Document:

<PAGE>

                                  EXHIBIT 4.36

                      AMENDMENT TO STOCK PURCHASE AGREEMENT

THIS AMENDMENT TO STOCK PURCHASE AGREEMENT IS MADE AND ENTERED INTO AS OF AND
EFFECTIVE APRIL 4, 2002 ("AMENDMENT") BY AND BETWEEN [CHINESE SYMBOL] ("MUSIC
KING"), POINT RECORDS CO., LTD. ("ROSE"), AND ALL SHAREHOLDERS OF ROSE EXCEPT
[CHINESE SYMBOL] (THE "SELLERS"), (MUSIC KING, ROSE AND THE SELLERS ARE
COLLECTIVELY REFERRED TO AS "PARTIES").

                                    RECITALS

          WHEREAS, the Parties entered into a Stock Purchase Agreement dated as
of January 29, 2002 (the "Agreement");

          WHEREAS, pursuant and subject to the provisions of the Agreement,
Music King shall cause G-MUSIC Limited ("GMusic") to issue the number of the new
shares to an Escrow Agent (as defined in the Agreement) by March 31, 2002, the
aggregate thereof shall be equal to 10% of the total outstanding common stock of
GMusic as of March 31, 2002; and

          WHEREAS, the Parties desire to amend the Agreement to use a cash
payment of NT$100,000,000 in lieu of the Stock Portion as defined in Section 3.2
(b) of the Agreement.

          Now, THEREFORE, in consideration of the mutual covenants and
agreements contained herein, the Parties hereby agree to amend the Agreement, as
follows:

1.   General.

1.1. All defined terms used herein shall have the respective meaning therefor
set forth in the Agreement.

1.2. The Preamble (i.e. Recitals) section is hereby incorporated into the body
of this Amendment.

2.   Amendment. The Agreement is hereby amended as follows:

2.1. Section 3.2 (b) of the Agreement is hereby amended by replacing the whole
paragraph as "By March 31, 2002 or a later date as mutually agreed, the
Purchaser shall cause the New Holding Company to pay, on behalf of the
Purchaser, the aggregate amount of One Hundred Million New Taiwan Dollars
(NT$100,000,000) to the Sellers."

<PAGE>

IN WITNESS WHEREOF, the parties hereto, with intent to be legally bound, have
caused this Amendment to be executed and delivered as of and effective the date
first above written.

[CHINESE SYMBOL]

By: /s/ Wayne Chen
    ---------------------------------
    Name: Wayne Chen
    Title:

POINT RECORDS CO., LTD.

By: /s/ Tzu-tzu Wu
    ---------------------------------
    Name: Tzu-tzu Wu
    Title:

SELLERS

By: /s/ Tzu-tzu Wu
    ---------------------------------
    Name:  [CHINESE SYMBOL]
    Title: Attorney-In-Fact

                                       2<PAGE>

                                  EXHIBIT 4.37

                      AMENDMENT TO STOCK PURCHASE AGREEMENT

THIS AMENDMENT TO STOCK PURCHASE AGREEMENT IS MADE AND ENTERED INTO AS OF AND
EFFECTIVE SEPTEMBER 20, 2002 ("AMENDMENT") BY AND BETWEEN G-MUSIC LIMITED, (THE
"PURCHASER"), (THE "COMPANY"), AND ALL SHAREHOLDERS OF MUSIC KING (THE
"SELLERS"), (THE PURCHASER, THE COMPANY AND THE SELLERS ARE COLLECTIVELY
REFERRED TO AS "PARTIES").

                                    RECITALS

             WHEREAS, the Parties entered into a Stock Purchase Agreement dated
as of February 4, 2002 (the "Agreement");

             WHEREAS, pursuant and subject to the provisions of the Agreement,
the Purchaser shall issue the number of the new shares to the Sellers by March
31, 2002, the aggregate thereof shall be equal to 33% of the total outstanding
common stock of the Purchaser as of March 31, 2002; and

            WHEREAS, the Parties desire to amend the Agreement to use a cash
payment of NT$365,697,750 in lieu of the Stock Portion as defined in Section 3.2
(b) of the Agreement.

             NOW, THEREFORE, in consideration of the mutual covenants and
agreements contained herein, the Parties hereby agree to amend the Agreement, as
follows:

1.       General.

1.1.     All defined terms used herein shall have the respective meaning
         therefor set forth in the Agreement.

1.2.     The Preamble (i.e. Recitals) section is hereby incorporated into the
         body of this Amendment.

2.       Amendment. The Agreement is hereby amended as follows:

2.1      Section 3.1 (b) of the Agreement is hereby amended by replacing the
         whole paragraph as the followings:
         "an undertaking by the Purchaser to loan NT$365,697,750 to the Company
         in order to acquire the TCR Group."

2.2.     Section 3.2 (b) of the Agreement is hereby amended by replacing the
         whole paragraph as the followings:

<PAGE>

"(i)     The Purchaser shall loan NT$365,697,750 (the "Acquisition Loan") to the
         Company in order to finance the Company to acquire the TCR Group. The
         Company shall in no event use the Acquisition Loan in any purpose other
         than the acquisition of the TCR Group.

(ii)     By September 30, 2002, the Company shall pay the aggregate amount equal
         to the Acquisition Loan to the shareholders of the TCR Group ("TCR
         Group Shareholders"). This payment will be deposited under the escrow
         account designated by the TCR Group Shareholders and solely used by the
         TCR Group Shareholders to purchase the new shares of the Purchaser
         ("New GMUSIC Shares")."

2.3      Section 3.2 (c) of the Agreement is hereby amended by replacing the
         heading as "Pre-payment" and replacing the whole paragraph as "As soon
         as the Purchaser has obtained the foreign investment approval from the
         government, the Purchaser shall inject new capital into the Company to
         finance its acquisition of the TCR Group with an aggregate amount of
         One Hundred Nine Million Six Hundred and Eighty Thousand New Taiwan
         Dollars (NT$109,680,000) by wire transfer in immediately available
         funds to the account designated by the TCR Group Shareholders. The
         Purchaser shall solely use the aggregate amount of NT$109,680,000 as
         the prepaid purchase price for acquisition of the TCR Group. In any
         event that the Sellers fail to acquire all shares of the TCR Group by
         September 30, 2002, the total amount of NT$480,377,750 shall be
         returned to the Purchaser."

2.4      Section 3.2 (I) (2), Section 3.2 (I) (3), Section 4.3 (b), Section 5.2
         (c) and Section 5.2 (d) of the Agreement are hereby deleted.

3.       Miscellaneous.

3.1      This Amendment may be executed in counterparts (which may be exchanged
         by facsimile), each of which shall be deemed an original, but all of
         which together shall constitute the same Amendment.

                                       2
<PAGE>

IN WITNESS WHEREOF, the parties hereto, with intent to be legally bound, have
caused this Amendment to be executed and delivered as of and effective the date
first above written.

By: /s/ Shu-Yun Huang
    ---------------------------------
    Name: Shu-Yun Huang
    Title:

G-MUSIC LIMITED

By: /s/ Wayne Chen
    ---------------------------------
    Name: Wayne Chen
    Title:

SELLERS

By: /s/ Shu-Yun Huang
    ---------------------------------
    Name: Shu-Yun Huang
    Title: Attorney-In-Fact

                                       3Exhibit 10.14/A
                              INVESTMENT AGREEMENT
                              --------------------

     INVESTMENT  AGREEMENT  (this  "AGREEMENT"), dated as of June 2, 2003 by and
between LocatePLUS Holdings Corporation, a Delaware corporation (the "COMPANY"),
and  Dutchess  Private  Equities Fund, L.P., a Delaware limited partnership (the
"INVESTOR").

     WHEREAS,  the  parties  desire  that,  upon  the  terms  and subject to the
conditions  contained  herein,  the  Investor  shall  invest up to $5,000,000 to
purchase  the  Company's  Class A Voting Common Stock,.$0.01 par value per share
(the  "COMMON  STOCK");

     WHEREAS,  such  investments will be made in reliance upon the provisions of
Section 4(2) under the Securities Act of 1933, as amended (the "1933 ACT"), Rule
506  of  Regulation  D,  and  the  rules and regulations promulgated thereunder,
and/or  upon such other exemption from the registration requirements of the 1933
Act  as may be available with respect to any or all of the investments in Common
Stock  to  be  made  hereunder;  and

     WHEREAS,  contemporaneously  with  the  execution  and  delivery  of  this
Agreement, the parties hereto are executing and delivering a Registration Rights
Agreement  substantially  in  the  form  attached  hereto  as  Exhibit  A  (the
"REGISTRATION  RIGHTS  AGREEMENT")  pursuant  to which the Company has agreed to
provide  certain  registration  rights  under  the  1933  Act, and the rules and
regulations  promulgated  thereunder,  and  applicable  state  securities  laws.

     NOW  THEREFORE,  in consideration of the foregoing recitals, which shall be
considered  an integral part of this Agreement, the covenants and agreements set
forth  hereafter,  and  other  good  and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the Company and the Investor hereby
agree  as  follows:

     1.     DEFINITIONS.  As  used  in this Agreement, the following terms shall
            ------------
have  the  following meanings specified or indicated, and such meanings shall be
equally  applicable  to  the  singular  and  plural  forms of the defined terms.

"1933  ACT"  shall  mean  the  Securities  Act  of  1933,  as it may be amended.

"1934 ACT" shall mean the Securities Exchange Act of 1934, as it may be amended.

"AFFILIATE"  shall  have  the  meaning  specified  in  Section  5(h).

"AGREED  UPON  PROCEDURES  REPORT"  shall  have the meaning specified in Section
2(o).

"AGREEMENT"  shall  mean  this  Investment  Agreement.

"BRING  DOWN  COLD  COMFORT  LETTER" shall have the meaning specified in Section
2(n).

"BUY-IN"  shall  have  the  meaning  specified  in  Section  6.

"BUY-IN  ADJUSTMENT  AMOUNT"  shall  have  the  meaning  specified in Section 6.

"CLOSING"  shall  have  the  meaning  specified  in  Section  2(h).

<PAGE>
"CLOSING  DATE"  shall  mean,  as defined in Section 2(h), the date which is the
earlier of: thirteen (13) Trading Days following the Put Notice Date or when the
Investor  deems  the  Put  closed.

"COMMON  STOCK"  shall  have  the  meaning  set  forth  in  the preamble to this
Agreement.

"CONTROL"  or  "CONTROLS"  shall  have  the  meaning  specified in Section 5(h).

"COVERING  SHARES"  shall  have  the  meaning  specified  in  Section  6.

"EFFECTIVE  DATE"  shall mean the date the SEC declares effective under the 1933
Act  the  Registration  Statement  covering  the  Securities.

"ENVIRONMENTAL  LAWS"  shall  have  the  meaning  specified  in  Section  4(m).

"EXECUTION  DATE"  shall mean the date all Transaction Documents are executed by
the  Company  and  Investor.

"INDEMNITEES"  shall  have  the  meaning  specified  in  Section  10.

"INDEMNIFIED  LIABILITIES"  shall  have  the  meaning  specified  in Section 10.

"INEFFECTIVE  PERIOD"  shall  mean  any  period  of  time  that the Registration
Statement  or  any  Supplemental  Registration  Statement  (as  defined  in  the
Registration  Rights  Agreement)  becomes ineffective or unavailable for use for
the  sale  or resale, as applicable, of any or all of the Registrable Securities
(as  defined  in  the  Registration  Rights Agreement) for any reason (or in the
event  the  prospectus under either of the above is not current and deliverable)
during  any  time  period  required  under  the  Registration  Rights Agreement.

"INVESTOR"  shall  mean Dutchess Private Equities Fund, L.P., a Delaware limited
partnership.

"MAJOR  TRANSACTION"  shall  have  the  meaning  specified  in  Section  2(g).

"MATERIAL  ADVERSE  EFFECT"  shall  have  the meaning specified in Section 4(a).

"MATERIAL  FACTS"  shall  have  the  meaning  specified  in  Section  2(m).

"MAXIMUM  COMMON  STOCK  ISSUANCE"  shall  have the meaning specified in Section
2(j).

"MINIMUM ACCEPTABLE PRICE" with respect to any Put Notice Date shall mean 75% of
the  average  of  the closing bid prices for the fifteen (15) Trading Day period
immediately  preceding  such  Put  Notice  Date.

 "OPEN  PERIOD" shall mean the period beginning on and including the Trading Day
immediately  following  the Effective Date and ending on the earlier to occur of
(i)  the  date  which is 36 (thirty-six) months from the Effective Date and (ii)
termination  of  the  Agreement  in  accordance  with  Section  9.

 "PAYMENT  AMOUNT"  shall  have  the  meaning  specified  in  Section  2(p).

"PARTIAL  RELEASE  FORM"  shall  have  the  meaning  specified  in Section 2(i).

<PAGE>

"PRICING  PERIOD"  shall  mean  the  period beginning on the Put Notice Date and
ending  on  and including the date which is ten (10) Trading Days after such Put
Notice  Date.

"PRINCIPAL  MARKET"  shall  mean the American Stock Exchange, Inc., the National
Association  of  Securities  Dealer's, Inc. OTC-BB, the BBX, the Nasdaq National
Market  System  or the Nasdaq SmallCap Market, whichever is the principal market
on  which  the  Common  Stock  is  listed.

"PROSPECTUS"  shall mean the prospectus, preliminary prospectus and supplemental
prospectus  used  in  connection  with  the  Registration  Statement.

"PURCHASE  AMOUNT"  shall  mean the total amount being paid by the Investor on a
particular  Closing  Date  to  purchase  the  Securities.

"PURCHASE  PRICE" shall mean 95% (ninety-five percent) of the lowest closing bid
price  of  the  Common  Stock  during  the  Pricing  Period.

"PUT  AMOUNT"  shall  have  the  meaning  set  forth  in  Section  2(b)  hereof.

"PUT  NOTICE"  shall  mean  a written notice sent to the Investor by the Company
stating  the  Put  Amount  of Shares the Company intends to sell to the Investor
pursuant  to the terms of the Agreement and stating the current number of Shares
issued  and  outstanding  on  such  date.

"PUT  NOTICE  DATE"  shall mean the Trading Day immediately following the day on
which  the  Investor receives a Put Notice, however a Put Notice shall be deemed
delivered on (x) the Trading Day it is received by facsimile or otherwise by the
Investor  if  such  notice is received prior to 9:00 am Eastern Time, or (y) the
immediately  succeeding  Trading Day if it is received by facsimile or otherwise
after  9:00  am  Eastern  Time  on  a  Trading Day.  No Put Notice may be deemed
delivered  on  a  day  that  is  not  a  Trading  Day.

"PUT  RESTRICTION" shall mean the days between the end of the Pricing Period and
the  date  on  which  the  Investor deems the Put closed.  During this time, the
Company  shall  not  be  entitled  to  deliver  another  Put  Notice.

"REGISTRATION  PERIOD"  shall  have  the  meaning  specified  in  Section  5(c).

"REGISTRATION  RIGHTS  AGREEMENT"  shall  mean the Agreement entered into by the
Company  with  Investor  for  the  registration  of  the  Securities.

"REGISTRATION  STATEMENT"  means the registration statement of the Company filed
under  the  1933  Act  covering  the  Common  Stock  issuable  hereunder.

"RELATED  PARTY"  shall  have  the  meaning  specified  in  Section  5(h).

"REPURCHASE  EVENT"  shall  have  the  meaning  specified  in  Section  2(p).

"RESOLUTION"  shall  have  the  meaning  specified  in  Section  8(f).

"SEC"  shall  mean  the  U.S.  Securities  &  Exchange  Commission.

<PAGE>

"SEC  DOCUMENTS"  shall  have  the  meaning  specified  in  Section  4(f).

"SECURITIES"  shall mean the shares of Common Stock issued pursuant to the terms
of  the  Agreement.

"SHARES"  shall  mean  the  shares  of  the  Company's  Common  Stock.

"SOLD  SHARES"  shall  have  the  meaning  specified  in  Section  6.

"SUBSIDIARIES"  shall  have  the  meaning  specified  in  Section  4(a).

"TRADING DAY" shall mean any day on which the Principal Market for the Company's
common  stock  is  open  for  trading,  from the hours of 9:30 am until 4:00 pm.

"TRANSACTION  DOCUMENTS"  shall  mean  this  Agreement,  the Registration Rights
Agreement,  and  each of the other agreements entered into by the parties hereto
in  connection  with  this  Agreement.

"VALUATION  EVENT"  shall  have  the  meaning  specified  in  Section  2(k).

     2.     PURCHASE  AND  SALE  OF  COMMON  STOCK
            --------------------------------------

     a.     Purchase  and  Sale  of  Common  Stock.  Subject  to  the  terms and
            ---------------------------------------
conditions  set  forth herein, the Company shall issue and sell to the Investor,
and  the  Investor  shall purchase from the Company, up to that number of Shares
having  an  aggregate  Purchase  Price  of  $5,000,000.

     b.     Delivery of Put Notices.     (i) Subject to the terms and conditions
            -----------------------
of  the Transaction Documents, and from time to time during the Open Period, the
Company  may, in its sole discretion, deliver a Put Notice to the Investor which
states  the  Put Amount (designated in shares of Common Stock) which the Company
intends  to  sell to the Investor on a Closing Date.  The Put Notice shall be in
the  form  attached  hereto as Exhibit "F" and incorporated herein by reference.
The Put Amount designated by the Company in the form of a Put Notice shall be as
follows:

          The  amount  that the Company shall be entitled to Put to the Investor
shall  be  equal  to, at the Company's election, either: (a) 200% of the average
daily  volume (U.S. market only) of the Common Stock for the 20 (twenty) Trading
Days  prior  to  the applicable Put Notice Date multiplied by the average of the
three  (3)  daily  closing bid prices immediately preceding the Put Date, or (b)
$50,000;  but  in  no  event  more  than  $1,000,000.

          During  the Open Period, the Company shall not be entitled to submit a
Put  Notice  until  after  the previous Closing has been completed. The Purchase
Price  for  the  Common Stock identified in the Put Notice shall be equal to 95%
(ninety-five percent) of the lowest closing bid price of the Common Stock during
the  Pricing  Period.

     (ii)  If  the  closing  bid price during the applicable Pricing Period with
respect  to  that  Put  Notice  is  less  than 75% (seventy-five percent) of the
closing  bid  prices of the Common Stock for the fifteen (15) Trading Days prior
to  the  Put  Notice  Date  ("MINIMUM  ACCEPTABLE  PRICE")  the  Put Notice will
terminate,  only  at  the Company's request, sent via FACSIMILE to the Investor,
the  Investor  will  continue  the  Put  until  the FACSIMILE is received by the
Investor.  In

<PAGE>
the  event  that the closing bid price for the applicable Pricing Period is less
than  the  Minimum  Acceptable  Price, the Company may elect, by sending written
notice to the Investor via facsimile with a copy to the Investor, to cancel that
portion  of  the  Put Notice remaining for that number of Trading Days remaining
after the written cancellation notice is received by the Investors.  The written
notice  shall  be  deemed received by the Investors on (i) the Trading Day it is
actually  received  by facsimile or otherwise by the Investors if such notice is
received  on  or  prior  to  9:00  A.M.  New  York time, or (ii) the immediately
succeeding  Trading  Day if it is received by facsimile after 9:00 A.M. New York
time  on  a  Trading  Day  or  at  anytime  on a day which is not a Trading Day.
Notwithstanding the foregoing, there shall be a closing with respect to, and the
Company  shall  be  responsible  for delivering, that number of shares of Common
Stock  to the Investor that were sold by the Investors through and including the
end  of  the  Trading  Day  the  written  cancellation notice is received by the
Investor.

      (iii)  Within  Thirteen  (13) calendar days after the commencement of each
calendar  quarter  occurring  subsequent to the commencement of the Open Period,
the  Company  undertakes to notify Investor as to its reasonable expectations as
to  the  Put  Amount  it  intends to raise during such calendar quarter, if any,
through the issuance of Put Notices. Such notification shall constitute only the
Company's good faith estimate with respect to such calendar quarter and shall in
no way obligate the Company to raise such amount during such calendar quarter or
otherwise limit its ability to deliver Put Notices during such calendar quarter.
The  failure  by  the  Company to comply with this provision can be cured by the
Company's  notifying Investor at any time as to its reasonable expectations with
respect  to  the  current  calendar  quarter.

     c.    Interest.   It is the intention of the parties that any interest that
           --------
may  be  deemed  to be payable under this Agreement shall not exceed the maximum
amount  permitted  under  any  applicable  law.  If a law, which applies to this
Agreement which sets the maximum interest amount, is finally interpreted so that
the  interest  in  connection  with this Agreement exceeds the permitted limits,
then:  (1)  any such interest shall be reduced by the amount necessary to reduce
the  interest to the legally permitted limit; and (2) any sums already collected
(if  any)  from  the  Company  which exceed the legally permitted limits will be
refunded  to  the  Company.  The  Investor  may  choose  to  make this refund by
reducing  the  amount  that the Company owes under this Agreement or by making a
direct  payment to the Company.  If a refund reduces the amount that the Company
owes  the Investor, the reduction will be treated as a partial payment.  In case
any  provision of this Agreement is held by a court of competent jurisdiction to
be  excessive  in  scope  or  otherwise invalid or unenforceable, such provision
shall  be adjusted rather than voided, if possible, so that it is enforceable to
the  maximum  extent  possible,  and  the  validity  and  enforceability  of the
remaining  provisions  of  this  Agreement  will  not  in any way be affected or
impaired  thereby.

     d.     reserved.
            --------
     e.     Limitation  on  Investor's  Obligation  to  Purchase  Shares.
            ------------------------------------------------------------
Notwithstanding  anything  to  the contrary in this Agreement, in no event shall
the  Investor be required to purchase, and the Company shall in no event sell to
the  Investor,  that number of Shares, which when added to the sum of the number
of  Shares "beneficially owned" (as such term is defined under Section 13(d) and
Rule 13d-3 of the1934 Act), by the Investor, would exceed 4.99% of the number of
Shares outstanding on the Put Notice Date for such Pricing Period, as determined
in  accordance  with  Rule  13d-1(j) promulgated under the 1934 Act. In no event
shall  the  Investor purchase Shares other than pursuant to this Agreement until
such  date  as  this  Agreement  is terminated.  Each Put Notice shall include a
representation  of  the  Company  as  to the number of Shares outstanding on the
related  Put  Notice Date. In the event that the number of Shares outstanding is
different  on  any

<PAGE>
date  during  a  Pricing Period than the number of Shares outstanding on the Put
Notice  Date  associated  with  such  Pricing  Period, then the number of Shares
outstanding on such date during such Pricing Period shall govern for purposes of
determining whether the Investor would be acquiring beneficial ownership of more
than  4.99%  of  the  number  of  Shares  outstanding  during  such  period.

     f.     Conditions  to  Investor's  Obligation  to  Purchase  Shares.
            ------------------------------------------------------------
Notwithstanding  anything  to  the contrary in this Agreement, the Company shall
not  be entitled to deliver a Put Notice and the Investor shall not be obligated
to  purchase any Shares at a Closing (as defined in Section 2(h)) unless each of
the  following  conditions  are  satisfied:

(i) a Registration Statement shall have been declared effective and shall remain
effective  and  available  for  the resale of all the Registrable Securities (as
defined  in  the  Registration  Rights Agreement) at all times until the Closing
with  respect  to  the  subject  Put  Notice;

(ii) at all times during the period beginning on the related Put Notice Date and
ending  on  and  including the related Closing Date, the Common Stock shall have
been  listed  on  the  Principal  Market  and shall not have been suspended from
trading  thereon  for  a  period of five (5) consecutive Trading Days during the
Open  Period  and  the  Company  shall  not have been notified of any pending or
threatened  proceeding  or  other  action to delist or suspend the Common Stock;

 (iii)  the  Company  has  complied with its obligations and is otherwise not in
breach  of  a  material  provision  of, or in default under, this Agreement, the
Registration  Rights  Agreement  or  any  other agreement executed in connection
herewith  which has not been corrected prior to delivery of the Put Notice Date;

 (iv)  no  injunction  shall  have  been  issued  and remain in force, or action
commenced  by  a  governmental authority which has not been stayed or abandoned,
prohibiting  the  purchase  or  the  issuance  of  the  Securities;  and

(v)  the  issuance  of  the Securities will not violate the shareholder approval
requirements  of  the  Principal  Market.

If  any of the events described in clauses (i) through (v) above occurs during a
Pricing  Period,  then the Investor shall have no obligation to purchase the Put
Amount  of  Common  Stock  set  forth  in  the  applicable  Put  Notice.

     g.  For  purposes  of this Agreement, a "MAJOR TRANSACTION" shall be deemed
to  have  occurred  upon  the  closing  of  any of the following events: (i) the
consolidation,  merger or other business combination of the Company with or into
another  person  (other  than pursuant to a migratory merger effected solely for
the  purposes  of  changing  the jurisdiction of incorporation of the Company or
other than a transaction in which the Company is the surviving corporation) (ii)
the  sale  or  transfer  of all or substantially all of the Company's assets; or
(iii)  the  consummation  of  a  purchase, tender or exchange offer made to, and
accepted  by,  the  holders of more than 50% of the economic interest in, or the
combined  voting  power  of  all  classes  of  voting  stock  of,  the  Company.

     h.     Mechanics  of  Purchase  of  Shares  by  Investor.  Subject  to  the
            -------------------------------------------------
satisfaction  of the conditions set forth in Sections 2(f), 7 and 8, the closing
of  the  purchase  by  the  Investor  of  Shares

<PAGE>
or the Investor deeming a Put closed (a "CLOSING") shall occur on the date which
is  no later than Thirteen (13) Trading Days following the applicable Put Notice
Date  or when the Investor deems a Put closed (each a "CLOSING DATE").  Prior to
each Closing Date, (i) the Company shall deliver to the Investor pursuant to the
this  Agreement,  certificates  representing  the  Shares  to  be  issued to the
Investor  on  such  date and registered in the name of the Investor and (ii) the
Investor  shall  deliver  to  the Company the Purchase Price to be paid for such
Shares,  determined  as set forth in Section 2(b) and (d). In lieu of delivering
physical  certificates  representing  the  Securities  and  provided  that  the
Company's  transfer  agent then is participating in The Depository Trust Company
("DTC") Fast Automated Securities Transfer ("FAST") program, upon request of the
  ---                                        ----
Investor, the Company shall use its commercially reasonable efforts to cause its
transfer  agent  to  electronically  transmit  the  Securities  by crediting the
account of the Investor's prime broker (which shall be specified by the Investor
a reasonably sufficient time in advance) with DTC through its Deposit Withdrawal
Agent  Commission  ("DWAC")  system.
                     ----

The  Company  understands  that a delay in the issuance of Securities beyond the
Closing Date could result in economic loss to the Investor.  After the Effective
Date,  as  compensation to the Investor for such loss, the Company agrees to pay
late  payments  to  the  Investor  for  late issuance of Securities (delivery of
Securities  after  the applicable Closing Date) in accordance with the following
schedule  (where  "No. of Days Late" is defined as the number of days beyond the
                   ----------------
Closing  Date):
     Late  Payment  For  Each
          No.  of  Days  Late               $10,000  of  Common  Stock
          -------------------               --------------------------

          1                         $100
          2                         $200
          3                         $300
          4                         $400
          5                         $500
          6                         $600
          7                         $700
          8                         $800
          9                         $900
          10                         $1,000
          Over  10                    $1,000  +  $200  for  each
                                        Business  Day  late  beyond  10

The  Company  shall  pay any payments incurred under this Section in immediately
available funds upon demand.  Nothing herein shall limit the Investor's right to
pursue  actual  damages  for  the  Company's  failure  to  issue and deliver the
Securities  to  the Investor, except to the extent that such late payments shall
constitute  payment  for  and  offset  any  such  actual  damages alleged by the
Investor,  and  any  Buy  In  Adjustment  Amount.

     i.     Partial  Release  of Shares.       After Investor has received a Put
            ---------------------------
Notice,  but  prior  to the related Closing Date, the Investor may authorize the
release,  every  five  (5) Trading Days, a portion of the Purchase Amount to the
Company  in  exchange  for  a  fixed  number of Shares, subject to the following
conditions:

(i)     The  Investor  shall  fill  out  and  sign a Partial Release of Purchase
Amount  and  Shares (the "Partial Release Form"). The Partial Release Form shall
set  forth the number of Shares to be released to Investor and the dollar amount
the  Investor  shall  wire  to  the  Company.

<PAGE>
(ii)     The Partial Release Form shall be filled out and signed by the Investor
and  faxed  to  the  Company  prior  to  12:00  p.m.  New  York  City  time.

     The  number  of Shares stated in the Partial Release Form shall be equal to
the  dollar  amount  to  be released divided by 95% (ninety-five percent) of the
lowest  closing  bid  price  during  that  number of Trading Days of the Pricing
Period  that  have  expired.

     The  Company  and  Investor  agree  that  on  the  related Closing Date, an
adjustment  shall be made so that the terms set forth in this Agreement shall be
honored  with  the  balance of the Purchase Amount being released to the Company
and  the  balance of the Shares owed to the Investor being released to Investor.

     j.     Overall  Limit  on  Common  Stock Issuable. Notwithstanding anything
            ------------------------------------------
contained  herein to the contrary, if during the Open Period the Company becomes
listed  on an exchange that limits the number of shares of Common Stock that may
be  issued  without  shareholder approval, then the number of Shares issuable by
the  Company  and  purchasable  by  the Investor, including the shares of Common
Stock issuable to the Investors pursuant to Section 11(b), shall not exceed that
number  of  the  shares of Common Stock that may be issuable without shareholder
approval,  subject  to appropriate adjustment for stock splits, stock dividends,
combinations  or  other similar recapitalization affecting the Common Stock (the
"MAXIMUM  COMMON  STOCK ISSUANCE"), unless the issuance of Shares, including any
                                    ------
Common  Stock to be issued to the Investors pursuant to Section 11(b), in excess
of  the  Maximum  Common Stock Issuance shall first be approved by the Company's
shareholders  in  accordance with applicable law and the By-laws and Amended and
Restated Certificate of Incorporation of the Company, if such issuance of shares
of  Common  Stock  could  cause a delisting on the Principal Market. The parties
understand  and  agree  that  the  Company's  failure  to  seek  or  obtain such
shareholder  approval  shall  in  no  way  adversely affect the validity and due
authorization  of  the  issuance  and  sale  of  Securities  or  the  Investor's
obligation  in  accordance  with  the  terms and conditions hereof to purchase a
number  of  Shares  in  the  aggregate  up  to the Maximum Common Stock Issuance
limitation,  and  that  such  approval pertains only to the applicability of the
Maximum  Common  Stock  Issuance  limitation  provided  in  this  Section  2(j).

     k.  "VALUATION EVENT" means the Company taking any of the following actions
at  any  time  during  a  "Pricing  Period":

 (i)     subdivides  or  combines  its  Common  Stock;
(ii)     pays  a dividend in Common Stock or makes any other distribution of its
Common  Stock,  except  for  dividends paid with respect to the Preferred Stock;
(iii)     issues any options or other rights to subscribe for or purchase Common
Stock ("Options") and the price per share for which Common Stock may at any time
thereafter be issuable pursuant to such Options shall be less than the Bid Price
in  effect  immediately  prior  to  such  issuance  of  such  Options;
(iv)     issues  any  securities  convertible  into  or  exchangeable for Common
Stock  ("Convertible  Securities")  and  the  consideration  per share for which
shares  of  Common  Stock may at any time thereafter be issuable pursuant to the
terms  of such Convertible Securities shall be less than the Bid Price in effect
immediately  prior  to  such  issuance  of  the  Convertible  Securities;
     (v)     issues  shares  of  Common  Stock otherwise than as provided in the

<PAGE>
     foregoing  subsections  (i) through (iv), at a price per share less, or for
other  consideration  lower,  than  the Bid Price in effect immediately prior to
such  issuance,  or  without  consideration;  or;

(vi)     makes  a distribution of its assets or evidences of indebtedness to the
holders  of  Common  Stock  as  a dividend in liquidation or by way of return of
capital  or  other than as a dividend payable out of earnings or surplus legally
available for dividends under applicable law or any distribution to such holders
made  in respect of the sale of all or substantially all of the Company's assets
(other  than  under  the circumstances provided for in the foregoing subsections
(i)  through  (v).

l.     The Company agrees that it shall not take any action that would result in
a  Valuation  Event  occurring  during  a  Pricing  Period.

     m.       [Reserved]

n.     (i)  Whenever  reasonably requested by Investor, the Company shall engage
its  independent  auditors  to  prepare  in  accordance  with  the provisions of
Statement  on  Auditing  Standards  No. 71, as amended, such written report (the
"BRING  DOWN  COLD  COMFORT  LETTERS") with respect to the financial information
contained in the Registration Statement and shall have delivered to the Investor
such  a  report  addressed  to  the  Investor,  on or prior to each Registration
Opinion  Deadline;

     (ii)  in  the  event  that the Investor shall have requested delivery of an
Agreed Upon Procedures Report pursuant to Section 2(o), the Company shall engage
its  independent  auditors  to perform certain agreed upon procedures and report
thereon  as shall have been reasonably requested by the Investor with respect to
certain  financial  information  of the Company and the Company shall deliver to
the  Investor a copy of such report addressed to the Investor. In the event that
the  report  required  by this Section 2(n) cannot be delivered by the Company's
independent  auditors,  the  Company  shall,  if  necessary, promptly revise the
Registration  Statement  and  the  Company  shall  not  deliver  a Put Notice to
Investor  until  such  report  is  delivered.

     o.      Procedure if Material Facts are Reasonably believed to be untrue or
are omitted. In the event after such consultation the Investor or the Investor's
counsel  reasonably  believes that the Registration Statement contains an untrue
statement  or  a material fact or omits a material fact required to be stated in
the  Registration  Statement  or  necessary  to  make  the  statements contained
therein,  in light of the circumstances in which they were made, not misleading,
(i)  the  Company  shall  file  with  the  SEC  an amendment to the Registration
Statement  responsive  to  such alleged untrue statement or omission and provide
the  Investor,  as  promptly  as  practicable,  with  copies of the Registration
Statement and related Prospectus, as so amended, or (ii) if the Company disputes
the  existence  of  any such material misstatement or omission, and in the event
the  dispute  relates  to  the adequacy of financial disclosure and the Investor
shall  reasonably  request,  the Company's independent auditors shall provide to
the Company a letter ("AGREED UPON PROCEDURES REPORT") outlining the performance
of  such "agreed upon procedures," which shall not require any more than the SAS
71  review  described above as shall be reasonably requested by the Investor and
the  Company  shall  provide  the  Investor  with  a  copy  of  such  letter.

          p.  Delisting;  Suspension.  If  at any time during the Open Period or
              ----------------------
within  thirty  (30)  calendar  days  after  the end of the Open Period, (i) the
Registration  Statement,  after it has been declared effective, shall not remain
effective  and available for sale of all the Registrable Securities for a period
exceeding  10  calendar  days,  (ii)  the  Common  Stock  shall not be listed on

<PAGE>
the  Principal  Market  or  shall  have  been  suspended  from  trading  thereon
(excluding  suspensions of not more than one trading day resulting from business
announcements  by  the  Company)  or the Company shall have been notified of any
pending or threatened proceeding or other action to delist or suspend the Common
Stock,  (iii)  there  shall  have  occurred  a  Major Transaction (as defined in
Section  2(g))  or  the public announcement of a pending Major Transaction which
has  not  been abandoned or terminated, or (iv) the Registration Statement is no
longer  effective  or stale for a period of more than five (5) Trading Days as a
result  of  the Company's failure to timely file its financial statements or for
any  other reason, the Company shall repurchase within thirty (30) calendar days
of  the  occurrence  of  one of the events listed in clauses (i), (ii), (iii) or
(iv) above (each a "REPURCHASE EVENT") and subject to the limitations imposed by
applicable  federal  and  state law, all or any part of the Securities issued to
the  Investor within the sixty (60) Trading Days preceding the occurrence of the
Repurchase Event and then held by the Investor at a price per Share equal to the
highest  closing  bid  price  during  the  period  beginning  on the date of the
Repurchase  Event  and ending on and including the date on which the Investor is
paid  by the Company for the repurchase of the Shares (the "PAYMENT AMOUNT"). If
the  Company  fails  to  pay  to  the Investor the full aggregate Payment Amount
within  ten  (10)  calendar  days  of  the occurrence of a Repurchase Event, the
Company shall pay to the Investor, on the first Trading Day following such tenth
(10th)  calendar  day,  in  addition  to  and  not in lieu of the Payment Amount
payable  by  the Company to the Investor, an amount equal to two (2%) percent of
the  aggregate  Payment  Amount then due and payable to the Investor, in cash by
wire  transfer,  plus  compounded  annual interest of 18% on such Payment Amount
during  the  period,  beginning  on  the  day following such tenth calendar day,
during  which  such  Payment  Amount,  or  any  portion thereof, is outstanding.

3.     INVESTOR'S  REPRESENTATIONS,  WARRANTIES  AND  COVENANTS.
       --------------------------------------------------------

     The  Investor  represents and warrants to the Company, and covenants, that:

     a.     Sophisticated Investor.  The Investor has, by reason of its business
and  financial  experience,  such  knowledge,  sophistication  and experience in
financial  and  business matters and in making investment decisions of this type
that  it  is  capable of (A) evaluating the merits and risks of an investment in
the  Securities  and  making an informed investment decision, (B) protecting its
own  interest  and  (C)  bearing  the  economic  risk  of such investment for an
indefinite  period  of  time.

     b.     Authorization;  Enforcement.     This  Agreement  has  been duly and
validly  authorized,  executed  and delivered on behalf of the Investor and is a
valid  and binding agreement of the Investor enforceable against the Investor in
accordance with its terms, subject as to enforceability to general principles of
equity  and  to  applicable  bankruptcy, insolvency, reorganization, moratorium,
liquidation  and  other  similar  laws  relating to, or affecting generally, the
enforcement  of  applicable  creditors'  rights  and  remedies.

     c.     Section  9  of  the  1934 Act.  During the Open Period, the Investor
will  comply  with  the  provisions  of Section 9 of the 1934 Act, and the rules
promulgated thereunder, with respect to transactions involving the Common Stock.
The  Investor  agrees  not  to  short, either directly or indirectly through its
affiliates,  principals  or advisors, the Company's common stock during the term
of this Agreement, however, it shall not be deemed a short if the Investor sells
common  stock  after  the  delivery  of  the  Put  Notice  from  the  Company.

     d.   Accredited  Investor.  Investor  is  an  "Accredited Investor" as that
term  is  defined  in  Rule  501(a)(3)  of  Regulation  D  of  the  1933  Act.

<PAGE>

     e.     No  Conflicts.  The  execution,  delivery  and  performance  of  the
Transaction  Documents  by  the Investor and the consummation by the Investor of
the  transactions contemplated hereby and thereby will not result in a violation
of  the Articles of Incorporation, the By-laws or other organizational documents
of  the  Investor.

     f.     The  Investor  has  had  an  opportunity  to  discuss  the business,
management  and  financial affairs of the Company with the Company's management;
     g.The  Investor  is  purchasing  the  Securities  for  its  own account for
investment  purposes  and  not  with  a  view towards distribution and agrees to
resell  or  otherwise  dispose  of  the Securities solely in accordance with the
registration  provisions of the Securities Act (or pursuant to an exemption from
such  registration  provisions);  and

     h.     The  Investor  is not and will not be required to be registered as a
"dealer" under the 1934 Act, either as a result of its execution and performance
of  its  obligations  under  this  Agreement  or  otherwise.

     4.     REPRESENTATIONS  AND  WARRANTIES  OF  THE  COMPANY.
            --------------------------------------------------

     Except  as  set  forth  in  the  Schedules  attached  hereto,  the  Company
represents  and  warrants  to  the  Investor  that:

     a.     Organization  and  Qualification.  The Company is a corporation duly
organized  and  validly  existing  in  good  standing  under  the  laws  of  its
jurisdiction, and has the requisite corporate power and authorization to own its
properties  and  to  carry  on  its business as now being conducted. Each of the
Company  and  its  Subsidiaries is duly qualified as a foreign corporation to do
business and is in good standing in every jurisdiction in which its ownership of
property  or the nature of the business conducted by it makes such qualification
necessary,  except  to  the  extent that the failure to be so qualified or be in
good  standing  would  not  have  a  Material  Adverse  Effect.  As used in this
Agreement,  "MATERIAL  ADVERSE  EFFECT" means any material adverse effect on the
business,  properties,  assets,  operations,  results  of  operations, financial
condition  or  prospects of the Company and its Subsidiaries, if any, taken as a
whole,  or  on  the  transactions  contemplated  hereby or by the agreements and
instruments  to  be  entered into in connection herewith, or on the authority or
ability  of  the  Company  to  perform  its  obligations  under  the Transaction
Documents  (as  defined  in  Section  1  and  4(b)below).

     b.     Authorization;  Enforcement; Compliance with Other Instruments.  (i)
The  Company  has  the requisite corporate power and authority to enter into and
perform this Agreement, the Registration Rights Agreement, and each of the other
agreements  entered  into  by  the  parties  hereto  in  connection  with  the
transactions  contemplated  by  this  Agreement  (collectively, the "TRANSACTION
DOCUMENTS"), and to issue the Securities in accordance with the terms hereof and
thereof,  (ii)  the  execution  and delivery of the Transaction Documents by the
Company  and  the consummation by it of the transactions contemplated hereby and
thereby,  including  without  limitation  the  reservation  for issuance and the
issuance  of  the  Securities  pursuant  to  this  Agreement, have been duly and
validly authorized by the Company's Board of Directors and no further consent or
authorization  is  required  by  the  Company,  its  Board  of Directors, or its
shareholders,  (iii)  the  Transaction  Documents  have  been  duly  and validly
executed  and  delivered  by  the  Company,  and  (iv) the Transaction Documents
constitute  the valid and binding obligations of the Company enforceable against
the Company in accordance with their terms, except as such enforceability may be
limited  by  general  principles  of  equity  or  applicable  bankruptcy,

<PAGE>
insolvency, reorganization, moratorium, liquidation or similar laws relating to,
or  affecting  generally,  the  enforcement  of  creditors' rights and remedies.

     c.     Capitalization.  As of the date hereof, the authorized capital stock
of the Company consists of (i) 150,000,000 shares of Class A Common Stock, $0.01
par  value  per  share,  of which, 59,690,043 shares are issued and outstanding;
250,000,000  shares of Class B Common Stock, $0.01 par value per share, of which
as  of the date hereof, 68,640,726 shares are issued and outstanding.  As of May
15,  2003,  there  were  28,501,205  shares  of  Class A Voting Common Stock and
6,227,139 shares of Class B Non-voting Common Stock subject to issuance pursuant
to  options,  warrants, convertible debt, or other convertible securitiesAll of
such  outstanding shares have been, or upon issuance will be, validly issued and
are fully paid and nonassessable.  Except as disclosed in Schedule 4(c) which is
attached  hereto  and made a part hereof, (i) no shares of the Company's capital
stock  are subject to preemptive rights or any other similar rights or any liens
or  encumbrances  suffered  or  permitted  by  the  Company,  (ii)  there are no
outstanding  debt  securities,  (iii) there are no outstanding shares of capital
stock, options, warrants, scrip, rights to subscribe to, calls or commitments of
any  character whatsoever relating to, or securities or rights convertible into,
any  shares  of  capital  stock  of  the  Company or any of its Subsidiaries, or
contracts,  commitments,  understandings or arrangements by which the Company or
any  of  its  Subsidiaries  is or may become bound to issue additional shares of
capital  stock  of  the Company or any of its Subsidiaries or options, warrants,
scrip,  rights to subscribe to, calls or commitments of any character whatsoever
relating  to,  or  securities  or rights convertible into, any shares of capital
stock of the Company or any of its Subsidiaries, (iv) there are no agreements or
arrangements  under which the Company or any of its Subsidiaries is obligated to
register  the  sale  of  any  of their securities under the 1933 Act (except the
Registration  Rights  Agreement), (v) there are no outstanding securities of the
Company  or  any  of  its  Subsidiaries  which contain any redemption or similar
provisions,  and  there  are  no  contracts,  commitments,  understandings  or
arrangements  by  which  the Company or any of its Subsidiaries is or may become
bound to redeem a security of the Company or any of its Subsidiaries, (vi) there
are  no securities or instruments containing anti-dilution or similar provisions
that  will  be  triggered by the issuance of the Securities as described in this
Agreement,  (vii)  the  Company  does  not have any stock appreciation rights or
"phantom  stock" plans or agreements or any similar plan or agreement and (viii)
there  is  no  dispute  as  to  the class of any shares of the Company's capital
stock. The Company has furnished to the Investor, or the Investor has had access
through  EDGAR to, true and correct copies of the Company's Amended and Restated
Certificate  of Incorporation, as in effect on the date hereof (the "CERTIFICATE
OF  INCORPORATION"),  and the Company's By-laws, as in effect on the date hereof
(the  "BY-LAWS  '),  and  the  terms  of  all  securities  convertible  into  or
exercisable  for  Common Stock and the material rights of the holders thereof in
respect  thereto.

     d.     Issuance  of  Shares.     A  sufficient  number  of  Shares issuable
pursuant  to  this  Agreement has been duly authorized and reserved for issuance
(subject  to  adjustment pursuant to the Company's covenant set forth in Section
5(f)  below)  pursuant to this Agreement.  Upon issuance in accordance with this
Agreement,  the  Securities will be validly issued, fully paid and nonassessable
and free from all taxes, liens and charges with respect to the issue thereof. In
the  event the Company cannot register a sufficient number of Shares, due to the
remaining  number  of  authorized shares of Common Stock being insufficient, the
Company  will  use  its best efforts to register the maximum number of shares it
can  based  on  the remaining balance of authorized shares and will use its best
efforts  to  increase  the number of its authorized shares as soon as reasonably
practicable.

     e.     No  Conflicts.  The  execution,  delivery  and  performance  of  the
Transaction  Documents  by

<PAGE>
the Company and the consummation by the Company of the transactions contemplated
hereby  and  thereby  will  not  (i) result in a violation of the Certificate of
Incorporation,  any  Certificate  of Designations, Preferences and Rights of any
outstanding  series  of  preferred  stock  of the Company or the By-laws or (ii)
conflict  with,  or constitute a material default (or an event which with notice
or  lapse  of  time  or  both would become a material default) under, or give to
others  any  rights  of termination, amendment, acceleration or cancellation of,
any material agreement, contract, indenture mortgage, indebtedness or instrument
to  which  the  Company  or  any  of its Subsidiaries is a party, or result in a
violation  of  any  law,  rule, regulation, order, judgment or decree (including
United  States  federal  and state securities laws and regulations and the rules
and  regulations  of  the  Principal  Market or principal securities exchange or
trading  market on which the Common Stock is traded or listed) applicable to the
Company  or  any  of  its  Subsidiaries or by which any property or asset of the
Company  or any of its Subsidiaries is bound or affected. Except as disclosed in
Schedule  4(e),  neither the Company nor its Subsidiaries is in violation of any
term  of, or in default under, the Certificate of Incorporation, any Certificate
of  Designations,  Preferences and Rights of any outstanding series of preferred
stock  of the Company or the By-laws or their organizational charter or by-laws,
respectively,  or  any  contract,  agreement, mortgage, indebtedness, indenture,
instrument,  judgment,  decree  or  order  or  any  statute,  rule or regulation
applicable  to  the  Company or its Subsidiaries, except for possible conflicts,
defaults,  terminations, amendments, accelerations, cancellations and violations
that  would not individually or in the aggregate have a Material Adverse Effect.
The  business  of  the  Company and its Subsidiaries is not being conducted, and
shall not be conducted, in violation of any law, statute, ordinance, rule, order
or  regulation  of  any  governmental  authority  or  agency,  regulatory  or
self-regulatory  agency,  or court, except for possible violations the sanctions
for  which  either  individually  or  in the aggregate would not have a Material
Adverse  Effect.  Except  as  specifically contemplated by this Agreement and as
required  under the 1933 Act, the Company is not required to obtain any consent,
authorization,  permit  or  order of, or make any filing or registration (except
the filing of a registration statement)  with, any court, governmental authority
or  agency,  regulatory  or self-regulatory agency or other third party in order
for  it  to  execute,  deliver  or  perform  any  of  its  obligations under, or
contemplated  by,  the Transaction Documents in accordance with the terms hereof
or  thereof.  All  consents,  authorizations,  permits,  orders,  filings  and
registrations  which the Company is required to obtain pursuant to the preceding
sentence  have  been obtained or effected on or prior to the date hereof and are
in  full force and effect as of the date hereof. Except as disclosed in Schedule
4(e), the Company and its Subsidiaries are unaware of any facts or circumstances
which  might give rise to any of the foregoing. The Company is not, and will not
be,  in  violation  of  the  listing  requirements of the Principal Market as in
effect  on  the date hereof and on each of the Closing Dates and is not aware of
any  facts  which  would reasonably lead to delisting of the Common Stock by the
Principal  Market  in  the  foreseeable  future.

     f.     SEC  Documents;  Financial Statements.  Since at least January 1999,
the  Company  has  filed  all  reports,  schedules,  forms, statements and other
documents  required  to  be  filed  by it with the SEC pursuant to the reporting
requirements  of  the  1934  Act  (all  of the foregoing filed prior to the date
hereof  and all exhibits included therein and financial statements and schedules
thereto  and  documents  incorporated  by  reference  therein  being hereinafter
referred  to  as the "SEC DOCUMENTS"). The Company has delivered to the Investor
or  its  representatives,  or  they  have  had access through EDGAR to, true and
complete  copies  of  the  SEC  Documents. As of their respective dates, the SEC
Documents  complied  in  all material respects with the requirements of the 1934
Act  and  the rules and regulations of the SEC promulgated thereunder applicable
to the SEC Documents, and none of the SEC Documents, at the time they were filed
with  the  SEC,  contained any untrue statement of a material fact or omitted to
state  a  material  fact  required to be stated therein or necessary to make the
statements  therein,  in  light of the circumstances under which they were made,
not  misleading.  As  of their respective dates, the financial statements of the
Company  included  in  the  SEC  Documents  complied  as to form in all material
respects  with  applicable  accounting  requirements and the published rules and
regulations of the SEC with respect thereto. Such financial statements have been
prepared  in  accordance  with  generally  accepted  accounting  principles,
consistently  applied,  during  the  periods  involved  (except  (i)  as  may be
otherwise  indicated  in such financial statements or the notes thereto, or (ii)
in  the  case  of  unaudited  interim statements, to the extent they may exclude
footnotes  or  may be condensed or summary statements) and fairly present in all
material  respects the financial position of the Company as of the dates thereof
and  the  results  of  its  operations and cash flows for the periods then ended
(subject,  in  the  case  of  unaudited  statements,  to  normal  year-end audit
adjustments).  No  other  written  information  provided  by or on behalf of the
Company  to  the Investor which is not included in the SEC Documents, including,
without  limitation,  information referred to in Section 4(d) of this Agreement,
contains  any untrue statement of a material fact or omits to state any material
fact  necessary to make the statements therein, in the light of the circumstance
under  which  they are or were made, not misleading. Neither the Company nor any
of  its  Subsidiaries  or  any of their officers, directors, employees or agents
have  provided  the  Investor with any material, nonpublic information which was
not  publicly  disclosed  prior  to  the date hereof and any material, nonpublic
information  provided  to the Investor by the Company or its Subsidiaries or any
of  their  officers,  directors,  employees  or agents prior to any Closing Date
shall  be  publicly  disclosed  by  the  Company  prior  to  such  Closing Date.

     g.     Absence  of  Certain Changes.  Except as disclosed in Schedule 4(g),
the  Company  does  not intend to change the business operations of the Company.
The  Company  has not taken any steps, and does not currently expect to take any
steps, to seek protection pursuant to any bankruptcy law nor does the Company or
its  Subsidiaries  have  any  knowledge  or reason to believe that its creditors
intend  to  initiate  involuntary  bankruptcy  proceedings.

     h.     Absence  of Litigation.  Except as set forth in Schedule 4(h), there
is no action, suit, proceeding, inquiry or investigation before or by any court,
public  board,  government  agency, self-regulatory organization or body pending
or,  to  the  knowledge  of  the  executive  officers  of  Company or any of its
Subsidiaries,  threatened  against or affecting the Company, the Common Stock or
any  of  the  Company's  Subsidiaries  or  any of the Company's or the Company's
Subsidiaries'  officers  or  directors  in their capacities as such, in which an
adverse  decision  could  have  a  Material  Adverse  Effect.

     i.     Acknowledgment Regarding Investor's Purchase of Shares.  The Company
acknowledges  and  agrees  that the Investor is acting solely in the capacity of
arm's  length  purchaser  with  respect  to  the  Transaction  Documents and the
transactions  contemplated  hereby and thereby. The Company further acknowledges
that  the  Investor  is  not  acting  as a financial advisor or fiduciary of the
Company  (or  in any similar capacity) with respect to the Transaction Documents
and the transactions contemplated hereby and thereby and any advice given by the
Investor  or  any of its respective representatives or agents in connection with
the  Transaction  Documents and the transactions contemplated hereby and thereby
is  merely  incidental to the Investor's purchase of the Securities. The Company
further represents to the Investor that the Company's decision to enter into the
Transaction Documents has been based solely on the independent evaluation by the
Company  and  its  representatives.

     j.     No  Undisclosed  Events, Liabilities, Developments or Circumstances.
Since  March  31,  2003,  no  event,  liability, development or circumstance has
occurred or exists, or to the Company's knowledge is contemplated to occur, with
respect  to  the  Company  or  its  Subsidiaries  or  their respective business,
properties,  assets,  prospects,  operations  or  financial  condition,  that

<PAGE>
would  be  required  to  be disclosed by the Company under applicable securities
laws  on a registration statement filed with the SEC relating to an issuance and
sale  by  the  Company  of  its  Common  Stock  and  which has not been publicly
announced.

     k.     Employee Relations.  Neither the Company nor any of its Subsidiaries
is  involved  in any union labor dispute nor, to the knowledge of the Company or
any of its Subsidiaries, is any such dispute threatened. Neither the Company nor
any of its Subsidiaries is a party to a collective bargaining agreement, and the
Company  and  its  Subsidiaries  believe that relations with their employees are
good.  No  executive  officer  (as  defined  in Rule 501(f) of the 1933 Act) has
notified  the Company that such officer intends to leave the Company's employ or
otherwise  terminate  such  officer's  employment  with  the  Company.

     l.     Intellectual  Property Rights.  The Company and its Subsidiaries own
or  possess  adequate  rights  or  licenses  to use all trademarks, trade names,
service  marks,  service  mark  registrations,  service  names,  patents, patent
rights,  copyrights,  inventions,  licenses,  approvals,  governmental
authorizations,  trade  secrets and rights necessary to conduct their respective
businesses  as  now conducted. Except as set forth on Schedule 4(l), none of the
Company's  trademarks,  trade  names, service marks, service mark registrations,
service  names,  patents,  patent  rights,  copyrights,  inventions,  licenses,
approvals,  government  authorizations,  trade  secrets  or  other  intellectual
property  rights  necessary  to conduct its business as now or as proposed to be
conducted  have  expired  or  terminated, or are expected to expire or terminate
within  two  years  from  the  date  of  this  Agreement.  The  Company  and its
Subsidiaries do not have any knowledge of any infringement by the Company or its
Subsidiaries  of  trademark,  trade  name  rights,  patents,  patent  rights,
copyrights,  inventions,  licenses,  service  names, service marks, service mark
registrations,  trade  secret  or other similar rights of others, or of any such
development  of  similar  or identical trade secrets or technical information by
others  and,  except as set forth on Schedule 4(l), there is no claim, action or
proceeding  being  made or brought against, or to the Company's knowledge, being
threatened  against,  the Company or its Subsidiaries regarding trademark, trade
name,  patents,  patent  rights,  invention,  copyright, license, service names,
service  marks,  service mark registrations, trade secret or other infringement;
and  the  Company and its Subsidiaries are unaware of any facts or circumstances
which  might give rise to any of the foregoing. The Company and its Subsidiaries
have  taken  commercially  reasonable  security measures to protect the secrecy,
confidentiality  and  value  of  all  of  their  intellectual  properties.

     m.     Environmental  Laws.  The  Company  and its Subsidiaries (i) are, to
the  knowledge  of  management  of  the  Company, in compliance with any and all
applicable  foreign,  federal,  state and local laws and regulations relating to
the protection of human health and safety, the environment or hazardous or toxic
substances  or  wastes,  pollutants or contaminants ("ENVIRONMENTAL LAWS"), (ii)
have,  to  the  knowledge  of  management  of the Company, received all permits,
licenses or other approvals required of them under applicable Environmental Laws
to  conduct  their  respective  businesses  and  (iii) are in compliance, to the
knowledge  of  the  Company,with  all  terms  and conditions of any such permit,
license  or approval where, in each of the three foregoing cases, the failure to
so  comply  would  have,  individually  or  in the aggregate, a Material Adverse
Effect.

     n.     Title.  The  Company  and  its Subsidiaries have good and marketable
title  in  fee  simple to all real property and good and marketable title to all
personal property owned by them which is material to the business of the Company
and its Subsidiaries, in each case free and clear of all liens, encumbrances and
defects  except  such  as  are  described  in  Schedule  4(n)  or such as do not
materially  affect  the value of such property and do not interfere with the use
made  and  proposed  to  be  made  of such property by the Company or any of its
Subsidiaries.  Any  real  property  and

<PAGE>
facilities  held  under lease by the Company or any of its Subsidiaries are held
by  them  under valid, subsisting and enforceable leases with such exceptions as
are  not material and do not interfere with the use made and proposed to be made
of  such  property  and  buildings  by  the  Company  and  its  Subsidiaries.

     o.     Insurance.  The  Company and each of its Subsidiaries are insured by
insurers  of  recognized  financial responsibility against such losses and risks
and  in  such  amounts  as  management  of the Company reasonably believes to be
prudent  and  customary  in  the  businesses  in  which  the  Company  and  its
Subsidiaries  are  engaged. Neither the Company nor any such Subsidiary has been
refused any insurance coverage sought or applied for and neither the Company nor
any  such Subsidiary has any reason to believe that it will not be able to renew
its  existing  insurance coverage as and when such coverage expires or to obtain
similar  coverage  from  similar  insurers  as  may be necessary to continue its
business  at  a  cost  that  would  not  have  a  Material  Adverse  Effect.

     p.     Regulatory  Permits.  The  Company and its Subsidiaries have in full
force  and  effect  all certificates, approvals, authorizations and permits from
the  appropriate  federal,  state,  local  or foreign regulatory authorities and
comparable foreign regulatory agencies, necessary to own, lease or operate their
respective  properties  and  assets and conduct their respective businesses, and
neither  the  Company  nor  any  such  Subsidiary  has  received  any  notice of
proceedings  relating to the revocation or modification of any such certificate,
approval,  authorization  or  permit,  except  for such certificates, approvals,
authorizations  or  permits  which  if  not  obtained,  or  such  revocations or
modifications  which,  would  not  have  a  Material  Adverse  Effect.

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

     r.     No  Materially  Adverse Contracts, Etc.  Neither the Company nor any
of  its  Subsidiaries  is  subject  to  any  charter,  corporate  or other legal
restriction,  or  any  judgment,  decree, order, rule or regulation which in the
judgment  of  the  Company's officers has or is expected in the future to have a
Material  Adverse  Effect.  Neither the Company nor any of its Subsidiaries is a
party  to  any  contract  or  agreement  which  in the judgment of the Company's
officers  has  or  is  expected  to  have  a  Material  Adverse  Effect.

     s.     Tax  Status.  The  Company  and each of its Subsidiaries has made or
filed  all  United  States  federal  and state income and all other tax returns,
reports  and  declarations  required  by any jurisdiction to which it is subject
(unless and only to the extent that the Company and each of its Subsidiaries has
set  aside  on  its  books provisions reasonably adequate for the payment of all
unpaid  and  unreported  taxes)  and  has  paid all taxes and other governmental
assessments  and  charges that are material in amount, shown or determined to be
due  on  such returns, reports and declarations, except those being contested in
good  faith and has set aside on its books provision reasonably adequate for the
payment  of  all  taxes  for  periods  subsequent  to  the periods to which such
returns,  reports  or  declarations  apply.  There  are  no  unpaid taxes in any
material  amount  claimed to be due by the taxing authority of any jurisdiction,
and  the  officers  of  the  Company  know  of  no  basis  for  any  such claim.

     t.     Certain  Transactions.  Except  as set forth on Schedule 4(t) and in
the  SEC  Documents  filed at least ten days prior to the date hereof and except
for  arm's  length  transactions pursuant to which the Company makes payments in
the  ordinary  course  of business upon terms no less favorable than the Company
could  obtain  from  third  parties  and  other  than the grant of stock options
disclosed on Schedule 4(c), none of the officers, directors, or employees of the
Company  is  presently a party to any transaction with the Company or any of its
Subsidiaries  (other  than  for  services as employees, officers and directors),
including  any  contract,  agreement  or  other  arrangement  providing  for the
furnishing  of  services  to  or  by,  providing  for rental of real or personal
property  to  or  from,  or otherwise requiring payments to or from any officer,
director  or such employee or, to the knowledge of the Company, any corporation,
partnership,  trust  or other entity in which any officer, director, or any such
employee  has  a  substantial  interest  or  is an officer, director, trustee or
partner.

     u.     Dilutive  Effect.  The Company understands and acknowledges that the
number  of  shares  of  Common  Stock  issuable  upon purchases pursuant to this
Agreement  will increase in certain circumstances including, but not necessarily
limited  to,  the  circumstance  wherein  the  trading price of the Common Stock
declines  during  the  period between the Effective Date and the end of the Open
Period.  The  Company's  executive officers and directors have studied and fully
understand  the  nature  of  the transactions contemplated by this Agreement and
recognize that they have a potential dilutive effect.  The board of directors of
the  Company  has  concluded,  in  its  good  faith business judgment, that such
issuance  is  in  the  best  interests of the Company.  The Company specifically
acknowledges that, subject to such limitations as are expressly set forth in the
Transaction  Documents,  its  obligation  to  issue  shares of Common Stock upon
purchases pursuant to this Agreement is absolute and unconditional regardless of
the  dilutive  effect  that such issuance may have on the ownership interests of
other  shareholders  of  the  Company.

     v.   Right of First Refusal. The Company shall not, directly or indirectly,
without  the  prior written consent of Investor offer, sell, grant any option to
purchase,  or  otherwise  dispose  of (or announce any offer, sale, grant or any
option  to  purchase or other disposition) any of its Common Stock or securities
convertible  into  Common Stock at a price that is less than the market price of
the  Common  Stock  at  the  time  of issuance of such security or investment (a
"SUBSEQUENT  FINANCING")  for  a  period  of  one year after the Effective Date,
except (i) the granting of options or warrants to employees, officers, directors
and  consultants,  and  the issuance of shares upon exercise of options granted,
under any stock option plan heretofore or hereafter duly adopted by the Company,
(ii)  shares  issued  upon  exercise  of  any  currently outstanding warrants or
options  and  upon conversion of any currently outstanding convertible debenture
or convertible preferred stock, in each case disclosed pursuant to Section 4(c),
(iii)  securities  issued in connection with the capitalization or creation of a
joint venture with a strategic partner, (iv) shares issued to pay part or all of
the  purchase price for the acquisition by the Company of another entity (which,
for  purposes  of  this clause (iv), shall not include an individual or group of
individuals),  and  (v)  shares  issued  in  a  bona fide public offering by the
Company of its securities, unless (A) the Company delivers to Investor a written
                           ------
notice  (the  "SUBSEQUENT  FINANCING  NOTICE")  of  its intention to effect such
Subsequent  Financing,  which  Subsequent  Financing  Notice  shall  describe in
reasonable detail the proposed terms of such Subsequent Financing, the amount of
proceeds  intended to be raised thereunder, the person with whom such Subsequent
Financing  shall  be  effected,  and  attached to which shall be a term sheet or
similar  document  relating thereto and (B) Investor shall not have notified the
Company  by  5:00  p.m. (New York time) on the fifth (5th) Trading Day after its
receipt  of  the  Subsequent  Financing  Notice  of  its willingness to provide,
subject  to  completion  of  mutually acceptable documentation, financing to the
Company on substantially the terms set forth in the Subsequent Financing Notice.
If  Investor  shall  fail  to  notify

<PAGE>
the  Company  of  its intention to enter into such negotiations within such time
period,  then the Company may effect the Subsequent Financing substantially upon
the  terms  set  forth  in  the  Subsequent  Financing Notice; PROVIDED THAT the
Company  shall  provide  Investor with a second Subsequent Financing Notice, and
Investor  shall  again  have  the right of first refusal set forth above in this
Section, if the Subsequent Financing subject to the initial Subsequent Financing
Notice  shall not have been consummated for any reason on the terms set forth in
such  Subsequent Financing Notice within thirty (30) Trading Days after the date
of  the  initial  Subsequent Financing Notice. The rights granted to Investor in
this  Section  are  not subject to any prior right of first refusal given to any
other  person  disclosed  on  Schedule  4(c).

w.  Lock-up.  The  Company  shall  cause  its  officers,  insiders,  directors,
affiliates  or other related parties to refrain from selling Common Stock during
each  Pricing  Period.

x.  No  General  Solicitation.  Neither  the Company, nor any of its affiliates,
nor  any  person  acting  on  its  behalf,  has  engaged  in any form of general
solicitation  or  general  advertising  (within  the meaning of Regulation D) in
connection  with  the  offer  or  sale  of  the  Common  Stock  offered  hereby.

     5.     COVENANTS  OF  THE  COMPANY
            ---------------------------

     a.     Best Efforts.  The Company shall use commercially reasonable efforts
timely  to  satisfy  each of the conditions to be satisfied by it as provided in
Section  7  of  this  Agreement.

     b.     Blue  Sky.  The  Company  shall, at its sole cost and expense, on or
before  each  of  the  Closing  Dates,  take  such  action  as the Company shall
reasonably  determine  is  necessary  to  qualify  the Securities for, or obtain
exemption  for  the Securities for, sale to the Investor at each of the Closings
pursuant  to  this  Agreement  under applicable securities or "Blue Sky" laws of
such states of the United States, as reasonably specified by Investor, and shall
provide  evidence of any such action so taken to the Investor on or prior to the
Closing  Date.

     c.     Reporting  Status.  Until the earlier to occur of (i) the first date
which  is  after the date this Agreement is terminated pursuant to Section 9 and
on  which  the  Holders  (as  that  term  is  defined in the Registration Rights
Agreement)  may  sell all of the Securities without restriction pursuant to Rule
144(k)  promulgated under the 1933 Act (or successor thereto), and (ii) the date
on  which  (A)  the  Holders  shall  have  sold  all the Securities and (B) this
Agreement has been terminated pursuant to Section 9 (the "REGISTRATION PERIOD"),
the Company shall file all reports required to be filed with the SEC pursuant to
the  1934  Act,  and  the  Company shall not terminate its status as a reporting
company  under  the  1934  Act.

     d.     Use of Proceeds.  The Company will use the proceeds from the sale of
the  Shares  (excluding amounts paid by the Company for fees as set forth in the
Transaction  Documents)  for  general  corporate  and  working  capital purposes

     e.     Financial  Information.  The Company agrees to make available to the
Investor  via  EDGAR  or  other  electronic  means the following to the Investor
during  the  Registration  Period:  (i)  within  five (5) Trading Days after the
filing  thereof  with  the SEC, a copy of its Annual Reports on Form 10-KSB, its
Quarterly  Reports  on  Form  10-QSB,  any  Current  Reports on Form 8-K and any
Registration  Statements  or  amendments filed pursuant to the 1933 Act; (ii) on
the  same  day  as  the  release thereof, facsimile copies of all press releases
issued  by  the  Company or any of its Subsidiaries, (iii) copies of any notices
and other information made available or given to the shareholders of the Company
generally,  contemporaneously  with  the  making  available  or  giving

<PAGE>
thereof  to  the shareholders and (iv) within two (2) calendar days of filing or
delivery  thereof,  copies  of  all documents filed with, and all correspondence
sent  to,  the  Principal  Market,  any  securities  exchange  or market, or the
National  Association  of  Securities  Dealers, Inc., unless such information is
material  nonpublic  information.

     f.     Reservation  of  Shares.  Subject  to  the  following  sentence, the
Company  shall  take  all  action necessary to at all times have authorized, and
reserved  for  the  purpose of issuance, a sufficient number of shares of Common
Stock to provide for the issuance of the Securities hereunder. In the event that
the  Company  determines that it does not have a sufficient number of authorized
shares  of  Common Stock to reserve and keep available for issuance as described
in  this  Section  5(f),  the Company shall use its best efforts to increase the
number  of authorized shares of Common Stock by seeking shareholder approval for
the  authorization  of  such  additional  shares.

     g.     Listing.  The Company shall promptly secure and maintain the listing
of  all  of  the  Registrable  Securities (as defined in the Registration Rights
Agreement) upon the Principal Market and each other national securities exchange
and  automated  quotation  system, if any, upon which shares of Common Stock are
then  listed  (subject  to official notice of issuance) and shall maintain, such
listing of all Registrable Securities from time to time issuable under the terms
of  the  Transaction  Documents.  The  Company shall maintain the Common Stock's
authorization for quotation on the Principal Market. Neither the Company nor any
of  its Subsidiaries shall take any action which would be reasonably expected to
result  in  the  delisting  or  suspension  of the Common Stock on the Principal
Market  (excluding  suspensions  of not more than one trading day resulting from
business  announcements  by  the Company). The Company shall promptly provide to
the  Investor  copies  of  any  notices  it  receives  from the Principal Market
regarding  the  continued  eligibility  of  the Common Stock for listing on such
automated  quotation  system  or  securities exchange. The Company shall pay all
fees  and  expenses  in  connection  with  satisfying its obligations under this
Section  5(g).

     h.     Transactions  With  Affiliates.  The  Company  shall  not, and shall
cause  each of its Subsidiaries not to, enter into, amend, modify or supplement,
or  permit  any  Subsidiary  to  enter  into,  amend,  modify or supplement, any
agreement,  transaction,  commitment  or  arrangement  with  any  of  its or any
Subsidiary's  officers, directors, persons who were officers or directors at any
time during the previous two years, shareholders who beneficially own 5% or more
of  the  Common  Stock,  or  affiliates or with any individual related by blood,
marriage or adoption to any such individual or with any entity in which any such
entity  or  individual  owns  a  5% or more beneficial interest (each a "RELATED
PARTY"),  except  for (i) customary employment arrangements and benefit programs
on  reasonable terms, (ii) any agreement, transaction, commitment or arrangement
on  an  arms-length basis on terms no less favorable than terms which would have
been  obtainable  from  a  person  other  than  such Related Party, or (iii) any
agreement,  transaction,  commitment  or  arrangement  which  is  approved  by a
majority of the disinterested directors of the Company. For purposes hereof, any
director  who is also an officer of the Company or any Subsidiary of the Company
shall  not  be  a  disinterested  director  with  respect to any such agreement,
transaction,  commitment  or arrangement. "AFFILIATE" for purposes hereof means,
with respect to any person or entity, another person or entity that, directly or
indirectly,  (i) has a 5% or more equity interest in that person or entity, (ii)
has  5% or more common ownership with that person or entity, (iii) controls that
person  or  entity,  or (iv) is under common control with that person or entity.
"CONTROL"  or  "CONTROLS"  for purposes hereof means that a person or entity has
the  power,  direct  or  indirect,  to conduct or govern the policies of another
person  or  entity.

<PAGE>

     i.     Filing  of  Form  8-K.  On  or  before  the  date which is three (3)
Trading  Days  after the Execution Date, the Company shall file a Current Report
on Form 8-K with the SEC describing the terms of the transaction contemplated by
the  Transaction  Documents in the form required by the 1934 Act, if such filing
is  required.

     j.     Corporate  Existence.  The  Company  shall  use  its best efforts to
preserve  and  continue  the  corporate  existence  of  the  Company.

     k.  Notice of Certain Events Affecting Registration; Suspension of Right to
Make  a  Put.  The Company shall promptly notify Investor upon the occurrence of
any  of  the  following events in respect of a Registration Statement or related
prospectus  in  respect  of  an  offering  of the Securities: (i) receipt of any
request  for  additional  information  by  the SEC or any other federal or state
governmental  authority  during  the period of effectiveness of the Registration
Statement for amendments or supplements to the Registration Statement or related
prospectus;  (ii)  the  issuance  by  the  SEC  or  any  other  federal or state
governmental  authority  of  any  stop order suspending the effectiveness of any
Registration  Statement  or  the initiation of any proceedings for that purpose;
(iii)  receipt  of  any  notification  with  respect  to  the  suspension of the
qualification  or exemption from qualification of any of the Securities for sale
in  any jurisdiction or the initiation or threatening of any proceeding for such
purpose;  (iv)  the happening of any event that makes any statement made in such
Registration  Statement  or  related  prospectus or any document incorporated or
deemed to be incorporated therein by reference untrue in any material respect or
that  requires  the making of any changes in the Registration Statement, related
prospectus  or  documents  so  that, in the case of a Registration Statement, it
will  not  contain  any untrue statement of a material fact or omit to state any
material  fact required to be stated therein or necessary to make the statements
therein  not misleading, and that in the case of the related prospectus, it will
not  contain  any  untrue  statement  of  a  material  fact or omit to state any
material  fact required to be stated therein or necessary to make the statements
therein,  in  the  light  of  the  circumstances under which they were made, not
misleading; and (v) the Company's reasonable determination that a post-effective
amendment  to  the  Registration Statement would be appropriate, and the Company
shall  promptly  make  available to Investor any such supplement or amendment to
the related prospectus. The Company shall not deliver to Investor any Put Notice
during  the  continuation  of  any  of  the  foregoing  events.

     l.  Reimbursement.  If  (i)  Investor,  other  than  by reason of its gross
negligence  or  willful  misconduct,  becomes  involved  in  any capacity in any
action,  proceeding  or investigation brought by any shareholder of the Company,
in  connection  with  or  as  a  result  of the consummation of the transactions
contemplated  by  the  Transaction Documents, or if Investor is impleaded in any
such  action,  proceeding or investigation by any person (other than as a result
of  a  breach of the Investor's representations and warranties set forth in this
Agreement),  or  (ii)  Investor, other than by reason of its gross negligence or
willful  misconduct,  becomes involved in any capacity in any action, proceeding
or  investigation  brought  by  the  SEC  against or involving the Company or in
connection  with  or  as  a  result  of  the  consummation  of  the transactions
contemplated by the Transaction Documents (other than as a result of a breach of
the  Investor's  representations and warranties set forth in this Agreement), or
if  Investor is impleaded in any such action, proceeding or investigation by any
person,  then  in  any  such  case,  the Company will reimburse Investor for its
reasonable legal and other expenses (including the cost of any investigation and
preparation) incurred in connection therewith, as such expenses are incurred. In
addition,  other  than  with  respect to any matter in which Investor is a named
party, the Company will pay to Investor the charges, as reasonably determined by
Investor,  for  the  time  of  any  officers or employees of Investor devoted to
appearing  and  preparing  to  appear as witnesses, assisting in preparation for

<PAGE>
hearings,  trials  or  pretrial matters, or otherwise with respect to inquiries,
hearing,  trials,  and  other proceedings relating to the subject matter of this
Agreement. The reimbursement obligations of the Company under this section shall
be  in  addition  to  any  liability which the Company may otherwise have, shall
extend upon the same terms and conditions to any affiliates of Investor that are
actually  named  in  such  action,  proceeding  or  investigation, and partners,
directors,  agents,  employees, attorneys, accountants, auditors and controlling
persons  (if  any),  as the case may be, of Investor and any such affiliate, and
shall be binding upon and inure to the benefit of any successors of the Company,
Investor  and  any  such  affiliate  and  any  such  person.

     6.  COVER.  If  the  number of Shares represented by any Put Notices become
restricted  or  are  no  longer  freely  trading  for  any reason, and after the
applicable  Closing  Date, the Investor purchases, in an open market transaction
or  otherwise,  the  Company's  Common Stock (the "Covering Shares") in order to
make  delivery  in  satisfaction  of a sale of Common Stock by the Investor (the
"Sold  Shares"),  which  delivery  such  Investor  anticipated to make using the
Shares represented by the Put Notice  (a "Buy-In"), the Company shall pay to the
Investor  the  Buy-In  Adjustment  Amount  (as  defined  below).  The  "Buy-In
Adjustment  Amount"  is  the  amount  equal  to  the  excess, if any, of (a) the
Investor's  total  purchase  price (including brokerage commissions, if any) for
the  Covering  Shares over (b) the net proceeds (after brokerage commissions, if
any)  received  by  the Investor from the sale of the  Sold Shares.  The Company
shall  pay the Buy-In Adjustment Amount to the Investor in immediately available
funds  immediately  upon demand by the Investor.  By way of illustration and not
in  limitation of the foregoing, if the Investor purchases Common Stock having a
total  purchase  price  (including  brokerage commissions) of $11,000 to cover a
Buy-In with respect to the Common Stock it sold for net proceeds of $10,000, the
Buy-In  Adjustment  Amount  which  the  Company  will  be required to pay to the
Investor  will  be  $1,000.

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

     The obligation hereunder of the Company to issue and sell the Securities to
the  Investor  is further subject to the satisfaction, at or before each Closing
Date,  of each of the following conditions set forth below. These conditions are
for  the  Company's sole benefit and may be waived by the Company at any time in
its  sole  discretion.

     a.     The  Investor  shall  have  executed  each of this Agreement and the
Registration  Rights  Agreement  and  delivered  the  same  to  the  Company.

     b.     The  Investor shall have delivered to the Company the Purchase Price
for the Securities being purchased by the Investor at the Closing (after receipt
of  confirmation of delivery of such Securities) by wire transfer of immediately
available  funds  pursuant  to  the  wire  instructions provided by the Company.

     c.     The representations and warranties of the Investor shall be true and
correct as of the date when made and as of the applicable Closing Date as though
made  at that time (except for representations and warranties that speak as of a
specific  date),  and  the Investor shall have performed, satisfied and complied
with  the  covenants,  agreements  and  conditions  required  by the Transaction
Documents  to  be  performed,  satisfied  or complied with by the Investor at or
prior  to  such  Closing  Date.

     d.     No  statute,  rule,  regulation,  executive order, decree, ruling or
injunction  shall  have  been  enacted,  entered, promulgated or endorsed by any
court  or  governmental  authority of competent jurisdiction which prohibits the
consummation  of  any  of  the  transactions  contemplated  by  this

<PAGE>
Agreement.

e.     No  Valuation  Event  shall have occurred since the applicable Put Notice
Date.

     8.     FURTHER  CONDITIONS  OF  THE  INVESTOR'S  OBLIGATION  TO  PURCHASE.
            ------------------------------------------------------------------

     The  obligation  of the Investor hereunder to purchase Shares is subject to
the  satisfaction,  on  or  before  each  Closing Date, of each of the following
conditions  set  forth  below.

     a.     The  Company  shall  have executed each of the Transaction Documents
and  delivered  the  same  to  the  Investor.

     b.     The  Common Stock shall be authorized for quotation on the Principal
Market  and  trading  in  the  Common Stock shall not have been suspended by the
Principal  Market  or  the  SEC,  at  any  time beginning on the date hereof and
through  and including the respective Closing Date (excluding suspensions of not
more  than one Trading Day resulting from business announcements by the Company,
provided  that such suspensions occur prior to the Company's delivery of the Put
Notice  related  to  such  Closing).

     c.     The  representations and warranties of the Company shall be true and
correct as of the date when made and as of the applicable Closing Date as though
made  at  that time (except for (i) representations and warranties that speak as
of a specific date and (ii) with respect to the representations made in Sections
4(g),  (h)  and  (j) and the third sentence of Section 4(k) hereof, events which
occur  on  or  after the date of this Agreement and are disclosed in SEC filings
made  by  the Company at least ten (10) Trading Days prior to the applicable Put
Notice  Date)  and the Company shall have performed, satisfied and complied with
the  covenants,  agreements and conditions required by the Transaction Documents
to  be  performed,  satisfied  or complied with by the Company on or before such
Closing  Date.  The  Investor  may  request  an  update  as of such Closing Date
regarding  the  representation  contained  in  Section  4(c)  above.

     d.     reserved

     e.     The  Company  shall  have executed and delivered to the Investor the
certificates  representing,  or have executed electronic book-entry transfer of,
the  Securities  (in  such  denominations  as such Investor shall request) being
purchased  by  the  Investor  at  such  Closing.

     f.     The Board of Directors of the Company shall have adopted resolutions
consistent  with Section 4(b)(ii) above (the "RESOLUTIONS") and such Resolutions
shall  not  have  been  amended  or  rescinded  prior  to  such  Closing  Date.

     g.     If  requested by the Investor, the Investor shall receive letters of
the  type,  in  the  form  and  with  the  substance of the letters described in
Sections  2(m)  and  2(n)  of  this  Agreement  from  the  Company's  auditors.

     h.     No  statute,  rule,  regulation,  executive order, decree, ruling or
injunction  shall  have  been  enacted,  entered, promulgated or endorsed by any
court  or  governmental  authority of competent jurisdiction which prohibits the
consummation  of  any  of  the  transactions  contemplated  by  this  Agreement.

<PAGE>
     i.     The  Registration  Statement shall be effective on each Closing Date
and  no  stop  order  suspending the effectiveness of the Registration statement
shall  be  in  effect  or  shall  be pending or threatened. Furthermore, on each
Closing  Date  (i)  neither  the Company nor Investor shall have received notice
that  the  SEC  has issued or intends to issue a stop order with respect to such
Registration  Statement or that the SEC otherwise has suspended or withdrawn the
effectiveness of such Registration Statement, either temporarily or permanently,
or  intends  or  has  threatened  to  do so (unless the SEC's concerns have been
addressed  and  Investor  is  reasonably  satisfied  that  the  SEC no longer is
considering or intends to take such action), and (ii) no other suspension of the
use or withdrawal of the effectiveness of such Registration Statement or related
prospectus  shall  exist.

     j.     At  the  time of each Closing, the Registration Statement (including
information  or  documents incorporated by reference therein) and any amendments
or supplements thereto shall not contain any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary to
make  the  statements  therein  not  misleading  or  which  would require public
disclosure  or  an  update  supplement  to  the  prospectus.

     k.     There  shall have been no filing of a petition in bankruptcy, either
voluntarily  or  involuntarily,  with respect to the Company and there shall not
have  been commenced any proceedings under any bankruptcy or insolvency laws, or
any  laws  relating  to  the  relief of debtors, readjustment of indebtedness or
reorganization  of debtors, and there shall have been no calling of a meeting of
creditors  of  the  Company  or  appointment  of  a  committee  of  creditors or
liquidating  agents  or  offering of a composition or extension to creditors by,
for,  with  or  without  the  consent  or  acquiescence  of  the  Company.

     l.     If  applicable,  the shareholders of the Company shall have approved
the  issuance  of  any  Shares in excess of the Maximum Common Stock Issuance in
accordance  with  Section  2(j).

     m.     The  conditions to such Closing set forth in Section 2(f) shall have
been  satisfied  on  or  before  such  Closing  Date.

     n.     The  Company  shall  have  certified  to  the Investor the number of
shares  of  Common  Stock  outstanding as of a date within ten (10) Trading Days
prior  to  such  Closing  Date.

     o.     The  Company  shall  have  delivered  to  such  Investor  such other
documents  relating  to  the transactions contemplated by this Agreement as such
Investor  or  its counsel may reasonably request upon reasonable advance notice.

     p.     On or before the execution of this Agreement, the Company shall have
provided  to  the  Investor  a  draft of the Registration Statement covering the
Securities.

     9.     TERMINATION.  This  Agreement  shall  terminate  upon  any  of  the
following  events:

(i)  when  the  Investor  has purchased an aggregate of $5,000,000 in the Common
Stock  of  the  Company  pursuant to this Agreement; provided that the Company's
representations, warranties and covenants contained in this Agreement insofar as
applicable  to the transactions consummated hereunder prior to such termination,
shall survive the termination of this Agreement for the period of any applicable
statute  of  limitations,

<PAGE>

     (ii)  on the date which is 36 (thirty-six) months after the Effective Date;

(iii)     if  the  Company  shall  file or consent by answer or otherwise to the
entry  of an order for relief or approving a petition for relief, reorganization
or  arrangement  or  any other petition in bankruptcy for liquidation or to take
advantage of any bankruptcy or insolvency law of any jurisdiction, or shall make
an  assignment  for  the  benefit  of  its  creditors,  or  shall consent to the
appointment  of  a  custodian,  receiver,  trustee or other officer with similar
powers  of  itself  or  of  any  substantial  part  of its property, or shall be
adjudicated  a  bankrupt  or  insolvent,  or shall take corporate action for the
purpose  of  any  of  the  foregoing, or if a court or governmental authority of
competent  jurisdiction  shall  enter an order appointing a custodian, receiver,
trustee  or other officer with similar powers with respect to the Company or any
substantial  part of its property or an order for relief or approving a petition
for  relief  or  reorganization  or  any  other  petition  in  bankruptcy or for
liquidation  or  to  take  advantage  of any bankruptcy or insolvency law, or an
order  for  the dissolution, winding up or liquidation of the Company, or if any
such  petition  shall  be  filed  against  the  Company;

(iv)     if  the Company shall issue or sell any equity securities or securities
convertible into, or exchangeable for, equity securities or enter into any other
equity  financing facility during the Open Period, other than in compliance with
Section  4(v);

(v)     the  trading  of the Common Stock is suspended by the SEC, the Principal
Market  or the NASD for a period of five (5) consecutive Trading Days during the
Open  Period;

(vi)     the  Company shall not have filed with the SEC the initial Registration
Statement with respect to the resale of the Registrable Securities in accordance
with  the  terms  of the initial Registration Rights Agreement within sixty (60)
calendar  days  of  the  date  hereof or the Registration Statement has not been
declared  effective  within  one  hundred eighty (180) calendar days of the date
hereof;  or

(vii)  The  Common Stock ceases to be registered under the 1934 Act or listed or
traded  on  the  Principal  Market;  or

(viii)  The  Company  requires  shareholder approval under Nasdaq rules to issue
additional shares and such approval is not obtained within 60 days from the date
when  the  Company  has  issued  its  19.9%  maximum  allowable  shares.

Upon the occurrence of one of the above-described events, the Company shall send
written  notice  of  such  event  to  the  Investor.

     10.  INDEMNIFICATION.  In  consideration  of the parties mutual obligations
set  forth  in the Transaction Documents, each of the parties (in such capacity,
an  "Indemnitor")  shall  defend,  protect,  indemnify and hold harmless the the
other and all of the other party's shareholders, officers, directors, employees,
counsel,  and  direct  or  indirect  investors and any of the foregoing person's
agents  or  other representatives (including, without limitation, those retained
in  connection  with  the  transactions  contemplated  by  this  Agreement)
(collectively,  the

<PAGE>
"INDEMNITEES")  from  and  against any and all actions, causes of action, suits,
claims, losses, costs, penalties, fees, liabilities and damages, and expenses in
connection  therewith (irrespective of whether any such Indemnitee is a party to
the  action  for  which  indemnification  hereunder  is  sought),  and including
reasonable  attorneys'  fees  and disbursements (the "INDEMNIFIED LIABILITIES'),
incurred by any Indemnitee as a result of, or arising out of, or relating to (i)
any  misrepresentation  or  breach of any representation or warranty made by the
Indemnitor  or any other certificate, instrument or document contemplated hereby
or  thereby  (ii)  any  breach  of  any covenant, agreement or obligation of the
Indemnitor  contained  in  the  Transaction  Documents or any other certificate,
instrument  or  document  contemplated  hereby  or  thereby,  (iii) any cause of
action,  suit  or claim brought or made against such Indemnitee by a third party
and  arising  out  of  or resulting from the execution, delivery, performance or
enforcement of the Transaction Documents or any other certificate, instrument or
document  contemplated  hereby  or  thereby,  (iv) [reserved] or (v) [reserved],
except  insofar  as  any such misrepresentation, breach or any untrue statement,
alleged  untrue statement, omission or alleged omission is made in reliance upon
and  in  conformity  with  written  information furnished to Indemnitor which is
specifically  intended  for  use  in  the  preparation  of any such Registration
Statement,  preliminary  prospectus  or  prospectus.  To  the  extent  that  the
foregoing  undertaking by the Indenitor may be unenforceable for any reason, the
Indemnitor  shall  make the maximum contribution to the payment and satisfaction
of  each  of  the  Indemnified Liabilities which is permissible under applicable
law. The indemnity provisions contained herein shall be in addition to any cause
of  action  or  similar  rights  Indemnitor  may  have,  and any liabilities the
Indemnitor  or  the  Indemnitees  may  be  subject  to.

     11.     GOVERNING  LAW;  MISCELLANEOUS.

     a.     Governing  Law.  This Agreement shall be governed by and interpreted
            --------------
in  accordance with the laws of the Commonwealth of Massachusetts without regard
to  the principles of conflict of laws. Each party hereby irrevocably submits to
the  exclusive  jurisdiction of the state and federal courts sitting in the City
of  Boston,  County of Suffolk, for the adjudication of any dispute hereunder or
in  connection herewith or with any transaction contemplated hereby or discussed
herein,  and  hereby  irrevocably  waives, and agrees not to assert in any suit,
action  or  proceeding,  any  claim  that  it  is  not personally subject to the
jurisdiction  of any such court, that such suit, action or proceeding is brought
in an inconvenient forum or that the venue of such suit, action or proceeding is
improper.  Each  party hereby irrevocably waives personal service of process and
consents  to  process  being  served  in  any such suit, action or proceeding by
mailing a copy thereof to such party at the address for such notices to it under
this Agreement and agrees that such service shall constitute good and sufficient
service  of process and notice thereof. Nothing contained herein shall be deemed
to  limit  in any way any right to serve process in any manner permitted by law.
If  any  provision  of  this  Agreement shall be invalid or unenforceable in any
jurisdiction,  such invalidity or unenforceability shall not affect the validity
or enforceability of the remainder of this Agreement in that jurisdiction or the
validity  or  enforceability  of  any  provision  of this Agreement in any other
jurisdiction.

b.  Legal  Fees;  and  Miscellaneous  Fees.
    ---------------------------------------

     (i)  Except as otherwise set forth in the Transaction Documents, each party
shall  pay  the  fees and expenses of its advisers, counsel, the accountants and
other experts, if any, and all other expenses incurred by such party incident to
the  negotiation,  preparation,  execution,  delivery  and  performance  of this
Agreement. Any attorneys' fees and expenses incurred by either the Company or by
the  Investor  in  connection  with  the preparation, negotiation, execution and
delivery  of  any amendments to this Agreement or relating to the enforcement of
the  rights  of  any  party,  after  the  occurrence  of  any  breach

<PAGE>
of  the terms of this Agreement by another party or any default by another party
in  respect  of the transactions contemplated hereunder, shall be paid on demand
by  the party which breached the Agreement and/or defaulted, as the case may be.
The  Company shall pay all stamp and other taxes and duties levied in connection
with  the  issuance  of  any  Securities.

     c.     Counterparts.  This  Agreement  may  be  executed  in  two  or  more
identical  counterparts,  all  of  which  shall  be  considered one and the same
agreement  and shall become effective when counterparts have been signed by each
party  and  delivered  to  the  other party; provided that a facsimile signature
shall  be  considered  due  execution  and  shall  be binding upon the signatory
thereto with the same force and effect as if the signature were an original, not
a  facsimile  signature.

     d.     Headings;  Singular/Plural.  The  headings of this Agreement are for
convenience  of  reference  and  shall  not  form  part  of,  or  affect  the
interpretation  of,  this  Agreement.  Whenever  required by the context of this
Agreement, the singular shall include the plural and masculine shall include the
feminine.

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

     f.     Entire  Agreement;  Amendments.  This Agreement supersedes all other
prior  oral  or  written  agreements  between  the  Investor, the Company, their
affiliates  and  persons  acting  on  their  behalf  with respect to the matters
discussed  herein,  and  this  Agreement  and  the instruments referenced herein
(including  the other Transaction Documents) contain the entire understanding of
the  parties  with respect to the matters covered herein and therein and, except
as  specifically  set  forth  herein  or  therein,  neither  the Company nor the
Investor  makes  any  representation,  warranty,  covenant  or  undertaking with
respect  to  such  matters.  No provision of this Agreement may be amended other
than  by an instrument in writing signed by the Company and the Investor, and no
provision  hereof may be waived other than by an instrument in writing signed by
the  party  against  whom  enforcement  is  sought.

     g.     Notices.  Any  notices or other communications required or permitted
to  be  given  under  the terms of this Agreement must be in writing and will be
deemed  to have been delivered (i) upon receipt, when delivered personally; (ii)
upon  receipt,  when sent by facsimile (provided confirmation of transmission is
mechanically or electronically generated and kept on file by the sending party);
or  (iii)  one  (1)  day  after  deposit  with a nationally recognized overnight
delivery  service,  in  each case properly addressed to the party to receive the
same.  The  addresses  and  facsimile  numbers for such communications shall be:

     If  to  the  Company:

     LocatePLUS  Holdings  Corporation
Attn:  James  Fields, Vice President, Finance and Acting Chief Financial Officer
100  Cummings  Center,  Suite  235M
Beverly,  MA  01915
     Telephone:     978-921-2727
     Facsimile:     978-524-8767
     With  Copy  to:

<PAGE>

     Kirkpatrick  &  Lockhart
     75  State  St.
     Boston,  MA  02109
     Attn:  Jeffrey  Donohue
     Phone:  617-261-3100
     Facsimile::  617-261-3175

     If  to  the  Investor:
     Dutchess  Private  Equities  fund,  LP
     312  Stuart  St.
     Boston,  MA  02116
     Tel:     (617)  960-3582
     Fax:     (617)  960-3772

     Each  party  shall provide five (5) days' prior written notice to the other
party  of  any  change  in  address  or  facsimile  number.

h.     No  Assignment.  This  Agreement  may  not  be  assigned.

     i.     No  Third  Party  Beneficiaries.  This Agreement is intended for the
benefit  of  the  parties  hereto  and  is  not  for the benefit of, nor may any
provision  hereof  be  enforced  by,  any  other  person.

     j.     Survival.  The representations and warranties of the Company and the
Investor  contained  in Sections 2 and 3, the agreements and covenants set forth
in Sections 4 and 5, and the indemnification provisions set forth in Section 10,
shall  survive  each  of  the  Closings  and  the termination of this Agreement.

     k.     Publicity.  The  Company  and Investor shall consult with each other
in issuing any press releases or otherwise making public statements with respect
to  the transactions contemplated hereby and no party shall issue any such press
release  or  otherwise  make any such public statement without the prior written
consent  of  the other parties, which consent shall not be unreasonably withheld
or delayed, except that no prior consent shall be required if such disclosure is
required by law, in which such case the disclosing party shall provide the other
parties  with  prior  notice  of  such  public  statement.  Notwithstanding  the
foregoing,  the Company shall not publicly disclose the name of Investor without
the  prior  written  consent  of such Investor, except to the extent required by
law.  Investor  acknowledges  that  this  Agreement  and  all  or  part  of  the
Transaction  Documents  may be deemed to be "material contracts" as that term is
defined by Item 601(b)(10) of Regulation S-B, and that the Company may therefore
be  required  to  file  such  documents  as  exhibits to reports or registration
statements filed under the Securities 1933 Act or the 1934 Act. Investor further
agrees  that  the  status  of such documents and materials as material contracts
shall  be  determined  solely  by the Company, in consultation with its counsel.

     l.     Further  Assurances. Each party shall do and perform, or cause to be
done  and  performed,  all  such  further acts and things, and shall execute and
deliver  all  such other agreements, certificates, instruments and documents, as
the  other  party  may  reasonably  request in order to carry out the intent and
accomplish  the  purposes  of  this  Agreement  and  the

<PAGE>
consummation  of  the  transactions  contemplated  hereby.

     m.     Placement  Agent.  Unless  set  forth  in this Agreement, no fees or
commissions  will  be payable by the Company to any broker, financial advisor or
consultant,  finder, placement agent, investment banker, bank or other person or
entity,  with  respect  to  the  transactions  contemplated  by  the Transaction
Documents.  The  Investor  shall  have no obligation with respect to any fees or
with respect to any claims made by or on behalf of other persons or entities for
fees  of  a type contemplated in this Section that may be due in connection with
the  transactions  contemplated by the Transaction Documents.  The Company shall
indemnify  and hold harmless the Investor, their employees, officers, directors,
agents,  and  partners,  and  their  respective affiliates, from and against all
claims,  losses,  damages,  costs  (including  the  costs  of  preparation  and
attorney's  fees)  and  expenses  incurred  in  respect  of  any such claimed or
existing  fees,  as  such  fees  and  expenses  are  incurred.

     n.     No  Strict Construction. The language used in this Agreement will be
deemed  to be the language chosen by the parties to express their mutual intent,
and  no  rules  of  strict  construction  will  be  applied  against  any party.

     o.     Remedies.  The Investor and each holder of the Shares shall have all
rights  and  remedies  set  forth  in this Agreement and the Registration Rights
Agreement  and  all  rights and remedies which such holders have been granted at
any  time under any other agreement or contract and all of the rights which such
holders  have under any law. Any person having any rights under any provision of
this  Agreement  shall  be entitled to enforce such rights specifically (without
posting  a  bond or other security), to recover damages by reason of any default
or  breach  of  any  provision  of  this  Agreement,  including  the recovery of
reasonable attorneys fees and costs, and to exercise all other rights granted by
law.

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

     q.     Pricing  of  Common  Stock.  For purposes of this Agreement, the bid
price  of  the  Common  Stock  in  this  Agreement  shall  be  as  reported  on
Bloomberg.com.

<PAGE>
                         LocatePLUS Holdings Corporation

                                 SIGNATURE PAGE
                                 --------------

     Your  signature on this Signature Page evidences your agreement to be bound
by  the  terms  and  conditions of the Investment Agreement and the Registration
Rights  Agreement.

     The  undersigned  signatory  hereby  certifies  that  he/she  has  read and
understands  the  Investment  Agreement,  and  the  representations  made by the
undersigned in this Investment Agreement are true and accurate, and agrees to be
bound  by  its  terms.

DUTCHESS  PRIVATE  EQUITIES  FUND,  L.P.
BY  ITS  GENERAL  PARTNER  DUTCHESS
CAPITAL  MANAGEMENT,  LLC

By:_/s/  Douglas  H.  Leighton_____          Date  June  4,  2003
   ---------------------------
Name:  Douglas  H.  Leighton
Title:   A  Managing  Member

<PAGE>

                             COMPANY ACCEPTANCE PAGE
                             -----------------------

This  Investment  Agreement  accepted  and  agreed
to  on  June  2,  2003.

LocatePLUS  Holdings  Corporation

By  /s/  Jon  R.  Latorella____
    -----------------------
Jon  R.  Latorella,  President  and  Chief  Executive  Officer

<PAGE>
                                LIST OF EXHIBITS

EXHIBIT  A               Registration  Rights  Agreement
EXHIBIT  B               [reserved]
EXHIBIT  C               Reserved
EXHIBIT  D               Broker  Representation  Letter
EXHIBIT  E               Board  Resolution
EXHIBIT  F               Put  Notice
EXHIBIT  G               Put  Settlement  Sheet
EXHIBIT  H               Partial  Release  of  Put  Amount  and  Shares

                                LIST OF SCHEDULES
                                -----------------

Schedule  4(a)                 Subsidiaries
Schedule  4(c)                 Capitalization
Schedule  4(e)                 Conflicts
Schedule  4(g)                 Material  Changes
Schedule  4(h)                 Litigation
Schedule  4(l)                 Intellectual  Property
Schedule  4(n)                 Liens
Schedule  4(t)                 Certain  Transactions

<PAGE>

     EXHIBIT  A

<PAGE>

     EXHIBIT  B

<PAGE>

     EXHIBIT  C

<PAGE>

                                    EXHIBIT D

                              [BROKER'S LETTERHEAD]

Date
Via  Facsimile

Attention:
______________________
______________________
______________________

                       Re: LocatePLUS Holdings Corporation

Dear  __________________:

It  is  our understanding that the Form______ Registration Statement bearing SEC
File  Number ( ___-______) filed by LocatePLUS Holdings Corporation on Form SB-2
on  __________,  2003  was  declared  effective  on  _________,  2003.

This  letter  shall  confirm  that  ______________ shares of the common stock of
LocatePLUS  Holdings  Corp.  are  being sold on behalf of __________________ and
that we shall comply with the prospectus delivery requirements set forth in that
Registration  Statement  by  filing  the  same  with  the  purchaser.

If  you  have  any  questions  please  do  not  hesitate  to  call.

Sincerely,

______________________

cc:  .

<PAGE>

     EXHIBIT  E

<PAGE>

     EXHIBIT  F

Date:

RE:  Put  Notice  Number  __

Dear  Mr.  Leighton,

This  is  to  inform  you  that  as of today, LocatePLUS Holdings Corporation, a
Delaware  corporation  (the  "Company"),  hereby  elects  to  exercise its right
pursuant  to the Investment Agreement to require Dutchess Private Equities Fund,
LP. to purchase shares of its common stock.   The Company hereby certifies that:

The  amount  of  this  put  is  $__________.

The  Pricing  Period  runs  from  ________  until  _______.

The  current  number  of  shares  issued  and outstanding as of the Company are:

____________________

Regards,

________________________
Jon  R  Latorella
CEO

<PAGE>
                                    EXHIBIT G

                              PUT SETTLEMENT SHEET

Date:

Jon,

Pursuant  to  the  Put  given  by  LocatePLUS  Holdings Corpto Dutchess Private
Equities  Fund, L.P. on _________________ 200x, we are now submitting the amount
of  common  shares  for  you  to  issue  to  Dutchess.

Please  have  a  certificate  baring  no  restrictive legend totaling __________
shares  issued  to  Dutchess  Private Equities Fund, LP immediately and send via
DWAC  to  the  following  account:

XXXXXX

If  not  DWAC  eligible,  please  send  Fedex  Priority  Overnight  to:

XXXXXX

Once  these  shares  are  received  by  us,  we will have the funds wired to the
Company.

Regards,

Douglas  H.  Leighton

<PAGE>

                                        DATE              PRICE

                                        Date of Day 1     Closing Bid of Day 1
                                        Date of Day 2     Closing Bid of Day 2
                                        Date of Day 3     Closing Bid of Day 3
                                        Date of Day 4     Closing Bid of Day 4
                                        Date of Day 5     Closing Bid of Day 5
                                        Date of Day 6     Closing Bid of Day 6
                                        Date of Day 7     Closing Bid of Day 7
                                        Date of Day 8     Closing Bid of Day 8
                                        Date of Day 9     Closing Bid of Day 9
                                        Date of Day 10    Closing Bid of Day 10

LOWEST  1  (ONE)  CLOSING  BID  IN  PRICING  PERIOD

PUT  AMOUNT

AMOUNT  WIRED  TO  COMPANY

PURCHASE  PRICE  (95%  (NINETY-FIVE  PERCENT))

AMOUNT  OF  SHARES  DUE

The  undersigned has completed this Put as of this ___th day of _________, 20xx.

LocatePLUS  Holding  Corp.

________________________________
Jon  R.  Latorella,  CEO

<PAGE>
                                    EXHIBIT H

                  PARTIAL RELEASE OF PURCHASE AMOUNT AND SHARES

     LocatePLUS  Holdings  Corp,  Inc.
James  Fields
100  Cummings  Center,  Suite  235M
Beverly,  MA  01915
     Telephone:     978-921-2727
     Facsimile:     978-524-8767

Pursuant  to  the  terms  of  the Investment Agreement the Investor requests the
release  from  the Company of __________ shares of the Company's Common Stock by
overnight delivery or DWAC, if available, and the Investor, upon confirmation of
receipt of the Securities by the Investor, the Investor shall wire $____________
to  the  Company  within  two  (2)  Trading  Days  of  said  confirmation.
                            INVESTOR

                            By:

Note:  The  number  of  Shares  stated in this PARTIAL RELEASE OF PUT AMOUNT AND
----
SHARES  Form  shall  be equal to the dollar amount to be released divided by 95%
----
(ninety-five  percent)  of  the  lowest  closing bid price during that number of
--
Trading  Days  that  have  elapsed  in  the  specified  Pricing  Period.
--

<PAGE>

                           SCHEDULE 4(a)  SUBSIDIARIES

<PAGE>
                          SCHEDULE 4(c)  CAPITALIZATION

<PAGE>

                             SCHEDULE 4(e) CONFLICTS

<PAGE>
                         SCHEDULE 4(g)  MATERIAL CHANGES

<PAGE>
                            SCHEDULE 4(h)  LITIGATION

<PAGE>
                      SCHEDULE 4(l)  INTELLECTUAL PROPERTY

<PAGE>
                              SCHEDULE 4(n)  LIENS

<PAGE>
                       SCHEDULE 4(t)  CERTAIN TRANSACTIONS

<PAGE>

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