Document:

Exhibit 10.2

                                  NDS GROUP PLC
                    FORM OF FIXED CONDITIONAL AWARD AGREEMENT

By a deed dated [o] (the "Deed"), NDS Group plc (the "Company") granted on that
date a conditional award (the "Conditional Award") over American Depositary
Receipts ("ADRs") (each ADR representing one series A ordinary share, par value
US$0.01 per share of the Company ("Series A Ordinary Share")) to the individual
named below as the participant. The number of ADRs over which this Conditional
Award has been granted is set out in Section 1 ("ADRs subject to your
Conditional Award") below. Details of the vesting of this Conditional Award are
set out in Section 2 ("Vesting of your Conditional Award") below. The terms and
conditions of this Conditional Award are set out in this Fixed Conditional Award
Agreement (the "Agreement") and in the NDS 2006 Long-Term Incentive Plan,
including any applicable sub-plan (the "Plan"). Capitalized terms used below and
not otherwise defined in this Agreement have the meanings assigned to them in
the Plan.

Date of Grant:             [o]

Name of participant:       [o]

   If for any reason you do not wish to receive the Conditional Award you are
   able to disclaim it by contacting [o] at [o]. If you do not disclaim your
 Conditional Award you will be taken to have accepted it, and therefore will be
bound by all of the terms and conditions of your Conditional Award as set forth
 in this Agreement and the rules of the Plan in relation to it. You acknowledge
 that you have carefully reviewed the Plan and this Agreement and agree that in
   the event of any conflict between the rules of the Plan and the terms and
 conditions as set out in this Agreement, the rules of the Plan shall prevail.

           This is not a stock certificate or a negotiable instrument.

-------------------------------
Signed for and on behalf of NDS Group plc

<PAGE>

               SECTION 1 - ADRs SUBJECT TO YOUR CONDITIONAL AWARD
               --------------------------------------------------

Your Conditional Award is granted over [o] ADRs.

                  SECTION 2 - VESTING OF YOUR CONDITIONAL AWARD
                  ---------------------------------------------

The Conditional Award will vest, subject to your continued employment with the
Company, the rules of the Plan and the additional terms and conditions set out
below, as follows:

[o]

Each such date is referred to as a "Vesting Date".

            ADDITIONAL TERMS AND CONDITIONS OF YOUR CONDITIONAL AWARD
            ---------------------------------------------------------

Additional terms and conditions of this Conditional Award are set out below and
in the Plan (which is incorporated by reference).

Cessation of Employment           This Conditional Award is awarded to you on
                                  the condition that you remain employed by the
                                  Company, any Participating Company or any
                                  Associated Company. If you cease to be in
                                  Employment for any reason after the date of
                                  grant and before any Vesting Date, then any
                                  unvested portion of your Conditional Award
                                  will lapse and be forfeited immediately
                                  unless the Board of Directors of the Company
                                  (the "Board") determines otherwise.

Delivery of American Depositary   Settlement of any vested portion of your
Receipts                          vested Conditional Award shall be in the form
                                  of ADRs where each ADR represents one Series
                                  A Ordinary Share. As soon as is reasonably
                                  practical following each Vesting Date (but in
                                  any event within 30 days of each Vesting
                                  Date), you will be entitled to receive that
                                  number of ADRs over which your Conditional
                                  Award has vested. The ADRs payable under your
                                  Conditional Award shall be evidenced in such
                                  manner as deemed appropriate at the
                                  discretion of the Board.

Withholding Taxes                 You agree, as a condition of this Conditional
                                  Award, that you will make acceptable
                                  arrangements to pay any withholding or other
                                  taxes or social security contributions due as
                                  a result of the grant or vesting of any
                                  portion of your Conditional Award or your
                                  acquisition of ADRs relating to your
                                  Conditional Award. In the event that the
                                  Company, any Participating Company or any
                                  Associated Company determines that any
                                  applicable federal, state, local or foreign
                                  tax, withholding payment or social security
                                  contribution is required relating to your
                                  Conditional Award, the Company, such
                                  Participating Company or such Associated
                                  Company will have the right to: (i) require
                                  that you arrange to make such payments to the
                                  Company, such Participating Company or such
                                  Associated Company, (ii) withhold such
                                  amounts from other payments due to you from
                                  the Company, such Participating Company or
                                  such Associated Company or (iii) allow for
                                  the surrender of that number of ADRs granted
                                  to you pursuant to the Deed with a value
                                  equal to the withholding or other taxes due
                                  (for this purpose, surrendered ADRs will be
                                  valued using the closing price of the ADR on
                                  the NASDAQ Stock Market on the trading date
                                  immediately prior to the Vesting Date or such
                                  other mechanism as determined by your
                                  relevant tax authority).
<PAGE>

Retention and Other Rights        The grant of this Conditional Award does not
                                  give you the right to be retained or employed
                                  by the Company, any Participating Company or
                                  any Associated Company in any capacity. You
                                  waive all and any rights to any compensation
                                  or damages in relation to your Conditional
                                  Award or under the Plan in consequence of the
                                  termination of your office or Employment with
                                  the Company, any Participating Company or any
                                  Associated Company for any reason (including
                                  unlawful termination of employment). The
                                  grant of this Conditional Award is made on a
                                  fully discretionary basis by the Company and
                                  is a non-recurring benefit which does not
                                  give you any right to participate in any
                                  future grants of share incentive awards. The
                                  terms and conditions of this Conditional
                                  Award are only applicable to the Conditional
                                  Award granted pursuant to the Deed. In
                                  addition, this Conditional Award and the ADRs
                                  that may be issued to you under this
                                  Conditional Award are not and shall not be
                                  deemed a salary for any purpose whatsoever,
                                  including in connection with calculating
                                  severance compensation or pension entitlement
                                  under any applicable law.

Shareholder Rights                You, or your estate or heirs, do not have any
                                  of the rights of a shareholder of the
                                  Company, including, without limitation, the
                                  right to vote or to receive any dividends
                                  declared or paid on the Series A Ordinary
                                  Shares with respect to the Conditional Award,
                                  unless and until ADRs have been issued to
                                  you.

Transferability                   Your Conditional Award, and any ADRs awarded
                                  but not vested, may not be transferred,
                                  assigned or pledged, whether by operation of
                                  law or otherwise.

Adjustments                       In the event of a stock split or a similar
                                  change in the Company's shares, the number of
                                  ADRs covered by this Conditional Award will
                                  be adjusted (and rounded down to the nearest
                                  whole number) in accordance with the terms of
                                  the Plan.

Applicable Sub-Plan               Under the terms of the Plan, the Company can
                                  adopt additional sections of the rules of the
                                  Plan applicable in any jurisdiction under
                                  which the Conditional Awards may be subject
                                  to additional and/or modified terms and
                                  conditions, having regard to any securities,
                                  exchange control taxation or other applicable
                                  laws which may apply to you or the Company.
                                  If applicable, please review the information
                                  in the applicable sub-plan and/or prospectus
                                  in conjunction with this Agreement.

<PAGE>

Data Privacy                      In order to administer the Plan, the Company
                                  may process personal data about you. Such
                                  data includes, but is not limited to, the
                                  information provided in this Agreement or
                                  other appropriate personal and financial data
                                  about you, such as home address, business
                                  addresses and other contact information,
                                  payroll information and any other information
                                  that might be deemed appropriate by the
                                  Company to facilitate the administration of
                                  the Plan. By accepting this Conditional
                                  Award, you consent to the collection,
                                  processing, transmission (including to
                                  countries or territories outside the European
                                  Economic Area) and storage by the Company of
                                  any such personal data which is necessary for
                                  operating and administering the Plan.

Consent to Electronic Delivery    The Company may choose to deliver certain
                                  statutory materials relating to the Plan in
                                  electronic form. By accepting this
                                  Conditional Award you agree that the Company
                                  may deliver any notices or other
                                  communications in connection with the Plan to
                                  you in an electronic format. If at any time
                                  you would prefer to receive paper copies of
                                  these documents, as you are entitled to
                                  receive, NDS would be pleased to provide
                                  paper copies. Please contact [o] or send an
                                  email to [o] to request paper copies of these
                                  documents.

The Plan                          The text of the Plan is incorporated by
                                  reference in this Agreement. This Agreement
                                  and the Plan constitute the entire
                                  understanding between you and the Company
                                  regarding this Conditional Award. Any prior
                                  agreements, commitments or negotiations
                                  concerning this Conditional Award are
                                  superseded. This Agreement should be read in
                                  conjunction with the Plan. In the event of
                                  any conflict between the rules of the Plan
                                  and the terms and conditions as set out in
                                  this Agreement, the rules of the Plan shall
                                  prevail.

Confidentiality                   You acknowledge that you have read and
                                  understand the Company's policies on
                                  confidentiality as set forth in the News
                                  Corporation Standards of Business Conduct
                                  (which is applicable to employees of the
                                  Company) and the NDS Group plc Insider
                                  Trading and Confidentiality Policy
                                  (collectively, the "Confidentiality
                                  Policies") and hereby agree that during the
                                  course of your Employment and any time after
                                  your Employment is terminated, you will
                                  continue to abide by the terms of the
                                  Confidentiality Policies, including with
                                  respect to any materials or information you
                                  receive in connection with your Conditional
                                  Award. The Board may, in its sole discretion,
                                  determine that any breach of the
                                  Confidentiality Policies will cause any
                                  unvested portion of your Conditional Award to
                                  lapse.

<PAGE>

Acknowledgement Form              By accepting this Conditional Award, you agree
                                  to execute and complete the Acknowledgement
                                  Form attached at the end of this Agreement
                                  and return it to the Company in a timely
                                  manner and, in any event, no later than the
                                  deadline set forth in the Acknowledgement
                                  Form. If you do not return a properly
                                  executed and completed Acknowledgement Form
                                  to the Company prior to the first Vesting
                                  Date, the Company reserves the right to
                                  withhold delivery of the ADRs until such
                                  properly executed and completed
                                  Acknowledgement Form is submitted to the
                                  Company.

Severability                      The invalidity or non-enforceability of one of
                                  more provisions contained in this Agreement
                                  will not affect the validity or
                                  enforceability of the other provisions
                                  contained in this Agreement.

Governing Law                     The Plan, the Deed and this Agreement are
                                  governed by and construed in accordance with
                                  the law of England, and you will submit to
                                  the jurisdiction of the English courts in
                                  relation to anything arising under the Plan
                                  and / or in relation to your Conditional
                                  Award. The Board may determine that the law
                                  of another jurisdiction will apply to the
                                  operation of the Plan outside the United
                                  Kingdom.Exhibit 10.13

                             LIGHTSPACE CORPORATION

                           UNIT SUBSCRIPTION AGREEMENT
                                  COMMON STOCK
                                  AND WARRANTS

UNIT SUBSCRIPTION AGREEMENT dated as of March 30, 2007 (this "Agreement"), among
Lightspace Corporation,  a Delaware corporation (the "Company"), and the persons
who execute this agreement as investors (each an "Investor" and collectively the
"Investors").

Background:  The Company  desires to sell to the  Investors,  and the  Investors
desire to purchase,  up to four hundred  thousand  (400,000)  Units,  as defined
below.  The  proceeds of the sale of Units will be used in the  development  and
continuance of the business of the Company and each of its  Subsidiaries  and to
acquire  related  businesses and  technologies,  which may include  business and
technologies currently owned by former officers and employees of the Company.

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

Certain Definitions:

     "Action" has the meaning set forth in Section 2.10.

     "Affiliate"  means,  as to any Person,  any other Person that,  directly or
indirectly through one or more  intermediaries,  controls or is controlled by or
is under common control with such Person. As used in this definition,  "control"
(including,  with its  correlative  meanings,  "controlled by" and "under common
control with") shall mean possession, directly or indirectly, of power to direct
or cause the direction of management or policies  (whether through  ownership of
securities  or  partnership  or  other  ownership  interests,   by  contract  or
otherwise).

     "Amendment to Warrant Agreement" means Amendment 1 to the Warrant Agreement
in substantially  the form attached hereto as Exhibit 1A, providing for issuance
of the Purchased Warrants.

     "Blue Sky Laws" has the meaning set forth in Section 2.7(b).

     "Business  Day" means any day other than  Saturday,  Sunday or other day on
which commercial banks in The City of New York are authorized or required by law
to remain closed.

     "Certificate of Incorporation" has the meaning set forth in Section 2.2.

     "Closing Date" has the meaning set forth in Section 1.2.

<PAGE>

     "Closing" has the meaning set forth in Section 1.2.

     "Common  Stock"  means the  Company's  Common  Stock,  $.0001 par value per
share,  authorized as of the date hereof,  and any stock of any class or classes
(however designated) hereafter authorized upon reclassification  thereof, which,
if the Board of Directors declares a dividend or distribution,  has the right to
participate in the  distribution of earnings and assets of the Company after the
payment of dividends or other  distributions  on any shares of capital  stock of
the  Company  entitled  to a  preference  and in the voting for the  election of
directors of the Company.

     "Company"  has the meaning set forth at the head of this  Agreement and any
corporation  or other  entity  which  shall  succeed to or assume,  directly  or
indirectly,  the obligations of the Company  hereunder.  The term  "corporation"
shall include an  association,  joint stock  company,  business  trust,  limited
liability company or other similar organization.

     "Company IP" has the meaning set forth in Section 2.12(a).

     "Convertible  Security"  means  any (i)  option  to  purchase  or  right to
subscribe  for Common  Stock,  (ii)  security by its terms  convertible  into or
exchangeable  for Common Stock or (iii) option to purchase or right to subscribe
for such convertible or exchangeable securities.

     "Contemplated Transactions" has the meaning set forth in Section 2.1(b).

     "Exchange Act" has the meaning set forth in Section 2.7(b).

     "Financial Statements" has the meaning set forth in Section 2.9(c).

     "Governmental Body" has the meaning set forth in Section 2.7(b).

     "Indemnified Party" has the meaning set forth in Section 5.2(b).

     "Indemnifying Party" has the meaning set forth in Section 5.2(c).

     "Investor" shall mean each Investor who purchases Units hereunder.

     "Knowledge"  shall mean, with respect to a particular fact or other matter,
the knowledge, after reasonable investigation, of the Chief Executive Officer or
Chief Financial Officer of the Company.

     "Legal Requirement" has the meaning set forth in Section 2.8.

     "Losses" has the meaning set forth in Section 5.2(b).

                                       2
<PAGE>

     "Material Adverse Effect" has the meaning set forth in Section 2.1(a).

     "Material Agreement" has the meaning set forth in Section 2.7.

     "Notice" has the meaning set forth in Section 6.6.

     "Other Securities" has the meaning set forth in the Purchased Warrants.

     "Person"   means  any   individual,   sole   proprietorship,   partnership,
corporation,   limited  liability   company,   business  trust,   unincorporated
association, joint stock corporation,  trust, joint venture or other entity, any
university  or  similar  institution,   or  any  government  or  any  agency  or
instrumentality or political subdivision thereof.

     "Purchased Shares" has the meaning set forth in Section 1.1(a).

     "Purchased Warrants" has the meaning set forth in Section 1.1(a).

     "Registration  Rights  Agreement"  has the  meaning  set  forth in  Section
1.3(a).

     "Risk  Factors"  means  the risk  factors  in the form  attached  hereto as
Exhibit 3.

     "Rule 144"  means  Rule 144  promulgated  under the  Securities  Act or any
successor or substitute rule, law or provision.

     "SEC" means the Securities and Exchange Commission.

     "SEC Documents" has the meaning set forth in Section 2.9(a).

     "Securities" has the meaning set forth in Section 1.1(a).

     "Securities Act" has the meaning set forth in Section 2.5.

     "Subsidiary"  means any  significant  subsidiary  (as  defined  under  Rule
1.02(w) of Regulation S-X promulgated by the SEC) of the Company.

     "Transaction Documents" has the meaning set forth in Section 1.3(a).

     "Underlying   Securities"  means  the  shares  of  Common  Stock  or  Other
Securities issued or from time to time issuable upon exercise of the Warrants.

                                       3
<PAGE>

     "Unit" means a unit  consisting of (i) eight shares of Common  Stock,  (ii)
eight  Warrants to purchase one share of Common Stock at $1.00 per share,  (iii)
two  Warrants to purchase  one share of Common Stock at $1.25 per share and (iv)
two Warrants to purchase one share of Common Stock at $1.63 per share.

         "Warrant Agreement" means the Warrant Agreement between the Company and
Continental Stock Transfer & Trust Company, dated May 5, 2006 as amended from
time to time including without limitation by the Amendment to Warrant Agreement,
in the form attached hereto as Exhibit 1B.

     "Warrants"  means  Warrants  as defined  in, and  issued  pursuant  to, the
Warrant Agreement.

     1. Purchase and Sale of Units.

          1.1. Sale and Issuance of Securities.

            (a) The Company shall sell to the Investors and the Investors  shall
purchase  from the Company,  up to 400,000  Units,  at a price per Unit equal to
$6.40.  The Shares sold as part of the Units are  referred to as the  "Purchased
Shares" and the Unit  Warrants  sold as part of the Units are referred to as the
"Purchased   Warrants"  and  collectively   with  the  Purchased   Shares,   the
"Securities".

            (b) The number of  Purchased  Shares and  Purchased  Warrants  to be
purchased by each Investor  from the Company is set forth on the signature  page
here, subject to acceptance, in whole or in part, by the Company.

          1.2.  Closings.  On and after March 30, 2007, the Company shall accept
subscriptions under this Agreement.  The closing (the "Closing") of the purchase
and sale of the  Securities  hereunder  shall take place no later than April 16,
2007 or such other date  thereafter,  but no later  than April 30,  2007,  as is
agreed to by the Company and  Investors who subscribe for at least 100,000 Units
(the  "Closing  Date").  The  Closing  shall take place at the offices of Hahn &
Hessen LLP,  counsel for the Company,  in New York,  New York,  or at such other
location as is mutually acceptable to the Investors and the Company,  subject to
fulfillment of the conditions to the Closing set forth in the Agreement.  At the
Closing:

            (a) each Investor purchasing Securities at the Closing shall deliver
to the Company or its designees by wire transfer or such other method of payment
as the Company  shall  approve,  an amount  equal to the  purchase  price of the
Securities  purchased by such  Investor  hereunder,  as set forth  opposite such
Investor's name on the signature pages hereof; and

            (b) the  Company  shall  authorize  its  transfer  agent to  arrange
delivery to each Investor of one or more  certificates  for Units  registered in
the name of the  Investor,  or in such  nominee  name(s)  as  designated  by the
Investor in writing, representing the number of Units as set forth opposite such
Investor's name on the signature page hereof.

                                       4
<PAGE>

          1.3. Investors' Conditions to Closing. The obligation of the Investors
to  complete  the  purchase of the  Securities  at the Closing is subject to the
Company delivering  Securities as set forth in Section 1.2 and to fulfillment of
the following conditions:

            (a) the  Company  shall  execute  and  deliver  to the  Investors  a
Registration  Rights Agreement,  dated the Closing Date, in the form attached as
Exhibit 2 with respect to the  Purchased  Shares and the  Underlying  Securities
(the  "Registration  Rights  Agreement",  and with the  Agreement,  the  Warrant
Agreement and the Purchased Warrants, the "Transaction Documents");

            (b) the  representations  and warranties of the Company set forth in
this Agreement shall be true and correct in all material respects as of the date
of this  Agreement  and as of the  Closing  Date as though made on and as of the
Closing Date (except to the extent such  representations and warranties speak as
of an earlier date, in which case such  representations  and warranties shall be
true and correct in all  material  respects as of such  earlier  date),  and the
Company  shall have  performed in all material  respects all covenants and other
obligations  required to be performed by it under this  Agreement at or prior to
the applicable Closing Date;

            (c) the Company and Continental Stock Transfer & Trust Company shall
have entered into the Amendment to Warrant Agreement; and

            (d)  the  Company  shall  have  executed  and  delivered  all  other
documents reasonably requested by the Investors.

          1.4. Company's Conditions to Closing. The obligation of the Company to
complete the sale of the  Securities at the Closing is subject to fulfillment of
the following conditions:

               (i)  Investors  shall  execute  and  deliver to the  Company  the
          Registration Rights Agreement; and

               (ii) the  representations  and  warranties of such  Investors set
          forth in this  Agreement  shall be true and  correct as of the date of
          this  Agreement and as of the Closing Date as though made on and as of
          the  Closing  Date  (except to the  extent  such  representations  and
          warranties   speak  as  of  an  earlier  date),  in  which  case  such
          representations  and  warranties  shall  be true  and  correct  in all
          material  respects as of such earlier date, and such  Investors  shall
          have  performed  in all  material  respects  all  covenants  and other
          obligations required to be performed by them under this Agreement,  if
          any, at or prior to the Closing Date.

     2.  Representations  and  Warranties  of the  Company.  The Company  hereby
represents and warrants to each of the Investors as follows:

          2.1. Corporate Organization; Authority; Due Authorization.

                                       5
<PAGE>

            (a)  The  Company  (i)  is a  corporation  duly  organized,  validly
existing  and in  good  standing  under  the  laws  of the  jurisdiction  of its
incorporation,  (ii) has the  corporate  power and authority to own or lease its
properties as and in the places where its business is now conducted and to carry
on its  business  as now  conducted,  and (iii) is duly  qualified  as a foreign
corporation authorized to do business in every jurisdiction where the failure to
so qualify,  individually  or in the  aggregate,  would have a material  adverse
effect on the operations,  assets, liabilities,  financial condition or business
of the  Company  and its  Subsidiaries  taken  as a whole (a  "Material  Adverse
Effect").  Each Subsidiary is duly  incorporated,  validly  existing and in good
standing under the laws of its jurisdiction of incorporation and is qualified to
do business as a foreign corporation in each jurisdiction in which qualification
is required,  except where failure to so qualify would not have, individually or
in the aggregate, a Material Adverse Effect.

            (b) The Company (i) has the requisite  corporate power and authority
to  execute,  deliver  and  perform  this  Agreement  and the other  Transaction
Documents to which it is a party and to incur the obligations herein and therein
and (ii) has been  authorized  by all  necessary  corporate  action to  execute,
deliver and perform this Agreement and the other Transaction  Documents to which
it is a party and to consummate the transactions contemplated hereby and thereby
(the  "Contemplated  Transactions").  This  Agreement  is and each of the  other
Transaction  Documents  will  be on  each  Closing  Date  a  valid  and  binding
obligation of the Company  enforceable  in  accordance  with its terms except as
limited by  applicable  bankruptcy,  reorganization,  insolvency,  moratorium or
similar laws affecting the enforcement of creditors' rights and the availability
of equitable remedies  (regardless of whether such  enforceability is considered
in a proceeding at law or equity).

          2.2.  Capitalization.  Except as  contemplated by this Agreement or as
set  forth in the SEC  Documents,  there are (A) no  outstanding  subscriptions,
warrants,   options,   conversion  privileges  or  other  rights  or  agreements
obligating  the Company to purchase or otherwise  acquire or issue any shares of
capital  stock of the  Company (or shares  reserved  for such  purpose),  (B) no
preemptive  rights  or  rights  of  first  refusal  contained  in the  Company's
Certificate of Incorporation,  as amended (the "Certificate of  Incorporation"),
the  By-laws of the  Company or  contracts  to which the Company is a party with
respect to the  issuance of  additional  shares of capital  stock of the Company
(other  than as set  forth  in the  Registration  Rights  Agreement),  including
without  limitation the Securities  and the  Underlying  Securities,  and (C) no
commitments  or  understandings  (oral or  written)  of the Company to issue any
shares,  warrants,  options or other rights to acquire any equity  securities of
the Company other than with respect to existing  antidilution rights of existing
investors. To the Company's Knowledge, except as set forth in the SEC Documents,
none of the shares of Common Stock are subject to any  stockholders'  agreement,
voting trust agreement or similar  arrangement or  understanding.  Except as set
forth in the SEC Documents,  the Company has no outstanding  bonds,  debentures,
notes or other obligations the holders of which have the right to vote (or which
are  convertible  into or exercisable  for securities  having the right to vote)
with the stockholders of the Company on any matter.

          2.3.  Validity of Securities.  The issuance of the Securities has been
duly  authorized  by all necessary  corporate  action on the part of the Company
and,  when issued to,  delivered to, and paid for by the Investors in accordance
with this Agreement, the Purchased Shares will be validly issued, fully paid and
non-assessable.

                                       6
<PAGE>

          2.4. Underlying Securities.  The issuance of the Underlying Securities
upon  exercise  of the  Purchased  Warrants  has been duly  authorized,  and the
Underlying  Securities  at all times prior to such  exercise will have been duly
reserved for issuance upon such  exercise  and, when so issued,  will be validly
issued, fully paid and non assessable.

          2.5. Private  Offering.  Neither the Company nor anyone  authorized to
act on its  behalf has within  the last 12 months  issued,  sold or offered  any
security of the Company  (including,  without  limitation,  any Common  Stock or
warrants  of  similar  tenor to the  Purchased  Warrants)  to any  Person  under
circumstances  that would  cause the  issuance  and sale of the  Securities,  as
contemplated by this Agreement, to the Company's Knowledge, to be subject to the
registration requirements of Section 5 of the Securities Act of 1933, as amended
(the  "Securities  Act"). The Company agrees that neither the Company nor anyone
authorized to act on its behalf will offer the Securities or any part thereof or
any similar  securities for issuance or sale to, or solicit any offer to acquire
any of the  same  from,  anyone  so as to  make  the  issuance  and  sale of the
Securities  subject  to  the  registration  requirements  of  Section  5 of  the
Securities Act.

          2.6.  Brokers and  Finders.  The Company has not  retained any broker,
investment banker or finder in connection with the Contemplated Transactions.

          2.7. No Conflict; Required Filings and Consents.

            (a) The  execution,  delivery and  performance of this Agreement and
the other  Transaction  Documents by the Company do not, and the consummation by
the Company of the  Contemplated  Transactions  will not, (i)  conflict  with or
violate the  Certificate of  Incorporation  or the By-laws of the Company or its
Subsidiaries,  (ii) conflict with or violate any law, rule,  regulation,  order,
judgment or decree applicable to the Company or its Subsidiaries or by which any
property or asset of the Company or its  Subsidiaries  is bound or affected,  or
(iii)  result in any breach of or  constitute  a default (or an event which with
notice or lapse of time or both  would  become a default)  under,  result in the
loss of a material  benefit  under,  or give to others any right of  purchase or
sale, or any right of termination,  amendment, acceleration,  increased payments
or cancellation of, or result in the creation of a lien or other  encumbrance on
any property or asset of the Company or of any of its Subsidiaries  pursuant to,
any material  note,  bond,  mortgage,  indenture,  contract,  agreement,  lease,
license,  permit,  franchise  or other  instrument  or  obligation  to which the
Company or any of its  Subsidiaries is a party or by which the Company or of any
of its  Subsidiaries  or any  property  or asset of the Company or of any of its
Subsidiaries is bound or affected (the "Material  Agreements");  except,  in the
case of  clauses  (ii) and  (iii)  above,  for any such  conflicts,  violations,
breaches,  defaults  or  other  occurrences  that  would  not  prevent  or delay
consummation of any of the Contemplated  Transactions in any material respect or
otherwise  prevent  the  Company  from  performing  its  obligations  under this
Agreement or any of the other Transaction Documents in any material respect, and
would not, individually or in the aggregate, have a Material Adverse Effect.

                                       7
<PAGE>

            (b) The  execution  and  delivery  of this  Agreement  and the other
Transaction  Documents  by the  Company  do  not,  and the  performance  of this
Agreement  and the  other  Transaction  Documents  and the  consummation  by the
Company of the Contemplated  Transactions will not,  require,  on the part or in
respect of the Company,  any consent,  approval,  authorization or permit of, or
filing with or notification to, any Governmental  Body (as hereinafter  defined)
except for the filing of a Form D with the SEC and applicable  requirements,  if
any, of the Securities  Exchange Act of 1934, as amended (the "Exchange Act") or
any state securities or "blue sky" laws (collectively, "Blue Sky Laws"), and any
approval  required by  applicable  rules of the  markets in which the  Company's
securities are traded. For purposes of this Agreement, "Governmental Body" shall
mean  any:  (i)  nation,  state,  commonwealth,   province,  territory,  county,
municipality, district or other jurisdiction of any nature in the United States;
(ii) federal,  state, local,  municipal,  foreign or other government;  or (iii)
governmental  or  quasi-governmental  authority  of any  nature  (including  any
governmental  division,   department,   agency,   commission,   instrumentality,
official, organization, unit, body or entity and any court or other tribunal) in
the United States.

          2.8.  Compliance.  Except  as set  forth  in the SEC  Documents  or in
Section  2.8 of the  Company  Disclosure  Letter,  neither  the  Company nor any
Subsidiary is in conflict with, or in default or violation of (i) any law, rule,
regulation,  order,  judgment  or  decree  applicable  to the  Company  or  such
Subsidiary  or by which any property or asset of the Company or such  Subsidiary
is bound or affected ("Legal Requirement"),  or (ii) any Material Agreement,  in
each case except for any such conflicts,  defaults or violations that would not,
individually or in the aggregate,  have a Material  Adverse Effect.  Neither the
Company  nor  any   Subsidiary   has  received  any  written   notice  or  other
communication  from any  Governmental  Body  regarding  any  actual or  possible
violation of, or failure to comply with, any Legal Requirement,  except any such
violations or failures that would not, individually or in the aggregate,  have a
Material Adverse Effect.

          2.9. SEC Documents; Financial Statements.

            (a) The information  contained in the following documents,  did not,
as of the date of the  applicable  document,  include 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
in which they were made, not misleading, as of their respective filing dates or,
if amended,  as so amended  (the  following  documents,  collectively,  the "SEC
Documents"),  provided that the  representation in this sentence shall not apply
to any  misstatement  or omission in any SEC Document filed prior to the date of
this Agreement  which was superseded by a subsequent SEC Document filed prior to
the date of this Agreement:

               (i) the  Company's  Annual Report on Form 10-K for the year ended
          December 31, 2006;

               (ii)  the  Company's   interim  filings  on  Form  8-K  or  other
          appropriate  forms filed on any date after December 31, 2006 and on or
          before each Closing.

            (b) The Company has filed all forms,  reports and documents required
to be filed by it with the SEC  prior to the date of this  Agreement,  including
without  limitation the SEC Documents.  As of their  respective  dates,  the SEC
Documents  filed  prior to the date hereof  complied as to form in all  material
respects with the applicable  requirements  of the Securities  Act, the Exchange
Act, and the rules and regulations thereunder.

                                       8
<PAGE>

            (c) The  Company's  Annual  Report on Form  10-K for the year  ended
December 31, 2006, includes  consolidated balance sheets as of December 31, 2005
and 2006 and  consolidated  statements  of income for the one year  periods then
ended (collectively, the "Financial Statements").

            (d) The  Financial  Statements  (including  the  related  notes  and
schedules  thereto)  fairly  present in all material  respects the  consolidated
financial position, the results of operations,  retained earnings or cash flows,
as the case may be, of the Company for the periods set forth  therein  (subject,
in the case of unaudited  statements,  to normal year-end audit adjustments that
would not be  material  in amount or effect),  in each case in  accordance  with
generally accepted accounting principles consistently applied during the periods
involved, except as may be noted therein.

          2.10. Litigation.  Except as set forth in the SEC Documents, there are
no claims,  actions, suits,  investigations,  inquiries or proceedings (each, an
"Action")  pending  against  the Company or any of its  Subsidiaries  or, to the
Knowledge  of  the  Company,  threatened  against  the  Company  or  any  of its
Subsidiaries,  at  law or in  equity,  or  before  or by  any  court,  tribunal,
arbitrator,  mediator or any federal or state commission,  board, bureau, agency
or instrumentality,  that, individually or in the aggregate, would reasonably be
expected  to have a  Material  Adverse  Effect.  Except  as set forth in the SEC
Documents,  neither  the Company  nor any of its  Subsidiaries  is a party to or
subject to the provisions of any order, writ, injunction,  judgment or decree of
any court or government agency or instrumentality  that,  individually or in the
aggregate, would reasonably be expected to have a Material Adverse Effect.

          2.11. Absence of Certain Changes. Except as specifically  contemplated
by this Agreement or as set forth in the SEC Documents, since December 31, 2006,
there has not been (a) any material adverse change in the business, prospects or
financial  condition of the Company;  (b) any dividends or other distribution of
assets  to  stockholders  of  the  Company;  (c)  any  acquisition  (by  merger,
consolidation, acquisition of stock and/or assets or otherwise) of any Person by
the  Company;  or (d) any  transactions,  other than in the  ordinary  course of
business,  consistent in all material respects with past practices,  with any of
its officers,  directors or principal  stockholders  or any of their  respective
Affiliates.

          2.12. Intellectual Property.

            (a) To the  Knowledge  of the  Company it owns,  or has the right to
use,  sell or license all  intellectual  property  reasonably  required  for the
conduct of its business as presently conducted (collectively,  the "Company IP")
except  for any  failure to own or have the right to use,  sell or  license  the
Company IP that would not have a Material Adverse Effect.

            (b) The  execution,  delivery and  performance of this Agreement and
the consummation of the transactions  contemplated  hereby will not constitute a
breach of any  instrument or agreement  governing any Company IP, will not cause
the  forfeiture  or  termination  or  give  rise  to a right  of  forfeiture  or
termination  of  any  Company  IP  or  impair  the  right  of  Company  and  its
Subsidiaries  to use, sell or license any Company IP, except for the  occurrence
of any such  breach,  forfeiture,  termination  or  impairment  that  would not,
individually or in the aggregate, result in a Material Adverse Effect.

                                       9
<PAGE>

            (c) (i) None of the manufacture, marketing, license, sale and use of
any product currently licensed or sold by the Company or any of its Subsidiaries
violates any license or agreement between the Company or any of its Subsidiaries
and  any  third  party  or,  to the  Knowledge  of the  Company,  infringes  any
intellectual property right of any other party; and (ii) there is no pending or,
to the Knowledge of the Company,  threatened claim or litigation  contesting the
validity, ownership or right to use, sell, license or dispose of any Company IP;
except, with respect to clauses (i) and (ii), for any violations, infringements,
claims or litigations that would not,  individually or in the aggregate,  have a
Material Adverse Effect.

          2.13. No Adverse  Actions.  Except as set forth in the SEC  Documents,
there is no existing,  pending or, to the  Knowledge of the Company,  threatened
termination,  cancellation,  limitation,  modification or change in the business
relationship  of the  Company  or any of its  Subsidiaries,  with any  supplier,
customer  or other  Person  except  such as would not  reasonably  be  expected,
individually or in the aggregate, to have a Material Adverse Effect.

          2.14.  Registration  Rights.  Except as set forth in the  Registration
Rights  Agreement  or in  the  SEC  Documents,  the  Company  is not  under  any
obligation to register under the Securities Act any of its currently outstanding
securities  or any  securities  issuable  upon  exercise  or  conversion  of its
currently  outstanding  securities  nor is the Company  obligated to register or
qualify any such securities under any Blue Sky Laws.

          2.15.  Disclosure.  On or before 9:00 a.m., New York City Time, on the
fourth  Business  Day after the Closing,  the Company  shall file with the SEC a
Current Report on Form 8-K  describing  the material  terms of the  Contemplated
Transactions,  and  attaching  as  exhibits  to such  Form  8-K  copies  of this
Agreement and the other  Transaction  Documents,  as required by the SEC. Except
for  information  that  may  be  provided  to the  Investors  pursuant  to  this
Agreement,  the Company shall not, and shall use commercially reasonable efforts
to cause each of its officers,  directors,  employees and agents not to, provide
any Investor with any material nonpublic  information regarding the Company from
and after the filing of such Form 8-K  without the  express  written  consent of
such Investor.

          2.16. Use of Proceeds.  The net proceeds  received by the Company from
the sale of the Securities  shall be used by the Company for working capital and
general corporate purposes,  including without limitation a possible acquisition
of  additional  assets and  technologies  relating to its business from a former
officer.

     3.   Representations  and  Warranties  of  the  Investors.   Each  Investor
represents and warrants to the Company as follows:

          3.1. Authorization. If an entity, such Investor (i) is duly organized,
validly  existing and in good standing under the laws of the jurisdiction of its
organization,  and (ii) has the power and  authority  to own and hold the Units.
Such Investor (i) has full power and  authority to execute,  deliver and perform
this Agreement and the other Transaction Documents to which it is a party and to
incur  the  obligations  herein  and  therein  and (ii) if  applicable  has been
authorized by all necessary  corporate or equivalent action to execute,  deliver
and perform this Agreement and the other Transaction Documents and to consummate
the  Contemplated  Transactions.  This  Agreement  is  and  each  of  the  other
Transaction  Documents  will be upon the execution  and delivery by Investor,  a
valid and binding obligation of such Investor enforceable in accordance with its
terms, except as limited by applicable bankruptcy,  reorganization,  insolvency,
moratorium or similar laws affecting the  enforcement  of creditors'  rights and
the   availability   of   equitable   remedies   (regardless   of  whether  such
enforceability is considered in a proceeding at law or equity).

                                       10
<PAGE>

          3.2. Brokers and Finders.  Except for Griffin Securities,  Inc., which
shall receive (i) a cash commission of 5% of the aggregate Purchase Price of the
Securities and (ii) a five year warrant  exercisable to purchase at the Purchase
Price a number  of Units  equal to 10% of the  number of Units  sold  hereunder,
Investor has either not retained an investment banker,  broker or finder, or has
provided the name and  information  concerning  such entity to the Company on or
prior to the applicable Closing Date.

          3.3. No Governmental  Review. Such Investor understands that no United
States Federal or state agency or any other  Governmental  Body has passed on or
made any  recommendation  or  endorsement  of the  Securities or the fairness or
suitability  of the  investment  in the  Securities  nor has any agency or other
Governmental  Body  passed upon or  endorsed  the merits of the  offering of the
Securities.

          3.4. No Conflict; Required Filings and Consents.

            (a) The  execution,  delivery and  performance of this Agreement and
the other Transaction Documents by each Investor do not, and the consummation by
such Investor of the Contemplated Transactions will not, (i) if such Investor is
an entity,  conflict with or violate the  Certificate  of  Incorporation  or the
By-laws (or equivalent or comparable documents) of such Investor,  (ii) conflict
with or violate any law, rule, regulation,  order, judgment or decree applicable
to such  Investor or by which any property or asset of such Investor is bound or
affected,  or (iii) result in any breach of or constitute a default (or an event
which with notice or lapse of time or both would become a default) under, result
in the loss of a material benefit under, or give to others any right of purchase
or  sale,  or any  right  of  termination,  amendment,  acceleration,  increased
payments  or  cancellation  of,  or result  in the  creation  of a lien or other
encumbrance  on any  property or asset of such  Investor  pursuant to, any note,
bond,  mortgage,   indenture,   contract,  agreement,  lease,  license,  permit,
franchise or other instrument or obligation to which such Investor is a party or
by which such  Investor or any  property  or asset of such  Investor is bound or
affected;  except,  for any such conflicts,  violations,  breaches,  defaults or
other  occurrences  that would not prevent or delay  consummation  of any of the
Contemplated  Transactions  in any material  respect or  otherwise  prevent such
Investor from  performing  its  obligations  under this  Agreement or any of the
other Transaction Documents in any material respect.

            (b) The  execution  and  delivery  of this  Agreement  and the other
Transaction  Documents  by each  Investor do not,  and the  performance  of this
Agreement  and the other  Transaction  Documents  and the  consummation  by such
Investor of the Contemplated  Transactions will not, require,  on the part or in
respect of such Investor, any consent, approval,  authorization or permit of, or
filing with or notification to, any Governmental Body.

     4. Securities Laws.

                                       11
<PAGE>

          4.1. Securities Laws Representations and Covenants of Investors.

            (a) Each Investor  represents and warrants to the Company that: this
Agreement  is made by the  Company  with such  Investor  in  reliance  upon such
Investor's  representation to the Company, which by such Investor's execution of
this Agreement such Investor hereby confirms, that the Securities to be received
by such  Investor  will be  acquired  for  investment  for such  Investor's  own
account,  not as a  nominee  or  agent,  and not  with a view to the  resale  or
distribution  of any part thereof such that such Investors  would  constitute an
"underwriter"  under the Securities Act; provided that this  representation  and
warranty  shall  not  limit  (i) the  Investor's  right to sell  the  Underlying
Securities  pursuant to the Registration  Rights Agreement or in compliance with
an exemption from  registration  under the Securities Act and in compliance with
all applicable  Federal Securities laws and Blue Sky Laws or (ii) the Investor's
right to  indemnification  under this  Agreement,  if any,  or the  Registration
Rights Agreement, if any.

            (b) Each Investor understands and acknowledges that (i) the offering
of the Securities  pursuant to this  Agreement will not be registered  under the
Securities  Act or  qualified  under any Blue Sky Laws on the  grounds  that the
offering  and  sale  of  the  Securities  are  exempt  from   registration   and
qualification,  respectively,  under the  Securities  Act and the Blue Sky Laws,
(ii) nothing in this Agreement or any of the other  Transaction  Documents or in
any other materials presented by or on behalf of the Company to such Investor in
connection with the purchase of Securities  constitutes legal, tax or investment
advice,  (iii) such  Investor  has  consulted  such  legal,  tax and  investment
advisors as it, in its sole  discretion,  has deemed necessary or appropriate in
connection  with its  purchase  of  Securities,  (iv)  except as provided in the
Registration  Rights  Agreement,  the Company has not undertaken to register the
Securities  pursuant to the Securities Act and will have no obligation to effect
on behalf of any Investor any registration or qualification under the Securities
Act or under any Blue Sky Laws or to assist any Investor in  complying  with any
exemption from  registration or qualification  under the Securities Act or under
any Blue Sky Laws and (v) if the Securities have not been  registered  under the
Securities  Act and Rule 144 is not  applicable,  any  resale of the  Securities
under  circumstances in which the seller (or the Person through whom the sale is
made)  may be  deemed  to be an  underwriter  (as that  term is  defined  in the
Securities  Act) may  require  compliance  with some other  exemption  under the
Securities Act or the rules and regulations of the SEC thereunder.

            (c) Each Investor  covenants that, unless the Purchased Shares,  the
Purchased  Warrants,  the  Underlying  Securities or any other shares of capital
stock of the Company  received in respect of the foregoing have been  registered
pursuant to the  Registration  Rights  Agreement  being  entered  into among the
Company and the  Investors,  such Investor  will not dispose of such  securities
unless and until such  Investor  shall have notified the Company of the proposed
disposition  and shall have  furnished  the  Company  with an opinion of counsel
reasonably  satisfactory in form and substance to the Company to the effect that
(x) such disposition will not require  registration under the Securities Act and
(y)  appropriate  action  necessary for compliance  with the Securities Act, all
applicable Blue Sky Laws and any other  applicable  state,  local or foreign law
has  been  taken;  provided,  however,  that an  Investor  may  dispose  of such
securities  without  providing the opinion  referred to above if the sale of the
securities is made in reliance on, and in accordance with the terms of Rule 144.

                                       12
<PAGE>

            (d) Each Investor  represents to the Company that: (i) such Investor
is able to fend for itself in the Contemplated Transactions;  (ii) such Investor
has such  knowledge and  experience  in financial and business  matters as to be
capable  of  evaluating  the  merits  and risks of such  Investor's  prospective
investment in the  Securities  and has so evaluated the merits and risks of such
investment;  (iii) such  Investor has the ability to bear the economic  risks of
such Investor's  prospective investment and can afford the complete loss of such
investment;  (iv) such Investor has been furnished with and has reviewed the SEC
Documents;  (v) such Investor has been furnished with and has had access to such
information as is in the SEC Documents,  together with the opportunity to obtain
such  additional  information  as it  requested  to verify the  accuracy  of the
information  contained  therein or otherwise  supplied to such  Investor so that
such  Investor  can make an  informed  investment  decision  with  respect to an
investment in the  Securities;  (vi) such Investor has had access to officers of
the Company and an opportunity to ask questions of and receive answers from such
officers  and has had all  questions  that  have  been  asked  by such  Investor
satisfactorily  answered by the  Company;  (vii) such  Investor has reviewed the
Risk  Factors  attached  hereto as Exhibit 3, and (viii)  such  Investor  is not
subscribing  to purchase  the  Securities  as a result of or  subsequent  to any
advertisement,   article,   notice  or  other  communication  published  in  any
newspaper,  magazine or similar media or broadcast over  television or radio, or
presented at any seminar or meeting,  or any solicitation of a subscription by a
Person not previously  known to such Investor in connection with  investments in
securities generally.

            (e) Each Investor  represents to the Company that: (i) such Investor
(A) was  qualified  at the time such  Investor was offered the  securities,  (B)
qualifies on the date hereof,  and (C) will  qualify on the  applicable  Closing
Date,  as an  "accredited  investor"  as such  term is  defined  under  Rule 501
promulgated  under the  Securities  Act. Any Investor that is a  corporation,  a
partnership,  a limited  liability  company,  a trust or other  business  entity
further represents to the Company that it has not been organized for the purpose
of purchasing the Securities.

            (f) By  acceptance  hereof,  each  Investor  acknowledges  that  the
Purchased  Shares,  the Purchased  Warrants,  the Underlying  Securities and any
shares of capital stock of the Company received in respect of the foregoing held
by it may not be sold by such Investor without registration under the Securities
Act or an exemption  therefrom,  and therefore  such Investor may be required to
hold such securities for an indeterminate period.

            (g) In  connection  with any  transfer  of  Securities  made by each
Investor in compliance with the provisions of this Agreement, such Investor will
cause each proposed transferee of such Securities to agree and take hold of such
Securities subject to the provisions of this Agreement.

            (h) The Investor  will not,  directly or  indirectly,  except (as to
each of clauses (i), (ii) and (iii) below) in compliance  with (that is, only to
the extent required to comply with) the Securities Act and such other securities
or Blue Sky laws as may be  applicable,  (i) offer,  sell,  pledge,  transfer or
otherwise  dispose of (or  solicit  any  offers to buy,  purchase  or  otherwise
acquire or take a pledge  of) any of the  Securities,  (ii)  engage in any short
sale which results in a  disposition  of any of the  Securities by Investor,  or
(iii) hedge the economic risk of the Investor's investment in the Securities.

                                       13
<PAGE>

            (i) The  representations,  warranties and covenants of each Investor
in this Agreement are made severally and not jointly.

          4.2.  Legends.  All certificates for the Purchased  Shares,  Purchased
Warrants and the Underlying  Securities,  and each certificate  representing any
shares of capital  stock of the Company  received  in respect of the  foregoing,
whether by reason of a stock split or share  reclassification  thereof,  a stock
dividend  thereon or otherwise,  and each  certificate  for any such  securities
issued to  subsequent  transferees  of any such  certificate  (unless  otherwise
permitted herein) shall bear the following legend:

               "THE SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE BEEN ACQUIRED
               FOR INVESTMENT AND HAVE NOT BEEN REGISTERED  UNDER THE SECURITIES
               ACT OF 1933, AS AMENDED ("THE SECURITIES ACT"), AND, ACCORDINGLY,
               MAY  NOT BE  OFFERED  OR SOLD  EXCEPT  PURSUANT  TO AN  EFFECTIVE
               REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
               AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE
               REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN COMPLIANCE
               WITH APPLICABLE STATE SECURITIES LAWS OR BLUE SKY LAWS."

          4.3.  Confidentiality.  The  Investor  agrees  to use the  information
contained in the  Transaction  Documents  for the sole  purpose of  evaluating a
possible  investment in the Securities and the Investor hereby acknowledges that
it is  prohibited  from  reproducing  or  distributing  any of  the  Transaction
Documents,  or any other offering materials or other information provided by the
Company in connection with the Investor's consideration of its investment in the
Company,  in whole or in part, or divulging or discussing  any of their contents
except to its advisors and  representatives  for the purpose of evaluating  such
investment  until the Form 8-K  described  in Section  2.15 above is filed.  The
foregoing  agreements  shall not  apply to any  information  that is or  becomes
publicly  available  through no fault of the  Investor,  or that the Investor is
legally  required  to  disclose;  provided,  however,  that if the  Investor  is
requested or ordered to disclose any such  information  pursuant to any court or
other government order or any other applicable legal procedure, it shall provide
the Company with prompt  notice of any such request or order in time  sufficient
to enable the Company to seek an appropriate  protective  order.  Until the Form
8-K described in Section 2.15 above is filed, the Investor will not, directly or
indirectly,  except  (as to  each of (A),  (B)  and  (C) of  this  sentence)  in
compliance  with and only to the extent  required to comply with the  Securities
Act and such other  securities or Blue Sky laws as may be reasonably  determined
to be  applicable  after due  inquiry,  (A) offer,  sell,  pledge,  transfer  or
otherwise  dispose of (or  solicit  any  offers to buy,  purchase  or  otherwise
acquire or take a pledge of) any of the Securities, (B) engage in any short sale
which results in a  disposition  of any of the  Securities  by Investor,  or (C)
hedge the economic risk of the Investor's investment in the Securities.

     5. Additional Covenants of the Company.

                                       14
<PAGE>

          5.1. Reports, Information, Securities. (a) The Company shall cooperate
with each Investor in supplying such information as may be reasonably  requested
by such Investor to complete and file any information  reporting forms presently
or hereafter  required by the SEC as a condition to the availability of the safe
harbor  pursuant to Rule 144 for the sale of any of the  Purchased  Shares,  the
Purchased Warrants, the Underlying Securities and shares of capital stock of the
Company received in respect of the foregoing.

          5.2. Expenses. The Company agrees to pay on each Closing Date and hold
the  Investors  harmless  against  liability for (i) the payment of any stamp or
similar taxes (including interest and penalties,  if any) that may be determined
to be payable in respect of the  execution and delivery of this  Agreement,  and
the issue and sale of any  Securities and the  Underlying  Securities,  (ii) the
expense of preparing and issuing the  certificates  for the  Securities  and the
Underlying  Securities,  and (iii) the cost of delivering the Securities and the
Underlying  Securities of each Investor to such Investor's  address,  insured in
accordance with customary  practice.  Each Investor shall be responsible for its
out-of-pocket expenses arising in connection with the Contemplated Transactions.

     6. Miscellaneous.

          6.1. Entire Agreement;  Successors and Assigns. This Agreement and the
other Transaction  Documents  constitute the entire contract between the parties
relative to the subject matter hereof and thereof,  and no party shall be liable
or bound  to the  other  in any  manner  by any  warranties  or  representations
(express or implied) or agreements or covenants except as specifically set forth
herein or therein.  This Agreement and the other Transaction Documents supersede
any previous  agreement  among the parties  with  respect to the subject  matter
hereof and thereof.  The terms and conditions of this  Agreement  shall inure to
the benefit of and be binding  upon the  respective  executors,  administrators,
heirs,  successors  and  assigns  of the  parties.  Nothing  in this  Agreement,
expressed  or implied,  is  intended  to confer  upon any party,  other than the
parties hereto,  any rights,  remedies,  obligations or liabilities  under or by
reason of this Agreement.

          6.2. Survival of Representations  and Warranties.  Notwithstanding any
right of the  Investors  fully to  investigate  the  affairs of the  Company and
notwithstanding  any  knowledge  of  facts  determined  or  determinable  by any
Investor pursuant to such right of investigation, each Investor has the right to
rely fully upon the representations, warranties, covenants and agreements of the
Company  contained in this Agreement or in any documents  delivered  pursuant to
this Agreement. All such representations and warranties of the Company contained
in this Agreement shall survive the execution and delivery of this Agreement and
each  Closing  hereunder  and shall  continue in full force and effect until the
date that is one year after the last Closing. All representations and warranties
of the  Investors  contained in this  Agreement  shall survive the execution and
delivery of this Agreement and the applicable Closing  hereunder.  The covenants
of the Investors and the Company set forth in this  Agreement  shall survive the
applicable Closing.

          6.3. Governing Law; Jurisdiction.  This Agreement shall be governed by
and construed in accordance with the laws of the  Commonwealth of  Massachusetts
without regard to principles of conflicts of law. Each party hereby  irrevocably
consents and submits to the  jurisdiction of any  Massachusetts or United States
Federal Court sitting in the Commonwealth of  Massachusetts,  County of Suffolk,
over any action or proceeding  arising out of or relating to this  Agreement and
irrevocably consents to the service of any and all process in any such action or
proceeding by registered  mail addressed to such party at its address  specified
in Section 6.6 (or as otherwise noticed to the other party).  Each party further
waives  any  objection  to  jurisdiction  and  venue  of any  action  instituted
hereunder  and shall not assert any  defense  based on lack of  jurisdiction  or
venue on the basis of forum non conveniens.  Each party also waives any right to
trial by jury.

                                       15
<PAGE>

          6.4.  Counterparts.  This  Agreement  may be  executed  (including  by
facsimile  transmission)  with  counterpart  signature  pages  or in two or more
counterparts,  each of  which  shall be  deemed  an  original,  but all of which
together shall constitute one and the same instrument.

          6.5. Headings.  The headings of the sections of this Agreement are for
convenience  and shall not by themselves  determine the  interpretation  of this
Agreement.

          6.6. Notices. Any notice or other communication  required or permitted
to be given  hereunder  (each a "Notice") shall be given in writing and shall be
made by  personal  delivery  or sent  by  courier  or  certified  or  registered
first-class  mail (postage  prepaid),  addressed to a party at its address shown
below or at such other address as such party may designate by three days advance
Notice to the other parties.

     Any Notice to any of the Investors  shall be sent to the addresses for such
Investor set forth on the signature pages hereof.

     Any Notice to the Company shall be sent to:

          Lightspace Corporation
          529 Main Street, Suite 330
          Boston, MA 02129
          Attention:  CEO

     with a copy to:

          Hahn & Hessen LLP
          488 Madison Avenue
          New York, New York 10022
          Attention:  James Kardon, Esq.

     Each Notice shall be deemed given and effective upon receipt (or refusal of
receipt).

          6.7. Rights of Transferees. Any and all rights and obligations of each
of  the  Investors  herein  incident  to  the  ownership  of  Securities  or the
Underlying  Securities shall pass successively to all subsequent  transferees of
such  securities  until  extinguished  pursuant to the terms  hereof;  provided,
however, that no Investor may transfer or assign its rights under this Agreement
(other  than  to an  Affiliate)  between  the  date of  this  Agreement  and the
applicable Closing Date.

                                       16
<PAGE>

          6.8. Severability. Whenever possible, each provision of this Agreement
shall be  interpreted  in such a  manner  as to be  effective  and  valid  under
applicable  law,  but if  any  provision  of  this  Agreement  shall  be  deemed
prohibited  or invalid  under  such  applicable  law,  such  provision  shall be
ineffective  to  the  extent  of  such  prohibition  or  invalidity,   and  such
prohibition  or invalidity  shall not invalidate the remainder of such provision
or any other provision of this Agreement.

          6.9. Fees and Expenses.

            (a)  Irrespective  of whether any Closing is  effected,  the Company
shall pay all costs and expenses that it incurs with respect to the negotiation,
execution, delivery and performance of this Agreement.

            (b) Each Investor  shall be  responsible  for all costs and expenses
incurred  by such  Investor  in  connection  with  the  negotiation,  execution,
delivery and performance of this Agreement.

            (c) If any  action at law or in equity is  necessary  to  enforce or
interpret  any of the terms of this  Agreement,  the  prevailing  party shall be
entitled to reasonable  attorney's  fees,  costs and necessary  disbursements in
addition to any other relief to which such party may be entitled.

          6.10. Amendments and Waivers. Unless a particular provision or section
of this Agreement requires otherwise  explicitly in a particular  instance,  any
provision of this  Agreement may be amended and the  observance of any provision
of this  Agreement may be waived (either  generally or in a particular  instance
and either retroactively or prospectively), only with the written consent of the
Company and the holders of a majority of the Purchased Shares (not including for
this purpose any Purchased Shares which have been sold to the public pursuant to
a registration  statement  under the Securities Act or an exemption  therefrom).
Any amendment or waiver  effected in accordance  with this Section 6.10 shall be
binding  upon  each  Investor,  each  holder  of  any  Securities  at  the  time
outstanding  (including  without  limitation  securities  into  which  any  such
Securities are convertible or exercisable),  each future holder thereof, and the
Company.

          6.11.  Conflicts.  The Company and each Investor (i) acknowledge  that
Hahn & Hessen LLP, counsel to the Company in the Contemplated Transactions,  has
acted,  and from  time to time  continues  to act,  as  counsel  to (A)  certain
Investors,  or affiliates thereof,  including without limitation AIGH Investment
Partners,  LLC in connection with  investments in the Company,  and in unrelated
matters,  (ii)  consent  to the  representation  of the  Company  and such other
representation of the Investors,  or affiliates  thereof,  by Hahn & Hessen LLP,
(iii)  acknowledge  that a  partner  of  Hahn &  Hessen  LLP  beneficially  owns
securities of the Company  constituting  less than 0.05% of outstanding stock of
the Company, and (iv) waive any conflicts of interest claim which may arise from
any or all of the foregoing.

                                       17
<PAGE>

          6.12. Construction. Words (including capitalized terms defined herein)
in the  singular  shall be held to  include  the  plural  and vice  versa as the
context requires.  The words "herein,"  "hereinafter,"  "hereunder" and words of
similar import used in this Agreement shall,  unless otherwise stated,  refer to
this Agreement as a whole and not to any particular provision of this Agreement.
All  references to "$" in this Agreement and the other  agreements  contemplated
hereby  shall  refer  to  United  States  dollars  (unless  otherwise  specified
expressly). Any reference to any gender includes the other genders.

                     [REMAINDER OF PAGE INTENTIONALLY BLANK]

                                       18
<PAGE>

                                 SIGNATURE PAGE
                                       TO
                             LIGHTSPACE CORPORATION
                           UNIT SUBSCRIPTION AGREEMENT
                           Dated as of March 30, 2007

     IF the INVESTOR is an INDIVIDUAL, please complete the following:

     IN WITNESS  WHEREOF,  the undersigned has executed this Agreement as of the
date first above written.

Amount of Subscription:
$
 ------------------                           ----------------------------------
                                              Print Name

Number of Units to be Purchased:
                                              ----------------------------------
-------------------                           Signature of Investor

                                              ----------------------------------
                                              Social Security Number

                                              ----------------------------------
                                              Address and Fax Number

                                              ----------------------------------
                                              E-mail Address

                                              State of Domicile:
                                                                ----------------
Accepted and Agreed to as of the
date first above written:

LIGHTSPACE CORPORATION

By:____________________________________
Dated:_________________________________

<PAGE>

                                 SIGNATURE PAGE
                                       TO
                             LIGHTSPACE CORPORATION
                           UNIT SUBSCRIPTION AGREEMENT
                           Dated as of March 30, 2007

     IF the INTERESTS will be held as JOINT TENANTS, as TENANTS IN COMMON, or as
COMMUNITY PROPERTY, please complete the following:

     IN WITNESS  WHEREOF,  the undersigned has executed this Agreement as of the
date first above written.

Amount of Subscription:
$
 ------------------                       --------------------------------------
                                          Print Name of Investor

Number of Units to be Purchased:
                                          --------------------------------------
-------------------                       Signature of Investor

                                          --------------------------------------
                                          Social Security Number

                                          --------------------------------------
                                          Print Name of Spouse or Other Investor

                                          --------------------------------------
                                          Signature of Spouse or Other Investor

                                          --------------------------------------
                                          Social Security Number

                                          --------------------------------------
                                          Address

                                          --------------------------------------
                                          Fax Number

                                          --------------------------------------
                                          E-mail Address

                                          State of Domicile:
                                                            --------------------
Accepted and Agreed to as of the
date first above written:

LIGHTSPACE CORPORATION

By: ____________________________________
Dated:__________________________________

<PAGE>

                                 SIGNATURE PAGE
                                       TO
                             LIGHTSPACE CORPORATION
                           UNIT SUBSCRIPTION AGREEMENT
                           Dated as of March 30, 2007

     IF the INVESTOR is a PARTNERSHIP,  CORPORATION,  LIMITED LIABILITY COMPANY,
TRUST or OTHER ENTITY, please complete the following:

     IN WITNESS  WHEREOF,  the undersigned has executed this Agreement as of the
date first above written.

Amount of Subscription:
$
 ------------------                       --------------------------------------
                                          Print Full Legal Name of Partnership,
                                          Company, Limited Liability Company,
                                          Trust or Other Entity

Number of Units to be Purchased:          By:
                                             -----------------------------------
-------------------                               (Authorized Signatory)

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

                                          Address and Fax Number:
                                          --------------------------------------
                                          --------------------------------------

                                          Taxpayer Identification Number:
                                                                         -------

                                          Date and State of Incorporation
                                          or Organization:
                                                          ----------------------

                                          Date on which Taxable Year Ends:
                                                                          ------
                                          E-mail Address:
                                                         -----------------------

Accepted and Agreed to as of the
date first above written:

LIGHTSPACE CORPORATION

By: ____________________________________
Dated:__________________________________

<PAGE>

            EXHIBITS AND SCHEDULES TO THE UNIT SUBSCRIPTION AGREEMENT

Exhibit 1A:        Form of Amendment to Warrant Agreement
Exhibit 1B:        Warrant Agreement
Exhibit 2:         Form of Registration Rights Agreement
Exhibit 3:         Risk Factors

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