      VIII

            	RESERVED	 	 
	 	 	 	 
	
              ANNEX
    IX

            	SUBSIDIARY
      GUARANTEE	 	 

    

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

                  

    
      Annex IV

      

      Company’s
SEC Documents Available on Edgar

      

      Form
10-KSB for the year ended June 30, 2007, filed November 2, 2007

      Form 8-K
filed December 4, 2007

      Form 8-K
filed December 5, 2007

      Form
10-QSB for the quarter ended September 30, 2007 filed January 2,
2008

      Form 8-K
filed January 18, 2008

      Form
10-QSB for the quarter ended December 31, 2007 filed February 14,
2008

      Form 8-K
filed March 5, 2008

      

      
        
           

        

        
          32

          
            

          

        

        
           

        

      

      Annex V

      

      Company
Disclosure Materials

      

      Section
1(b)

      

      Subsidiaries
of the Company

      

      PrimaCare
Corporation

      One World
Energy Corporation

      PrimaCare
Health Services, Inc.

      Round Boy
Oil & Gas, Inc.

      Medical
Resources, LLC

      

      Section
2(t)

      

      The
Company did not timely file its Form 10-KSB for the year ending June 30, 2007 or
receive a valid extension of such time of filing and file the 10-KSB within such
extension. The 10-KSB has since been filed.

      

        
          
             

          

          
            33ex102.htm

    Exhibit 10.2

     

    

    NOTE

    

    THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD OR OFFERED FOR
SALE IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES OR
AN OPINION OF COUNSEL OR OTHER EVIDENCE ACCEPTABLE TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED.

    

    US
$750,000

    

    ________________________________________

    

    12%
SECURED PROMISSORY NOTE DUE OCTOBER __, 2008

    

    FOR VALUE
RECEIVED, Inform Worldwide Holdings, Inc., a corporation organized and existing
under the laws of the State of Florida (the “Company”), promises to pay to Professional Offshore Opportunity
Fund, Ltd., the registered holder hereof (the “Holder”), the principal
sum of Seven Hundred Fifty Thousand and 00/100  Dollars (US
$750,000) on the Maturity Date (as defined below) and to pay interest on
the principal sum outstanding from time to time in arrears at the rate of 10%
per annum (computed  on the basis of the actual  number of
days  elapsed and a year of 360 days and compounded monthly), accruing
from April __, 2008, the date of initial issuance of this Note (the “Issue
Date”), to the date of payment.  Such interest shall be payable on the
date which is the earlier of (i) the Maturity Date, or (ii) the date of any
prepayment of principal permitted hereunder; except that interest for month in
advance shall be paid on the Issue Date.  Accrual of interest shall
commence on the Issue Date and shall continue to accrue on a daily basis until
payment in full of the principal sum has been made or duly provided for (whether
before or after the Maturity Date).

    

    This Note
is being issued pursuant to the terms of the Purchase Agreement, dated as of
April 25, 2008 (the “Loan Agreement”), to which the Company and the Holder (or
the Holder’s predecessor in interest) are parties.  Capitalized terms
not otherwise defined herein shall have the meanings ascribed to them in the
Loan Agreement.

    

    This Note
is subject to the following additional provisions:

    

    1.           The
term “Maturity Date” means the earlier of (x) October __, 2008 or (y) the date
on which the Company consummates an equity financing or funding transaction in
excess of $2,000,000 (a “Qualified Financing”), whether or not such transaction
is effected in connection with the current or future issuance of
securities.

     

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    
 

    2.           (i)           This
Note may be prepaid in whole or in part at any time prior to the Maturity Date,
without penalty.  Any payment shall be applied as provided in Section
3.

    

    (ii)           TIME IS OF THE ESSENCE WITH
RESPECT TO ANY PAYMENT DUE HEREUNDER.  The Company shall be in
default hereunder if any payment is not made in a timely manner, without any
right to cure unless such right to cure is granted by the Holder in each
instance; provided, however, that the grant of such right is in the sole
discretion of the Holder and may be withheld for any reason or for no reason
whatsoever.

    

    (iii)           If,
at the end of any Trading Day, the value of the Pledged Shares (using the
closing price of the stock on such day) is less than 400% of the aggregate
principal amount outstanding on the Note, then the Company shall within two
Trading Days either (i) pay to the Purchaser an amount sufficient to reduce the
outstanding principal amount on the Note or (ii) provide the Purchaser a first
priority perfected security interest in additional collateral (which may include
additional shares of common stock of the Company or other collateral acceptable
to Purchaser in its sole discretion) such that the value of the Pledged Shares
(plus the value of any additional collateral delivered to the Purchaser) is at
least 400% of the aggregate principal amount outstanding on the
Note.

    

    3.           Any
payment made on account of the Note shall be applied in the following order of
priority: (i) first, to any amounts due hereunder other than principal and
accrued interest, (ii) then, to accrued interest through and including the date
of payment, and (iii) then, to principal of this Note.

    

    4.           All
payments contemplated hereby to be made “in cash” shall be made in immediately
available good funds of United States of America currency by wire transfer to an
account designated in writing by the Holder to the Company (which account may be
changed by notice similarly given).  For purposes of this Note, the
phrase “date of payment” means the date good funds are received in the account
designated by the notice which is then currently effective.

    

    5.           Subject
to the terms of the Loan Agreement, no provision of this Note shall alter or
impair the obligation of the Company, which is absolute and unconditional, to
pay the principal of, and interest on, this Note at the time, place, and rate,
and in the coin or currency, as herein prescribed.  This Note is
direct obligations of the Company.

    

    6.           The
obligations of the Company under this Note are secured by all of the assets of
the Company and by certain stock of the Company.  The stock is pledged
to the Holder under the terms of the Pledge Agreement, to which the Holder and
the Pledgor are parties.  If the Holder forecloses on any of the
Pledged Shares, the obligations of the Company will be reduced only to the
extent of the proceeds actually realized from such foreclosure, in the priority
specified in Section 3 hereof.

     

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
 

    7.             Conversion.

    

    a) Voluntary Conversion.
At any time after the Original Issue Date until this Note is no longer
outstanding, this Note shall be convertible into shares of Common Stock at the
option of the Holder, in whole or in part at any time and from time to time
(subject to the limitations on conversion set forth in Section 7(d)
hereof).  The Holder shall effect conversions by delivering to the
Company the form of Notice of Conversion attached hereto (a “Notice of
Conversion”), specifying therein the principal amount of Notes to be converted
and the date on which such conversion is to be effected (a “Conversion
Date”).  If no Conversion Date is specified in a Notice of Conversion,
the Conversion Date shall be the date that such Notice of Conversion is provided
hereunder.  To effect conversions hereunder, the Holder shall not be
required to physically surrender Notes to the Company unless the entire
principal amount of this Note plus all accrued and unpaid interest thereon has
been so converted. Conversions hereunder shall have the effect of lowering the
outstanding principal amount of this Note in an amount equal to the applicable
conversion.  The Holder and the Company shall maintain records showing
the principal amount converted and the date of such conversions.  The
Company shall deliver any objection to any Notice of Conversion within 3
Business Days of receipt of such notice.  In the event of any dispute
or discrepancy, the records of the Holder shall be controlling and determinative
in the absence of manifest error. The Holder and any assignee, by acceptance of
this Note, acknowledge and agree that, by reason of the provisions of this
paragraph, following conversion of a portion of this Note, the unpaid and
unconverted principal amount of this Note may be less than the amount stated on
the face hereof.  However, at the Company’s request, the Holder shall
surrender the Note to the Company within five (5) Trading Days following such
request so that a new Note reflecting the correct principal amount may be issued
to Holder.

    

    b) Conversion
Price.   Subject to adjustment as provided for in Section
8, the initial
conversion price in effect on any Conversion Date shall be $5.00.

    

    c) Reserved.

    

    d) Conversion
Limitations; Holder’s Restriction on
Conversion. The Company shall not effect any conversion of this Note, and
the Holder shall not have the right to convert any portion of this Note,
pursuant to Section 7(a) or otherwise, to the extent that after giving effect to
such conversion, the Holder (together with the Holder’s affiliates), as set
forth on the applicable Notice of Conversion, would beneficially own in excess
of 4.99% of the number of shares of the Common Stock outstanding immediately
after giving effect to such conversion.  For purposes of the foregoing
sentence, the number of shares of Common Stock beneficially owned by the Holder
and its affiliates shall include the number of shares of Common Stock issuable
upon conversion of this Note with respect to which the determination of such
sentence is being made, but shall exclude the number of shares of Common Stock
which would be issuable upon (A) conversion of the remaining, nonconverted
portion of this Note beneficially owned by the Holder or any of its affiliates
and (B) exercise or conversion of the unexercised or nonconverted portion of any
other securities of the Company (including, without limitation, any other Notes
or the Warrants) subject to a limitation on conversion or exercise analogous to
the limitation contained herein beneficially owned by the Holder or any of its
affiliates.  Except as set forth in the preceding sentence, for purposes of
this Section 7(d), beneficial ownership shall be calculated in accordance with
Section 13(d) of the Exchange Act.  To the extent that the limitation
contained in this section applies, the determination of whether this Note is
convertible (in relation to other securities owned by the Holder) and of which a
portion of this Note is convertible shall be in the sole discretion of such
Holder. To ensure compliance with this restriction, the Holder will be deemed to
represent to the Company each time it delivers a Notice of Conversion that such
Notice of Conversion has not violated the restrictions set forth in this
paragraph and the Company shall have no obligation to verify or confirm the
accuracy of such determination.  For purposes of this Section 7(d), in
determining the number of outstanding shares of Common Stock, the Holder may
rely on the number of outstanding shares of Common Stock as reflected in (x) the
Company’s most recent Form 10-QSB or Form 10-KSB (or such related form), as the
case may be, (y) a more recent public announcement by the Company or (z) any
other notice by the Company or the Company’s Transfer Agent setting forth the
number of shares of Common Stock outstanding.  Upon the written or oral
request of the Holder, the Company shall within two Trading Days confirm orally
and in writing to the Holder the number of shares of Common Stock then
outstanding.  In any case, the number of outstanding shares of Common Stock
shall be determined after giving effect to the conversion or exercise of
securities of the Company, including this Note, by the Holder or its affiliates
since the date as of which such number of outstanding shares of Common Stock was
reported.  The provisions of this Section 7(d) may be waived by the
Holder upon, at the election of the Holder, not less than 61 days’ prior notice
to the Company, and the provisions of this Section 7(d) shall continue to apply
until such 61st day (or such later date, as determined by the Holder, as may be
specified in such notice of waiver).

     

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
 

    e) Mechanics of
Conversion

    

    i. Conversion Shares Issuable
Upon Conversion of Principal Amount.  The number of shares of
Common Stock issuable upon a conversion hereunder shall be determined by the
quotient obtained by dividing (x) the outstanding principal amount of this Note
to be converted by (y) the Conversion Price.

    

    ii. Delivery of Certificate Upon
Conversion. Not later than three Trading Days after any Conversion Date,
the Company will deliver to the Holder (A) a certificate or certificates
representing the Conversion Shares which shall be free of restrictive legends
and trading restrictions (other than those required by the Purchase Agreement)
representing the number of shares of Common Stock being acquired upon the
conversion of Notes (including, if so timely elected by the Company, shares of
Common Stock representing the payment of accrued interest) and (B) a bank check
in the amount of accrued and unpaid interest (if the Company is required to pay
accrued interest in cash). The Company shall, if available and if allowed under
applicable securities laws, use its best efforts to deliver any certificate or
certificates required to be delivered by the Company under this Section
electronically through the Depository Trust Corporation or another established
clearing corporation performing similar functions.

    

    iii. Failure to Deliver
Certificates.  If in the case of any Notice of Conversion such
certificate or certificates are not delivered to or as directed by the
applicable Holder by the third Trading Day after a Conversion Date, the Holder
shall be entitled by written notice to the Company at any time on or before its
receipt of such certificate or certificates thereafter, to rescind such
conversion, in which event the Company shall immediately return the certificates
representing the principal amount of Notes tendered for conversion.

    

    iv. Obligation Absolute; Partial
Liquidated Damages. If the Company fails for any reason to deliver
to the Holder such certificate or certificates pursuant to Section 7(d)(ii) by
the third Trading Day after the Conversion Date, the Company shall pay to such
Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of
principal amount being converted, $10 per Trading Day (increasing to $20 per
Trading Day after 5 Trading Days after such damages begin to accrue) for each
Trading Day after such third Trading Day until such certificates are
delivered.  The Company’s obligations to issue and deliver the
Conversion Shares upon conversion of this Note in accordance with the terms
hereof are absolute and unconditional, irrespective of any action or inaction by
the Holder to enforce the same, any waiver or consent with respect to any
provision hereof, the recovery of any judgment against any Person or any action
to enforce the same, or any setoff, counterclaim, recoupment, limitation or
termination, or any breach or alleged breach by the Holder or any other Person
of any obligation to the Company or any violation or alleged violation of law by
the Holder or any other person, and irrespective of any other circumstance which
might otherwise limit such obligation of the Company to the Holder in connection
with the issuance of such Conversion Shares; provided, however, such
delivery shall not operate as a waiver by the Company of any such action the
Company may have against the Holder.  In the event a Holder of this
Note shall elect to convert any or all of the outstanding principal amount
hereof, the Company may not refuse conversion based on any claim that the Holder
or any one associated or affiliated with the Holder of has been engaged in any
violation of law, agreement or for any other reason, unless, an injunction from
a court, on notice, restraining and or enjoining conversion of all or part of
this Note shall have been sought and obtained and the Company posts a surety
bond for the benefit of the Holder in the amount of 150% of the principal amount
of this Note outstanding, which is subject to the injunction, which bond shall
remain in effect until the completion of arbitration/litigation of the dispute
and the proceeds of which shall be payable to such Holder to the extent it
obtains judgment.  In the absence of an injunction precluding the
same, the Company shall issue Conversion Shares or, if applicable, cash, upon a
properly noticed conversion.  Nothing herein shall limit a Holder’s
right to pursue actual damages or declare an Event of Default pursuant to
Section 9 herein for the Company’s failure to deliver Conversion Shares within
the period specified herein and such Holder shall have the right to pursue all
remedies available to it at law or in equity including, without limitation, a
decree of specific performance and/or injunctive relief.  The exercise
of any such rights shall not prohibit the Holders from seeking to enforce
damages pursuant to any other Section hereof or under applicable
law.

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
 

    v. Compensation for Buy-In on
Failure to Timely Deliver Certificates Upon Conversion. In addition to
any other rights available to the Holder, if the Company fails for any reason to
deliver to the Holder such certificate or certificates pursuant to Section
7(d)(ii) by the third Trading Day after the Conversion Date, and if after such
third Trading Day the Holder is required by its brokerage firm to purchase (in
an open market transaction or otherwise) Common Stock to deliver in satisfaction
of a sale by such Holder of the Conversion Shares which the Holder anticipated
receiving upon such conversion (a “Buy-In”), then the Company shall (A) pay in
cash to the Holder (in addition to any remedies available to or elected by the
Holder) the amount by which (x) the Holder's total purchase price (including
brokerage commissions, if any) for the Common Stock so purchased exceeds (y) the
product of (1) the aggregate number of shares of Common Stock that such Holder
anticipated receiving from the conversion at issue multiplied by (2) the actual
sale price of the Common Stock at the time of the sale (including brokerage
commissions, if any) giving rise to such purchase obligation and (B) at the
option of the Holder, either reissue Notes in principal amount equal to the
principal amount of the attempted conversion or deliver to the Holder the number
of shares of Common Stock that would have been issued had the Company timely
complied with its delivery requirements under Section 7(e)(ii).  For
example, if the Holder purchases Common Stock having a total purchase price of
$11,000 to cover a Buy-In with respect to an attempted conversion of Notes with
respect to which the actual sale price of the Conversion Shares at the time of
the sale (including brokerage commissions, if any) giving rise to such purchase
obligation was a total of $10,000 under clause (A) of the immediately preceding
sentence, the Company shall be required to pay the Holder $1,000.  The
Holder shall provide the Company written notice indicating the amounts payable
to the Holder in respect of the Buy-In.  Notwithstanding anything
contained herein to the contrary, if a Holder requires the Company to make
payment in respect of a Buy-In for the failure to timely deliver certificates
hereunder and the Company timely pays in full such payment, the Company shall
not be required to pay such Holder liquidated damages under Section 7(d)(iv) in
respect of the certificates resulting in such Buy-In.

    

    vi. Reservation of Shares
Issuable Upon Conversion. The Company covenants that it will at all times
reserve and keep available out of its authorized and unissued shares of Common
Stock solely for the purpose of issuance upon conversion of the Notes and
payment of interest on the Note, each as herein provided, free from preemptive
rights or any other actual contingent purchase rights of persons other than the
Holders, not less than such number of shares of the Common Stock as shall
(subject to any additional requirements of the Company as to reservation of such
shares set forth in the Purchase Agreement) be issuable (taking into account the
adjustments and restrictions of Section 8) upon the conversion of the
outstanding principal amount of the Notes and payment of interest
hereunder.  The Company covenants that all shares of Common Stock that
shall be so issuable shall, upon issue, be duly and validly authorized, issued
fully paid, and nonassessable.

    

    vii. Fractional Shares.
Upon a conversion hereunder the Company shall not be required to issue stock
certificates representing fractions of shares of the Common Stock, but may if
otherwise permitted, make a cash payment in respect of any final fraction of a
share based on the VWAP at such time.  If the Company elects not, or
is unable, to make such a cash payment, the Holder shall be entitled to receive,
in lieu of the final fraction of a share, one whole share of Common
Stock.

    

    viii.                             Transfer
Taxes.  The issuance of certificates for shares of the Common
Stock on conversion of the Notes shall be made without charge to the Holders
thereof for any documentary stamp or similar taxes that may be payable in
respect of the issue or delivery of such certificate, provided that the Company
shall not be required to pay any tax that may be payable in respect of any
transfer involved in the issuance and delivery of any such certificate upon
conversion in a name other than that of the Holder of such Notes so converted
and the Company shall not be required to issue or deliver such certificates
unless or until the person or persons requesting the issuance thereof shall have
paid to the Company the amount of such tax or shall have established to the
satisfaction of the Company that such tax has been paid.

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
 

    ix.                             Withholding of
Taxes.    All payments by the Company under the Note shall be
made in full without set-off or counterclaim and free and clear of any deduction
or withholding for or on account of any taxes unless the Company is required by
applicable law to make any deduction or withholding from any payment due under
the Note for or on account of any taxes.  In this event, the Company shall
promptly notify the Purchaser, pay such additional amounts as are necessary to
ensure that the Purchaser receives the amount which it would have received if
there had been no such deduction or withholding, promptly pay the tax deducted
to the appropriate tax authority before any fine or penalty becomes payable and
indemnify the Purchaser in respect of any such taxes.  As soon as
practical, but no later than 30 days after any such deduction or withholding,
the Company shall forward to the Purchaser official tax receipts and any other
documents or evidence reasonably required by the Purchaser that such taxes have
been remitted to the appropriate taxation authority.

     

    8.           Reserved.

    

    9.           The
Holder of the Note, by acceptance hereof, agrees that this Note is being
acquired for investment and that such Holder will not offer, sell or otherwise
dispose of this Note except under circumstances which will not result in a
violation of the Securities Act of 1933, as amended, or any applicable state
Blue Sky or foreign laws or similar laws relating to the sale of
securities.

    

    10.           Any
notice given by any party to the other with respect to this Note shall be given
in the manner contemplated by the Loan Agreement in the section entitled
“Notices.”

    

    11.           This
Note shall be governed by and construed in accordance with the laws of the State
of New York.  Each of the parties consents to the exclusive
jurisdiction of the federal courts whose districts encompass any part of the
County of New York or the state courts of the State of New York sitting in the
County of New York in connection with any dispute arising under this Agreement
and hereby waives, to the maximum extent permitted by law, any objection,
including any objection based on forum non coveniens, to the
bringing of any such proceeding in such jurisdictions. To the extent determined
by such court, the Company shall reimburse the Holder for any reasonable legal
fees and disbursements incurred by the Holder in enforcement of or protection of
any of its rights under any of this Note.

    

    12.           JURY TRIAL WAIVER.
  The Company and the Holder hereby waive a trial by jury in
any action, proceeding or counterclaim brought by either of the Parties hereto
against the other in respect of any matter arising out of or in connection with
this Note.

    

    13.           The
following shall constitute an “Event of Default”:

    

    
      	
               
      

            	
              a.

            	
              The
      Company shall default in the payment of any amount due on this Note, time
      being of the essence, whether by maturity, pursuant to Section 2 or
      otherwise; or

            

    

    

    
      	
               
      

            	
              b.

            	
              Any
      of the representations or warranties made by the Company herein, in the
      Loan Agreement or any of the other Transaction Documents shall be false or
      misleading in any material respect at the time made;
  or

            

    

    

    
      	
               
      

            	
              c.

            	
              The
      Company shall (1) make an assignment for the benefit of creditors or
      commence proceedings for its dissolution; or (2) apply for or consent to
      the appointment of a trustee, liquidator or receiver for its or for a
      substantial part of its property or business;
or

            

    

    

    
      	
               
      

            	
              d.

            	
              A
      trustee, liquidator or receiver shall be appointed for the Company or for
      a substantial part of its property or business without its consent;
      or

            

    

    

    
      	
               
      

            	
              e.

            	
              Any
      governmental agency or any court of competent jurisdiction at the instance
      of any governmental agency shall assume custody or control of the whole or
      any substantial portion of the properties or assets of the Company;
      or

            

    

    

    
      	
               
      

            	
              f.

            	
              The
      Pledgor shall default on any of its obligations under the Pledge
      Agreement; or

            

    

    

    
      	
               
      

            	
              g.

            	
              The
      Company shall enter into, create, incur,
      assume or suffer to exist any indebtedness for borrowed money or liens of
      any kind, on or with respect to any of its property or assets now owned or
      hereafter acquired or any interest therein or any income or profits
      therefrom that is senior to or pari passu with, in any respect, the
      Company’s obligations under this Note, other than as provided in the
      Disclosure Annex to the Loan Agreement;
  or

            

    

    

    
      	
              h.  

            	
              Bankruptcy,
      reorganization, insolvency or liquidation proceedings or other proceedings
      for relief under any bankruptcy law or any law for the relief of debtors
      shall be instituted by or against the Company or any of the
      Pledgors.

            

    

    
      	
              i.  

            	
              Failure
      by the Company to deliver any Shares required to be delivered pursuant to
      the Transaction Documents or any other agreements between the
      parties.

            

    

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
 

    If an
Event of Default shall have occurred, then, or at any time thereafter, and in
each and every such case, unless such Event of Default shall have been waived in
writing by the Holder (which waiver shall not be deemed to be a waiver of any
subsequent default) at the option of the Holder and in the Holder's sole
discretion, the Holder may consider this Note immediately due and payable (and
the Maturity Date shall be accelerated accordingly), without presentment,
demand, protest or notice of any kinds, all of which are hereby expressly
waived, anything herein or in any note or other instruments contained to the
contrary notwithstanding, and interest shall accrue on the total amount due (the
“Default Amount”) on the date of the Event of Default (the “Default Date”) at
the rate of 110% per annum or the maximum rate allowed by law, whichever is
lower, from the Default Date until the date payment is made, and the Holder may
immediately enforce any and all of the Holder's rights and remedies provided
herein or any other rights or remedies afforded by law.

    

    14.           In
the event of a Qualified Financing, the Company shall offer to repurchase from
the Holder, any restricted stock given to the Holder in connection with the
transactions contemplated under the Purchase Agreement.  The purchase price
for such restricted stock shall be 70% of the VWAP for the 20 Trading Days prior
to the consummation of the Qualified Financing.

    

    15.           In
the event for any reason, any payment by or act of the Company or the Holder
shall result in payment of interest which would exceed the limit authorized by
or be in violation of the law of the jurisdiction applicable to this Note, then
ipso facto the
obligation of the Company to pay interest or perform such act or requirement
shall be reduced to the limit authorized under such law, so that in no event
shall the Company be obligated to pay any such interest, perform any such act or
be bound by any requirement which would result in the payment of interest in
excess of the limit so authorized.  In the event any payment by or act
of the Company shall result in the extraction of a rate of interest in excess of
a sum which is lawfully collectible as interest, then such amount (to the extent
of such excess not returned to the Company) shall, without further agreement or
notice between or by the Company or the Holder, be deemed applied to the payment
of principal, if any, hereunder immediately upon receipt of such excess funds by
the Holder, with the same force and effect as though the Company had
specifically designated such sums to be so applied to principal and the Holder
had agreed to accept such sums as an interest-free prepayment of this
Note.  If any part of such excess remains after the principal has been
paid in full, whether by the provisions of the preceding sentences of this
Section or otherwise, such excess shall be deemed to be an
interest-free

    loan from
the Company to the Holder, which loan shall be payable immediately upon demand
by the Company.  The provisions of this Section shall control every
other provision of this Note.

    

    IN
WITNESS WHEREOF, the Company has caused this instrument to be duly executed by
an officer thereunto duly authorized this 25th day of April,
2008.

     

     

    
      
        	 	INFORM
      WORLDWIDE HOLDINGS, INC.	 
	 	 	 	 
	
                 

              	
                By:
      

              	/s/ Ashvin
      Mascarenhas	 
	 	 	

                Name:  Ashvin
      Mascarenhas

              	 
	 	 	

                Title:  CEO

              	 
	 	 	 	 

      

     

     

     

     

    7

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