Document:

Exhibit
10.1

EXECUTIVE CHANGE
OF CONTROL AGREEMENT

This Executive Change of Control Agreement (this “Agreement”), is made as of the
1st day of January, 2007, by and between On Assignment, Inc., a Delaware
corporation (the “Company”),
and James Brill (the “Executive”).

Recitals

A.            The Executive has been hired as of the date hereof to
serve as the Chief Financial Officer of the Company, in connection with which,
the Executive has entered into an Employment Agreement of even date herewith
providing for severance and termination benefits in certain circumstances.

B.            Absent the execution and delivery of this Agreement,
pursuant to the Company’s Change in Control Severance Plan (the “ASGN
Severance Plan”), the Executive would be entitled to receive certain severance
benefits in the event of a change in control (within the meaning set forth in
the ASGN Severance Plan).

C.            The
Board of Directors of the Company (the “Board”)
has determined that it is in the best interests of the Company and its
stockholders to assure that the Company will have the continued dedication of
the Executive, notwithstanding the possibility, threat or occurrence of a
Change of Control (as defined herein). 
The Board believes it is imperative to diminish the inevitable
distraction of the Executive by virtue of the personal uncertainties and risks
created by a pending or threatened Change of Control and to encourage the
Executive’s full attention and dedication to the current Company in the event
of any threatened or pending Change of Control, and to provide the Executive
with compensation and benefits arrangements upon a Change of Control that
ensure that the compensation and benefits expectations of the Executive will be
satisfied and that are competitive with those of other corporations.  Therefore, in order to accomplish these
objectives, the Board has caused the Company to modify the ASGN Severance Plan
to eliminate its coverage of the Executive and to enter into this Agreement and
has provided that this Agreement will supersede the Employment Agreement in the
event that the Executive becomes entitled to any compensation or benefits under
this Agreement.

Agreement

In consideration of the foregoing and the mutual
covenants and promises contained herein, the parties agree as follows:

1.             Certain Definitions.  In addition to the terms defined elsewhere
herein, the following terms shall have the respective meanings set forth below:

(a)           “Accrued Compensation” means an amount including all
amounts earned or accrued through the termination date but not paid as of the
termination date including (i) Base Salary, (ii) reimbursement for
reasonable and necessary expenses incurred by you on behalf of the Company
during the period ending on the termination date, (iii) vacation and sick leave
pay (to the extent provided by Company policy or applicable law), and (iv)
incentive 

compensation (if any)
earned in respect of any period ended prior to the termination date.   It is expressly understood that incentive
compensation shall have been “earned” as of the time that the conditions to
such incentive compensation have been met, even if not calculated or payable at
such time.

(b)           “Affiliated Company” means any company controlled by,
controlling or under common control with the Company.

(c)           “Base Salary” means the Executive’s annual base salary at
the rate in effect during the last regularly scheduled payroll period
immediately preceding the occurrence of the Change in Control and does not
include, for example, bonuses, overtime compensation, incentive pay, fringe benefits,
sales commissions or expense allowances.

(d)            “Cause” means any of the following:

(i)            the Executive’s (A) conviction of a
felony; (B) commission of any other material act or omission involving
dishonesty or fraud with respect to the Company or any of its Affiliated
Companies or any of the customers, vendors or suppliers of the Company or its
subsidiaries; (C) misappropriation of material funds or assets of the Company
for personal use; or (D) engagement in unlawful harassment or other discrimination
with respect to the employees of the Company or its subsidiaries;

(ii)           the Executive’s continued substantial
and repeated neglect of his duties, after written notice thereof from the
Board, and such neglect has not been cured within 30 days after the Executive
receives notice thereof from the Board;

(iii)          the Executive’s gross negligence or
willful misconduct in the performance of his duties hereunder that is
materially and demonstrably injurious to the Company; or

(iv)          the Executive’s engaging in conduct
constituting a breach of his written obligations to the Company in respect of
confidentiality and/or the use or ownership of proprietary information.

(e)           “Change of Control” shall be deemed to occur upon the
consummation of any of the following transactions:

(i)            a
merger or consolidation in which the Company is not the surviving entity,
except for a transaction the principal purpose of which is to change the state
of the Company’s incorporation or a transaction in which 50% or more of the
surviving entity’s outstanding voting stock following the transaction is held
by holders who held 50% or more of the Company’s outstanding voting stock prior
to such transaction; or

(ii)           the
sale, transfer or other disposition of all or substantially all of the assets
of the Company; or

(iii)          any
reverse merger in which the Company is the surviving entity, but in which 50%
or more of the Company’s outstanding voting stock is transferred to holders
different from those who held the stock immediately prior to such merger; or

 

(iv)          the
acquisition by any person (or entity) directly or indirectly of 50% or more of
the combined voting power of the outstanding shares of Company capital stock;
or

(v)           during
any period of two (2) consecutive years (not including any period prior to the
date of this Agreement), individuals who at the beginning of such period
constitute the Board (and any new director, whose election by the Company’s
stockholders was approved by a vote of at least two-thirds (2/3) of the
directors then still in office who either were directors at the beginning of
the period or whose election or nomination for election was so approved), cease
for any reason to constitute a majority thereof; provided, however, that any individual becoming a director
subsequent to the date hereof whose election, or nomination for election by the
Company’s stockholders, was approved by a vote of at least a majority of the
directors then comprising the Board on the date hereof (the “Incumbent Board”) shall be
considered as though such individual were a member of the Incumbent Board, but
excluding, for purposes of this proviso, any such individual whose initial
assumption of office occurs as a result of an actual or threatened election
contest with respect to the election or removal of directors or other actual or
threatened solicitation of proxies or consents by or on behalf of a Person
other than the Board.

(f)            “Change of Control Period” means the period commencing on
the date hereof and ending on the third anniversary of the date hereof; provided, however, that, commencing
on the date two years after the date hereof, and on each annual anniversary of
such date (such date and each annual anniversary thereof, the “Renewal Date”), the Change of
Control Period shall be automatically extended so as to terminate two years
from such Renewal Date, unless at least 60 days prior to the Renewal Date the
Company gives notice to the Executive that the Change of Control Period shall
not be extended.

(g)           “Date of Termination” means (i) if the employment is terminated
for Cause, the date of receipt by the Executive of written notice from the
Board or the CEO that the Executive has been terminated, or any later date
specified therein, as the case may be, (ii) if the employment is
terminated by the Company other than for Cause, death or disability, the date
specified in the Company’s written notice to the Executive of such termination,
(iii) if the employment is terminated by reason of the Executive’s death
or disability, the date of such death or the effective date of such disability,
(iv) if the employment is terminated by Executive’s resignation that
constitutes Involuntary Termination under this Agreement, the date of the
Company’s receipt of the Executive’s notice of termination or any later date
specified therein.

(h)           “Good Reason” means either of
the following:

(i)            the failure of the Company to pay an
amount owing to the Executive, which amount constitutes salary, bonus or other
compensatory amount related to his employment, after the Executive has provided
the Board with written notice of such failure and such payment has not
thereafter been made within 15 days of the delivery of such written notice; or

(ii)           the relocation of the Executive from
the corporate headquarters metropolitan area (as of the date of this Agreement)
without his consent.

 

(i)            “Involuntary Termination” shall
mean the termination of Executive’s employment with the Company (or, if
applicable, successor entity) other than by reason of death or disability:

(i)            upon Executive’s involuntary discharge
or dismissal other than for Cause,

(ii)           upon Executive’s resignation for Good
Reason within 30 days after the occurrence of the facts constituting Good
Reason,

(iii)          upon Executive’s resignation following
(A) a reduction in Executive’s level of Base Salary or any Target Bonus
(unless, in the case of a reduction in any Target Bonus, there is a
corresponding increase in the level of Base Salary such that, in the aggregate,
Executive is no worse off) or (B) a material reduction in Executive’s benefits,
provided and only if such change or reduction is effected without
Executive’s written concurrence, or

(iv)          upon Executive’s resignation following
a change in the Executive’s position with the Company (or, if applicable, with
the successor entity) that is effected without the Executive’s consent and that
materially reduces his level of responsibility or authority, other than
reductions attributable to the Company ceasing to be a publicly held company or
becoming a subsidiary or division of another company.

Except as provided in Section 2(b), for purposes of
this Agreement any determination of “Involuntary Termination” made by the
Company or the Executive shall be made in good faith. Any dispute regarding same shall be promptly resolved by
arbitration in accordance with the provisions of Sections 8(g) and (h)
below.

(j)            “Pro Rata Bonus” means an amount equal to 100% of the
Target Bonus that the Executive would have been eligible to receive for the
Company’s fiscal year in which the Executive’s employment terminates following
a Change of Control, multiplied by a fraction, the numerator of which is the
number of days in such fiscal year through the Termination Date and the
denominator of which is 365.

(k)           “Target Bonus” shall mean the bonus which would have been
paid to the Executive for full achievement of the Company’s base business plan
or budget and/or for the attainment of specific performance objectives
pertaining to the business of the Company or any of its specific business units
or divisions, or to individual performance criteria applicable to the Executive
or his position, which objectives have been established by the Board of
Directors (or the Compensation Committee thereof) for the Executive relating to
such plan or budget for the year in question. 
“Target Bonus” shall not mean the “maximum bonus” which the
Executive might have been paid for overachievement of such plan.

2.             Involuntary Termination of Employment
Following a Change in Control.

(a)           Subject
to the terms of this Agreement, the Executive shall be entitled to receive
severance payments from the Company for services previously rendered to the
Company and its Affiliated Companies if all of the following conditions are
met:  (1) a Change of Control occurs
during the Change of Control Period, (2) the Executive’s employment is 

terminated under circumstances constituting an
Involuntary Termination, and (3) the Date of Termination occurs during the
period commencing upon such Change of Control and ending on the date that is
six (6) months and ten (10) business days following the Change of Control.  In such event, the severance provisions of
this Agreement shall control and take precedence over any inconsistent terms of
any currently existing employment or severance arrangement between the Company
and the Executive, and the Company shall:

(i)            within 30 days after the Date of
Termination, pay to the Executive the Executive’s Accrued Compensation and
Pro-Rata Bonus;

(ii)           within 30 days after the Date of
Termination, pay to the Executive the amount equal to the product of
(i) 2.50 and (ii) the sum of (A) the Executive’s Base Salary and
(B) the Executive’s Target Bonus;

(iii)          for eighteen (18) months after the
Date of Termination, or such longer period as may be provided by the terms of
the appropriate plan, program, practice or policy, continue to provide to the
Executive and/or the Executive’s family the benefits being provided to the
Executive and/or the Executive’s family immediately prior to the Change of
Control, including the welfare benefit plans, practices, policies and programs
provided by the Company and its Affiliated Companies (including, without
limitation, medical, prescription, dental, disability, employee life, group
life, accidental death and travel accident insurance plans and programs) and,
if applicable, car allowance (collectively, the “Benefits”), as if the Executive’s employment had not been
terminated; provided, however, that if the Executive becomes
reemployed with another employer and is eligible to receive medical or other
welfare benefits under another employer provided plan, the Benefits shall be
secondary to those provided under such other plan during such applicable period
of eligibility; and provided further
that if the Executive becomes reemployed with another employer and is eligible
to receive a car allowance, the Company shall be relieved of its obligation to
pay the Executive’s car allowance.

(iv)          during the eighteen (18) month period
following the Date of Termination, contribute to the Company’s retirement plans
(if any) on behalf of the Executive an amount equal to the Company’s
contribution (including matching contributions) to the Company’s retirement
plans (if any) which would have been made for the benefit of the Executive if
the Executive ‘s employment continued for eighteen (18) months after the Date
of Termination, assuming for this purpose that all benefits under such
retirement plans are fully vested and that the Executive’s compensation during
such eighteen (18) months were the same as it had been immediately prior to the
Change of Control;

(v)           provide the Executive, at the Company’s
expense, with outplacement services reasonably selected by the Executive, provided that the cost to the Company shall not exceed
$15,000; and

(vi)          to the extent not theretofore paid or provided,
timely pay or provide to the Executive any other amounts and benefits required
to be paid or provided or which the Executive is eligible to receive under any
plan, program, policy, practice, contract or agreement of the Company.

 

(b)           Anything
in this Agreement to the contrary notwithstanding, a termination of employment
by the Executive for any reason or for no reason during the period commencing
on the date that is six months after the date of a Change of Control and ending
ten (10) business days thereafter shall be deemed to be an “Involuntary
Termination” for all purposes of this Agreement.

3.             Termination of Employment Following a Change
of Control for Cause or Other Than in Connection with an Involuntary
Termination.  If following a Change of Control the
Executive’s employment is terminated for Cause or the Executive resigns other
than in connection with an Involuntary Termination or due to the Executive’s
death or disability, this Agreement shall terminate without further obligations
to the Executive and all obligations and rights of the Executive and the
Company shall be governed by the appropriate provisions of any then existing
employment or severance agreement or arrangement between the Executive and the
Company.  The Executive shall not be
deemed to have been terminated for Cause under this Agreement, unless the
following procedures have been observed. 
To terminate the Executive for Cause, the Board must deliver to the
Executive notice of such termination in writing, which notice must specify the
facts purportedly constituting Cause in reasonable detail.  The Executive will have the right, within 10
days of receipt of such notice, to submit a written request for review by the
Company.  If such request is timely made,
within a reasonable time thereafter, the Board (with all directors attending in
person or by telephone) shall give the Executive the opportunity to be heard
(personally or by counsel).  Following
such hearing, a majority of the directors then in office must confirm that the
Executive’s termination was for Cause, otherwise the executive’s termination
shall be deemed to have been made by the Company without Cause for purposes of
this Agreement.  The Company’s compliance
with the procedure set forth above shall not be in lieu of, or otherwise
deprive the Executive of, his right to challenge the Company’s determination
that such termination was for Cause in accordance with Sections 8(g), (h)
and (i).

4.             Effect on Option, Restricted Stock and
Restricted Unit Agreements.  Immediately prior to a Change in Control, all
stock option, unit option, restricted stock and restricted unit grants made to
the Executive by the Company which are outstanding at the time of such event
shall be accelerated and become fully vested. 
Accordingly, all stock and unit options shall be exercisable at such
time in accordance with their terms. 
This Agreement is intended to amend all stock option, unit option,
restricted stock and restricted unit grants previously awarded to the Executive
to accelerate vesting as described above to the extent vesting would not
otherwise be accelerated under the terms of such stock option, unit option,
restricted stock and restricted unit grants. 
The Company agrees for purposes of determining the continued
exercisability of Executive’s stock option outstanding on the Date of
Termination, Executive shall be considered to have remained employed by the
Company until the date that is eighteen (18) months from the Date of
Termination.

5.             Certain Additional Payments by the Company.

(a)           Anything in this Agreement to the
contrary notwithstanding and except as set forth below, in the event it shall
be determined that any Payment would be subject to the Excise Tax, then the
Executive shall be entitled to receive an additional payment (the “Gross-Up Payment”) in an
amount such that, after payment by the Executive of all taxes (and any interest
or penalties imposed with respect to such taxes), including, without
limitation, any 

income taxes (and any
interest and penalties imposed with respect thereto) and Excise Tax imposed
upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Payments.  The Company’s obligation to make Gross-Up
Payments under this Section 5 shall not be conditioned upon the
Executive’s termination of employment.

(b)           Subject to the provisions of Section
5(c), all determinations required to be made under this Section 5,
including whether and when a Gross-Up Payment is required, the amount of such
Gross-Up Payment and the assumptions to be utilized in arriving at such
determination, shall be made by Deloitte & Touche, LLP, or such other
nationally recognized certified public accounting firm as may be designated by
the Executive (the “Accounting Firm”).  The Accounting Firm shall provide detailed
supporting calculations both to the Company and the Executive within 15
business days of the receipt of notice from the Executive that there has been a
Payment or such earlier time as is requested by the Company.  In the event that the Accounting Firm is
serving as accountant or auditor for the individual, entity or group effecting
the Change of Control, the Executive may appoint another nationally recognized
accounting firm to make the determinations required hereunder (which accounting
firm shall then be referred to as the Accounting Firm hereunder).  All fees and expenses of the Accounting Firm
shall be borne solely by the Company. 
Any Gross-Up Payment, as determined pursuant to this Section 5,
shall be paid by the Company to the Executive within 5 days of the receipt of
the Accounting Firm’s determination.  Any
determination by the Accounting Firm shall be binding upon the Company and the
Executive.  As a result of the
uncertainty in the application of Section 4999 of the Code at the time of
the initial determination by the Accounting Firm hereunder, it is possible that
Gross-Up Payments that will not have been made by the Company should have been
made (the “Underpayment”),
consistent with the calculations required to be made hereunder.  In the event the Company exhausts its
remedies pursuant to Section 5(c) and the Executive thereafter is
required to make a payment of any Excise Tax, the Accounting Firm shall
determine the amount of the Underpayment that has occurred and any such
Underpayment shall be paid by the Company to or for the benefit of the
Executive within ten (10) business days after the Accounting Firm has given the
Company notice of the amount it has determined to be the Underpayment.

(c)           The Executive shall notify the
Company in writing of any claim by the Internal Revenue Service that, if
successful, would require the payment by the Company of the Gross-Up
Payment.  Such notification shall be
given as soon as practicable, but no later than 10 business days after the
Executive is informed in writing of such claim. 
The Executive shall apprise the Company of the nature of such claim and
the date on which such claim is requested to be paid.  The Executive shall not pay such claim prior
to the expiration of the 30-day period following the date on which the
Executive gives such notice to the Company (or such shorter period ending on
the date that any payment of taxes with respect to such claim is due).  If the Company notifies the Executive in
writing prior to the expiration of such period that the Company desires to
contest such claim and the Company has a good faith basis to contest the claim,
the Executive shall:

(i)            give the Company any information
reasonably requested by the Company relating to such claim,

 

(ii)           take such action in connection with
contesting such claim as the Company shall reasonably request in writing from
time to time, including, without limitation, accepting legal representation
with respect to such claim by an attorney reasonably selected by the Company,

(iii)          cooperate with the Company in good
faith in order effectively to contest such claim, and

(iv)          permit the Company to participate in
any proceedings relating to such claim;

 provided, however,
that the Company shall bear and pay directly all costs and expenses (including
additional interest and penalties) incurred in connection with such contest,
and shall indemnify and hold the Executive harmless, on an after-tax basis, for
any Excise Tax or income tax (including interest and penalties) imposed as a
result of such representation and payment of costs and expenses.  Without limitation on the foregoing
provisions of this Section 5(c), the Company shall control all
proceedings taken in connection with such contest, and, at its sole discretion,
may pursue or forgo any and all administrative appeals, proceedings, hearings
and conferences with the applicable taxing authority in respect of such claim
and may, at its sole discretion, either direct the Executive to pay the tax
claimed and sue for a refund or contest the claim in any permissible manner,
and the Executive agrees that he will, to the extent reasonably requested by
the Company, prosecute such contest to a determination before any
administrative tribunal, in a court of initial jurisdiction and in one or more
appellate courts, as the Company shall reasonably determine; provided, however,
that, if the Company directs the Executive to pay such claim and sue for a
refund, the Company shall advance the amount of such payment to the Executive,
on an interest-free basis, and shall indemnify and hold the Executive harmless,
on an after-tax basis, from any Excise Tax or income tax (including interest or
penalties) imposed with respect to such advance or with respect to any imputed
income in connection with such advance; and provided,
further, that any extension of the
statute of limitations relating to payment of taxes for the taxable year of the
Executive with respect to which such contested amount is claimed to be due is
limited solely to such contested amount. 
Furthermore, the Company’s control of the contest shall be limited to
issues with respect to which the Gross-Up Payment would be payable hereunder,
and the Executive shall be entitled to settle or contest, as the case may be,
any other issue raised by the Internal Revenue Service or any other taxing
authority.

(d)           If, after the receipt by the
Executive of an amount advanced by the Company pursuant to Section 5(c),
the Executive becomes entitled to receive any refund with respect to such claim,
the Executive shall (subject to the Company’s complying with the requirements
of Section 5(c)) pay to the Company the amount of such refund (together
with any interest paid or credited thereon after taxes applicable thereto),
within ten (10) business days after the Executive’s receipt thereof (which
receipt shall include without limitation the recordation by the applicable
taxing authority of any credit against the Executive’s taxes).  If, after the receipt by the Executive of an
amount advanced by the Company pursuant to Section 5(c), a
determination is made that the Executive shall not be entitled to any refund
with respect to such claim and the Company does not notify the Executive in
writing of its intent to contest such denial of refund prior to the expiration
of 30 days after such determination, then such advance shall be forgiven and
shall not be required to be repaid and the amount of such advance shall offset,
to the extent thereof, the amount of Gross-Up Payment required to be paid.

 

(e)           Notwithstanding any other provision
of this Section 5, the Company may, in its sole discretion, withhold and
pay over to the Internal Revenue Service or any other applicable taxing
authority, for the benefit of the Executive, all or any portion of the Gross-Up
Payment, and the Executive hereby consents to such withholding.

(f)            Definitions.  The following terms shall have the following
meanings for purposes of this Section 5:

(i)            “Code” means the Internal Revenue Code of 1986, as amended.

(ii)           “Excise Tax” shall mean the excise tax imposed by Section
4999 of the Code, together with any interest or penalties imposed with respect
to such excise tax.

(iii)          “Parachute Value” of a Payment shall mean the present value
as of the date of the change of control for purposes of Section 280G of the
Code of the portion of such Payment that constitutes a “parachute payment”
under Section 280G(b)(2), as determined by the Accounting Firm for purposes of
determining whether and to what extent the Excise Tax will apply to such
Payment.

(iv)          A “Payment” shall mean any payment or distribution in the
nature of compensation (within the meaning of Section 280G(b)(2) of the Code)
to or for the benefit of the Executive, whether paid or payable pursuant to
this Agreement or otherwise.

(v)           “Value” of a Payment shall mean the economic present value
of a Payment as of the date of the change of control for purposes of Section
280G of the Code, as determined by the Accounting Firm using the discount rate
required by Section 280G(d)(4) of the Code.

6.             Full Settlement. 
The Company’s obligation to make the payments provided for in this
Agreement and otherwise to perform its obligations hereunder shall not be
affected by any set-off, counterclaim, recoupment, defense, or other claim,
right or action that the Company may have against the Executive or others.  In no event shall the Executive be obligated
to seek other employment or take any other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this Agreement,
and subject to the effect of the provisos at the end of Section 2(a)(iii)
above, such amounts shall not be reduced whether or not the Executive obtains
other employment.  The Company agrees to
pay as incurred (within 10 days following the Company’s receipt of an invoice
from the Executive), to the full extent permitted by law, all legal fees and
expenses that the Executive may reasonably incur as a result of any contest
(regardless of the outcome thereof) by the Company, the Executive or others of
the validity or enforceability of, or liability under, any provision of this
Agreement or any guarantee of performance thereof (including as a result of any
contest by the Executive about the amount of any payment pursuant to this
Agreement), plus, in each case, interest on any delayed payment at the
applicable federal rate provided for in Section 7872(f)(2)(A) of the Code.

7.             Successors.

(a)           This
Agreement is personal to the Executive, and, without the prior written consent
of the Company, shall not be assignable by the Executive other than by will or 

the laws of descent and distribution.  This Agreement shall inure to the benefit of
and be enforceable by the Executive’s legal representatives.

(b)           This
Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns.  Except as
provided in Section 7(c), without the prior written consent of the
Executive this Agreement shall not be assignable by the Company.

(c)           The
Company will require any successor (whether direct or indirect, by purchase,
merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of the Company to assume expressly and agree to perform this
Agreement in the same manner and to the same extent that the Company would be
required to perform it if no such succession had taken place.  For purposes hereof, “Company” means the Company as hereinbefore defined and any
successor to its business and/or assets as aforesaid that assumes and agrees to
perform this Agreement by operation of law or otherwise.

8.             Miscellaneous.

(a)           The
captions of this Agreement are not part of the provisions hereof and shall have
no force or effect.  This Agreement may
not be amended or modified other than by a written agreement executed by the
parties hereto or their respective successors and legal representatives.

(b)           All
notices and other communications hereunder shall be in writing and shall be
given by hand delivery to the other party or by registered or certified mail,
return receipt requested, postage prepaid, addressed as follows:

if to the Company:

On Assignment, Inc.

26651 West Agoura Road

Calabasas, CA 91302

Attention:  Chief Executive Officer

if to the Executive, to the most recent address on
file with the Company’s Human Resources Department,

or to such other address as either party shall have
furnished to the other in writing in accordance herewith.  Notice and communications shall be effective
when actually received by the addressee.

(c)           The
invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of any other provision of this Agreement.

(d)           The
Company may withhold from any amounts payable under this Agreement such United
States federal, state or local or foreign taxes as shall be required to be
withheld pursuant to any applicable law or regulation.

 

(e)           The
Executive’s or the Company’s failure to insist upon strict compliance with any
provision of this Agreement or the failure to assert any right the Executive or
the Company may have hereunder, including, without limitation, the right of the
Executive to terminate employment for Good Reason pursuant to Section 2,
shall not be deemed to be a waiver of such provision or right or any other
provision or right of this Agreement.

(f)            Simultaneously
with the execution of this Agreement by a duly authorized officer of the
Company and the Executive, the Executive shall no longer be eligible to
participate in the ASGN Severance Plan.

(g)           All
claims by the Executive for payments or benefits under this Agreement shall
first be directed to and determined by the Company’s Compensation Committee of
the Board of Directors and shall be in writing. 
Any denial by the Compensation Committee of a claim for benefits under
this Agreement shall be delivered to the Executive in writing and shall set
forth the specific reasons for the denial and the specific provisions of this
Agreement relied upon.  The Compensation
Committee shall afford the Executive a reasonable opportunity for a review of
the decision denying a claim and shall further allow the Executive make a
written demand upon the Company to submit the disputed matter to arbitration in
accordance with the provisions of paragraph (h) below.  The Company shall pay all expenses of the
Executive, including reasonable attorneys and expert fees, in connection with
any such arbitration.  If for any reason
the arbitrator has not made his award within ninety (90) days from the date of
Executive’s demand for arbitration, such arbitration proceedings shall be
immediately suspended and the Company shall be deemed to have agreed to
Executive’s position and the Company shall, as soon as practicable and in any
event within 10 business days after the expiration of such 90 day period, pay
Executive his expenses and all amounts claimed by him that were the subject of
such dispute and arbitration proceedings.

(h)           Subject
to the terms of paragraph (g) above, any dispute arising from, or relating to,
this Agreement shall be resolved at the request of either party through binding
arbitration in accordance with this paragraph (h).  Within 10 business days after demand for
arbitration has been made by either party, the parties, and/or their counsel,
shall meet to discuss the issues involved, to discuss a suitable arbitrator and
arbitration procedure, and to agree on arbitration rules particularly tailored
to the matter in dispute, with a view to the dispute’s prompt, efficient, and
just resolution.  Upon the failure of the
parties to agree upon arbitration rules and procedures within a reasonable time
(not longer than 15 business days from the demand), the Commercial Arbitration
Rules of the American Arbitration Association shall be applicable.  Likewise, upon the failure of the parties to
agree upon an arbitrator within a reasonable time (not longer than 15 business
days from demand), there shall be a panel comprised of three arbitrators, one
to be appointed by each party and the third one to be selected by the two
arbitrators jointly, or by the American Arbitration Association, if the two
arbitrators cannot decide on a third arbitrator.  At least 30 days before the arbitration
hearing (which shall be set for a date no later than 60 days from the demand),
the parties shall allow each other reasonable written discovery including the
inspection and copying of documents and other tangible items relevant to the
issues that are to be presented at the arbitration hearing.  The arbitrator(s) shall be empowered to
decide any disputes regarding the scope of discovery.  The award rendered by the arbitrator(s) may
include, without limitation, special, punitive and/or consequential damages, if
and to the extent deemed appropriate by the arbitrator(s).  The award rendered by the arbitrator(s) shall
be final and binding upon both parties. 
The arbitration shall be 

conducted in Los Angeles County, California.  The
California State Superior Court located in Los Angeles County, California shall have exclusive jurisdiction over
disputes between the parties in connection with such arbitration and the
enforcement thereof, and the parties consent to the jurisdiction and venue of
such court for such purpose.

(i)            This
Agreement shall be governed by the laws of the State of Delaware, without
giving effect to any choice of law provision or rule (whether of the State of
Delaware or any other jurisdiction) that would cause the application of the
laws of any jurisdiction other than the State of Delaware.

(j)            This
Agreement shall terminate and be of no further force and effect immediately
upon the Executive’s voluntary termination of his employment with the Company
(irrespective of whether such termination constitutes retirement or
resignation), provided that such termination is
not with Good Reason and does not constitute an Involuntary Termination.

 (k)          If the Company determines that any
payment obligation pursuant to this Agreement will trigger tax obligations
under Section 409A of the Code (as defined in Section 5), then the parties
shall use their commercially reasonable efforts to structure an alternative
payment mechanism consistent with the parties’ objectives, to the extent
reasonably practicable, that will not trigger such tax obligations under
Section 409A of the Code.

 

IN WITNESS WHEREOF, the Executive has hereunto set the
Executive’s hand and, pursuant to the authorization from the Board, the Company
has caused these presents to be executed in its name on its behalf, all as of
the day and year first above written.

	
  

  	
   

  	
  /s/ JAMES
  BRILL

  
	
   

  	
   

  	
  James Brill

  
	
   

  	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ON ASSIGNMENT, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ PETER
  DAMERIS

  
	
   

  	
   

  	
   

  	
   

  	
  Peter Dameris

  
	
   

  	
   

  	
   

  	
   

  	
  Chief Executive OfficerEXHIBIT
10.1

SECURITIES
PURCHASE AGREEMENT

SECURITIES PURCHASE AGREEMENT, dated as of May 4,
2007, between Viewpoint Corporation, a Delaware corporation (the “COMPANY”), DG
FastChannel, Inc., a Delaware corporation (“DGFC”) and the other investors
listed on Schedule of Purchasers (the “SCHEDULE OF PURCHASERS”) attached hereto
as Exhibit A (DGFC and each such other investor, individually, a “PURCHASER”
and collectively, the “PURCHASERS”).

PREAMBLE

The Company has duly authorized (i) the issuance of
13,250,000 shares of the Company’s common stock, par value $.001 per share (the
“COMMON STOCK”) (ii) the issuance of warrants to purchase 3,312,500 shares of
Common Stock to the Purchasers (such number being twenty-five percent (25%) of
the total number of shares of Common Stock issuable to such Purchaser as
described above) (the “WARRANTS”), pursuant to the provisions of this
Securities Purchase Agreement and the Warrants to be entered into on the
Closing Date, the form of which is attached as Exhibit B hereto.

Each party hereto agrees as follows for the benefit of
the other party:

ARTICLE ONE

DEFINITIONS

SECTION 1.01.   DEFINITIONS.

“BOARD OF DIRECTORS” means, as to any Person, the
board of directors of such Person or any duly authorized committee thereof.

“BUSINESS DAY” means any day other than a Saturday,
Sunday or any other day on which banking institutions in The City of New York
are required or authorized by law or other governmental action to be closed.

“CAPITAL STOCK” means (1) with respect to any Person
that is a corporation, any and all shares, interests, participations or other
equivalents, however designated, of corporate stock, including each class of
common stock and preferred stock of such Person and (2) with respect to any
Person that is not a corporation, any and all partnership or other equity
interests of such Person.

“CLOSING” has the meaning set forth in Section 2.02.

“CLOSING DATE” has the meaning set forth in Section
2.02.

“COMMON STOCK” has the meaning set forth in the
Preamble.

“COMMISSION” means the Securities and Exchange
Commission, or any successor agency thereto with respect to the regulation or
registration of securities.

“COMPANY” means the party named as such in the
Preamble until a successor replaces it pursuant to this Securities Purchase
Agreement.

“COMPANY COMMISSION FILINGS” has the meaning set forth
in Section 3.01(d).

“EXCHANGE ACT” means the Securities Exchange Act of
1934, as amended, or any successor statute or statutes thereto.

“GAAP” is defined to mean generally accepted accounting
principles in the United States of America as in effect from time to time,
including, without limitation, those set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or in such other statements by such other entity as
approved by a significant segment of the accounting profession.

“KNOWLEDGE OF THE COMPANY” means the actual knowledge
of any executive officer of the Company after reasonable inquiry.

“LIEN” means any lien, mortgage, deed of trust,
pledge, security interest, charge or encumbrance of any kind (including any
conditional sale or other title retention agreement, any lease in the nature
thereof and any agreement to give any security interest).

“MATERIAL ADVERSE EFFECT” has the meaning set forth in
Section 3.01(b).

“OPINION OF COUNSEL” means a written opinion from
legal counsel which counsel may be counsel to or an employee of the Company.

“PERSON” means an individual, partnership,
corporation, unincorporated organization, trust or joint venture, or a
governmental agency or political subdivision thereof.

“PURCHASE PRICE” has the meaning set forth in Section
2.01.

“PURCHASER” or “PURCHASERS” has the meaning set forth
in the Preamble.

“REGISTRATION RIGHTS AGREEMENT” means that certain
Registration Rights Agreement, to be dated as of the Closing Date by and
between the Company and the Purchasers, as amended from time to time, a copy of
which is attached as Exhibit C.

“REGISTRATION STATEMENT” has the meaning set forth in
Section 3.01(f).

“SALE NOTICE” has the meaning set forth in Section
4.07.

“SCHEDULE OF PURCHASERS” has the meaning set forth in
the Preamble.

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“SECURITIES” means the Common Stock and the Warrants
to be issued pursuant to the provisions of the Securities Purchase Agreement
and the Warrant.

“SECURITIES ACT” means the Securities Act of 1933, as
amended, or any successor statute or statutes thereto.

“SECURITIES PURCHASE AGREEMENT” means this Securities
Purchase Agreement, dated as of May 4, 2007, by and among the Company and the
Purchasers, as amended from time to time.

“SHORT SALES” has the meaning set forth in Section
3.02(d).

“SUBSIDIARY,” with respect to any Person, means (i) any
corporation of which the outstanding Capital Stock having at least a majority
of the votes entitled to be cast in the election of directors under ordinary
circumstances shall at the time be owned, directly or indirectly, by such
Person, or (ii) any other Person of which at least a majority of the voting
interest under ordinary circumstances is at the time, directly or indirectly,
owned by such Person.

“WARRANTS” has the meaning set forth in the Preamble
of the Securities Purchase Agreement, which such Warrants shall be exercisable
six months after the Closing Date and have a term equal to three and one-half
(3.5) years.

“WARRANT EXERCISE PRICE” has the meaning set forth in
Section 2.01.

SECTION 1.02.   RULES OF CONSTRUCTION.

Unless the context otherwise requires:

(i)  an accounting term not otherwise
defined has the meaning assigned to it in accordance with GAAP;

(ii)  “or” is not exclusive;

(iii)  words in the singular include the
plural, and words in the plural include the singular;

(iv)  provisions apply to successive events
and transactions; and

(v)  “herein,” “hereof” and other words of
similar import refer to this Securities Purchase Agreement as a whole and not
to any particular Article, Section or other subdivision.

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ARTICLE TWO

THE SECURITIES

SECTION 2.01.   PURCHASE AND SALE OF
THE SECURITIES.

Subject to the terms and conditions of this Securities
Purchase Agreement and in reliance on the representations, warranties and
covenants of the parties contained herein, the Company shall issue and deliver to
each Purchaser, and each Purchaser severally, but not jointly, agrees to
purchase from the Company on the Closing Date (as defined below) (a) the number
of shares of Common Stock as set forth opposite such Purchaser’s name in column
(3) on the Schedule of Purchasers and (b) a Warrant to purchase the number of
shares of Common Stock set forth opposite such Purchaser’s name in column (4)
on the Schedule of Purchasers, such number being twenty-five percent (25%) of
the total number of shares of Common Stock issuable to such Purchaser as
described above in this Section 2.01, which warrants shall be exercisable six
(6) months after the Closing Date and shall have a term of three and one-half
(3.5) years from the Closing Date, and an exercise price (the “WARRANT EXERCISE
PRICE”) equal to the greater of (i) $0.40 or (ii) the closing price on the
NASDAQ Stock Market on May 4, 2007, at a purchase price per share of Common
Stock of $0.40 for an aggregate purchase price (the “PURCHASE PRICE”) as set
forth opposite such Purchaser’s name in column (5) on the Schedule of
Purchasers.

SECTION 2.02.   CLOSING.

The closing of the transactions contemplated by
Section 2.01 (the “CLOSING”) shall take place at 3:00 p.m. on May 7, 2007 (the “CLOSING
DATE”) at the offices of Merriman Curhan Ford & Co. or at such other place
and time as the Company and the Purchasers shall mutually agree.

At the Closing, the Company shall deliver to each
Purchaser (i) certificates representing the Common Stock and (ii) Warrants, in
substantially the form attached as Exhibit B hereto and to be purchased
by such Purchaser at the Closing duly registered in the name of such Purchaser.
Delivery of such certificates to each Purchaser shall be made against receipt
by the Company from such Purchaser of the aggregate purchase price set forth
opposite such Purchaser’s name in column (5) on the Schedule of Purchasers by
wire transfer of immediately available funds to an account designated by the
Company in writing for such purpose.

ARTICLE THREE

REPRESENTATIONS AND
WARRANTIES

SECTION 3.01.   REPRESENTATIONS AND
WARRANTIES OF THE  COMPANY.

In order to induce each Purchaser to enter into this
Securities Purchase Agreement and purchase the Securities, the Company
represents and warrants to each Purchaser as follows:

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(a) Organization, Good Standing and Corporate Power.
The Company is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware, with all requisite corporate
power and authority to own its properties and to conduct its business as
presently conducted. The Company is qualified to do business and is in good
standing (or has active status) in each jurisdiction in which the failure to be
so qualified could have a Material Adverse Effect (as hereinafter defined). No
proceeding has been instituted in any such jurisdiction, revoking, limiting or
curtailing, or seeking to revoke, limit or curtail, such power and authority or
qualification. The Company has all requisite corporate power and authority to
enter into this Securities Purchase Agreement and to perform its obligations
hereunder, including, without limitation, the issuance and sale of the Common
Stock and Warrants.

(b) Due Authorization; Enforceability; No Conflicts.
The Company has taken all corporate and stockholder action necessary to
authorize the execution, delivery and performance by it of this Securities
Purchase Agreement, the Registration Rights Agreement and the Warrant. Assuming
the due execution and delivery of this Securities Purchase Agreement and the
Registration Rights Agreement by the Purchaser, this Securities Purchase
Agreement and the Registration Rights Agreement each constitutes a valid and
binding obligation of the Company, enforceable against the Company in
accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium and other similar laws relating to the enforcement
of creditors’ rights generally, the availability of equitable remedies and to
general equity principles. The execution, delivery and performance by the
Company of this Securities Purchase Agreement and the Registration Rights
Agreement and the Warrants and compliance by the Company with the terms hereof
and thereof will not (i) violate or result in a violation of the Company’s
Certificate of Incorporation or the Company’s Bylaws, or any resolutions of the
Company’s Board of Directors or stockholders or (ii) violate or result in a
violation of, or constitute a material breach of or constitute a default under,
any indenture, deed of trust, mortgage, loan agreement, or other agreement or
instrument, judgment, order, law, rule or regulation applicable to the Company
or by which the Company is bound or to which any of the Company’s properties
are subject, except in the case of clause (ii), where such violation, conflict
or event of default would not result in a material adverse effect on the
Company’s business, financial condition, results of operations or properties (a
“MATERIAL ADVERSE EFFECT”). The Common Stock, upon issuance in accordance with
the terms of this Securities Purchase Agreement and the issuance of the
Warrants and the reservation for issuance and the issuance of the shares of
Common Stock issuable upon exercise thereof, as the case may be, are and will
continue upon issuance to be duly authorized, validly issued, fully-paid and
nonassessable and free of any Liens, claims or encumbrances and rights of first
refusal, preemptive rights, co-sale rights, registration rights, or other
similar rights. No further approval or authorization of any stockholder, the
Board of Directors of the Company or other third party is required for the
issuance and sale of the Securities.

(c) Capitalization. As of the date hereof and
prior to giving effect to the issuance of the Securities, the authorized Capital
Stock of the Company consists of (i) 5,000,000 shares of preferred stock, par
value $.001 per share, of which no shares are issued and outstanding, and (ii)
150,000,000 shares of Common Stock, of which

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68,336,667 shares are issued and outstanding. Except
with respect to any Securities to be issued in connection with this Securities
Purchase Agreement, including the Warrants or as set forth on SCHEDULE 3.01(c)
annexed hereto, there are no outstanding subscriptions, rights, options,
warrants, conversion rights, agreements or other claims for the purchase or
acquisition from the Company of any shares of its Capital Stock or obligating
the Company to issue, repurchase, register or otherwise acquire, any shares of
its Capital Stock or any securities convertible into, exercisable or
exchangeable for, or otherwise entitling the holder to acquire, any shares of
Capital Stock of the Company. The outstanding shares of Capital Stock of the
Company have been duly and validly issued and are fully paid and nonassessable,
have been issued in compliance with all federal and state securities laws, and
were not issued in violation of any preemptive rights or similar rights.

(d) Reports and Financial Statements. The
Company has previously furnished the Purchaser with true and complete copies,
as amended or supplemented, of the following documents, to the extent not
available on the EDGAR system (i) Annual Report on 

Form 10-K and Amendment No. 1 to the Annual Report on Form 10-K/A for the year
ended December 31, 2006, as filed with the Commission, (ii) proxy statements
relating to all meetings of its shareholders (whether annual or special) since
June 1, 2006 and (iii) all other reports or registration statements filed by
the Company with the SEC since December 31, 2005 (such reports, registration
statements and other filings, together with any amendments or supplements
thereto, are collectively referred to as the “COMPANY COMMISSION FILINGS”).
Except as set forth on Schedule 3.01(d), the Company Commission Filings
constituted all of the documents required to be filed by the Company with the
Commission since December 31, 2005. Except as set forth on Schedule 3.01(d), as
of their respective dates, such Company’s Commission Filings (as amended or
supplemented) complied in all material respects with the requirements of the
Securities Act and the Exchange Act and the rules and regulations of the
Commission promulgated thereunder, and did not contain any untrue statement of
a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading. The audited consolidated financial
statements and any unaudited interim financial statements of the Company included
in such Company’s Commission Filings comply as to form in all material respects
with applicable accounting requirements and the published rules and regulations
of the Commission with respect thereto, and have been prepared in accordance
with GAAP (except as may be indicated therein or in the notes thereto and, in
the case of the quarterly financial statements, as permitted by Form 10-Q under
the Exchange Act) and fairly present in all material respects the financial
position of the Company at the dates thereof and the results of its operations
and its cash flows for the periods then ended.

(e) Absence of Certain Changes or Events.
Except as publicly disclosed or otherwise disclosed in writing to each
Purchaser prior to the date of this Securities Purchase Agreement or as
otherwise contemplated by this Securities Purchase Agreement, since December
31, 2006, there has not been any material adverse change or material adverse
development in the financial condition, results of operations, or the business
or properties of the Company.

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(f) Information in the Registration Statement.
None of the information relating to the Company, its officers or directors,
supplied by the Company for inclusion or incorporation by reference in the
registration statement (the “REGISTRATION STATEMENT”) to be filed with the
Commission by the Company pursuant to the Registration Rights Agreement to be
entered into between the Company and the Purchasers or any amendments or
supplements thereto, will, at the time it becomes effective under the
Securities Act and at the effective date, contain any untrue statement of
material fact or omit to state any material fact required to be stated therein
or necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading. If at any time prior
to the effective date any event with respect to the Company, its officers or
directors should occur which is required to be described in an amendment, or a
supplement to, the Registration Statement, such event shall be so described and
such description in such amendment or supplement of such information will not
contain any statement which, at the time and in the light of circumstances
under which it is made, is false or misleading with respect to any material
fact or omits to state any material fact required to be stated therein or in
the Registration Statement or necessary to make the statements therein or in
the Registration Statement not false or misleading.

(g) Compliance With Laws. The conduct of the
business of the Company complies in all material respects with all statutes,
laws, regulations, ordinances, rules, judgments, orders or decrees applicable
thereto. Except as set forth on SCHEDULE 3.01(g) annexed hereto, the Company
has not received notice of any alleged material violation of any statute, law,
regulation, ordinance, rule, judgment, order or decree from any governmental
authority applicable to the Company or any of its assets or properties.

(h) Consents. Except as set forth on SCHEDULE
3.01(h) annexed hereto, no consent or waiver of, order or approval by, or
registration, qualification or filing with, any regulatory body, administrative
agency, or other governmental authority or other third party is required in
connection with the Company’s execution and delivery of this Securities
Purchase Agreement, the Registration Rights Agreement and the Warrants, and the
valid issuance and sale of the Securities to be sold and issued pursuant to
this Securities Purchase Agreement and the Warrants.

(i) Litigation Proceedings. Except as set forth
on SCHEDULE 3.01(i) annexed hereto, there is no action, suit, notice of
violation, proceeding or investigation pending or, to the Knowledge of the
Company, threatened against or affecting the Company, its Subsidiaries or any
of its properties before or by any court, governmental or administrative agency
or regulatory authority (federal, state, county, local or foreign) which (i)
adversely affects or challenges the legality, validity or enforceability of any
of this Securities Purchase Agreement, the Registration Rights Agreement or the
Warrants or (ii) could reasonably be expected to, individually or in the
aggregate, have a Material Adverse Effect.

(j) No Default or Violation. Except as set
forth on SCHEDULE 3.01(j) annexed hereto, neither the Company nor its
Subsidiaries (i) is in default under or in violation of any indenture, loan or
other credit agreement or any other agreement or

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instrument to which it is a party or by which it or
any of its properties is bound, (ii) is in violation of any order of any court,
arbitrator or governmental body applicable to it, (iii) is in violation of any
statute, rule or regulation of any governmental authority to which it is
subject or (iv) is in default under or in violation of its Certificate of
Incorporation, Bylaws or other organizational documents, respectively, except
in the case of clause (i), (ii) and (iii), for defaults and violations which
individually or in the aggregate would not reasonably be expected to have a
Material Adverse Effect. The business of the Company is not being conducted,
and shall not be conducted in violation of any law, ordinance, rule or
regulation of any governmental entity, except where such violations have not
resulted or would not reasonably be expected to result, individually or in the
aggregate, in a Material Adverse Effect. The Company is not in breach of any
agreement where such breach, individually or in the aggregate, would not
reasonably be expected to have a Material Adverse Effect.

(k) Private Offering. Neither the Company nor
any person acting on its behalf has taken or will take any action which might
subject the offering, issuance or sale of the Securities to each Purchaser
hereunder to the registration requirements of the Securities Act. The offer,
sale and issuance of the Common Stock to the Purchasers will not be integrated
with any other offer, sale and issuance of the Company’s securities (past,
current, or future) under the Securities Act or any regulations of any exchange
or automated quotation system on which any of the securities of the Company are
listed or designated or for purposes of any stockholder approval provision
applicable to the Company or its securities. Subject to the accuracy and
completeness of the representations and warranties of each Purchaser contained
in Section 3.02 hereof, the offer, sale and issuance by the Company to each
Purchaser of the Securities hereunder is exempt from the registration
requirements of the Securities Act.

(l) Investment Company. The Company is not, and
is not controlled by or under common control with an affiliate of an “investment
company” within the meaning of the Investment Company Act of 1940, as amended.

(m) No General Solicitation. The Company has
not solicited any offer to buy or sell the Securities hereunder by means of any
form of general solicitation or advertising.

(n) Listing and Maintenance Requirements Compliance.
Except as set forth on SCHEDULE 3.01(n) annexed hereto, the Company has not in
the two years preceding the date hereof received written notice from any stock
exchange or market on which the Common Stock is or has been listed (or on which
it has been quoted) to the effect that the Company is not in compliance with
the listing or maintenance requirements of such exchange or market.

(o) Registration Rights; Rights of Participation.
Except as set forth on SCHEDULE 3.01(o) annexed hereto, the Company has not
granted or agreed to grant to any person any rights (including “piggy-back”
registration rights) to have any securities of the Company registered with the
Commission or any other governmental authority which has not been satisfied,
and no person, including, but not limited to, current or

 8
 

former stockholders of the Company, underwriters,
brokers or agents, has any right of first refusal, preemptive right, right of
participation, or any similar right to participate in the transactions
contemplated by this Securities Purchase Agreement.

(p) Intellectual Property. Except as set forth
on SCHEDULE 3.01(p) annexed hereto, (i) the Company and its Subsidiaries own or
possess sufficient rights to use all material patents, patent rights,
trademarks, copyrights, licenses, inventions, trade secrets, trade names,
designs, manufacturing or other processes, systems, data compilation, research
results, know-how or other proprietary rights (collectively, “Intellectual
Property”) that are necessary for the conduct of the Company’s business as now
conducted as described in the Company’s filings under the Exchange Act except
where the failure to currently own or possess such rights would not have a
Material Adverse Effect, (ii) neither the Company nor its Subsidiaries has
received any notice of, nor to the Knowledge of the Company is there, any
asserted infringement by the Company of, any rights of a third party with
respect to any Intellectual Property that, individually or in the aggregate,
would have a Material Adverse Effect and (iii) to the Knowledge of the Company,
it is not infringing, nor has it received any notice of, infringement by a
third party with respect to any Intellectual Property rights of the Company
that, individually or in the aggregate, would have a Material Adverse Effect.

Except as would not have a Material Adverse Effect,
all material licenses or other material agreements under which the Company is
granted rights in Intellectual Property, other than Intellectual Property
generally available on commercial terms from other sources are in full force
and effect and, to the Knowledge of the Company, there is no material default
by the Company thereunder.

Except as would not have a Material Adverse Effect,
the Company believes that it has taken the steps reasonably required to
establish and preserve its ownership of all material copyright, trade secret
and other proprietary rights with respect to its products and technology. To
the Knowledge of the Company, the Company is not making unauthorized use of any
confidential information or trade secrets of any person. Except as would not
have a Material Adverse Effect, neither the Company nor, to the Knowledge of
the Company, any of its employees have any agreements or arrangements with any
persons other than the Company related to confidential information or trade
secrets of such persons or restricting any such employee’s engagement in
business activities of the kind engaged in by the Company.

(q) Reporting Status. Except as set forth in
Schedule 3.01(q), the Company has filed in a timely manner all documents that
the Company was required to file under the Exchange Act during the 12 months
preceding the date of this Securities Purchase Agreement. Except as set forth
in Schedule 3.01(q), the following documents complied in all material respects
with the SEC’s requirements as of their respective filing dates, and the
information contained therein as of the date thereof did not contain an untrue
statement of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading:

 9
 

(i) Annual Report on Form 10-K and Form 10-K/A for the
year ended December 31, 2006;

(ii) Definitive Proxy Statement for the Annual Meeting
held on October 16, 2006;

(iii) Quarterly Reports on Form 10-Q for the quarters
ended September 30, 2005, March 31, 2006, June 30, 2006 and September 30, 2006;

(iv) Current Reports on Form 8-K, filed subsequent to
December 31, 2005; and

(v) All other documents, if any, filed by the Company
with the SEC during the 12 months preceding the date of this Agreement pursuant
to the reporting requirements of the Exchange Act.

  (r) Foreign Corrupt Practices;
Sarbanes-Oxley Act.

(A) Neither the Company, nor to the Knowledge of the
Company, any agent or other person acting on behalf of the Company, has (i) directly
or indirectly, used any corrupt funds for unlawful contributions, gifts,
entertainment or other unlawful expenses related to foreign or domestic
political activity, made any unlawful payment to foreign or domestic government
officials or employees or to any foreign or domestic political parties or
campaigns from corporate funds, (iii) failed to disclose fully any contribution
made by the Company (or made by any person acting on its behalf of which the
Company is aware) which is in violation of law, or (iv) violated in any
material respect any provision of the Foreign Corrupt Practices Act of 1977, as
amended.

(B) Except as set forth on Schedule 3.01(d), the
Company is in compliance in all material respects with all provisions of the
Sarbanes-Oxley Act of 2002 that are applicable to it.

(s) Taxes. Except as set forth on SCHEDULE
3.01(t) annexed hereto, the Company has filed all necessary federal, state and
foreign income and franchise tax returns and has paid or accrued all taxes
shown as due thereon, and to the Knowledge of the Company there is no tax
deficiency which has been or might be asserted or threatened against it which
would have a Material Adverse Effect.

(t) Brokers or Finders. Except as on SCHEDULE
3.01(w) annexed hereto, the Company has not dealt with any broker or finder in
connection with the transactions contemplated by this Securities Purchase
Agreement, and Company has not incurred, and shall not incur, directly or
indirectly, any liability for any brokerage or finders’ fees or agents commissions
or any similar charges in connection with the transactions contemplated by this
Securities Purchase Agreement.

(u) No Misleading Statements. The
representations and warranties of the Company contained in this Securities
Purchase Agreement, Exhibits and the Schedules hereto are true and correct in
all material respects and do not omit to state any material

 10
 

fact required by such representations and warranties,
Exhibits and Schedules that are necessary in order to prevent such
representations and warranties, in light of the circumstances, from being
misleading.

(v) Subsidiary Rights. The Company or one of
its Subsidiaries has the unrestricted right to vote, and (subject to
limitations imposed by applicable law) to receive dividends and distributions on,
all capital securities of its Subsidiaries as owned by the Company or such
Subsidiary.

(w) Transactions With Affiliates. None of the
officers or directors of the Company is presently a party to any transaction
with the Company or any of its Subsidiaries (other than for ordinary course
services as officers or 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 such officer or director or, to the Knowledge of the Company,
any corporation, partnership, trust or other entity in which any such officer
or director has a substantial interest or is an officer, director, trustee or
partner.

SECTION 3.02.   REPRESENTATIONS AND
WARRANTIES OF EACH PURCHASER.

In order to induce the Company to enter into this
Securities Purchase Agreement and issue the Securities, each Purchaser
represents and warrants to the Company, only with respect to itself, as
follows:

(a) Organization, Good Standing and Corporate Power.
Such Purchaser is an entity duly formed, validly existing and in good standing
under the laws of the State of its organization, with all requisite corporate
power and authority to own its properties, conduct its business, enter into
this Securities Purchase Agreement and perform its obligations hereunder.

(b) Due Authorization; Enforceability; No Conflicts.
Such Purchaser has taken all action necessary to authorize the execution,
delivery and performance by it of this Securities Purchase Agreement. Assuming
the due execution and delivery of this Securities Purchase Agreement by the
Company, this Securities Purchase Agreement constitutes a valid and binding
obligation of such Purchaser, enforceable against such Purchaser in accordance
with its terms, subject to applicable bankruptcy, insolvency, reorganization,
moratorium and other similar laws relating to the enforcement of creditors’
rights generally, the availability of equitable remedies and general equity
principles. The execution, delivery and performance by such Purchaser of this
Securities Purchase Agreement and compliance by such Purchaser with the terms
hereof will not violate, conflict with or cause an event of default under such
Purchaser’s organizational documents or any other agreement, instrument,
judgment, order, law, rule or regulation by which such Purchaser is bound or to
which any properties of such Purchaser are subject, except where such
violation, conflict or event of default would not result in a material adverse
effect on such Purchaser’s business, financial condition, results of operations
or properties (a “PURCHASER MATERIAL ADVERSE EFFECT”).

 11
 

(c) Accredited Investor. Such Purchaser is an “accredited
investor” as that term is defined in Rule 501(a) under the Securities Act and
such Purchaser is also knowledgeable, sophisticated and experienced in making,
and is qualified to make decisions with respect to investments in shares
presenting an investment decision like that involved in the purchase of the
Securities.

(d) Investment. Such Purchaser is acquiring the
Securities in the ordinary course of its business and for investment for its
own account and not with a present view to, or for resale in connection with,
any distribution thereof. Such Purchaser understands that the Securities have
not been registered under the Securities Act or applicable state securities
laws by reason of certain exemptions from the registration provisions thereof
that depend upon, among other things, the truth and accuracy of such Purchaser’s
representations and warranties herein. Such Purchaser acknowledges that until
the earlier to occur of (x) ninety days (90) from the Closing Date and (y) the
date the Registration Statement (as defined in the Registration Rights
Agreement) is declared effective, such Purchaser shall not engage in any Short
Sales of the Company’s common stock, will not use any of the Securities
acquired in connection with the transactions contemplated hereby to cover any
short position in the Common Stock of the Company in violation of applicable
securities laws and will not sell any of the Securities acquired in connection
with the transactions contemplated hereby. For purposes hereof, “Short Sales”
shall mean “short sales” as defined in Regulation SHO adopted by the Commission
under the 1934 Act and all types of direct and indirect stock pledges or
similar arrangements having the effect of hedging the securities or investment
made hereunder.

(e) Restricted Transferability. Such Purchaser
acknowledges that the Securities are being offered and sold hereunder in a
private placement that is exempt from the registration requirements of the
Securities Act and that certificates or other instruments for the Securities
will bear the legend set forth in Section 3.02(f) below.

(f) Legends. The Purchaser understands that the
certificates or other instruments representing the Securities, except as set
forth below, shall bear any legend as required by the “blue sky” laws of any
state and a restrictive legend in substantially the following form (and a
stop-transfer order may be placed against transfer of such stock certificates):

[NEITHER THE ISSUANCE AND SALE OF THE SECURITIES
REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES
ARE EXERCISABLE HAVE BEEN] [THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
NOT BEEN] REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION
STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND
APPLICABLE STATE SECURITIES LAWS, OR (B) AN OPINION OF COUNSEL ADDRESSED TO THE
COMPANY, IN A

 12
 

GENERALLY ACCEPTABLE
FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE
SECURITIES LAWS. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED
IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING
ARRANGEMENT SECURED BY THE SECURITIES.

(g) The legend set forth above shall be removed and
the Company shall issue a certificate without such legend to the holder of the
Securities upon which it is stamped, if, unless otherwise required by state
securities laws, (i) such Securities are registered for sale under the
Securities Act, (ii) in connection with a sale, assignment or other transfer,
such holder provides the Company with an opinion of counsel, in a generally
acceptable form, to the effect that such sale, assignment or transfer of the
Securities may be made without registration under the Securities Act, or (iii)
such holder provides the Company with reasonable assurance that the Securities
can be sold, assigned or transferred pursuant to Rule 144 promulgated under the
Securities Act (or a successor rule thereto) (collectively, “RULE 144”).

(h) The Purchaser understands that except as provided
in the Registration Rights Agreement: (i) the Securities have not been and are
not being registered under the Securities Act or any state securities laws, and
may not be offered for sale, sold, assigned or transferred unless (A)
subsequently registered thereunder, or (B) the Purchaser shall have delivered
to the Company an opinion of counsel, in a generally acceptable form, to the
effect that such Securities to be sold, assigned or transferred may be sold,
assigned or transferred pursuant to an exemption from such registration, (ii)
any sale of the Securities made in reliance on Rule 144 may be made in
accordance with the terms of Rule 144 and further, if Rule 144 is not
applicable, any resale of the Securities under circumstances in which the
seller or 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 Commission thereunder; and (iii) neither the Company nor any
other Person is under any obligation to register the Securities under the
Securities Act or any state securities laws or to comply with the terms and
conditions of any exemption thereunder.

ARTICLE FOUR

COVENANTS

SECTION 4.01.   PAYMENT OF TAXES AND
OTHER CLAIMS.

The Company will pay or discharge or cause to be paid
or discharged, before the same shall become delinquent, (a) all material taxes,
assessments and governmental charges levied or imposed upon it or any of its
Subsidiaries or upon the income, profits or property of it or any of its
Subsidiaries and (b) all lawful claims for labor, materials and supplies which,
in each case, if unpaid, would reasonably be expected, by law, to become a
material liability or Lien upon the property of it or any of its Subsidiaries;
provided, however, that the Company

 13
 

shall not be required to pay or discharge or cause to
be paid or discharged any such tax, assessment, charge or claim the amount,
applicability or validity of which is being contested in good faith by
appropriate proceedings and for which adequate provision has been made or for
which adequate reserves, to the extent required under GAAP, have been taken.

SECTION 4.02.   MAINTENANCE OF
PROPERTIES AND INSURANCE.

(a) The Company shall cause all material properties
owned by or leased by it or any of its Subsidiaries used or useful to the
conduct of its business or the business of any of its Subsidiaries to be
maintained and kept in normal condition, repair and working order and supplied
with all necessary equipment and shall cause to be made all necessary repairs,
renewals and replacements thereof, all as in its judgment may be reasonably
necessary, so that the business carried on in connection therewith may be
properly conducted at all times; provided, however, that nothing in this
Section 4.02 shall prevent the Company or any of its Subsidiaries from
discontinuing the use, operation or maintenance of any of such properties, or
disposing of any of them, if such properties are, in the reasonable and good
faith judgment of the Board of Directors of the Company or such Subsidiary, as
the case may be, no longer reasonably necessary in the conduct of their
respective businesses or such disposition is otherwise permitted by this
Securities Purchase Agreement.

(b) The Company shall provide or cause to be provided,
for itself and each of its Subsidiaries, insurance (including appropriate
self-insurance) against loss or damage of the kinds that, in the reasonable,
good faith judgment of the Board of Directors of the Company, are adequate and
appropriate for the conduct of the business of the Company and such
Subsidiaries in a prudent manner, with reputable insurers or with the
government of the United States of America or an agency or instrumentality
thereof, in such amounts, with such deductibles and by such methods as shall be
customary, in the good faith judgment of the Board of Directors of the Company,
for companies similarly situated in the industry.

SECTION 4.03.   COMPLIANCE WITH LAWS.

The Company will comply, and will cause each of its
Subsidiaries to comply, with all applicable statutes, rules, regulations,
orders and restrictions of the United States, all states and municipalities
thereof, and of any governmental department, commission, board, regulatory
authority, bureau, agency and instrumentality of the foregoing, in respect of
the conduct of their respective businesses and the ownership of their
respective properties, except for such noncompliances as are being contested in
good faith and by appropriate proceedings and except for such noncompliances as
would not in the aggregate reasonably be expected to have a Material Adverse
Effect.

SECTION 4.04.   COMMISSION REPORTS.

(a) The Company will deliver to each Purchaser
promptly, but in any event no later than 5 Business Days after it files with
the Commission, to the extent not available on the EDGAR system, copies of the
quarterly and annual reports and of the information, documents and other
reports, if any, which the Company is required to file with the Commission
pursuant to Section 13 or 15(d) of the Exchange Act.

 14
 

(b) In the event the Company is not required to
furnish such reports to its stockholders pursuant to the Exchange Act, the
Company (at its own expense) shall cause its consolidated financial statements,
comparable to those which would have been required to appear in annual or
quarterly reports, to be delivered to each Purchaser.

SECTION 4.05.   SECURITIES MATTERS.

(a) The Company shall file all periodic reports
required to be filed with the Commission pursuant to the Exchange Act in a
timely manner and shall not terminate its status as an issuer required to file
periodic reports under the Exchange Act.

(b) The Company shall promptly secure the listing of
all Registrable Securities (as defined in the Registration Rights Agreement)
upon each national securities exchange and automated quotation system, if any,
upon which shares of Common Stock are listed (subject to official notice of
issuance) and shall maintain such listing. The Company shall maintain the
Common Stock’s authorization for quotation on the NASDAQ Global Market or
obtain a listing on the NASDAQ Capital Market, The New York Stock Exchange or
the American Stock Exchange.

(c) The Company shall timely file a Form D with
respect to the Securities as required under Regulation D and provide a copy
thereof to the Purchaser promptly after such filing. The Company shall, on or
before the date of the Closing, take such actions as shall be reasonably
necessary in order to obtain an exemption for or to qualify the Securities for
sale to the Purchaser pursuant to this Securities Purchase Agreement under
applicable securities or “blue sky” laws of the states of the United States (or
to obtain an exemption from such qualification) and shall provide evidence of
any such action so taken to the Purchaser on or prior to the date of the
Closing. The Company shall make all filings and reports relating to the offer
and sale of the Securities required under applicable securities or “blue sky”
laws of the states of the United States following the date of the Closing.

(d) The Company agrees that, in connection with the
issuance and sale of Securities pursuant to this Securities Purchase Agreement,
it will not issue Common Stock (excluding the Common Stock underlying the
Warrants) representing more than 19.99% of its outstanding capital stock.

SECTION 4.06.   USE OF PROCEEDS.

The Company will use the proceeds from the sale of the
Securities to pay existing indebtedness of the Company, for working capital,
strategic acquisitions, if any, and general corporate purposes.

SECTION 4.07.   ISSUANCES BELOW
PURCHASE PRICE.

For a period of six months following the date hereof,
the Company shall not, without the prior written consent of the each of the
Purchasers, issue or sell any shares of the Company’s capital stock or other
securities exercisable for, convertible into or otherwise giving the holder
thereof the right to acquire the Company’s capital stock at a price per share,
including the exercise or conversion price per share, which is below $0.40 per
share; provided, however,

 15
 

that this restriction shall not apply to any capital
stock issued pursuant to: (i) employee benefit plans set forth on SCHEDULE
3.01(c) annexed hereto, (ii) outstanding warrants, options or other securities
set forth on SCHEDULE 3.01(c) annexed hereto or the Company filings under the
Exchange Act or (iii) a merger or acquisition or other strategic transaction or
partnership; provided that such strategic transaction or partnership does not
include a capital raise by the Company below $0.40 per share.

SECTION 4.08   PARTICIPATION RIGHT.

At least 20 days prior to any issuance or sale by the
Company of equity securities, or securities convertible into equity securities,
of the Company to any purchaser, the Company shall deliver a written notice
(the “SALE NOTICE”) to DGFC, specifying in reasonable detail the identity of
the prospective purchaser, the amount of securities to be issued or sold and
the terms and conditions of such securities and such issuance or sale. DGFC may
elect to participate in such contemplated issuance or sale at the same price
per share and on the same terms by delivering written notice to the Company
within 20 days after delivery of the Sale Notice. The number or amount of each
security that DGFC shall be entitled to purchase shall equal the product of (a)
the percentage of the Common Stock beneficially owned by DGFC, on a fully
diluted basis, multiplied by (b) the number or amount of securities to
be sold in the contemplated issuance or sale; provided that in no event shall
such percentage exceed 19.99% of the Company. The foregoing participation right
shall not apply to any issuance or sale of securities by the Company under its
(i) employee benefit plans set forth on SCHEDULE 3.01(c) annexed hereto, (ii)
outstanding warrants, options or other securities set forth on SCHEDULE 3.01(c)
annexed hereto or the Company filings under the Exchange Act or (iii) a merger
or acquisition or other strategic transaction or partnership. The obligation of
the Company and the rights of DGCF under this Section 4.08 shall terminate at
such time as DGFC ceases to be the beneficial owner of 85% of the Common Stock
purchased pursuant to the terms of this Securities Purchase Agreement.

SECTION 4.09   BOARD REPRESENTATION.

The Company hereby grants to DGFC the right to
recommend one qualified individual to be elected to fill a vacancy on the Board
of Directors of the Company. The Company shall take such actions as shall be
reasonably necessary, consistent with the fiduciary duties of the Board of
Directors of the Company, to ensure that one individual recommended by the
Purchaser is included on the Board of Director’s slate of nominees for the
election of Directors and recommended for election. Thereafter, for so long as
DGFC is a holder of not less than 85% of the Common Stock purchased pursuant to
this Securities Purchase Agreement, the Company shall take such actions as
shall be reasonably necessary, consistent with the fiduciary duties of the
Board of Directors of the Company, to cause the one designee of DGFC to be
nominated for election to the Board of Directors of the Company at each meeting
at which directors are to be elected.

 16
 

ARTICLE FIVE

CONDITIONS

SECTION 5.01.   CONDITIONS TO THE
COMPANY’S OBLIGATION.

The obligation of the Company hereunder to issue and
sell the Securities to each Purchaser at the Closing is subject to the
satisfaction, at or before the Closing, of each of the following conditions,
provided that these conditions are for the Company’s sole benefit and may be
waived by the Company at any time in its sole discretion by providing each
Purchaser with prior written notice thereof: 

	
  (a)

  	
   

  	
  Such Purchaser shall have delivered to the Company
  the Registration Rights Agreement duly executed by such Purchaser.

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  Such Purchaser and each other Purchaser shall have
  delivered to the Company the Purchase Price for the Securities, by wire
  transfer of immediately available funds pursuant to the wire instructions
  provided by the Company.

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  The representations and warranties of each Purchaser
  contained in Section 3.02 of this Securities Purchase Agreement shall be true
  and correct in all material respects, in each case as of the Closing Date as
  though made at and as of such date, except to the extent that they expressly
  refer to an earlier or specific time, in which case they shall be true and
  correct in all material respects as of such time.

  
	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  Each Purchaser shall have performed and complied
  with, in all material respects, the agreements, covenants and obligations
  required by this Securities Purchase Agreement to be so performed or complied
  with by such Purchaser at or before the Closing.

  

 

SECTION 5.02.   CONDITIONS TO THE
PURCHASER’S OBLIGATION.

The obligation of each Purchaser to purchase the
Securities at the Closing is subject to the satisfaction, at or before the
Closing, of each of the following conditions, provided that these conditions
are for each Purchaser’s sole benefit and may be waived by such Purchaser at
any time in its sole discretion by providing the Company with prior written
notice thereof:

(a) Such Purchaser shall have received the
Registration Rights Agreement and the Warrant duly executed by the Company.

(b) Such Purchaser shall have received certificates
for shares of Common Stock to be purchased by it at the Closing.

(c) Such Purchaser shall have received an Opinion of
Counsel from the Company in substantially the form of Exhibit C attached
hereto.

(d) Such Purchaser shall have received a certified
copy of the Certificate of Incorporation of the Company, together with a Good
Standing Certificate with respect to

 17
 

the Company issued by the Secretary of State of such
state of incorporation as of a date within ten (10) days of the date of the
Closing.

(e) Such Purchaser shall have received a copy of the
certificate evidencing the Company’s qualification as a foreign corporation in
good standing issued by the Secretary of State of the State of New York as of a
date within ten (10) days of the date of the Closing.

(f) Such Purchaser shall have received a certificate
executed by the Secretary of the Company and dated as of the date of the
Closing, certifying as to (i) the resolutions as adopted by the Company’s Board
of Directors in connection with the authorization of the transactions
contemplated hereby, (ii) the Certificate of Incorporation of the Company and
(iii) the Bylaws of the Company, each as in effect at the time of the Closing
Date.

(g) Such Purchaser shall have received a copy of all
governmental, regulatory or third party consents and approvals, if any,
necessary for the sale of the Securities.

(h) Such Purchaser shall have received a copy of such
other documents relating to the transactions contemplated by this Securities
Purchase Agreement, the Registration Rights Agreement and the Warrant as the
Purchaser or its counsel may reasonably request.

(i) The representations and warranties of the Company
contained in Section 3.01 of this Securities Purchase Agreement shall be true
and correct in all material respects, in each case as of the Closing Date as
though made at and as of such date, except to the extent that they expressly
refer to an earlier or specific time, in which case they shall be true and
correct in all material respects as of such time.

(j) The Company shall have performed and complied
with, in all material respects, the agreements, covenants and obligations
required by this Securities Purchase Agreement to be so performed or complied
with by the Company at or before the Closing.

ARTICLE SIX

MISCELLANEOUS

SECTION 6.01.   NOTICES.

Any notices or other communications required or
permitted hereunder shall be in writing, and shall be sufficiently given if
made by hand delivery, by verifiable facsimile transmission or by reputable
overnight delivery service, addressed as follows:

	
  

  	
   

  	
  if to the Company:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Viewpoint Corporation

  
	
   

  	
   

  	
  498 Seventh Avenue, Suite 1810

  
	
   

  	
   

  	
  New York, New York 10018

  

 

 18
 

 

	
  

  	
   

  	
  Facsimile: (212) 201-0846

  
	
   

  	
   

  	
  Attention: General Counsel

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Milbank, Tweed, Hadley & McCloy LLP

  
	
   

  	
   

  	
  1 Chase Manhattan Plaza

  
	
   

  	
   

  	
  New York, New York 10005

  
	
   

  	
   

  	
  Facsimile: (212) 822-5171

  
	
   

  	
   

  	
  Attention: Alexander M. Kaye, Esq.

  

 

If to a Purchaser, to its address and facsimile number
set forth on the Schedule of Purchasers, with copies to such Purchaser’s
representatives as set forth on the Schedule of Purchasers.

The Company and each Purchaser by written notice to
each other may designate additional or different addresses for notices to such
Person. Any notice or communication to a party shall be deemed to have been
given or made as of the date so delivered if personally delivered; when
received if by facsimile transmission or electronic mail; and one (1) business
day after mailing by reputable overnight courier (except that, notwithstanding
the foregoing, a notice of change of address shall not be deemed to have been
given until actually received by the addressee).

SECTION 6.02.   GOVERNING LAW.

THIS SECURITIES PURCHASE AGREEMENT WILL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED
TO CONTRACTS MADE AND PERFORMED WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO
PRINCIPLES OF CONFLICT OF LAWS. THE PARTIES HERETO AGREE TO SUBMIT TO THE
JURISDICTION OF THE FEDERAL OR STATE COURTS LOCATED IN THE CITY OF NEW YORK IN
ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS SECURITIES PURCHASE
AGREEMENT.

SECTION 6.03.   SUCCESSORS.

All agreements of the Company in this Securities
Purchase Agreement shall bind its successors.

SECTION 6.04.   COUNTERPARTS.

The parties may sign any number of copies of this
Securities Purchase Agreement. Each signed copy or counterpart shall be an
original, but all of them together shall represent the same agreement. Delivery
by facsimile of an executed counterpart of any signature page to this
Securities Purchase Agreement to be executed hereunder shall have the same
effectiveness as delivery of a manually executed counterpart thereof.

 19
 

SECTION 6.05.   SEVERABILITY.

In case any one or more of the provisions in this
Securities Purchase Agreement shall be held invalid, illegal or unenforceable,
in any respect for any reason, the validity, legality and enforceability of any
such provision in every other respect and of the remaining provisions shall not
in any way be affected or impaired thereby, it being intended that all of the
provisions hereof shall be enforceable to the full extent permitted by law. 

SECTION 6.06.   INDEPENDENT NATURE OF
PURCHASER’S OBLIGATIONS AND RIGHTS.  

The obligations of each Purchaser hereunder are
several and not joint with the obligations of the other Purchasers hereunder,
and no Purchaser shall be responsible in any way for the performance of the
obligations of any other Purchaser hereunder. Nothing contained herein or in
any other agreement or document delivered at any Closing, and no action taken
by any Purchaser pursuant hereto or thereto, shall be deemed to constitute the
Purchasers as a partnership, an association, a joint venture or any other kind
of entity, or a “group” as described in Section 13(d) of the Exchange Act, or
create a presumption that the Purchasers are in any way acting in concert with
respect to such obligations or the transactions contemplated by this Securities
Purchase Agreement. Each Purchaser has been represented by its own separate
counsel in connection with the transactions contemplated hereby, shall be
entitled to protect and enforce its rights, including without limitation rights
arising out of this Securities Purchase Agreement or the other transaction
documents, individually, and shall not be required to join any other Purchaser
as an additional party in any proceeding for such purpose.

For avoidance of doubt, each party hereto acknowledges
that Gruber & McBaine Capital Management LLC retained Shartsis Friese LLP (“Shartsis
Friese”) to represent it in connection with this Securities Purchase Agreement
and Registration Rights Agreement and any Schedules or Exhibits thereto, such
that its interests may not necessarily coincide with the interests of any other
Purchasers (the “Other Purchasers”). The Other Purchasers have consulted with, or
have had the opportunity to consult with, their own legal counsel and the Other
Purchasers have not relied on Shartsis Friese for legal counsel in connection
with this transaction.

SECTION 6.07.   PAYMENT OF EXPENSES.

The Company shall pay Shartsis Friese LLP, legal
counsel to Gruber & McBaine Capital Management, reasonable, documented
legal expenses in an aggregate amount not to exceed $20,000 at the Closing,
which amount may be netted from the Purchase Price payable by Gruber &
McBaine Capital Management.

[SIGNATURE PAGES TO
FOLLOW]

 20

SIGNATURES

IN WITNESS WHEREOF, the undersigned have caused this
Securities Purchase Agreement to be duly executed by their respective
authorized signatories as of the date first indicated above. 

	
  

  	
   

  	
  THE COMPANY:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  VIEWPOINT CORPORATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Patrick Vogt

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name: Patrick Vogt

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Title: CEO

  	
   

  	
   

  
							

 

SIGNATURES

IN WITNESS WHEREOF, the undersigned have caused this
Securities Purchase Agreement to be duly executed by their respective
authorized signatories as of the date first indicated above.

	
  Name of Purchaser: 

  	
  DG FastChannel, Inc.

  	
   

  
	
  Signature of Authorized Signatory of Purchaser:
  

  	
   /s/ Scott K. Ginsburg

  	
   

  
	
  Name of Authorized Signatory:

  	
  Scott K. Ginsburg

  	
   

  
	
  Title of Authorized Signatory:

  	
  Chairman and CEO

  	
   

  
	
  Email Address of Purchaser:

  	
   

  	
   

  
											

 

Address
for Notice of Purchaser:

Address
for Delivery of Securities for Purchaser (if not same as above):

Subscription Amount: 

Shares of Common Stock: 

Warrants: 

EIN/Social Security Number: 

SIGNATURES

IN WITNESS WHEREOF, the undersigned have caused this
Securities Purchase Agreement to be duly executed by their respective
authorized signatories as of the date first indicated above.

	
  Name of Purchaser:

  	
  Lagunitas Partners LP

  	
   

  
	
  Signature of Authorized Signatory of Purchaser:

  	
  /s/ Jon D. Gruber

  	
   

  
	
  Name of Authorized Signatory:

  	
  Jon D. Gruber

  	
   

  
	
  Title of Authorized Signatory:

  	
  General Partner

  	
   

  
	
  Email Address of Purchaser:

  	
   

  	
   

  
										

 

Address
for Notice of Purchaser: 

      Gruber & McBaine 

      50 Osgood Place 

      San Francisco, CA 94133

Address
for Delivery of Securities for Purchaser (if not same as above):

Subscription Amount: 

Shares of Common Stock: 

Warrants: 

EIN/Social Security Number: 

SIGNATURES

IN WITNESS WHEREOF, the undersigned have caused this
Securities Purchase Agreement to be duly executed by their respective
authorized signatories as of the date first indicated above. 

	
  Name of Purchaser: 

  	
  Gruber & McBaine International

  	
   

  
	
  Signature of Authorized Signatory of Purchaser: 

  	
  /s/ Jon D. Gruber

  	
   

  
	
  Name of Authorized Signatory: 

  	
  Jon D. Gruber

  	
   

  
	
  Title of Authorized Signatory: 

  	
  Investment Advisor

  	
   

  
	
  Email Address of Purchaser:

  	
   

  	
   

  
											

 

Address for Notice of
Purchaser: 

      Gruber & McBaine 

      50 Osgood Place 

      San Francisco, CA 94133

Address
for Delivery of Securities for Purchaser (if not same as above):

Subscription Amount:                      

Shares of Common Stock:                   

Warrants:                           

EIN/Social Security Number:                

SIGNATURES

IN WITNESS WHEREOF, the undersigned have caused this
Securities Purchase Agreement to be duly executed by their respective
authorized signatories as of the date first indicated above. 

	
  Name of Purchaser:

  	
  Jon D and Linda W Gruber Trust

  	
   

  
	
  Signature of Authorized Signatory of Purchaser:

  	
  /s/ Jon D. Gruber

  	
   

  
	
  Name of Authorized Signatory:

  	
  Jon D. Gruber

  	
   

  
	
  Title of Authorized Signatory:

  	
   

  	
   

  
	
  Email Address of Purchaser:

  
									

 

Address for Notice of
Purchaser: 

      Gruber & McBaine 

      50 Osgood Place 

      San Francisco, CA 94133

Address
for Delivery of Securities for Purchaser (if not same as above):

Subscription Amount:                      

Shares of Common Stock:                   

Warrants:                           

EIN/Social Security Number:                

SIGNATURES

IN WITNESS WHEREOF, the undersigned have caused this
Securities Purchase Agreement to be duly executed by their respective
authorized signatories as of the date first indicated above. Name of Purchaser:

	
   Name of Purchaser:

  	
  J Patterson McBaine

  	
   

  
	
  Signature of Authorized Signatory of Purchaser: 

  	
  /s/ J Patterson McBaine

  	
   

  
	
  Name of Authorized Signatory:

  	
  J Patterson McBaine

  	
   

  
	
  Title of Authorized Signatory:

  	
   

  	
   

  
	
  Email Address of Purchaser:

  	
   

  	
   

  
											

 

Address for Notice of
Purchaser: 

      Gruber & McBaine 

      50 Osgood Place 

      San Francisco, CA 94133

Address
for Delivery of Securities for Purchaser (if not same as above):

Subscription Amount:                      

Shares of Common Stock:                   

Warrants:                           

EIN/Social Security Number:                

Exhibit A

Schedule of Purchasers

	
  (1)

  	
   

  	
  (2)

  	
   

  	
  (3)

  	
   

  	
  (4)

  	
   

  	
  (5)

  	
   

  
	
  Purchaser

  	
   

  	
  Mailing Address / Phone / Email

  	
   

  	
  Common Shares

  	
   

  	
  Warrants

  	
   

  	
  Purchase Price

  	
   

  
	
  DG FastChannel, Inc.

  	
   

  	
  DG
  FastChannel, Inc.

  	
   

  	
  10,750,000

  	
   

  	
  2,687,500

  	
   

  	
  $

  	
  4,300,000

  	
   

  
	
  

  	
   

  	
  Omar
  Choucair

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  750
  W. John Carpenter Fwy.

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  Suite
  700

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  Irving,
  TX 75039

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  Telephone:
  972.581.2000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  Email:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  ochoucair@dgfastchannel.com

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Lagunitas Partners LP

  	
   

  	
  Lagunitas
  Partners LP

  	
   

  	
  1,545,000

  	
   

  	
  386,250

  	
   

  	
  $

  	
  618,000

  	
   

  
	
  

  	
   

  	
  50
  Osgood Pl. Penthouse

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  San
  Francisco, CA 94133

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  Telephone:
  415.981.2101

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  Email:
  jon@gmcm.com

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  Tax
  ID#: 94-3052761

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Gruber & McBaine International

  	
   

  	
  Gruber
  & McBaine International

  	
   

  	
  355,000

  	
   

  	
  88,750

  	
   

  	
  $

  	
  142,000

  	
   

  
	
  

  	
   

  	
  50
  Osgood Pl. Penthouse

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  San
  Francisco, CA 94133

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  Tax
  ID#: N/A

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Jon D & Linda W Gruber Trust

  	
   

  	
  Jon
  D & Linda W Gruber Trust

  	
   

  	
  455,000

  	
   

  	
  113,750

  	
   

  	
  $

  	
  182,000

  	
   

  
	
  

  	
   

  	
  50
  Osgood Pl. Penthouse

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  San
  Francisco, CA 94133

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  Tax
  ID#: ###-##-####

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  J Patterson McBaine

  	
   

  	
  J
  Patterson McBaine

  	
   

  	
  145,000

  	
   

  	
  36,250

  	
   

  	
  $

  	
  58,000

  	
   

  
	
  

  	
   

  	
  50
  Osgood Pl. Penthouse

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  San
  Francisco, CA 94133

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  

  	
   

  	
  Tax
  ID#: ###-##-####

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
  13,250,000

  	
   

  	
  3,312,500

  	
   

  	
  $

  	
  5,300,000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00123-of-00352.parquet"}]]