Document:

THIS
      CONVERTIBLE PROMISSORY NOTE AND THE SECURITIES ISSUABLE UPON CONVERSION OF
      THIS
      NOTE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
      (THE
“SECURITIES ACT”), OR ANY STATE SECURITIES LAWS. 

     

    NO
      SALE OR DISPOSITION OF THIS NOTE OR THE SECURITIES ISSUED UPON CONVERSION HEREOF
      MAY BE EFFECTED EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER
      THE
      SECURITIES ACT IN COMPLIANCE WITH RULE 144 THEREUNDER OR ANOTHER EXEMPTION
      THEREFROM AND APPLICABLE STATE SECURITIES LAWS, TOGETHER WITH AN OPINION OF
      COUNSEL FOR THE HOLDER, REASONABLY SATISFACTORY TO THE PAYOR, THAT SUCH
      REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT.

     

    JUNIOR
      CONVERTIBLE UNSECURED PROMISSORY NOTE

     

    
      	
              $_________________

            	
              April
                __, 2008

            

    

     

    For
      value
      received, MORLEX,
      INC.,
      a
      Colorado corporation (the “Company”),
      promises to pay to ______________ or his registered assigns (the “Holder”)
      the
      principal sum set forth above (the “Principal
      Amount”),
      together with interest thereon as set forth below. 

     

    This
      note
      (the “Note”)
      is
      issued as part of a series of similar notes (collectively, the “Notes”)
      to be
      issued pursuant to the terms of that certain Note Purchase Agreement dated
      as of
      April __, 2008 (the “Agreement”)
      between the Company and the Holder, a copy of which is available for inspection
      at the office of the Company. This Note is subject to the limitations on
      disposition set forth in the Agreement. The following is a statement of the
      rights of the Holder and the conditions to which this Note and all of the other
      Notes issued or issuable by Company pursuant to the Agreement or similar
      agreements entered into as of the date hereof are subject, to which the Company
      and the Holder, by their respective issuance and acceptance of this Note,
      agree.

     

    1. Definitions.
      Defined
      terms used herein but not otherwise defined shall have the respective meanings
      ascribed to them in the Agreement. As used in this Note, the following
      capitalized terms have the following meanings:

     

    “Additional
      Shares of Company Common Stock”
shall
      mean shares of Company Common Stock issued by the Company after the date hereof,
      except:

     

    
      	 	
              (i)

            	
              Options
                to purchase shares of Company Common Stock or shares of Company Common
                Stock, issued to directors, officers, employees or consultants of
                the
                Company, as an incentive for performance pursuant to any stock option
                plan, stock grant plan or stock purchase plan approved by the Company
                Board;

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	 	
              (ii)

            	
              Shares
                of Company Common Stock, warrants or other equity securities of the
                Company issued for consideration other than cash pursuant to a merger,
                consolidation, acquisition, or similar business combination of the
                Company
                approved by the Company’s Board; 

            

    

     

    
      	 	
              (iii)

            	
              Shares
                of Company Common Stock, warrants or other equity securities of the
                Company issued pursuant to any loan or leasing arrangement, real
                property
                leasing arrangement or debt financing from a bank or similar financing
                institution approved by the Company
                Board;

            

    

     

    
      	 	
              (iv)

            	
              Shares
                of Common Stock issuable upon conversion of any Note or conversion
                or
                exchange of, any other security by its terms convertible into or
                exchangeable for shares of Company Common Stock, or upon exchange
                of the
                preferred stock of any subsidiary of the Company into Company Common
                Stock; or

            

    

     

    
      	 	
              (v)

            	
              Shares
                of Company Common stock issued upon any stock dividend, stock split,
                stock
                distribution or other similar
                recapitalization.

            

    

     

    “Automatic
      Conversion Date”
shall
      mean the 5th
      day
      following the occurrence of a Liquidity Event.

     

    “Automatic
      Conversion Notice”
is
      defined in Section 4(b) hereof.

     

    “Business
      Day”
shall
      mean any day other than a Saturday, a Sunday or a day on which commercial banks
      in New York, New York are required or authorized to be closed.

     

    “Company
      Board”
shall
      mean the board of directors of the Company.

     

    “Conversion
      Date”
shall
      mean the Automatic Conversion Date or the date on which the Holder elects to
      convert this Note pursuant to Section 5 hereof.

     

    “Conversion
      Price”
shall
      initially be equal to $0.75. The Conversion Price shall be subject to adjustment
      as provided herein.

     

    “Conversion
      Shares”
is
      defined in Section 4(a) hereof.

     

    “Default”
is
      defined in Section 8 hereof.

     

    “Liquidity
      Event”
shall
      mean (i) an underwritten public offering of Company Common Stock pursuant to
      an
      effective registration statement under the Securities Act resulting in aggregate
      proceeds to the Company (net of underwriting discounts and commissions) of
      not
      less than $7,500,000 or (ii) a private placement of Company Common Stock
      resulting in aggregate proceeds to the Company, together with the proceeds
      from
      the issuance of these Notes, of not less than $5,000,000. 

     

    “Maturity
      Date”
is
      defined in Section 2 hereof.

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    “Notice
      of Conversion”
is
      defined in Section 6(a) hereof. 

     

    “Person”
shall
      be construed in its broadest sense and shall mean any natural person, firm,
      corporation, partnership, limited liability company, association, trust, joint
      stock company, joint venture, unincorporated organization or other
      entity.

     

    “Volume
      Weighted Average Price”
shall
      mean the daily volume weighted average price of the Company Common Stock for
      such date (or the nearest preceding date) on the primary trading market on
      which
      the Company Common Stock is then listed or quoted as reported by Bloomberg
      Finance L.P. (based on a trading day from 9:30 a.m. Eastern Time to 4:02 p.m.
      Eastern Time) using the VAP function or a similar service.

     

    “Voluntary
      Conversion Notice”
is
      defined in Section 5(b) hereof.

     

    2. Principal
      Repayment.
      

     

    (a)
      Subject to the earlier conversion of this Note under Section 4 or 5 below,
      the
      outstanding Principal Amount and all accrued and unpaid interest thereon shall
      be due and payable by the Company on April __, 2009 (the “Maturity
      Date”).
      

     

    (b)
      This
      Note may be prepaid at any time, without premium or penalty, in whole or in
      part. Any prepayment of the Principal Amount shall be accompanied by a payment
      of accrued and unpaid interest in respect of the outstanding Principal Amount
      being prepaid.

     

    3. Interest.
      

     

    (a)
      Interest on the outstanding Principal Amount shall accrue commencing on the
      date
      hereof and shall continue to accrue until the entire Principal Amount shall
      have
      been repaid in full or converted under Section 4 or 5 of this Note, at the
      rate
      of 10% per annum, compounded annually. Interest shall be payable on the earlier
      of the Maturity Date or the Conversion Date upon conversion of this Note
      pursuant to Section 4 or 5 and shall be calculated on the basis of a 366-day
      year for the actual number of days elapsed. 

     

    (b)
      Interest shall be payable at the Company’s option either (i) in cash or (ii) in
      the event that Company Common Stock is tradable on the Over-the-Counter Bulletin
      Board, the NASDAQ Stock Market or the New York or American Stock Exchange,
      by
      the issuance of shares of Company Common Stock. The number of shares of Company
      Common Stock to be so issued shall be determined by dividing (i) the amount
      of
      accrued but unpaid interest at such time by (ii) 90% of the average Volume
      Weighted Average Price of Company Common Stock for the 10 trading days
      immediately preceding (but not including) the day that is one trading day prior
      to the Maturity Date or the Conversion Date, as applicable. If interest is
      to be
      paid in cash, then such payment shall be made by wire transfer of immediately
      available funds to an account at a bank designated in writing by the Holder.
      In
      the absence of any such written designation, any such interest payment shall
      be
      deemed made on the date a check in the applicable amount payable to the order
      of
      the Holder is received by the Holder at its last address as shown on the
      registration records of the Company.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    4. Automatic
      Conversion.
      

     

    (a)
      On
      the Automatic Conversion Date, the unpaid Principal Amount shall be converted
      into the number of shares of Company Common Stock (the “Conversion
      Shares”)
      calculated by dividing the then outstanding Principal Amount by the then
      applicable Conversion Price. All Conversion Shares deliverable upon conversion
      shall be duly authorized, validly issued and fully paid and non-assessable.
      At
      the time of such conversion, the Company shall repay to the Holder all accrued
      but unpaid interest on the Principal Amount in cash or shares of Company Common
      Stock, in accordance with Section 3(b) hereof. 

     

    (b)
      No
      greater than 20 nor fewer than 5 days prior to the Automatic Conversion Date,
      notice by first class mail, postage prepaid, shall be given to the Holder,
      addressed to the Holder at its last address as shown on the registration records
      of the Company (the “Automatic
      Conversion Notice”).
      The
      Automatic Conversion Notice shall specify the date fixed for conversion, the
      place or places for surrender of Notes, and the then effective Conversion
      Price.

     

    (c)
      Any
      Automatic Conversion Notice which is mailed as herein provided shall be
      conclusively presumed to have been duly given by the Company on the date
      deposited in the mail, and any defect in such notice to the Holder shall not
      affect the validity of the proceedings for conversion of this Note.
      Notwithstanding that this Note shall not have been surrendered, this Note shall
      no longer be deemed outstanding and all rights whatsoever with respect to this
      Note, except the right to receive the number of full shares of Company Common
      Stock to which such Person shall be entitled upon conversion hereof, shall
      terminate. 

     

    5. Optional
      Conversion.

     

    (a)
      The
      Holder has the right, at the Holder's option, at any time prior to the earlier
      of the Automatic Conversion Date or the repayment by the Company of the
      Principal Amount in full, to convert this Note, in accordance with the
      provisions of Section 6 hereof, into Conversion Shares calculated by dividing
      the then outstanding Principal Amount by the then applicable Conversion Price.
      All Conversion Shares deliverable upon conversion shall be duly authorized,
      validly issued and fully paid and non-assessable. At the time of such
      conversion, the Company shall repay to the Holder all accrued but unpaid
      interest on the Principal Amount in cash or shares of Company Common Stock,
      in
      accordance with Section 3(b) hereof.

     

    (b)
      In
      order to exercise its right pursuant to the terms of this Note to convert all
      or
      any portion of this Note for shares of Company Common Stock, the Holder shall
      deliver to the Company, by facsimile transmission, at least 10 days prior to
      the
      date on which the Holder wishes to effect such conversion, a written notice
      (the
“Voluntary
      Conversion Notice”)
      which
      shall specify the date fixed for conversion. 

     

    6.  Conversion
      Procedures.

     

    (a)
      As
      promptly as practicable after the Conversion Date, the Holder shall surrender
      this Note at the place designated in the Automatic Conversion Notice or as
      otherwise specified by the Company, duly endorsed. The Holder shall also submit
      a notice (the “Notice
      of Conversion”)
      specifying the name or names (with address(es)) in which a certificate or
      certificates evidencing shares of Company Common Stock are to be issued. The
      surrender of this Note and the delivery of the Notice of Conversion are the
      only
      procedures required of the Holder upon conversion of this Note. No additional
      legal opinion or other information or instructions shall be required of the
      Holder solely in connection with the conversion of this Note. 

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

     

    (b)
      The
      Company will make a notation of the date that a Notice of Conversion is
      received, which date of receipt shall be deemed to be the date of receipt for
      purposes hereof. 

     

    (c)
      The
      Company shall, or shall direct its transfer agent to, within 10 days after
      such
      deposit of any Note accompanied by a Notice of Conversion and compliance with
      any conditions herein contained, deliver to the Person for whose account such
      Note was so surrendered, certificates evidencing the number of full shares
      of
      Company Common Stock which such Person is entitled as aforesaid, subject to
      Section 7.

     

    (d)
      Such
      conversion shall be deemed to have been made as of the Conversion Date, and
      the
      Person or Persons entitled to receive Company Common Stock deliverable upon
      conversion of such Note shall be treated for all purposes as the record holder
      or holders of such Company Common Stock on such date and the Note shall no
      longer be deemed outstanding and all rights whatsoever in respect thereof
      (including the right to receive interest thereon) shall terminate except the
      right to receive the number of full shares of Company Common Stock to which
      such
      Person shall be entitled upon conversion hereof; provided,
      however,
      that
      the Company shall not be required to issue any certificates representing shares
      of Company Common Stock (x) until such Note has been received at the place
      designated in the Conversion Notice and (y) if such Note is received while
      the
      stock transfer books of the Company are closed for any purpose, but such
      certificate shall be issued immediately upon the reopening of such books as
      if
      the Note had been received on the date of such reopening.

     

    7. Adjustments
      to Conversion Price.
      

     

    (a)
      In
      the event that the Company shall at any time or from time to time after the
      date
      hereof, and for a period of one year following the date hereof, issue Additional
      Shares of Company Common Stock without consideration or for a consideration
      per
      share less than the then applicable Conversion Price, then the Conversion Price
      shall be reduced concurrently with such issue or deemed issue of the Additional
      Shares of Company Common Stock to be equal to the consideration per share of
      such Additional Shares of Company Common Stock received by the Company in such
      issuance; provided
      that if
      such issuance or deemed issuance was without consideration, then the Company
      shall be deemed to have received an aggregate of $0.001 of consideration for
      all
      such Additional Shares of Company Common Stock issued or deemed to be issued.
      

     

    (b)
      In
      the event of changes in the outstanding Company Common Stock by reason of stock
      dividends or other distributions, split-ups, recapitalizations, subdivisons,
      reclassifications, combinations or exchanges of shares, separations,
      reorganizations, liquidations, or the like, the number, class and kind of shares
      available upon conversion of this Note in the aggregate and the applicable
      Conversion Price shall be correspondingly adjusted to give the Holder upon
      conversion for the same aggregate Conversion Price, the total number, class
      and
      kind of shares as the Holder would have owned had this Note been converted
      prior
      to the event and had the Holder continued to hold such shares until after the
      event requiring adjustment. The form of this Note need not be changed because
      of
      any adjustment in the number of shares issuable upon conversion of this Note.
      Immediately upon any adjustment in the number, class or kind of shares subject
      to this Note and/or the Conversion Price pursuant to this Section 6, the Company
      shall prepare and furnish to the Holder a certificate signed by its chief
      financial officer setting forth, in reasonable detail, the event requiring
      the
      adjustment, the amount of the adjustment, the method by which such adjustment
      was calculated, the Conversion Price after giving effect to such adjustment
      and
      the number, class and kind of shares then issuable upon conversion of this
      Note.

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

     

    (c)
      In
      the event the Company shall issue on more than one date Additional Shares of
      Company Common Stock that are a part of one transaction or a series of related
      transactions and that would result in an adjustment to the Conversion Price
      pursuant to the terms of subsection (a) above, then, upon the final such
      issuance, the Conversion Price shall be readjusted to give effect to all such
      issuances as if they occurred on the date of the first such issuance (and
      without additional giving effect to any adjustments as a result of such
      subsequent issuances within such period).

     

    8. Fractional
      Shares.
      No
      fractional shares of Company Common Stock shall be issuable upon conversion
      of
      this Note, but a payment in cash will be made in respect of any fraction of
      a
      share which would otherwise be issuable upon the surrender of this Note, or
      portion hereof, for conversion calculated at the Conversion Price.

     

    9.  Default.
      Unless
      this Note has been converted in accordance with the terms of Section 4 or 5
      above, the entire outstanding Principal Amount and all accrued but unpaid
      interest on this Note shall become fully due and payable on the Maturity Date.
      The occurrence of any of the following shall constitute a “Default”
under
      this Note: (a) default in any payment by the Company of the Principal Amount
      and
      accrued interest hereunder when due or (b) material breach by the Company of
      any
      obligation, covenant or other agreement herein or in the Agreement, which is
      not
      cured within 20 Business Days after written notice to the Company
      thereof.

     

    10. Rights
      of the Holder Upon a Default.
      In the
      event of any Default hereunder, all amounts payable hereunder shall, at the
      Holder’s option but without notice or demand, become immediately due and
      payable, and the Holder shall thereupon have all rights and remedies provided
      hereunder and in any other agreement between the Holder and the Company or
      otherwise available at law or in equity. 

     

    11. Waiver
      of Default.
      No
      failure or delay on the part of the Holder to insist on strict performance
      of
      the Company’s obligations hereunder or to exercise any remedy hereunder shall
      constitute a waiver of the Holder’s rights in that or any other instance. No
      waiver of any Holder’s rights shall be effective unless in writing, and any
      waiver of any Default or any instance of non-compliance shall be limited to
      its
      express terms and shall not extend to any other Default or instance or
      non-compliance.

     

    12. Subordination.
      This
      Note shall be subordinate and rank junior in right of payment to any
      indebtedness of the Company evidenced by any loan agreement, credit agreement
      or
      any other agreement entered into by the Company subsequent to the date hereof
      which by its terms is not subordinated to any other indebtedness of the Company.
      

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    13. Notices.
      Any
      notice, request or other communication required or permitted hereunder shall
      be
      in writing and shall be deemed to have been duly given if personally delivered
      or mailed by registered or certified mail, postage prepaid, or by recognized
      overnight courier or personal delivery at the respective addresses of the
      parties as set forth in the Agreement. Any party hereto may by notice so given
      change its address for future notice hereunder. Notice shall conclusively be
      deemed to have been given when received.

     

    14. Governing
      Law.
      THIS
      NOTE SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE
      LAWS
      OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS ENTERED INTO WITHIN SUCH
      STATE.

     

    14. Waiver
      and Amendment.
      Any
      provision of this Note may be amended, waived or modified upon the written
      consent of the Company and the Holder.

     

    15. Severability.
      In case
      any provision contained herein (or part thereof) shall for any reason be held
      to
      be valid, illegal or unenforceable in any respect, such invalidity, illegality
      or other unenforceability shall not affect any other provision (or the remaining
      part of the affected provision) hereof, but this Note shall be construed as
      if
      such invalid, illegal or unenforceable provision (or part thereof) had never
      been contained herein, but only to the extent that such provision is invalid,
      illegal or unenforceable.

     

    16. Successors
      and Assigns.
      This
      Note shall be binding upon the Company’s successors and assigns and shall inure
      to the benefit of the Holder’s successors, endorsers and assigns.

     

    17. Usury.
      In the
      event any interest (including any Conversion Shares issued pursuant to Section
      4
      hereof) paid on this Note is deemed to be in excess of the then legal maximum
      rate, then that portion of the interest payment representing an amount in excess
      of the then legal maximum rate shall be deemed a payment of the Principal Amount
      and applied against the Principal Amount of this Note.

     

    18. Titles
      and Subtitles.
      The
      titles and subtitles used in this Note are used for convenience only and are
      not
      to be considered in construing or interpreting this Note.

     

    19. Counterparts.
      This
      Note may be executed in any number of counterparts, each of which shall be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument. For the purposes of executing this Note, (i) a document signed
      and
      transmitted by facsimile or telecopier shall be treated as an original document;
      (ii) the signature of any party on such document shall be considered as an
      original signature; and (iii) the document transmitted shall have the same
      effect as a counterpart thereof containing original signatures. No party may
      raise as a defense to the enforcement of this Note that a facsimile or
      telecopier was used to transmit any signature of a party to this
      Note.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF,
      the
      Company has caused this Note to be signed in its name this ____ day of April,
      2008.

     

    
      	
              MORLEX,
                INC.

            
	 	 
	
              By:
                

            	 
	
              Name:

            	 
	
              Title:SECURITIES
      PURCHASE AGREEMENT

     

    By
      and Between

     

    MORLEX,
      INC.

     

    and

     

    THE
      INVESTORS

     

    Dated
      as of March __, 2008

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    SECURITIES
      PURCHASE AGREEMENT,
      dated
      as of _____, 2008 (this “Agreement”),
      by
      and among Morlex, Inc. (the “Company”),
      and
      each of the persons and entities listed on Schedule
      A
      hereto
      (each an “Investor”
and
      collectively the “Investors”).

     

    WITNESSETH:

     

    WHEREAS,
      the
      Company desires to issue and sell to the Investors, and the Investors desire
      to
      purchase from the Company, Shares (as defined below). 

     

    NOW,
      THEREFORE,
      in
      consideration of the conditions and promises herein contained, the parties
      hereto agree as follows:

     

    1. DEFINITIONS.
      For
      purposes of this Agreement, unless the context otherwise requires, the following
      terms shall have the following respective meanings:

     

    “Agreement”
has
      the
      meaning provided in the preamble.

     

    “Ancillary
      Agreements”
means
      the Escrow Agreement, the Registration Rights Agreement and any other agreement
      or instrument to which the Company is a party, the execution and delivery of
      which are contemplated hereby or thereby.

     

    “Business
      Day”
means
      a
      day other than a Saturday or Sunday or other day on which commercial banks
      in
      New York, New York are authorized or required to close.

     

    “Bylaws”
means
      the Bylaws of the Company, as in effect on the date of this
      Agreement.

     

    “Claim”
has
      the
      meaning provided in Section 7.3(b).

     

    “Closing”
has
      the
      meaning provided in Section 2.2(a).

     

    “Closing
      Date”
shall
      be ________ and such other dates as determined by the Company.

     

    “Code”
means
      the United States Internal Revenue Code of 1986, as amended.

     

    “Common
      Stock”
has
      the
      meaning provided in Section 3.5(a).

     

    “Company”
has
      the
      meaning provided in the preamble.

     

    “Company’s
      Knowledge”
means
      the actual knowledge of the members of the Company’s executive
      management.

     

    “Contracts”
has
      the
      meaning provided in Section 3.7.

     

    “Financial
      Statements”
has
      the
      meaning provided in Section 3.16.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    “GAAP”
means
      generally accepted accounting principles as in effect from time to time in
      the
      United States and consistently applied and maintained throughout the periods
      indicated. Whenever any accounting term is used herein which is not otherwise
      defined, it shall have the meaning ascribed thereto under GAAP.

     

    “Indemnified
      Party”
has
      the
      meaning provided in Section 7.3(b).

     

    “Indemnifying
      Party”
has
      the
      meaning provided in Section 7.3(b).

     

    “Indemnitee
      Losses”
has
      the
      meaning provided in Section 7.3(a).

     

    “Interim
      Financial Statements”
has
      the
      meaning provided in Section 3.16.

     

    “Investor”
and
      “Investors”
have
      the meanings provided in the preamble.

     

    "Investor
      Agent"
      means
      J. Gunnar Co., LLC, as representative for each of the Investors.

     

    “Liabilities”
has
      the
      meaning provided in Section 3.16.

     

    “Majority
      Investors”
means
      Investors who hold two-thirds (2/3) of the then-outstanding principal amount
      of
      the Shares.

     

    “Material
      Adverse Effect”
means
      a
      material adverse effect on the Company’s business, assets, properties, financial
      condition or results of operation, or on the ability of the Company to perform
      its obligations under and consummate the transactions contemplated by this
      Agreement and the Ancillary Agreements.

     

    “Material
      Contracts”
has
      the
      meaning provided in Section 3.7.

     

    “Person”
means
      any natural person, corporation, partnership, limited liability company,
      association, government, governmental agency or other entity, whether acting
      in
      an individual, fiduciary or other capacity.

     

    "Placement
      Agent"
      means
      Joseph Gunnar & Co., LLC.

     

    “Purchase
      Price”
has
      the
      meaning provided in Section 2.1(a).

     

    “Shares”
      means
      common stock, par value $__ per share, of the Company offered to the investors
      hereunder.

     

    “Tax”
means
      any federal, state, local or foreign income, gross receipts, license, payroll,
      employment, excise, severance, stamp, occupation, premium, windfall profits,
      environmental, customs duties, capital stock, franchise, profits, withholding,
      social security (or similar), unemployment, disability, real property, personal
      property, sales, use, transfer, registration, value added, alternative or
      add-on-minimum, estimated or other tax of any kind whatsoever, including any
      interest, penalty or addition thereto, whether disputed or not.

    
      
        
        

      

      
        -
          2
          -

        
          

        

      

      
        
        

      

    

    “Tax
      Return”
means
      any return, declaration, report, claim for refund, or information return or
      statement relating to Taxes, including any schedule or attachment thereto and
      any amendment thereof.

     

    
      
        2.
          PURCHASE
          AND SALE OF UNITS.

      

    

     

    2.1 Sale
      and Issuance of Units.

     

    (a) The
      Placement Agent agree to act as the Company’s exclusive placement agent with
      respect to the issuance and sale by the Company of (i) up to 2,700,000 shares
      of
      its common stock, at $0.75 per share, or $2,025,000, on the “best efforts, all
      or none” basis (the “Minimum
      Offering”),
      (ii)
      up to 2,700,000 shares of its common stock, also at $0.75 per share, or
      $2,025,000, on the “best efforts” basis for a maximum offering of $4,050,000
      (the “Maximum Offering”),
      and
      (iii) up to 2,700,000 shares of its common stock, at $0.75 per share, or
      $2,025,000, on the “best efforts” basis with respect to this over-allotment
      amount.

     

    (b) Subject
      to the terms and conditions set forth in this Agreement, the Company agrees
      to
      issue and sell to the Investor whose name appears on Schedule
      A
      attached
      hereto, and each Investor agrees to purchase from the Company the Shares as
      set
      forth on Schedule
      A
      at the
      purchase price of $0.75 per share purchased hereunder (the “Purchase
      Price”).
      The
      minimum investment hereunder shall be 75,000 Shares or $56,250 (the
“Minimum
      Subscription”).
      

     

    (c) The
      Shares shall have the rights, preferences and privileges set forth in the
      Company’s organizational documents as well as in the Form Registration Rights
      Agreement attached hereto as Exhibit
      A
      (the
“RRA”).

     

    2.2 Closing.

     

    (a) Closing.
      Subject
      to the terms and conditions of this Agreement, at the Closing, the Company
      will
      sell to the Investors, severally and not jointly, and the Investors, severally
      and not jointly, will purchase from the Company, the Shares upon payment in
      full
      of the Purchase Price. At the Closing, the Company shall deliver to each
      Investor stock certificates representing the Shares that such Investor is
      purchasing, as set forth on Schedule
      A,
      against
      payment of the Purchase Price therefor by certified or bank check or wire
      transfer (to such account as the Company may designate to the
      Investors).

     

    (b) Place
      of Closing.
      The
      purchase and sale of the Shares (the “Closing”)
      shall
      take place on the Closing Date at the offices of _____, ______ or at such other
      place as the Company and the Investors shall mutually agree.

     

    2.3 Use
      of Proceeds. The
      Company shall use the proceeds of the sale of the Shares hereunder: (a) to
      complete its acquisition of Ad Authority, Inc. in the aggregate purchase price
      of $_______, (e) for general corporate purposes in the amount of approximately
      $_______.

     

    2.4 Placement
      Agent Compensation. At
      the
      Closing, the funds received in respect of the Shares sold hereunder will be
      forwarded to the Company, net of the Placement Agent’s commissions and expenses
      as set forth in the Placement Agent Agreement executed by and between the
      Company and the Placement Agent dated as of March ___, 2008.

    
      
        
        

      

      
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    3. REPRESENTATIONS,
      WARRANTIES AND COVENANTS OF THE COMPANY.

     

    The
      Company hereby represents, warrants and covenants to each Investor as
      follows:

     

    3.1 Organization;
      Good Standing; Qualification.
      The
      Company is a corporation duly organized, validly existing and in good standing
      under the laws of the State of ____, has all requisite corporate power and
      authority to own and operate its properties and assets and to carry on its
      business as now conducted and as presently proposed to be conducted, to execute
      and deliver this Agreement and each Ancillary Agreement, to issue and sell
      the
      Shares and to register such Shares in accordance with the terms of the RRA
      and
      to carry out the provisions of this Agreement and each Ancillary Agreement.
      The
      Company is duly qualified and is authorized to transact business and is in
      good
      standing as a foreign corporation in each other jurisdiction in which the
      failure to so qualify, individually or in the aggregate, could reasonably be
      expected to have a Material Adverse Effect.

     

    3.2 Authorization.
      All
      corporate action on the part of the Company, its officers, directors and
      stockholders necessary for the authorization, execution and delivery by the
      Company of this Agreement and each Ancillary Agreement, the performance of
      all
      obligations of the Company hereunder and thereunder and the authorization,
      issuance (or reservation for issuance), sale and delivery of the Shares has
      been
      taken, and this Agreement constitutes, and each Ancillary Agreement, when
      executed and delivered, will constitute, valid and legally binding obligations
      of the Company, enforceable in accordance with their respective 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. The sale of the
      Shares is not and will not be, subject to any preemptive rights or rights of
      first refusal that have not been properly waived or complied with.

     

    3.3 Valid
      Issuance of Common Stock. The
      Shares have been duly and validly reserved for issuance and will be duly and
      validly issued, fully paid and nonassessable, and will be free of restrictions
      on transfer other than restrictions on transfer under applicable state and
      federal securities laws.

     

    3.4 Consents.
      No
      consent, approval, qualification, order or authorization of, or filing with,
      any
      Person is required on the part of the Company in connection with the Company’s
      valid execution, delivery or performance of this Agreement, the offer, sale
      or
      issuance of the Shares.

     

    3.5 Capitalization
      and Voting Rights.

     

    (a) The
      authorized capital of the Company consists of _____ shares of common stock,
      par
      value $____ per share (“Common
      Stock”),
      of
      which _____ are issued and outstanding, and _______ shares of preferred stock,
      par value $_____ per share (“Preferred
      Stock”),
      of
      which no shares are issued and outstanding.

     

    (b) The
      outstanding shares of Common Stock are owned by as set forth on Schedule
      3.5(a).

    
      
        
        

      

      
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    (c) The
      outstanding shares of Common Stock and Preferred Stock have been duly authorized
      and validly issued, are fully paid and nonassessable, and were issued in
      accordance with the registration or qualification provisions of the Securities
      Act and any relevant state securities laws or pursuant to valid exemptions
      therefrom.

     

    (d) Except
      as
      set forth on Schedule 3.5(d), there are no outstanding options, warrants, rights
      (including conversion or preemptive rights and rights of first refusal), phantom
      stock, stock appreciation rights, proxy or stockholder agreements or agreements
      of any kind for the purchase or acquisition from the Company of any of its
      securities. No stock plan, stock purchase, stock option or other agreement
      or
      understanding between the Company and any holder of any equity securities of
      the
      Company or rights to purchase equity securities of the Company provides for
      acceleration or other changes in the vesting provisions or other terms of such
      securities, as the result of any merger, sale of stock or assets, change in
      control or other similar transaction by the Company. The Company is not a party
      or subject to any agreement or understanding and, to the Company’s Knowledge,
      there is no agreement or understanding that affects or relates to the voting
      or
      giving of written consents with respect to any securities of the Company or
      the
      voting by a director of the Company.

     

    3.6 No
      Subsidiaries or Predecessors.

     

    (a) The
      Company does not own or control, directly or indirectly, any interest in any
      other corporation, partnership, limited liability company, association or other
      business entity. The Company is not a participant in any joint venture,
      partnership or similar arrangement.

     

    (b) The
      Company has no predecessors, whether by way of succession by merger,
      consolidation or other business combination with another entity or transfer
      of
      all or substantially all of another entity’s assets, or otherwise.

     

    3.7 Contracts
      and Other Commitments. Schedule
      3.7(a) lists all written contracts, agreements, leases, commitments,
      instruments, arrangements and understandings (“Contracts”),
      to
      which the Company is a party which require payments by either party thereto
      in
      excess of $25,000 or are otherwise material to the Company (the “Material
      Contracts”),
      except for those contracts which arose in the ordinary course of business.
      The
      Material Contracts are valid and legally binding on the Company, are in full
      force and effect and are enforceable in accordance with their respective terms.
      The Company has not assigned, mortgaged, pledged, encumbered or otherwise
      hypothecated any of its right, title or interest under the Material Contracts.
      Except as set forth on Schedule 3.7(b), neither the Company nor, to the
      Company’s Knowledge, any other party thereto is in violation of or in default in
      respect of any Material Contract. No written notice or other written
      communication has been received by the Company claiming any such violation
      or
      default by the Company. 

     

    3.8 Related
      Party Transactions. Except
      as
      set forth on Schedule 3.8(a), no employee, officer, director or stockholder
      of
      the Company or member of his or her immediate family is indebted to the Company,
      nor is the Company indebted (or committed to make loans or extend or guarantee
      credit) to any of them, other than (i) for payment of salary for services
      rendered, (ii) reimbursement for reasonable expenses incurred on behalf of
      the
      Company, and (iii) for other standard employee benefits made generally available
      to all employees (including stock option agreements outstanding under any stock
      option plan approved by the Board of Directors of the Company). Except as set
      forth on Schedule 3.8(b), to the Company’s Knowledge, none of such persons has
      any direct or indirect ownership interest in any entity with which the Company
      is affiliated or with which the Company has a business relationship, or any
      entity that competes with the Company, except that employees, officers,
      directors or stockholders of the Company and members of their immediate families
      may own stock (not in excess of 5% of the outstanding stock) in publicly traded
      companies that may compete with the Company. Except as set forth on Schedule
      3.8(c), to the Company’s Knowledge, no employee, officer, director or
      stockholder of the Company or member of his or her immediate family is, directly
      or indirectly, interested in any Contract to which the Company is a
      party. 

    
      
        
        

      

      
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    3.9 Registration
      Rights. Except
      as
      provided in Section 2.4 hereof, the Company is not under any obligation and
      has
      not granted to any Person any rights to register under the Securities Act any
      of
      its presently outstanding securities or any of its securities that may
      subsequently be issued. 

     

    3.10 Permits. The
      Company has all franchises, permits, licenses, approvals and similar
      authorizations necessary for the conduct of its business as now being conducted
      by it, the lack of which, individually or in the aggregate, could reasonably
      be
      expected to have a Material Adverse Effect, and to the Company’s Knowledge, it
      can obtain any such authorization for the conduct of its business as presently
      planned to be conducted. The Company is not in default in any material respect
      under any of such franchises, permits, licenses or other similar
      authorizations.

     

    3.11 Compliance. The
      Company is not in violation or default of any provision of its Articles of
      Incorporation, as amended, or By-laws or in material default of any provision
      of
      any mortgage, indenture, agreement, instrument or contract to which it is a
      party or by which the Company or its assets or properties are bound or of any
      federal, state or local judgment, order, writ, decree, statute, rule, or
      regulation applicable to the Company or its business, except for such defaults
      which would not result in a Material Adverse Effect to the Company. The
      execution, delivery and performance by the Company of this Agreement and each
      Ancillary Agreement, and the consummation of the transactions contemplated
      hereby and thereby, will not result in any such violation or default or be
      in
      material conflict with or constitute, with or without the passage of time or
      giving of notice, either a material default under any such provision or an
      event
      that results in the creation of any material lien, charge or encumbrance upon
      any assets or properties of the Company (other than Permitted Encumbrances)
      or
      to the Company's knowledge, the suspension, revocation, impairment, forfeiture
      or nonrenewal of any material franchise, permit, license, approval or
      authorization applicable to the Company, its business or operations, or any
      of
      its assets or properties.

     

    3.12 Litigation.
      Except
      as
      set forth on Schedule 3.12, there is no action, suit, proceeding or
      investigation pending or, to the Company’s Knowledge, threatened against or
      affecting the Company that questions the validity of this Agreement or any
      Ancillary Agreement or the right of the Company to enter into such agreements
      and instruments, or to consummate the transactions contemplated hereby or
      thereby, or that would result, either individually or in the aggregate, in
      any
      Material Adverse Effect. The foregoing includes, without limitation, any action,
      suit, proceeding or investigation pending or to the Company's knowledge
      threatened involving the prior employment of any of the Company’s employees,
      their use in connection with the Company’s business of any information or
      techniques allegedly proprietary to any of their former employers, their
      obligations under any agreements with former employers. The Company is not
      a
      party to or, to the Company’s Knowledge, named in or subject to any order, writ,
      injunction, judgment or decree of any court, government agency or
      instrumentality. There is no action, suit, proceeding or investigation by the
      Company currently pending or that the Company currently intends to
      initiate.

    
      
        
        

      

      
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    3.13 Complaints,
      Recalls. The
      Company has received no customer complaints and has not issued any recalls
      with
      respect to alleged defects in its products (or the design thereof).
      The
      Company has not received any complaint, inquiry or other communication from
      the
      Federal Trade Commission or any other federal or state regulatory agency
      regarding the production, marketing, sale or distribution of the Company’s
      products.

     

    3.14 Offering.
      Subject
      to the truth and accuracy of each Investor’s representations set forth in this
      Agreement, the offer, sale and issuance of the Shares as contemplated by this
      Agreement are exempt from the registration requirements of the Securities Act,
      and neither the Company nor any agent acting on its behalf will take any action
      hereafter that would cause the loss of such exemption.

     

    3.15 Title
      to Property and Assets; Leases. Except
      (i) for liens for current taxes not yet delinquent, (ii) for liens imposed
      by
      law and incurred in the ordinary course of business for obligations not past
      due
      to carriers, warehousemen, laborers, materialmen and the like, (iii) for liens
      in respect of pledges or deposits under workers’ compensation laws or similar
      legislation or (iv) for minor defects in title, none of which, individually
      or
      in the aggregate, materially interfere with the use of such properties and
      assets (“Permitted
      Encumbrances”),
      the
      Company has good and marketable title to its properties and assets free and
      clear of all mortgages, liens, claims and other encumbrances. With respect
      to
      the properties and assets it leases, the Company is in compliance with such
      leases and holds a valid leasehold interest free of any mortgages, liens, claims
      or encumbrances, subject to clauses (i)-(iv) above.

     

    3.16 Financial
      Statements and Auditors. Schedule
      3.16(a) contains the Company’s unaudited financial statements (balance sheet and
      statement of operations, statement of stockholders’ equity and statement of cash
      flows, including notes thereto) at ____ and ____, and for the periods then
      ended
      (collectively the “Financial
      Statements”).
      The
      Financial Statements have been prepared on the accounting basis used by the
      Company for income tax purposes, which is a comprehensive basis of accounting
      other than GAAP, and do not contain all footnotes required by GAAP. The
      Financial Statements fairly present in all material respects the financial
      condition and results of operations of the Company as of the dates, and for
      the
      periods, indicated therein. Except as set forth in the Financial Statements
      and
      as incurred in the ordinary course of business since _____, the Company has
      no
      liabilities or obligations of any nature whatsoever, whether known or unknown,
      whether accrued, absolute, contingent or otherwise, and whether due or to become
      due (“Liabilities”),
      nor
      to the Company’s Knowledge is there any basis for the assertion against the
      Company of any Liabilities. The Company is not a guarantor or indemnitor of
      any
      indebtedness of any other Person. The Company maintains and will continue to
      maintain a standard system of accounting established and administered in
      accordance with GAAP.

     

    3.17 Absence
      of Certain Changes. Except
      as
      set forth on Schedule 3.17, since ___, there has not been with respect to the
      Company:

     

    (a) any
      change in the business, assets, properties, liabilities, financial condition,
      results of operations or prospects of the Company, except changes in the
      ordinary course of business that have not had, and could not reasonably be
      expected to have, individually or in the aggregate, a Material Adverse
      Effect;

    
      
        
        

      

      
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          7
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    (b) any
      damage, destruction or loss, whether or not covered by insurance, materially
      and
      adversely affecting the business, assets, properties, financial condition,
      results of operations or material prospects of the Company (as such business
      is
      presently conducted and as it is presently proposed to be
      conducted);

     

    (c) any
      waiver or compromise by the Company of a material right or of a material debt
      owed to it;

     

    (d) any
      satisfaction or discharge of any mortgage, lien, claim or other encumbrance
      or
      payment of any obligation by the Company, except in the ordinary course of
      business and that is not material to the business, assets, properties, financial
      condition, results of operations or prospects of the Company (as such business
      is presently conducted and as it is presently proposed to be
      conducted);

     

    (e) any
      material change, termination or amendment to a Material Contract;

     

    (f) any
      material change in any compensation arrangement or agreement with any employee,
      officer, director or stockholder;

     

    (g) any
      sale,
      assignment or transfer of any material patents, trademarks, copyrights, trade
      secrets or other intangible assets;

     

    (h) any
      resignation or termination of employment of any officer or key employee of
      the
      Company, and to the Company’s Knowledge, any impending resignation or
      termination of employment of any such officer or key employee;

     

    (i) receipt
      of notice that there has been a loss of, or material order cancellation by,
      any
      material customer of the Company;

     

    (j) any
      mortgage, pledge, transfer of a security interest in, lien or other encumbrance
      with respect to any of the Company’s properties or assets, except liens for
      taxes not yet due or payable or contested by the Company in good
      faith;

     

    (k) any
      loans
      or guarantees made by the Company to or for the benefit of its employees,
      officers, directors or stockholders, or any members of their immediate families,
      other than travel advances and other advances made in the ordinary course of
      its
      business;

     

    (l) any
      declaration, setting aside, or payment of any dividend or other distribution
      in
      respect of any of the Company’s capital stock, or any direct or indirect
      redemption, purchase or other acquisition by the Company of any such capital
      stock;

     

    (m) to
      the
      Company’s Knowledge, any other event or condition of any character that would
      materially and adversely affect the business, assets, properties, financial
      condition, results of operations or material prospects of the Company (as such
      business is presently conducted and as it is presently proposed to be
      conducted); or

     

    (n) any
      agreement or commitment by the Company to do any of the things described in
      this
      Section 3.17.

    
      
        
        

      

      
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    3.18 Intellectual
      Property.

     

    (a) The
      Company owns or possesses sufficient legal rights to all patents, trademarks,
      service marks, trade names, copyrights, trade secrets, licenses, information,
      designs, computer software, know-how and proprietary rights and processes
      necessary for its business as presently conducted and as proposed to be
      conducted without any conflict with, or infringement of the rights of, other
      Persons. Neither the Company nor any of its licensors is a party to any
      litigation involving Company Intellectual Property and/or Licensed Intellectual
      Property (collectively, “Intellectual
      Property”).
      The
      Company is not a party to any opposition relating to the intellectual property
      of any other Person.

     

    (b) Schedule
      3.18(A) contains a complete list of all patents, trademarks, service marks
      and
      copyrights, and pending applications with respect thereto, owned by the Company
      (collectively, “Company
      Intellectual Property”).
      All
      of the Company Intellectual Property is owned by the Company free and clear
      of
      all liens and encumbrances. From the Company’s inception, there have been no
      challenges to the Company’s ownership rights in Company Intellectual Property.
      Schedule 3.18(B) contains a complete list of all patents, trademarks, service
      marks and copyrights, and pending applications with respect thereto, licensed
      to
      the Company (collectively, “Licensed
      Intellectual Property”).
      Except as set forth on Schedule 3.18(C), all of the Licensed Intellectual
      Property is exclusively licensed to the Company for all uses necessary for
      the
      Company’s business as now conducted and as currently proposed to be conducted.
      The Company is not in material breach of any agreement relating to Licensed
      Intellectual Property. To the Company's Knowledge, no third party is infringing
      or otherwise violating the Intellectual Property. Schedule 3.18(D) contains
      a
      complete list of all agreements under which the Company is licensed or is
      otherwise permitted, or licenses or otherwise permits a third party, to use
      any
      of the Intellectual Property. To the Company’s Knowledge, the Company’s business
      as now conducted and as proposed to be conducted does not infringe, or conflict
      with, any patents, trademarks, services marks, trade names, copyrights, trade
      secrets or other proprietary rights or processes of any other Person. Except
      as
      set forth on Schedule 3.18(E) within the last 5 years, the Company has not
      received any notice or claim, written or oral, that its business as now
      conducted or as proposed to be conducted infringes, or conflicts with, any
      patents, trademarks, service marks, trade names, copyrights, trade secrets
      or
      other proprietary rights or processes of any other Person. All of the issued
      patents within Intellectual Property are valid and enforceable. No third party
      is challenging or has challenged the validity or enforceability of the
      Intellectual Property. None of the issued patents within Intellectual Property
      has expired. Each of the pending patent applications within Intellectual
      Property was properly filed and is being diligently prosecuted. None of the
      pending patent applications within Intellectual Property is under final
      rejection. There are no interferences or oppositions pending or to the Company's
      Knowledge contemplated with respect to any patents or patent applications within
      Intellectual Property. None of the issued patents within Intellectual Property
      has been, or presently is, the subject of a reissue proceeding. None of the
      issued patents within Intellectual Property has been, or presently is, the
      subject of a reexamination proceeding. There have been no inventorship
      challenges with respect to any pending patent application or issued patent
      within Intellectual Property.

    
      
        
        

      

      
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    (c) To
      the
      Company's Knowledge, none of its employees is obligated under any contract
      (including licenses, covenants or commitments of any nature) or other agreement,
      or subject to any judgment, decree or order of any court or administrative
      agency, that would interfere with the use of such employee’s best efforts to
      promote the interests of the Company or that would conflict with the Company’s
      business as presently conducted or as proposed to be conducted. Neither the
      execution nor delivery of this Agreement, nor the consummation of the
      transactions contemplated hereby, nor the carrying on of the Company’s business
      by the employees of the Company, nor the conduct of the Company’s business as
      presently conducted or as currently proposed to be conducted, will, to the
      Company’s Knowledge, conflict with or result in a breach of the terms,
      conditions or provisions of, or constitute a default under, any contract,
      covenant or instrument under which any of such employees is now obligated.
      To
      the Company’s Knowledge, it is not nor will it be necessary to use any
      inventions of any of its employees (or persons it currently intends to hire
      as
      employees) made prior to their employment by the Company.

     

    3.19 Employees;
      Employee Compensation. There
      is
      no strike, labor dispute or union organization activities pending or to the
      Company’s Knowledge threatened with respect to the Company’s employees. None of
      the Company’s employees belongs to any union or collective bargaining unit. The
      Company has complied in all material respects with all applicable federal,
      state
      and local equal opportunity and other laws related to employment. Except as
      set
      forth on Schedule 3.19, the Company is not a party to any, employment contract,
      or bound by any currently effective, and has never maintained or contributed
      to
      deferred compensation agreement, bonus plan, incentive plan, profit sharing
      plan, retirement agreement, or other employee compensation or benefit plan
      or
      agreement. To the Company’s Knowledge, no officer or key employee intends to
      terminate his or her employment with the Company.  

     

    3.20 Tax
      Returns, Payments and Elections.

     

    (a) The
      Company has filed all Tax Returns which are required to be filed by it, except
      for those Tax Returns listed on Schedule 3.20, as to which the Company has
      obtained presently effective extensions, and the Company has not received notice
      from the Internal Revenue Service of intent to terminate any such extension.
      To
      the Company's knowledge, such Tax Returns are true, correct and complete in
      all
      material respects. All Taxes owed by the Company, whether or not shown on any
      Tax Return, have been timely paid, except with respect to Taxes which the
      Company is challenging in good faith and which, individually or in the
      aggregate, could not reasonably be expected to have a Material Adverse Effect.
      The Tax Returns of the Company have not been audited by the Internal Revenue
      Service or other applicable Tax authority, and no controversy with respect
      to
      Taxes of any type is pending or, to the Company’s Knowledge, threatened. Since
      the date of the Financial Statements, the Company has made adequate provision
      on
      its books of account for all Taxes, assessments and governmental charges with
      respect to its business, assets, properties and operations for such
      period.

     

    (b) The
      Company has never been an S corporation within the meaning of Sections 1361
      and
      1362 of the Code at any time during its existence. The Company has never been
      the common parent or a member of any affiliated group of corporations filing
      a
      consolidated federal income tax return. The Company is not a party to any tax
      sharing agreement or other arrangement pursuant to which it could be liable
      for
      any Taxes of any Person. The Company has not filed a consent under Section
      341(f) of the Code regarding collapsible corporations.

     

    (c) The
      Company has withheld and paid all Taxes required to have been withheld and
      paid
      with respect to amounts paid or owing to any employee, independent contractor,
      creditor, stockholder or other third party. All independent contractors are
      properly classified as such.

    
      
        
        

      

      
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    3.21 Insurance.
      Schedule
      3.21 contains a description of each insurance policy maintained by the Company
      (or which names the Company as an additional insured) with respect to its
      properties, assets and business, or with respect to any key employees of the
      Company, and each such policy is presently in full force and effect. The Company
      is not in default with respect to any insurance policy maintained by
      it. 

     

    3.22 Environmental
      and Safety Laws. The
      Company, the operation of its business, and any real property that the Company
      owns, leases or otherwise occupies or uses (the “Premises”)
      are to
      the Company’s Knowledge in material compliance with all applicable Environmental
      Laws and orders or directives of any governmental authorities having
      jurisdiction under such Environmental Laws. For the purposes of this Agreement,
      the term “Environmental Laws” shall mean any federal, state or local law or
      ordinance or regulation pertaining to the protection of human health or the
      environment, including, without limitation, the Comprehensive Environmental
      Response, Compensation and Liability Act, 42 U.S.C. Sections 9601, et seq.,
      the
      Emergency Planning and Community Right-to-Know Act, 42 U.S.C. Sections 11001,
      et
      seq., and the Resource Conservation and Recovery Act, 42 U.S.C. Sections 6901,
      et seq. 

     

    3.23 Real
      Property Holding Corporation. The
      Company is not and has never been a United States real property holding
      corporation within the meaning of Section 897(c)(2) of the Code and any
      regulations promulgated thereunder.

     

    3.24 Foreign
      Corrupt Practices Act. The
      Company has not taken any action which would cause it to be in violation of
      the
      Foreign Corrupt Practices Act of 1977, as amended, or any rules and regulations
      thereunder. To the Company’s Knowledge, there is not now, and there has never
      been, any employment by the Company of, or beneficial ownership in the Company
      by, any governmental or political official in any country in the
      world.

     

    3.25 Brokers
      or Finders.
      Except
      for the Placement Agents and as otherwise set forth in Schedule 3.25, there
      is
      no investment banker, broker, finder or other intermediary that has been
      retained by or is authorized to act on behalf of the Company who might be
      entitled to any fee or commission from the Company or any of its Affiliates
      in
      connection with the transactions contemplated by this Agreement. 

     

    3.26 Disclosure.
      Neither
      this Agreement nor any Ancillary Agreement nor any written statement or
      certificate made or delivered by or on behalf of the Company in connection
      herewith contains any untrue statement of a material fact or omits to state
      a
      material fact necessary to make the statements herein or therein not
      misleading.

     

    4. REPRESENTATIONS
      AND WARRANTIES OF THE INVESTORS.

     

    Each
      Investor hereby represents, severally and not jointly, to the Company as
      follows:

     

    4.1 Authorization.
      Such
      Investor has the requisite power and authority to enter into this Agreement
      and
      the exhibits and schedules attached hereto and each Ancillary Agreement to
      which
      such Investor is a party, to perform its obligations hereunder and thereunder
      and to consummate the transactions contemplated hereby and thereby. This
      Agreement constitutes, and each Ancillary Agreement to which such Investor
      is a
      party, when executed and delivered, will constitute, a valid and legally binding
      obligation of such Investor, enforceable in accordance with their respective
      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.

    
      
        
        

      

      
        -
          11
          -

        
          

        

      

      
        
        

      

    

    4.2 Investment.
      The
      Shares to be purchased by such Investor will be purchased for investment for
      such Investor’s own account, not as a nominee or agent, and not with a view to
      the resale or distribution of the Shares.

     

    4.3 Accredited
      Investor. Such
      Investor is an “Accredited Investor” as that term is defined in Rule 501 of
      Regulation D promulgated under the Securities Act of 1933, as amended (the
      “Securities
      Act”).

     

    4.4 Access
      to Information.
      Such
      Investor has received, read carefully and is familiar with this Agreement and
      the Company’s business, plans and financial condition and the terms of the offer
      and sale of the Shares. Such Investor has received all materials which have
      been
      requested by such Investor, has had a reasonable opportunity to ask questions
      of
      the Company and its representatives; and the Company has answered all inquiries
      that such Investor or its representatives have put to it. Such Investor has
      had
      access to all additional information necessary to verify the accuracy of the
      information set forth in this Agreement and any other materials furnished with
      this Agreement, and has taken all the steps necessary to evaluate the merits
      and
      risks of an investment as proposed under this Agreement.

     

    4.5 Experience
      and Knowledge of Investor. Such
      Investor or its purchaser representative has such knowledge and experience
      in
      finance, securities, investments and other business matters so as to be able
      to
      protect the interests of such Investor in connection with this transaction,
      and
      such Investor's investment in the Company under this Agreement is not material
      when compared to its total financial capacity.

     

    4.6 General
      Solicitation. Such
      Investor is not subscribing for the Shares as a result of or subsequent to
      any
      advertisement, article, notice or other communication published in any
      newspaper, magazine or similar media or broadcast over television or radio
      or on
      the internet or any web-site, or presented at any seminar or meeting, or any
      solicitation of a subscription by a person other than a representative of the
      Company or the Placement Agent with which the Investor had a pre-existing
      relationship in connection with investments in securities
      generally.

     

    4.7 Restricted
      Securities. Such
      Investor understands that the Shares may not be sold, transferred or otherwise
      disposed of without registration under the Securities Act or an exemption
      therefrom.

     

    4.8 Legend.
      To
      the
      extent applicable, each certificate or other document evidencing any of the
      Shares shall be endorsed with the legend in the form set forth
      below:

     

    “THE
      SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
      ACT
      OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR
      HYPOTHECATED UNLESS REGISTERED UNDER SUCH ACT, OR UNLESS THE COMPANY HAS
      RECEIVED AN OPINION OF COUNSEL OR OTHER EVIDENCE SATISFACTORY TO THE COMPANY
      THAT AN EXEMPTION THEREFROM IS AVAILABLE.”

    
      
        
        

      

      
        -
          12
          -

        
          

        

      

      
        
        

      

    

    4.9 Risk
      Factors. Such
      Investor recognizes that the investment in the Company involves significant
      risks. Such Investor has read and understands the risk factors set forth in
      Exhibit
      B
      attached
      hereto. Such Investor can afford to bear such risks, including, without
      limitation, the risk of losing the entire investment.

     

    4.10 Brokers
      or Finders.
      There
      is no investment banker, broker, finder or other intermediary that has been
      retained by or is authorized to act on behalf of such Investor who might be
      entitled to any fee or commission from such Investor or any of its Affiliates
      in
      connection with the transactions contemplated by this Agreement.

     

    5. CONDITIONS
      OF THE INVESTORS’ OBLIGATIONS AT CLOSING. The
      obligations of each Investor to purchase the Shares are subject to the
      fulfillment or waiver at or before the Closing of each of the following
      conditions:

     

    5.1 Representations
      and Warranties. The
      representations and warranties of the Company contained in Section 3 shall
      be
      true and correct in all material respects (except for representations and
      warranties qualified by materiality or Material Adverse Effect, which shall
      be
      true and correct in all respects) on and as of the date of the Closing with
      the
      same effect as though such representations and warranties had been made on
      and
      as of the date of the Closing.

     

    5.2 Performance.
      The
      Company shall have performed and complied in all material respects with all
      agreements, obligations and conditions contained in this Agreement and any
      Ancillary Agreement that are required to be performed or complied with by it
      on
      or before the Closing.

     

    5.3 Compliance
      Certificate. The
      President of the Company shall deliver to each Investor at the Closing a
      certificate certifying that the conditions specified in Sections 5.1 and 5.2
      have been fulfilled.

     

    5.4 Consents.
      All
      consents, authorizations, approvals and permits of any Person that are required
      in connection with the issuance and sale of the Shares pursuant to this
      Agreement shall have been duly obtained and be effective as of the
      Closing.

     

    5.5 No
      Material Adverse Change. Since
      _____, there shall have been no material adverse changes to the business,
      assets, properties, financial condition or results of operations of the
      Company.

     

    5.6 Proceedings.
      All
      corporate and other proceedings and all documents incidental to the transactions
      involved in the purchase of the Shares by the Investors shall be reasonably
      satisfactory in substance and form to the participating Investors and their
      counsel, and the participating Investors and their counsel shall have received
      all such counterpart originals or certified or other copies of such documents
      as
      the participating Investors and their counsel may reasonably request, including,
      without limitation, the following:

     

    (a) Certificates,
      as of the most recent practicable dates prior to the Closing, as to the good
      standing of the Company issued by the Secretary of State of the State of
      ___;

     

    (b) The
      Company’s Bylaws, as amended to date, certified by the Company’s Secretary as of
      the date of the Closing; and

    
      
        
        

      

      
        -
          13
          -

        
          

        

      

      
        
        

      

    

    (c) Resolutions
      of the Board of Directors authorizing and approving all matters in connection
      with this Agreement and the Ancillary Agreements and the transactions
      contemplated hereby and thereby, certified by the Secretary of the Company
      as of
      the date of the Closing.

     

    5.7 Related
      Agreements and Instruments. The
      Company shall have delivered the Shares duly executed by the Company to the
      Investors.

     

    5.8 Due
      Diligence and No Material Adverse Change. The
      Company shall have provided each Investor access to information as such Investor
      has reasonably requested in connection with its due diligence review and such
      Investor shall have concluded its due diligence review of the Company to its
      complete satisfaction and shall be reasonably satisfied that there has been
      no
      material adverse change in the business, operations, financial condition or
      prospects of the Company.

     

    5.9 Opinion
      of Counsel.
      At the
      Closing, the Placement Agents shall receive the opinion of Nixon Peabody LLP,
      counsel to the Company, dated as of the date of the Closing, which opinion
      shall
      be reasonably acceptable to the Placement Agents' counsel and in the form
      attached hereto as Exhibit
      C.

     

    6. CONDITIONS
      OF THE COMPANY’S OBLIGATIONS AT CLOSING. The
      obligations of the Company to each Investor to sell the Shares to such Investor
      are subject to the fulfillment or waiver at or before the Closing of each of
      the
      following conditions:

     

    6.1 Representations
      and Warranties. The
      representations and warranties of such Investor contained in Section 4 shall
      be
      true and correct in all material respects on and as of the date of the Closing
      with the same effect as though such representations and warranties had been
      made
      on and as of the date of the Closing.

     

    6.2 Consents.
      All
      consents, authorizations, approvals and permits of any Person that are required
      in connection with the issuance and sale of the Shares pursuant to this
      Agreement shall have been duly obtained and be effective as of the
      Closing.

     

    7. MISCELLANEOUS.

     

    7.1 Survival.
      Except
      as
      otherwise provided in this Agreement, all representations, warranties, covenants
      and agreements contained in this Agreement shall survive the execution and
      delivery of this Agreement and the Closing for a period of 18 months.

     

    7.2 Indemnification.

     

    (a) The
      Company hereby agrees to indemnify and hold harmless each of the Investors,
      their respective affiliates and respective officers, directors, partners,
      members, shareholders, employees and agents (collectively, the “Investors’
      Indemnitees”)
      from
      and against any and all losses, claims, damages, judgments, penalties,
      liabilities and deficiencies (collectively, “Indemnitee
      Losses”),
      and
      agrees to reimburse the Investors’ Indemnitees for all reasonable out-of-pocket
      expenses (including the reasonable fees and expenses of legal counsel), in
      each
      case promptly as incurred and paid by the Investors’ Indemnitees and to the
      extent arising out of or in connection with: (i) any material misrepresentation
      or material breach of any of the Company’s representations or warranties
      contained in this Agreement or the annexes, schedules or exhibits hereto; or
      (ii) any failure by the Company to perform any of the Company’s covenants,
      agreements, undertakings or obligations set forth in this Agreement or the
      annexes, schedules or exhibits hereto. The
      maximum aggregate liability of the Company for claims pursuant to this Section
      7.3 shall be the Purchase Price. Notwithstanding
      anything to the contrary contained herein, the Company shall not have any
      liability for indemnification pursuant to this Section 7.3 until the aggregate
      Indemnitee Losses are in excess of 10%
      of
      Purchase Price,
      at which
      point the Company shall only be liable for the amount of Indemnitee Losses
      in
      excess of such amount.

    
      
        
        

      

      
        -
          14
          -

        
          

        

      

      
        
        

      

    

    (b) Promptly
      after receipt by any indemnitee seeking indemnification pursuant to this Section
      7.3 of written notice of any investigation, claim, proceeding or other action
      in
      respect of which indemnification is being sought (each, a “Claim”),
      the
      indemnitee seeking indemnification therefor (an “Indemnified
      Party”)
      promptly shall notify the party against whom indemnification pursuant to this
      Section 7.3 is being sought (the “Indemnifying
      Party”)
      of the
      commencement thereof; but the omission to so notify the Indemnifying Party
      shall
      not relieve it from any liability that it otherwise may have to the Indemnified
      Party, except to the extent that the Indemnifying Party is prejudiced by reason
      of such failure. In connection with any Claim as to which both the Indemnifying
      Party and the Indemnified Party are parties, the Indemnifying Party shall be
      entitled to assume the defense thereof. Notwithstanding the assumption of the
      defense of any Claim by the Indemnifying Party, the Indemnified Party shall
      have
      the right to employ separate legal counsel and to participate in the defense
      of
      such Claim, and the Indemnifying Party shall bear the reasonable fees,
      out-of-pocket costs and expenses of such separate legal counsel to the
      Indemnified Party if (and only if): (x) the Indemnifying Party shall have agreed
      to pay such fees, out-of-pocket costs and expenses, (y) the Indemnified Party
      reasonably shall have concluded that representation of the Indemnified Party
      and
      the Indemnifying Party by the same legal counsel would not be appropriate due
      to
      actual or, as reasonably determined by legal counsel to the Indemnified Party,
      potentially differing interests between such parties in the conduct of the
      defense of such Claim, or if there may be legal defenses available to the
      Indemnified Party that are in addition to or disparate from those available
      to
      the Indemnifying Party, or (z) the Indemnifying Party shall have failed to
      employ legal counsel reasonably satisfactory to the Indemnified Party within
      a
      reasonable period of time after notice of the commencement of such Claim. If
      the
      Indemnified Party employs separate legal counsel in circumstances other than
      as
      described in clauses (x), (y) or (z) above, the fees, costs and expenses of
      such
      legal counsel shall be borne exclusively by the Indemnified Party. Except as
      provided above, the Indemnifying Party shall not, in connection with any Claim
      in the same jurisdiction, be liable for the fees and expenses of more than
      one
      firm of legal counsel for the Indemnified Party (together with appropriate
      local
      counsel). The Indemnifying Party shall not, without the prior written consent
      of
      the Indemnified Party (which consent shall not unreasonably be withheld), settle
      or compromise any Claim or consent to the entry of any judgment that does not
      include an unconditional release of the Indemnified Party from all Liabilities
      with respect to such Claim or judgment.

     

    (c) In
      the
      event an Indemnified Party shall have a claim for indemnification hereunder
      that
      does not involve a claim or demand being asserted by a third party, the
      Indemnified Party promptly shall deliver notice of such claim to the
      Indemnifying Party. If the Indemnified Party disputes the claim, such dispute
      shall be resolved by mutual agreement of the Indemnified Party and the
      Indemnifying Party or, failing any such agreement, by order or judgment of
      a
      court of appropriate jurisdiction.

    
      
        
        

      

      
        -
          15
          -

        
          

        

      

      
        
        

      

    

    7.3 Notices.
      All
      notices and other communications required or permitted under this Agreement
      shall be deemed to have been duly given and made if in writing and if served
      either by personal delivery to the party for whom intended (which shall include
      delivery by Federal Express or similar nationally-recognized service) or three
      (3) business days after being deposited, postage prepaid, certified or
      registered mail, return receipt requested, in the United States mail bearing
      the
      following address for, or such other address as may be designated in writing
      hereafter by, such party:

     

    
      	 	
              (a)

            	
              If
                to the Investors

            
	 	 	 
	 	 	
              See
                Schedule
                A

            
	 	 	 
	 	 	
              with
                a copy to:

            
	 	 	 
	 	 	
              Cozen
                O’Connor

            
	 	 	
              The
                Army & Navy Club Building

            
	 	 	
              1627
                I Street, NW Suite 1100

            
	 	 	
              Washington,
                DC 20006

            
	 	 	
              Attn:
                F. Alec Orudjev, Esq.

            
	 	 	 
	 	 	
              If
                to the Company:

            
	 	 	 
	 	 	
              Morlex,
                Inc.

            
	 	 	
              Attn:
                Richard Berman

            
	 	 	
              420
                Lexington Avenue, Suite 450

            
	 	 	
              New
                York, NY 10170

            
	 	 	 
	 	 	
              With
                a copy to:

            
	 	 	 
	 	 	
              Nixon
                Peabody

            
	 	 	
              Attn:
                Jane Greyf

            
	 	 	
              437
                Madison Avenue

            
	 	 	
              New
                York, NY 10022

            
	 	 	
              fax:
                (866) 516-0358

            

    

    

    7.4 Waiver.
      No
      delay
      on the part of any party hereto with respect to the exercise of any right,
      power, privilege or remedy under this Agreement or any of the Ancillary
      Agreements shall operate as a waiver thereof, nor shall any exercise or partial
      exercise of any such right, power, privilege or remedy preclude any further
      exercise thereof or the exercise of any other right, power, privilege or remedy.
      No modification or waiver by any party hereto of any provision of this Agreement
      or any of the Ancillary Agreements, or consent to any departure by any other
      party therefrom, shall be effective other than in the specific instance and
      for
      the purpose for which given.

     

    7.5 Remedies.
      The
      rights, powers, privileges and remedies hereunder and under the Ancillary
      Agreements are cumulative and not exclusive of any other right, power, privilege
      or remedy the parties hereto would otherwise have.

    
      
        
        

      

      
        -
          16
          -

        
          

        

      

      
        
        

      

    

    7.6 Entire
      Agreement. This
      Agreement and the Ancillary Agreements constitute the entire agreement and
      understanding among the Investors and the Company, and supersede all prior
      agreements and understandings, relating to the subject matter
      hereof.

     

    7.7 GOVERNING
      LAW. THIS
      AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
      THE
      STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
      LAW.

     

    7.8 Counterparts.
      This
      Agreement may be executed in counterparts, each of which shall be deemed an
      original but all of which together shall constitute one and the same instrument.
      Facsimile signatures shall bind the parties hereto and to the Ancillary
      Agreements to the same extent as original signatures.

     

    7.9 Severability.
      Any
      provision of this Agreement which is prohibited or unenforceable in any
      jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
      such prohibition or unenforceability without invalidating the remaining
      provisions of this Agreement and without affecting the validity or
      enforceability of such provision in any other jurisdiction.

     

    7.10 Cross
      References. References
      in this Agreement to any section are, unless otherwise specified, to such
      section of this Agreement.

     

    7.11 Headings.
      The
      various headings of this Agreement are inserted for convenience only and shall
      not affect the meaning or interpretation of this Agreement or any provisions
      hereof.

     

    7.12 Exhibits
      and Schedules Incorporated. The
      exhibits and schedules to this Agreement are incorporated into and constitute
      an
      integral part of this Agreement.

     

    7.13 Amendment
      and Waiver. Except
      as
      otherwise provided herein, no modification, amendment or waiver of any provision
      of this Agreement will be effective unless such modification, amendment or
      waiver is approved in writing by the Company and the Majority Investors;
provided,
      however,
      that to
      the extent that any such modification, amendment or waiver does not apply
      equally to each Investor, consent to any such modification, amendment or waiver
      shall be required from each such Investor that is treated less favorably than
      those approving the same to be binding upon such Investor. The failure of any
      party to enforce any of the provisions of this Agreement will in no way be
      construed as a waiver of such provisions and will not affect the right of such
      party thereafter to enforce each and every provision of this
      Agreement.

     

    7.14 Liability
      for Brokers or Finders. The
      Company will pay and/or hold the Investors harmless against the payment of
      any
      and all Liability for brokerage or finders’ fees or agents’ commissions or any
      similar charges in connection with this Agreement or the Ancillary Agreements
      incurred, directly or indirectly, as a result of any action taken by the
      Company.

     

    7.15 Injunctive
      Relief. In
      the
      event of a breach or threatened breach by any party of any of its
      representations, warranties, covenants or other agreements hereunder, any other
      party shall be entitled to an injunction or similar equitable relief restraining
      such party from committing or continuing any such breach or threatened breach
      or
      granting specific performance of any action required to be performed by such
      party under any such provision.

    
      
        
        

      

      
        -
          17
          -

        
          

        

      

      
        
        

      

    

    7.16 Binding
      Effect. Except
      as
      otherwise provided herein, the terms and conditions of this Agreement shall
      inure to the benefit of and be binding upon the respective successors and
      permitted assigns of the parties (including transferees of the Shares). Neither
      party shall be permitted to assign any of its rights or delegate any of its
      obligations under this Agreement. Nothing in this Agreement, express or implied,
      is intended to confer upon any party other than the parties hereto or their
      respective successors and permitted assigns any rights, remedies, obligations
      or
      liabilities under or by reason of this Agreement, except as expressly provided
      in this Agreement. Any attempted assignment or delegation by a party hereto
      not
      in accordance with this Section 7.16
      shall be
      void.

     

    7.17 Attorneys’
      Fees. If
      any
      action at law or in equity is necessary to enforce or interpret the terms of
      this Agreement or any Ancillary Agreement, the prevailing party shall be
      entitled to reasonable attorneys’ fees, costs and disbursements in addition to
      any other relief to which such party may be entitled.

     

    7.18 Rights
      of Investors. Each
      holder of the Shares shall have the absolute right to exercise or refrain from
      exercising any right or rights that such holder may have by reason of this
      Agreement or any thereof, including without limitation the right to consent
      to
      the waiver of any obligation of the Company under this Agreement and to enter
      into an agreement with the Company for the purpose of modifying this Agreement
      or any agreement effecting any such modification, and such holder shall not
      incur any liability to any other holder or holders of the Shares with respect
      to
      exercising or refraining from exercising any such right or rights.

     

    7.19 Exculpation
      Among Investors. Each
      Investor agrees that no Investor nor the respective controlling persons,
      officers, directors, partners, agents, employees or representatives of any
      Investor shall be liable to any other Investor for any action heretofore or
      hereafter taken or omitted to be taken by any of them in connection with the
      Shares.

     

    7.20 Construction. The
      parties hereto agree that this Agreement is the product of negotiations between
      sophisticated parties and individuals, all of whom were represented by counsel,
      and each of whom had an opportunity to participate in, and did participate
      in,
      the drafting of each provision hereof. Accordingly, ambiguities in this
      Agreement, if any, shall not be construed strictly or in favor of or against
      any
      party hereto but rather shall be given a fair and reasonable construction
      without regard to the rule of contra
      proferentem.
      As used
      in this Agreement, the word “including” shall mean “including without
      limitation” and the masculine gender shall include the feminine and the neuter
      gender.

     

    [SIGNATURES
      ON FOLLOWING PAGE]

     

    
      
        
        

      

      
        -
          18
          -

        
          

        

      

      
        
        

      

    

     

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

     

    
      	 	
              MORLEX,
                INC.

            
	 	 	 
	 	 	 
	 	
              By:

            	 
	 	
            	
              Name:

            	
               

            	
            
	 	 	Its: 	 

    

     

    
      
        
        

      

      
        -
          19
          -

        
          

        

      

      
        
        

      

    

    INVESTOR
      SIGNATURE PAGE TO SECURITIES PURCHASE AGREEMENT

     

    
      	 	
              INVESTOR:

            
	 	 
	 	
              By:
                

            
	 	
              Its:
                

            
	 	 
	 	 	
              By:
                

            	 
	 	 	
              Name:
                

            	 
	 	 	
              Title:
                

            	 

    

     

    
      
        
        

      

      
        -
          20
          -

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      A

    

    INVESTORS

    

    
      	
              Investor Name/Address

            	 	
              Payment

            	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
              Total

            	 	
              $

            	
            	 

    

    
      
        
        

      

      
        -
          21
          -

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

    

    REGISTRATION
      RIGHTS AGREEMENT 

    
      
        
        

      

      
        -
          22
          -

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B

    

    RISK
      FACTORS

    
      
        
        

      

      
        -
          23
          -

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C

    

    FORM
      OF LEGAL OPINION

     

    
      
        
        

      

      
        -
          24
          -

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