Document:

EX-10.06 CHATHAM WARRANT PURCHASE AND REGISTRATION

Exhibit 10.06

WARRANT PURCHASE AND REGISTRATION RIGHTS AGREEMENT

          This Warrant Purchase and Registration Rights Agreement, dated as of September 23, 2008,
between BROOKSIDE TECHNOLOGY HOLDINGS CORP., a Florida corporation (together with its successors,
the “Company”), those Persons identified as the “Stockholders” on the signature page of
this Agreement (collectively the “Stockholders” and, individually, a
“Stockholder”); and CHATHAM CAPITAL MANAGEMENT III, LLC, (“Chatham Capital”), not
individually but as agent for CHATHAM INVESTMENT FUND III, LLC (“Chatham II”) and CHATHAM
INVESTMENT FUND QP III, LLC, (“Chatham QP II”, and together with Chatham Capital and
Chatham II and any successors or assign of Chatham Capital, Chatham II or Chatham QP II, the
“Warrantholders” and each, a “Warrantholder”).

          WHEREAS, in connection with the Warrantholders entering into that certain Credit Agreement
dated as of September ___, 2008 (as amended, restated, supplemented and otherwise modified from time
to time (the “Credit Agreement”), by and among the Company and the other parties named as
“Borrowers” therein, the other persons designated as “Credit Parties” therein, the financial
institutions designated as “Lenders” therein, and Chatham Capital Management III, LLC, a Georgia
limited liability company, as Agent (“Agent”), the Company has issued those certain
Warrants, dated on or about the date hereof, in favor of each Warrantholder, entitling the
Warrantholders to purchase in the aggregate up to 140,930,835 shares of Company’s Common Stock,
$.001 par value (as described more particularly below, its “Common Stock”), subject to
adjustment as set forth therein;

          WHEREAS, the Company is issuing the Warrants contemporaneously with the execution and delivery
of this Agreement;

          WHEREAS, the Stockholders, on a fully diluted basis, that is, assuming conversion of all
shares of Preferred Stock to Common Stock and the exercise of all Warrants and Options owned by the
Stockholders, are (or would be) the record and beneficial owners of 474,207,168 shares of Common
Stock and are joining in this Agreement at the Warrantholder’s request.

          NOW, THEREFORE, the parties hereto agree as follows:

ARTICLE I

DEFINITIONS

          SECTION 1.1 Definitions. Unless otherwise defined herein, in the Warrants or in the
Credit Agreement, the following terms used in this Agreement shall have the meanings specified
below.

 

 

          “Commission” means the Securities and Exchange Commission or any other federal agency
at the time administering the Securities Act.

          “Common Stock” means any class of shares of the Company’s common equity or any other
class of stock of the Company having a right to participate with the common equity in the
distribution of the Company’s remaining assets upon liquidation.

          “Conversion Shares” means (i) any shares of Stock or other securities issuable or
issued upon the exercise of the Warrants and (ii) any shares of Stock or other securities issuable
or issued with respect to any of such shares or other securities referred to in clause (i) upon the
conversion thereof into shares of Stock, other securities or by way of stock dividend or stock
split or in connection with a combination of shares, recapitalization, merger, consolidation or
other reorganization or otherwise; provided that any of such securities shall cease to be
Conversion Shares when such securities shall have (x) been disposed of pursuant to a Public Sale or
(y) ceased to be outstanding.

          “Exchange Act” means the Securities Exchange Act of 1934, or any successor federal
statute, and the rules and regulations of the Commission thereunder, all as the same shall be in
effect at the time. Reference to a particular section of the Securities Exchange Act of 1934 shall
include a reference to the comparable section, if any, of any such successor federal statute.

          “Initiating Holders” has the meaning set forth in Section 3.1 hereof.

          “Other Shares” has the meaning set forth in Section 3.1(f).

          “Person” means a corporation, an association, a partnership, an organization, a
business, an individual, a government or a subdivision thereof or a governmental agency.

          “Public Sale” means any sale of Common Stock to the public pursuant to an offering
registered under the Securities Act or to the public through a broker, dealer or market maker
pursuant to the provisions of Rule 144 (or any successor provision then in effect) adopted under
the Securities Act.

          “Registrable Securities” means any Conversion Shares until the date (if any) on which
such Conversion Shares shall have been transferred or exchanged and new certificates for them not
bearing a legend restricting further transfer shall have been delivered by the Company and
subsequent disposition of them shall not require registration or qualification of them under the
Securities Act or any similar state law then in force.

          “Registration Expenses” means all expenses incident to the Company’s performance of or
compliance with Sections 3.1 through 3.5 hereof, including (i) all registration,
filing and NASD fees, (ii) all fees and expenses of complying with securities or blue sky laws,
(iii) all word processing, duplicating and printing expenses, (iv) all messenger and delivery
expenses, (v) the fees and disbursements of counsel for the Company and of its independent public
accountants, including the expenses of any special audits or “cold comfort” letters required by or
incident to such performance and compliance, (vi) the fees and disbursements of any one counsel and
one accountant retained by holders of a majority in interest of Registrable Securities being
registered (or, in the case of any registration effected pursuant to Section 3.1, as

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the
Initiating Holders shall have selected to represent all holders of the Registrable Securities being
registered), (vii) premiums and other costs of policies of insurance (if any) against liabilities
arising out of the public offering of the Registrable Securities being registered if the
Company desires such insurance and (viii) any fees and disbursements of underwriters
customarily paid by issuers or sellers of securities, but not including underwriting discounts and
commissions and transfer taxes, if any, provided that, in any case where Registration
Expenses are not to be borne by the Company, such expenses shall not include (i) salaries of the
Company personnel or general overhead expenses of the Company, (ii) auditing fees, (iii) premiums
or other expenses relating to liability insurance required by underwriters of the Company or (iv)
other expenses for the preparation of financial statements or other data, to the extent that any of
the foregoing either is normally prepared by the Company in the ordinary course of its business or
would have been incurred by the Company had no public offering taken place.

          “Restricted Securities” means the Stock held by the Stockholders, the Warrants, the
Conversion Shares and any securities obtained upon exchange for or upon conversion or transfer of
or as a distribution on the Warrants, the Conversion Shares or any such securities; provided that
particular securities shall cease to be Restricted Securities when (x) such securities shall have
been disposed of pursuant to a Public Sale, (y) been otherwise transferred or exchanged and new
certificates for them not bearing a legend restricting further transfer shall have been delivered
by the Company and subsequent disposition of them shall not require registration or qualification
of them under the Securities Act or any similar state law then in force or (z) ceased to be
outstanding. Whenever any particular securities cease to be Restricted Securities, the holder
thereof shall be entitled to receive from the issuer thereof or its transfer agent, without expense
(other than transfer taxes, if any), new securities of like tenor not bearing a legend of the
character set forth in Section 2.2.

          “Securities Act” means the Securities Act of 1933, or any similar federal statute, and
the rules and regulations of the Commission thereunder, all as the same shall be in effect at the
time. Reference to a particular section of the Securities Act of 1933 shall include a reference to
the comparable section, if any, of any such similar federal statute.

          “Stock” means all issued and outstanding capital stock of the Company including,
without limitation, the Common Stock and any securities convertible into such capital stock.

          “Warrant” means any and all warrants to purchase Stock originally issued to the
Warrantholders and as such Warrant(s) may be transferred or otherwise assigned, but only to the
extent not theretofore exercised, redeemed or expired in accordance with their respective terms.

          “Warrantholder” has the meaning set forth in the introductory paragraph (and for
purposes of Section 2.8 shall include any Person that held a Warrant that was redeemed
pursuant to its terms).

          “Warrant Securityholder” means at any time any Warrantholder and/or any holder of
Conversion Shares.

          All references herein to “days” shall mean calendar days unless otherwise specified.

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ARTICLE II

TRANSFER OF SHARES; PAYMENTS TO WARRANTHOLDER

          SECTION 2.1 General. Each Stockholder and Warrantholder agrees that except as
otherwise required by law, such Stockholder and Warrantholder shall not transfer or attempt to
transfer any of its shares of Stock at any time to any Persons without fully complying with each of
the terms and conditions of this Agreement.

          SECTION 2.2 Restrictions on Transfer; Legend on Certificates. (a) Except as otherwise
provided in this Agreement, Restricted Securities shall not be transferable except (i) pursuant to
an effective registration statement under the Securities Act, (ii) pursuant to Rule 144 or 144A (or
any successor provisions) under the Securities Act or (iii) pursuant to a transaction that is
otherwise exempt from the registration requirements of the Securities Act.

          (b) Unless otherwise expressly provided herein, each certificate for Restricted Securities and
each certificate issued in exchange for or upon transfer of any thereof shall be stamped or
otherwise imprinted with a legend in substantially the following form:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933 AND MAY NOT BE SOLD OR OFFERED FOR SALE UNLESS REGISTERED
UNDER SAID ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR UNLESS AN EXEMPTION FROM
SUCH REGISTRATION IS AVAILABLE. THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE
ALSO SUBJECT TO AND HAVE THE BENEFIT OF THE WARRANT PURCHASE AND REGISTRATION RIGHTS
AGREEMENT, DATED AS OF SEPTEMBER ___, 2008, BETWEEN BROOKSIDE TECHNOLOGY HOLDINGS
CORP. AND THE WARRANTHOLDERS LISTED ON THE SIGNATURE PAGES THEREOF, (AMONG OTHERS),
AS AMENDED FROM TIME TO TIME, A COPY OF WHICH IS ON FILE WITH BROOKSIDE TECHNOLOGY
HOLDINGS CORP.

          (c) Any other provision of this Agreement to the contrary notwithstanding, no transfer of any
Restricted Securities other than pursuant to a Public Sale may be made to any Person unless such
Person shall have agreed in writing that such Person, as a holder of Restricted Securities, and the
Restricted Securities it acquires shall be bound by and be entitled to the benefits of all the
provisions of this Agreement applicable to such Restricted Securities (and
upon such agreement such Person shall be entitled to such benefits). Any purported transfer
of Restricted Securities without compliance with the applicable provisions of this Agreement shall
be void and of no effect, and the purported transferee shall have no rights as a Warrantholder
under this Agreement. In the event of such non-complying transfer, the Company shall not transfer
any such Restricted Securities on its books or recognize the purported transferee as a

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Stockholder
or a Warrantholder, as the case may be, for any purpose, until all applicable provisions of this
Agreement have been complied with.

          (d) The restrictions on transfer provided in Section 2.2(a) shall not be applicable to
(i) any transfer in compliance with federal and all applicable state securities laws to an
Affiliate of the holder of Restricted Securities, from an Affiliate of such holder to such holder
or between Affiliates of such holder (if any such Affiliate to whom shares of Restricted Securities
have been transferred by a holder thereof ceases to be an Affiliate of such holder of Restricted
Securities, such Restricted Securities shall immediately be transferred back to the transferor
thereof), (ii) any transfer upon the death of any holder of Restricted Securities to such holder’s
executors, administrators or testamentary trustees, (iii) any transfer to a trust the beneficiaries
of which include only the holder of such Restricted Securities or such holder’s spouse, parents,
siblings or descendants or (iv) any transfer by the holder in connection with the grant of a
participation interest in the Loan Agreement (any transferee referred to in (i), (ii), (iii) or
(iv) above being referred to herein as a “Permitted Transferee”); provided that no
such transfer shall be made to any Permitted Transferee unless such Permitted Transferee shall have
agreed in writing that such Permitted Transferee, as a Stockholder or Warrantholder (as the case
may be), and the Warrants or Conversion Shares it acquires shall be bound by and be entitled to the
benefits of all the provisions of this Agreement applicable to Warrants or Conversion Shares (as
the case may be), and upon such agreement such Permitted Transferee shall be entitled to such
benefits.

          SECTION 2.3 Tag-Along Rights. (a) If any Stockholder or any of its Affiliates (any
such Person for purposes of this Section 2.3, the “Transferor”) wishes, in a single
transaction or a series of related transactions, to transfer shares of its Stock to any Person (
the “Transferee”) for cash and/or non-cash consideration in an aggregate amount equal to
One Million Dollars ($1,000,000) or more, the Transferor shall first give to the Company and each
Warrantholder written notice (a “Transfer Notice”), executed by it and the Transferee and
containing (i) the class and the number of shares of Stock that the Transferee proposes to acquire
from the Transferor, (ii) the name and address of the Transferee, (iii) the proposed purchase
price, terms of payment and other material terms and conditions of such proposed transfer, (iv) an
estimate, in the Transferor’s reasonable judgment, of the fair market value of any non-cash
consideration offered by the Transferee and (v) an offer by the Transferee or Transferor to
purchase, upon the purchase by the Transferee of any shares of Stock owned by the Transferor and
for the same per share consideration, that number of Conversion Shares (or if such number is not an
integral number, the next integral number which is greater than such number) of each Warrantholder
which shall be the product of (x) the aggregate number of Conversion Shares either then owned, or
issuable upon exercise of the Warrants, by such Warrantholder and (y) a fraction, the numerator of which shall be the
number of shares of Stock indicated in the Transfer Notice as subject to purchase by the Transferee
and the denominator of which shall be the sum of (A) the total number of shares of Stock then owned
by the Transferor and its Affiliates plus (B) the total number of Conversion Shares either then
owned, or issuable upon exercise of the Warrants then owned, by the Warrantholders. The
Warrantholders shall have the right, for a period of twenty (20) days after the Transfer Notice is
given, to accept such offer in whole or in

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part, exercisable by delivering a written notice to the
Transferor and the Company within such twenty (20) day period, stating therein the number of shares
of Stock (which may be the number of shares set forth in the offer by the Transferor or Transferee,
as the case may be, or a portion thereof) to be sold by the Warrantholders to the Transferor or
Transferee, as the case may be. Prior to the earlier of (x) the end of such twenty (20) day period
or (y) the acceptance or rejection by each Warrantholder of the Transferee’s or Transferor’s offer,
as the case may be, neither the Transferor nor its Affiliates will complete any sale of shares of
Stock to the Transferee. Thereafter, for a period of sixty (60) days after the prohibition under
the preceding sentence shall have terminated, the Transferor may sell to the Transferee for the
consideration stated and on the terms set forth in the Transfer Notice the shares of Stock stated
in the Transfer Notice as subject to purchase by the Transferee, provided that the Transferor or
Transferee, as the case may be, shall simultaneously purchase the number of shares of Stock as
calculated above from such Warrantholder if such Warrantholder has accepted the Transferor’s or
Transferee’s offer. The Company shall take any and all actions necessary to facilitate the timely
issuance of Conversion Shares in connection with any such purchase. The provisions of this
Section 2.3 shall not apply to transfers between the Transferor and any of its Affiliates
or between Affiliates of the Transferor.

          (b) Notwithstanding anything contained in Section 2.3(a) to the contrary, transfers of
(x) shares of Stock by a Transferor to such Transferor’s spouse, parents, siblings, children or
grandchildern, or other member of the Transferor’s immediate or extended family (including
relatives by marriage), or to a custodian, trustee or other fiduciary for the account of Transferor
or members of Transferor’s immediate or extended family in connection with an estate planning
transaction shall not be subject to the provisions set forth in Section 2.3(a);
provided that prior to such transfer, any such Transferee agrees, in a writing reasonably
satisfactory to Warrantholders, to the restrictions set forth in this Agreement as to such
transferred Stock.

ARTICLE III

REGISTRATION RIGHTS

          SECTION 3.1 Registration on Request. (a) Upon the written request of the
Warrantholders holding of record Warrants exercisable for more than fifty percent (50%) of the
Conversion Shares (collectively referenced as the “Initiating Holder”), requesting that the
Company effect the registration under the Securities Act of all or part of such Initiating Holder’s
Registrable Securities and specifying the intended method of disposition thereof, the Company will
promptly give written notice of such requested registration to all holders of Registrable Securities, and thereupon the
Company will use its reasonable best efforts to effect the registration under the Securities Act,
in the following priority, of:

          (i) the Registrable Securities which the Company has been so requested to register by
the Initiating Holder for disposition in accordance with the intended method of disposition
stated in such request;

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          (ii) all other Registrable Securities the holders of which shall have made a written
request to the Company for registration thereof within thirty (30) days after the giving of
such written notice by the Company (which request shall specify the intended method of
disposition of such Registrable Securities); and

          (iii) all shares of Stock which the Company may elect to register in connection with
the registration of Registrable Securities pursuant to this Section 3.1, whether for
its own account or for the account of a holder of Common Stock,

all to the extent requisite to permit the disposition (in accordance with the intended methods
thereof as aforesaid) as expeditiously as possible, but in no event later than one hundred and
eighty (180) days from the date of such request, of the Registrable Securities and the additional
shares of Stock, if any, to be so registered; provided that (i) the Warrantholders and any
other holders of Registrable Securities as a class shall be entitled to not more than two (2)
registrations upon request pursuant to this Section 3.1 and (ii) the Warrantholders shall
not demand a registration under this Section 3.1 within thirty (30) days of the
Warrantholders’ receipt of the Company’s notice provided pursuant to Section 3.1(a) or
Section 3.2 (which shall in no way affect the Warrantholders’ rights under Section
3.2).

          (b) Registrations under this Section 3.1 shall be on such appropriate registration
form of the Commission (i) as shall be selected by the Company and (ii) as shall permit the
disposition of such Registrable Securities in accordance with the intended method or methods of
disposition specified in their request for such registration. The Company agrees to include in any
such registration statement all information which holders of Registrable Securities being
registered shall reasonably request.

          (c) The Company will pay all Registration Expenses in connection with any registration
requested pursuant to this Section 3.1.

          (d) A registration requested pursuant to this Section 3.1 shall not be deemed to have
been effected (i) unless a registration statement with respect thereto has been declared effective
by the Commission; provided that a registration which does not become effective after the
Company has filed a registration statement with respect thereto solely by reason of the refusal to
proceed by the Initiating Holder (other than a refusal to proceed based upon the advice of counsel
relating to a matter with respect to the Company) shall be deemed to have been effected by the
Company at the request of the Initiating Holder unless the Initiating Holder shall have elected to
pay all Registration Expenses in connection with such registration, (ii) if, after it has become
effective, such registration is interfered with by any stop order, injunction or other
order or requirement of the Commission or other governmental agency or court for any reason,
other than by reason of some act or omission by any Warrantholder or Warrant Securityholder, or
(iii) the conditions to closing specified in the purchase agreement or underwriting agreement
entered into in connection with such registration are not satisfied, other than by reason of some
act or omission by any Warrantholder or Warrant Securityholder.

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          (e) If a requested registration pursuant to this Section 3.1 involves an underwritten
offering, the underwriter or underwriters thereof shall be selected by the holders of at least a
majority (by a number of shares) of the Registrable Securities as to which registration has been
requested and shall be reasonably acceptable to the Company.

          (f) If a requested registration pursuant to this Section 3.1 involves an underwritten
offering, and the managing underwriter shall advise the Company (with a copy of any such notice
being delivered by the Company to each holder of Registrable Securities requesting registration)
that, in its opinion, the number of securities requested to be included in such registration
(including securities proposed to be sold for the account of the Company) exceeds the number which
can be sold in such offering within a price range acceptable to the Initiating Holder, the Company
will include in such registration, to the extent of the number which the Company is so advised can
be sold in such offering, (i) first, Registrable Securities of the Warrantholders and Warrant
Securityholders requesting such registration, (ii) second, all shares proposed to be included by
the Company in such registration and (iii) third, all shares other than Registrable Shares (any
such shares with respect to any registration, “Other Shares”) requested to be included in
such registration by the holder or holders thereof.

          SECTION 3.2 Incidental Registration. (a) If the Company at any time proposes to
register any of its securities under the Securities Act (other than (x) by a registration on Form
S-4 or S-8 or any successor or similar forms or (y) pursuant to Section 3.1) whether for
its own account or for the account of the holder or holders of any Other Shares, it will each such
time give prompt written notice to each Warrant Securityholder of its intention to do so and of
Warrant Securityholders’ rights under this Section 3.2. Upon the written request of
Warrant Securityholders holding fifty percent (50%) of Conversion Shares and/or Warrants made
within 20 days after the receipt of any such notice (which request shall specify the Registrable
Securities intended to be disposed of by the Warrant Securityholders and the intended method of
disposition thereof), the Company will use its reasonable best efforts to effect the registration
under the Securities Act of all Registrable Securities which the Company has been so requested to
register by the holders thereof, to the extent requisite to permit the disposition (in accordance
with the intended methods thereof as aforesaid) of the Registrable Securities so to be registered,
by inclusion of such Registrable Securities in the registration statement which covers the
securities which the Company proposes to register; provided that if, at any time after giving
written notice of its intention to register any securities and prior to the effective date of the
registration statement filed in connection with such registration, the Company shall determine for
any reason either not to register or to delay registration of such securities, the Company may, at
its election, give written notice of such determination to each holder of Registrable Securities and, thereupon, (i) in the case of a
determination not to register, shall be relieved of its obligation to register any Registrable
Securities in connection with such registration (but not from its obligation to pay the Registration Expenses in connection therewith), without prejudice, however, to the rights of the
Warrant Securityholders to request that such registration be effected as a
registration under
Section 3.1, and (ii) in the case of a determination to delay registering, shall be
permitted to delay registering any Registrable Securities, for the same period as the delay in
registering such other securities, without prejudice, however, to the rights of any Warrant
Securityholder entitled to do so to request that such Registration be effected as a

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Registration
under Section 3.1. No registration effected under this Section 3.2 shall relieve
the Company of its obligation to effect any registration upon request under Section 3.1,
nor shall any such registration hereunder be deemed to have been effected pursuant to Section
3.1. The Company will pay all Registration Expenses in connection with each registration of
Registrable Securities pursuant to this Section 3.2.

          (b) If the Company at any time proposes to register any of its securities under the Securities
Act as contemplated by this Section 3.2 and such securities are to be distributed by or
through one or more underwriters, the Company will, if requested by any holder of Registrable
Securities as provided in this Section 3.2, use its reasonable best efforts to arrange for
such underwriters to include all the Registrable Securities to be offered and sold by such holder
among the securities to be distributed by such underwriters, provided that if the managing
underwriter of such underwritten offering shall inform the Company and holders of the Registrable
Securities requesting such registration and all other holders of any Other Shares which shall have
exercised, in respect of such underwritten offering, registration rights comparable to the rights
under this Section 3.2 by letter of its belief that inclusion in such distribution of all
or a specified number of such securities proposed to be distributed by such underwriters would
interfere with the successful marketing of the securities being distributed by such underwriters
(such letter to state the basis of such belief and the approximate number of such Registrable
Securities and such Other Shares proposed so to be registered which may be distributed without such
effect), then the Company may, upon written notice to all holders of such Registrable Securities
and holders of such Other Shares, reduce pro rata (if and to the extent stated by such managing
underwriter to be necessary to eliminate such effect) the number of such Registrable Securities and
Other Shares the registration of which shall have been requested by each holder thereof so that the
resultant aggregate number of such Registrable Securities and Other Shares so included in such
registration, together with the number of securities to be included in such registration for the
account of the Company, shall be equal to the number of shares stated in such managing
underwriter’s letter.

          SECTION 3.3 Registration Procedures. (a) If and whenever the Company is required to
effect the registration of any Registrable Securities under the Securities Act as provided in
Sections 3.1 and 3.2, the Company shall, as expeditiously as possible:

          (i) prepare and (within sixty (60) days after the end of the period within which
requests for registration may be given to the Company or in any event as soon thereafter as
possible; provided that, in the case of a registration pursuant to Section
3.1, such filing to be made within sixty (60) days after the initial request of
Initiating Holder of Registrable Securities or in any event as soon thereafter as possible)
file with the Commission the requisite registration statement to effect such registration
(including such audited financial statements as may be required by the Securities Act) and
thereafter use its reasonable best efforts to cause such registration statement to become
and remain effective; provided further that the Company may discontinue any
registration of its securities which are not Registrable Securities at any time prior to the
effective date of the registration statement relating thereto; provided
further that before filing such registration statement or any amendments thereto,
the Company will furnish to the

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counsel selected by the holders of Registrable Securities
which are to be included in such registration copies of all such documents proposed to be
filed, which documents will be subject to the review of such counsel;

          (ii) prepare and file with the Commission such amendments and supplements to such
registration statement and the prospectus used in connection therewith as may be necessary
to keep such registration statement effective and to comply with the provisions of the
Securities Act with respect to the disposition of all securities covered by such
registration statement until the earlier of (x) in the case of a registration pursuant to
Section 3.1, the expiration of 120 days after such registration statement becomes
effective, or (y) in the case of a registration pursuant to Section 3.2, the
expiration of ninety (90) days after such registration statement becomes effective;

          (iii) furnish to each seller of Registrable Securities covered by such registration
statement and each underwriter, if any, of the securities being sold by such seller such
number of conformed copies of such registration statement and of each such amendment and
supplement thereto (in each case including all exhibits), such number of copies of the
prospectus contained in such registration statement (including each preliminary prospectus
and any summary prospectus) and any other prospectus filed under Rule 424 under the
Securities Act, in conformity with the requirements of the Securities Act, and such other
documents, as such seller and underwriter, if any, may reasonably request in order to
facilitate the public sale or other disposition of the Registrable Securities owned by such
seller;

          (iv) register or qualify all Registrable Securities and other securities covered by
such registration statement under blue sky or similar laws of such jurisdictions as any
seller thereof and any underwriter of the securities being sold by such seller shall
reasonably request, to keep such registrations or qualifications in effect for so long as
such registration statement remains in effect, and take any other action which may be
reasonably necessary or advisable to enable such seller and underwriter to consummate the
disposition in such jurisdictions of the securities owned by such seller, except that the
Company shall not for any such purpose be required to qualify generally to do business as a
foreign corporation in any jurisdiction wherein it would not but for the requirements of
this subdivision (iv) be obligated to be so qualified, to subject itself to
taxation in any such jurisdiction or to consent to general service of process in any
such jurisdiction;

          (v) cause all Registrable Securities covered by such registration statement to be
registered with or approved by such other governmental agencies or authorities as may be
necessary to enable the seller or sellers thereof to consummate the disposition of such
Registrable Securities;

          (vi) furnish to each seller of Registrable Securities a signed counterpart, addressed
to such seller and the underwriters, if any, of

          (x) an opinion of counsel for the Company, dated the effective date of
such registration statement (and, if such registration includes an

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underwritten public offering, an opinion dated the date of the closing under
the underwriting agreement), reasonably satisfactory in form and substance
to such seller, and

          (y) a “comfort” letter, dated the effective date of such registration
statement (and, if such registration includes an underwritten public
offering, a letter dated the date of the closing under the underwriting
agreement), signed by the independent public accountants who have certified
the Company’s financial statements included in such registration statement,

covering substantially the same matters with respect to such registration statement
(and the prospectus included therein) and, in the case of the accountants’ letter,
with respect to events subsequent to the date of such financial statements, as are
customarily covered in opinions of issuer’s counsel and in accountants’ letters
delivered to the underwriters in underwritten public offerings of securities;

          (vii) notify the holders of Registrable Securities and the managing underwriter or
underwriters, if any, promptly and confirm such advice in writing promptly thereafter:

          (A) when the registration statement, the prospectus or any prospectus
supplement related thereto or post-effective amendment to the registration
statement has been filed, and, with respect to the registration statement or
any post-effective amendment thereto, when the same has become effective;

          (B) of any request by the Commission for amendments or supplements to
the registration statement or the prospectus or for additional information;

          (C) of the issuance by the Commission of any stop order suspending the
effectiveness of the registration or the initiation of any proceedings by
any Person for that purpose; and

          (D) of the receipt by the Company of any notification with respect to
the suspension of the qualification of any Registrable Securities for sale
under the securities or blue sky laws of any jurisdiction or the initiation
or threat of any proceeding for such purpose;

          (viii) notify each seller of Registrable Securities covered by such registration
statement, at any time when a prospectus relating thereto is required to be delivered under
the Securities Act, upon the Company’s discovery that, or upon the happening of any event as
a result of which, the prospectus included in such registration statement, as then in
effect, includes an untrue statement of a material fact or omits to state any material fact
required to be stated therein or necessary to make the statements therein not misleading in
the light of the circumstances then existing, and at the request of any such seller promptly
prepare and furnish to such seller and each underwriter, if any, a

11

 

reasonable number of
copies of a supplement to or an amendment of such prospectus as may be necessary so that, as
thereafter delivered to the purchasers of such securities, such prospectus shall not include
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 not misleading in the light of
the circumstances then existing;

          (ix) make every reasonable efforts to obtain the withdrawal of any order suspending the
effectiveness of the registration statement at the earliest possible moment;

          (x) otherwise use its best efforts to comply with all applicable rules and regulations
of the Commission, and make available to its security holders, as soon as reasonably
practicable, an earnings statement covering the period of at least twelve months, but not
more than eighteen months, beginning with the first full calendar quarter after the
effective date of such registration statement, which earnings statement shall satisfy the
provisions of Section 11(a) of the Securities Act;

          (xi) make available for inspection by a representative of the holders of Registrable
Securities participating in the offering, any underwriter participating in any disposition
pursuant to the registration and any attorney or accountant retained by such selling holders
or underwriter (each, an “Inspector”), all financial and other records, pertinent
corporate documents and properties of the Company (the “Records”), and cause the
Company’s officers, directors and employees to supply all information reasonably requested
by any such Inspector in connection with such registration; provided that the
Company shall not be required to comply with this subdivision (xi) if there is a reasonable
likelihood, in the judgment of the Company based upon advice from its legal counsel, that
such delivery could result in the loss of any attorney-client privilege related thereto; and
provided further that Records which the Company determines, in good faith,
to be confidential and which it notifies the Inspectors are confidential shall not be
disclosed by the Inspectors (other than to any holder of Registrable Securities
participating in the offering) unless (x) such Records have become generally available to
the public or (y) the disclosure of such Records may be necessary or appropriate (A) to
comply with any law, rule, regulation or order applicable to any such Inspectors or holder
of Registrable Securities, (B) in response to any subpoena or other legal process or (C) in
connection with any litigation to which such Inspectors or any holder of Registrable
Securities is a party (provided that the Company is provided with reasonable notice
of such proposed disclosure and a reasonable opportunity to seek a protective order or other
appropriate remedy with respect to such Records);

          (xii) provide and cause to be maintained a transfer agent and registrar for all
Registrable Securities covered by such registration statement from and after a date not
later than the effective date of such Registration Statement;

          (xiii) use its reasonable best efforts to list all Registrable Securities covered by
such registration statement on any securities exchange on which any of the Stock is then
listed and, if not so listed, to be listed on NASDAQ’s automated quotation system and, if
listed thereon, use its reasonable best efforts to secure designation of all

12

 

such Registrable Securities covered by such registration statement as a NASDAQ “national market
system security” within the meaning of Rule 11Aa2-1 of the Securities and Exchange
Commission and, without limiting the generality of the foregoing, to arrange for at least
two market makers to register as such with respect to such Registrable Securities with the
NASD; and

          (xiv) use its best efforts to provide a CUSIP number for the Registrable Securities,
not later than the effective date of the registration; the Company may require each seller
of Registrable Securities as to which any registration is being effected to furnish the
Company such information regarding such seller and the distribution of such securities as
the Company may from time to time reasonably request in writing for purposes of preparing
the relevant registration statement and amendments and supplements thereto.

          (b) Each holder of Registrable Securities agrees by acquisition of such Registrable Securities
that, upon receipt of any notice from the Company of the occurrence of any event of the kind
described in subdivision (viii) of Section 3.3(a), such holder will forthwith discontinue
such holder’s disposition of Registrable Securities pursuant to the registration statement relating
to such Registrable Securities until such holder’s receipt of the copies of the supplemented or
amended prospectus contemplated by subdivision (viii) of Section 3.3(a). In the event the
Company shall give any such notice, the periods specified in subdivision (ii) of Section
3.3(a) shall be extended by the length of the period from and including the date when each
seller of any Registrable Securities covered by such registration statement shall have received
such notice to the date on which each such seller has received the copies of the supplemented or
amended prospectus contemplated by subdivision (viii) of Section 3.3(a).

          (c) If any such registration or comparable statement refers to any holder of Registrable
Securities by name or otherwise as the holder of any securities of the Company, then such holder
shall have the right to require, in the event that such reference to such holder by name or
otherwise is not required by the Securities Act or any similar federal statute then in force, the
deletion of the reference to such holder.

          SECTION 3.4 Underwritten Offerings. (a) If requested by the underwriters for any
underwritten offering by holders of Registrable Securities pursuant to a registration requested
under Section 3.1, the Company will enter into an underwriting agreement with such
underwriters for such offering, such agreement to be satisfactory in substance and form to the
Company, each such holder and the underwriters, and to contain such representations and warranties
by the Company and such other terms as are generally prevailing in agreements of such type,
including, without limitation, indemnities to the effect and to the extent provided in Section
3.5. The holders of the Registrable Securities will reasonably cooperate with the Company in
the negotiation of the underwriting agreement.

          (b) Each holder of Registrable Securities agrees by acquisition of such Registrable Securities
not to sell, make any short sale of, loan, grant any option for the purchase

13

 

of, effect any public
sale or distribution of or otherwise dispose of any equity securities of the Company, during the
ten days prior to and the 90 days after the effective date of any underwritten registration
pursuant to Section 3.1 or 3.2 has become effective, except as part of such
underwritten registration, whether or not such holder participates in such registration, and except
as otherwise permitted by the managing underwriter of such underwriting (if any). Each holder of
Registrable Securities agrees that the Company may instruct its transfer agent to place stop
transfer notations in its records to enforce this Section 3.4(b).

          (c) The Company agrees (x) not to sell, make any short sale of, loan, grant any option for the
purchase of, effect any public sale or distribution of or otherwise dispose of its equity
securities or securities convertible into or exchangeable or exercisable for any of such securities
during the ten days prior to and the 90 days after the effective date of any registration pursuant
to Section 3.1 or 3.2 has become effective, except (i) as part of such
registration, (ii) pursuant to registrations on Form S-4 or S-8 or any successor or similar forms
thereto or (iii) as otherwise permitted by the managing underwriter of such offering (if any), and
(y) to use all reasonable efforts to cause each holder of its equity securities or any securities
convertible into or exchangeable or exercisable for any of such securities, in each case purchased
from the Company at any time after the date of this Agreement (other than in a public offering) to
agree not to sell, make any short sale of, loan, grant any option for the purchase of, effect any
public sale or distribution of or otherwise dispose of such securities during such period except as
part of such underwritten registration; provided that no holder of Registrable Securities
included in any underwritten registration shall be required to make any representations or
warranties to the Company or the underwriters other than representations and warranties regarding
such holder and such holder’s intended method of distribution.

          (d) No Person may participate in any underwritten offering hereunder unless such Person (i)
agrees to sell such Person’s securities on the basis provided in any underwriting arrangements
approved, subject to the terms and conditions hereof, by the Person or a majority of the Persons
entitled to approve such arrangements and (ii) completes and executes all
agreements, questionnaires, indemnities and other documents (other than powers of attorney)
reasonably required under the terms of such underwriting arrangements.

          SECTION
3.5 Indemnification. (a) The Company agrees to indemnify and hold harmless
each holder of Registrable Securities whose Registrable Securities are covered by any registration
statement, its directors, officers, affiliates and partners, and each other Person, if any, who
controls such holder within the meaning of the Securities Act (and any broker or dealer through
whom such shares may be sold), against any losses, claims, damages, expenses or liabilities, joint
or several, to which any such indemnified party may become subject under the Securities Act or any
other statute or at common law or otherwise, insofar as such losses, claims, damages, expenses or
liabilities (or actions or proceedings, whether commenced or threatened, in respect thereof) arise
out of or are based upon any untrue statement or alleged untrue statement of any material fact
contained in any registration statement under which such securities were registered under the
Securities Act or any filing with any state securities commissions or agency, any preliminary
prospectus, final prospectus or summary prospectus contained therein, or any

14

 

amendment or
supplement thereto, or any omission or alleged omission to state therein a material fact required
to be stated therein or necessary to make the statements therein not misleading, or any violation
by the Company of any rule or regulation promulgated under the Securities Act or any state
securities laws or regulations applicable to the Company and relating to action or inaction
required of the Company in connection with such registration, and the Company will reimburse each
such indemnified party for any legal or any other expenses reasonably incurred by them in
connection with investigating or defending any such loss, claim, liability, action or proceeding
whether or not resulting in any liability; provided that the Company shall not be liable in
any such case to the extent that any such loss, claim, damage, liability (or action or proceeding
in respect thereof) or expense arises out of or is based upon an untrue statement or alleged untrue
statement or omission or alleged omission made in such registration statement or any such state
securities commission or agency filing, any such preliminary prospectus, final prospectus, summary
prospectus, amendment or supplement in reliance upon and in conformity with written information
furnished to the Company by or on behalf of such holder or controlling person specifically for use
in the preparation thereof or from any breach of this Agreement by any such holder. In addition,
the Company shall indemnify any underwriter of such offering and each other Person, if any, who
controls any such underwriter within the meaning of the Securities Act in substantially the same
manner and to substantially the same extent as the indemnity herein provided to each Indemnified
Party. Such indemnity shall remain in full force and effect regardless of any investigation made
by or on behalf of such holder or any such director, officer, affiliate, partner, underwriter or
controlling person and shall survive the transfer of such securities by such holder.

          (b) Each prospective seller of Registrable Securities hereunder shall indemnify and hold
harmless (in the same manner and to the same extent as set forth in subdivision (a) of this
Section 3.5) the Company, each director of the Company, each officer of the Company and
each other Person, if any, who controls the Company within the meaning of
the Securities Act, with respect to any untrue statement or alleged untrue statement in or
omission or alleged omission to state a material fact required to be stated therein or necessary in
order to make the statements therein not misleading from, such registration statement, or filing
with any state securities commission or agency, any preliminary prospectus, final prospectus or
summary prospectus contained therein, or any amendment or supplement thereof, if such untrue
statement or alleged untrue statement or omission or alleged omission was made in reliance upon and
in conformity with written information furnished to the Company by or on behalf of such seller
specifically for use in the preparation of such registration statement, preliminary prospectus,
final prospectus, summary prospectus, amendment or supplement. Any such indemnity shall remain in
full force and effect, regardless of any investigation made by or on behalf of the Company or any
such director, officer or controlling person and shall survive the transfer of such securities by
such seller. The amount payable by any prospective seller of Registrable Securities with respect
to the indemnification set forth in this subsection (b) in connection with any offering of
securities will not exceed the amount of net proceeds received by such prospective seller pursuant
to such offering.

          (c) Promptly after receipt by an indemnified party of notice of the commencement of any action
or proceeding involving a claim referred to in the preceding

15

 

subdivisions of this Section
3.5, such indemnified party will, if a claim in respect thereof is to be made against an
indemnifying party, give written notice to the latter of the commencement of such action; provided
that the failure of any indemnified party to give notice as provided herein shall not relieve the
indemnifying party of its obligations under the preceding subdivisions of this Section 3.5,
except to the extent that the indemnifying party is actually prejudiced by such failure to give
notice. In case any such action is brought against an indemnified party, unless in such
indemnified party’s reasonable judgment a conflict of interest between such indemnified and
indemnifying parties may exist in respect of such claim, the indemnifying party shall be entitled
to participate in and to assume the defense thereof, jointly with any other indemnifying party
similarly notified, to the extent that the indemnifying party may wish, with counsel reasonably
satisfactory to such indemnified party, and after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, the indemnifying party shall
not be liable to such indemnified party for any legal or other expenses subsequently incurred by
the latter in connection with the defense thereof. No indemnifying party shall, without the
consent of the indemnified party, consent to entry of any judgment or enter into any settlement of
any such action which does not include as an unconditional term thereof the giving by the claimant
or plaintiff to such indemnified party of a release from all liability in respect to such claim or
litigation. No indemnified party shall consent to entry of any judgment or enter into any
settlement of any such action the defense of which has been assumed by an indemnifying party
without the consent of such indemnifying party.

          (d) If the indemnification provided for in the preceding subdivisions of this Section
3.5 is unavailable to an indemnified party in respect of any expense, loss, claim, damage or
liability referred to therein, then each indemnifying party, in lieu of indemnifying such
indemnified party, shall contribute to the amount paid or payable by such indemnified party as a
result of such expense, loss, claim, damage or liability (i) in such proportion as is appropriate
to reflect the relative benefits received by the Company on the one hand and the holder or
underwriter, as the case may be, on the other from the distribution of the Registrable
Securities or (ii) if the allocation provided by clause (i) above is not permitted by applicable
law, in such proportion as is appropriate to reflect not only the relative benefits referred to in
clause (i) above but also the relative fault of the Company on the one hand and of the holder or
underwriter, as the case may be, on the other in connection with the statements or omissions which
resulted in such expense, loss, damage or liability, as well as any other relevant equitable
considerations. The relative benefits received by the Company on the one hand and the holder or
underwriter, as the case may be, on the other in connection with the distribution of the
Registrable Securities shall be deemed to be in the same proportion as the total net proceeds
received by the Company from the initial sale of the Registrable Securities by the Company to the
purchaser bear to the gain realized by the selling holder or the underwriting discounts and
commissions received by the underwriter, as the case may be. The relative fault of the Company on
the one hand and of the holder or underwriter, as the case may be, on the other shall be determined
by reference to, among other things, whether the untrue or alleged untrue statement of a material
fact or omission to state a material fact relates to information supplied by the Company, by the
holder or by the underwriter and parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission; provided that the foregoing
contribution agreement shall not inure to the benefit of any indemnified party if indemnification
would be unavailable to such indemnified party by reason of the proviso contained in the first
sentence of

16

 

subdivision (a) of this Section 3.5, and in no event shall the obligation of
any indemnifying party to contribute under this subdivision (d) exceed the amount that such
indemnifying party would have been obligated to pay by way of indemnification if the
indemnification provided for under subdivisions (a) or (b) of this Section 3.5 had been
available under the circumstances.

          The Company and the holders of Registrable Securities agree that it would not be just and
equitable if contribution pursuant to this subdivision (d) were determined by pro
rata allocation (even if the holders and any underwriters were treated as one entity for
such purpose) or by any other method of allocation that does not take account of the equitable
considerations referred to in the immediately preceding paragraph and subdivision (c) of this
Section 3.5. The amount paid or payable by an indemnified party as a result of the losses,
claims, damages and liabilities referred to in the immediately preceding paragraph shall be deemed
to include, subject to the limitations set forth above, any legal or other expenses reasonably
incurred by such indemnified party in connection with investigating or defending any such action or
claim.

          Notwithstanding the provisions of this subdivision (d), no holder of Registrable Securities or
underwriter shall be required to contribute any amount in excess of the amount by which (i) in the
case of any such holder, the net proceeds received by such holder from the sale of Registrable
Securities or (ii) in the case of an underwriter, the total price at which the Registrable
Securities purchased by it and distributed to the public exceeds, in any such case, the amount of
any damages that such holder or underwriter has otherwise been required to pay by reason of such
untrue or alleged untrue statement or omission. No Person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from
any person who was not guilty of such fraudulent misrepresentation.

          SECTION 3.6 Rule 144; Rule 144A. (a) If the Company shall have filed a registration
statement pursuant to Section 12 of the Exchange Act or a registration statement pursuant to the
Securities Act, the Company will file the reports required to be filed by it under the Securities
Act and the Exchange Act and the rules and regulations adopted by the Commission thereunder and
will take such further action as any holder of Registrable Securities may reasonably request, all
to the extent required from time to time to enable such holder to sell Registrable Securities
without registration under the Securities Act within the limitation of the exemptions provided by
(a) Rule 144 under the Securities Act, as such Rule may be amended from time to time, or (b) any
similar rule or regulation hereafter adopted by the Commission. Upon the request of any holder of
Registrable Securities, the Company will deliver to such holder a written statement as to whether
it has complied with such requirements.

          (b) The Company represents and warrants that as of the date hereof, the Stock is not, and is
not part of a class of securities that is, listed on a national securities exchange registered
under Section 6 of the Exchange Act or quoted in an automated inter-dealer quotation system. For
so long as any shares of Registrable Securities are restricted securities within the meaning of
Rule 144(a)(3) under the Securities Act, the Company covenants and agrees that it shall, during any
period in which it is not subject to Section 13 or 15(d) of the Exchange Act, make available to any
holder of Registrable Securities in connection with the sale of such holder’s Registrable
Securities and any prospective purchaser of Registrable Securities from

17

 

such holder, in each case
upon request, the information specified in, and meeting the requirements of, Rule 144A(d)(4) under
the Securities Act.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES; COVENANTS

          SECTION 4.1 Organization and Standing. The Company is a corporation duly organized
and validly existing under the laws of the State of Florida and is in good standing under such
laws. The Company has all requisite corporate power and authority to own and operate its
properties and assets, and to carry on its business as presently conducted and as proposed to be
conducted. The Company is duly qualified and authorized to transact business and is in good
standing as a foreign corporation in each jurisdiction in which the failure so to qualify would
have a material adverse effect on the business, assets, operating results, prospects or financial
condition of the Company.

          SECTION 4.2 Corporate Power. The Company has all requisite legal and corporate power
and authority to execute and deliver this Agreement, to sell and issue each of the Warrants, to
issue the Common Stock issuable upon exercise of the Warrants and to carry out and perform its obligations
under the terms of this Agreement and each of the Warrants.

          SECTION 4.3 Authorization. All corporate action on the part of the Company, its
officers, directors and stockholders necessary for the authorization, execution, delivery and
performance of this Agreement, each of the Warrants, the authorization, sale, issuance (or
reservation for issuance) and delivery of the Warrants and the Conversion Shares issuable
thereunder and the performance of all of the Company’s obligations hereunder and pursuant to the
Warrants have been taken or will be taken prior to the date hereof. This Agreement and each of the
Warrants constitute valid and legally binding obligations of the Company, enforceable in accordance
with their respective terms, subject to laws of general application relating to bankruptcy,
insolvency and the relief of debtors and rules of law governing specific performance, injunctive
relief or other equitable remedies.

          SECTION 4.4 Valid Issuance of Stock. The Conversion Shares have been duly and validly
reserved and, when issued, sold and delivered in compliance with the applicable provisions of the
Warrants and this Agreement, will be duly and validly issued, fully paid and issued in compliance
with applicable federal and state securities laws, and the Conversion Shares will be free and clear
of any liens or encumbrances; provided, however, that the Conversion Shares may be subject to
restrictions on transfer under state and/or federal securities laws. Subject to restrictions on
transfer under state and/or federal securities laws, the Conversion Shares are not subject to any
preemptive rights, rights of first refusal or other restrictions on transfer.

          SECTION 4.5 Reservation of Shares. For so long as any Warrantholder shall have any
right to receive Conversion Shares, the Company shall reserve and keep available out of its
authorized but unissued Common Stock the full number of shares of Common Stock

18

 

deliverable upon
exercise of each of the Warrants and shall, at its own expense, take all such actions and obtain
such permits and orders as may be necessary to enable the Company lawfully to issue such Conversion
Shares.

ARTICLE V

MISCELLANEOUS

          SECTION 5.1 Notices. All notices and other communications provided for hereunder
shall be dated and in writing and shall be deemed to have been given (i) if given by telecopy, when
such telecopy is transmitted to the telecopy number specified in this Section and telephonic confirmation of
receipt thereof is obtained, (ii) if given by electronic mail, when such electronic mail is
transmitted with a confirmation sent by regular U.S. Mail, or (iii) if given by mail, prepaid
overnight courier or any other means, when received at the address specified in this Section or
when delivery at such address is refused. Such notices shall be addressed to the appropriate party
to the attention of the person who executed this Agreement at the address or telecopy number set
forth under such party’s signature below (or to the attention of such other person or to such other
address or telecopy number as such party shall have furnished to each other party in accordance
with this Section 5.1).

          SECTION 5.2 Binding Nature of Agreement. This Agreement shall be binding upon and
inure to the benefit of and be enforceable by the parties hereto or their successors in interest,
except as expressly otherwise provided herein.

          SECTION 5.3 Descriptive Headings. The descriptive headings of the several sections
and paragraphs of this Agreement are inserted for reference only and shall not limit or otherwise
affect the meaning hereof.

          SECTION 5.4 Specific Performance. Without limiting the rights of each party hereto to
pursue all other legal and equitable rights available to such party for the other parties’ failure
to perform their obligations under this Agreement, the parties hereto acknowledge and agree that
the remedy at law for any failure to perform their obligations hereunder would be inadequate and
that each of them, respectively, shall be entitled to specific performance, injunctive relief or
other equitable remedies in the event of any such failure.

          SECTION 5.5  GOVERNING LAW. THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAWS OF THE STATE OF
GEORGIA, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW. EACH OF THE PARTIES HERETO HEREBY
SUBMITS TO THE NONEXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE NORTHERN
DISTRICT OF GEORGIA AND ANY GEORGIA STATE COURT SITTING IN FULTON COUNTY, GEORGIA FOR PURPOSES OF
ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED

19

 

HEREBY. EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
OBJECTION WHICH SUCH PARTY MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH
PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. EACH OF THE PARTIES
HERETO IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION
5.1. NOTHING IN THIS AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY TO THIS AGREEMENT TO SERVE
PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.

          SECTION 5.6 Counterparts. This Agreement may be executed simultaneously in any number
of counterparts, each of which shall be deemed an original, but all such counterparts shall
together constitute one and the same instrument.

          SECTION 5.7 Severability. In the event that any one or more of the provisions
contained herein, or the application thereof in any circumstances, is 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 contained herein shall not be in
any way impaired thereby, it being intended that all of the rights and privileges of the parties
hereto shall be enforceable to the fullest extent permitted by law.

          SECTION 5.8 Entire Agreement. This Agreement is intended by the parties hereto as a
final and complete expression of their agreement and understanding in respect to the subject matter
contained herein. This Agreement supersedes all prior agreement and understandings, written or
oral, between the parties with respect to such subject matter.

          SECTION 5.9 Amendment and Waiver. Any provision of this Agreement may be amended if,
but only if, such amendment is in writing and is signed by the Company, a majority in interest of
the Stockholders, and a majority in interest of the Warrant Securityholders. Any provision may be
waived if, but only if, such waiver is in writing and is signed by the party or parties waiving
such provision and for whose benefit such provision is intended.

          SECTION 5.10 No Third Party Beneficiaries. Nothing in this Agreement shall convey any
rights upon any person or entity which is not a party or an assignee of a party to this Agreement.

          SECTION 5.11 Transferability of Registration Rights. For all purposes of this
Agreement, the holders of Registrable Securities shall include not only the Warrant Securityholder
but also any permitted assignee or transferee of the Warrant Securityholder. The Warrant
Securityholder may assign or transfer their respective rights under this Agreement to any Person to
whom such Warrant Securityholders transfer any Registrable Shares, provided, however, that such
assignee or transferee agrees in writing to be bound by all of the provision of this Agreement.

20

 

          SECTION 5.12 Assignment or Transfer of the Term Loan Under the Credit Agreement.

          If any Warrantholder assigns or otherwise transfers all or any of its Term Loan (as defined in
the Credit Agreement) (including by selling participations therein to any Person, such
Warrantholder may request (upon 10 days’ prior notice to the Company) that (a) the Warrants then
held by such Warrantholder be canceled on the date of such assignment and transfer and (b) a like
number of Warrants be issued by the Company to the Person to whom such Term Loan, or portion
thereof, is being assigned or otherwise transferred. Upon the date specified in such request:

          (i) The Company shall issue, and such Warrantholder shall surrender (or cause to be
surrendered ) for cancellation, such number of Warrants as aforesaid, provided that such
issuance shall not violate the Securities Act or any applicable state securities laws;

          (ii) The Company will deliver to each Person that receives a certificate for Warrants a
legal opinion from counsel to the Company reasonably acceptable to such Person, covering
matters reasonably requested by such Person relating to the Warrants; and

          (iii) The Company will deliver a certificate to each Person that receives Warrants
affirming the representations and warranties contained in Article IV hereof as of such date.

          SECTION 5.13 Meetings; Board of Managers. So long as the Warrants remain outstanding
and Chatham or any of its affiliates is the holder thereof, or Chatham or any of its affiliates is
an owner any of the Stock of the Company, the Company shall provide Chatham Capital with not less
than five (5) Business Days prior written notice of all meetings of any and all classes of
shareholders and any board of directors (or equivalent) of the Company or any committee thereof
(any such board of directors or equivalent, which now exists or hereafter may be formed by the
Company, hereinafter the “Board of Directors”) (except in the case of emergency meetings,
in which case such written notice shall be given to Chatham Capital at the same time as that given
to the relevant shareholders/directors (or equivalent)) and the Company shall permit two (2)
representatives of Chatham Capital to attend and observe such meetings and adjournments thereof
(“Observer Rights”). From and after the date on which all Obligations under the Credit
Agreement have been repaid in full in cash and all commitments to provide
additional credit under the Credit Agreement have been terminated, upon receipt of Chatham
Capital’s written request , the Company, together with the Stockholders, shall within thirty (30)
days nominate and cause to be elected to the Board of Directors a representative of Chatham Capital
who has been designated by Chatham Capital in writing to the Company (such representative
designated by Chatham Capital from time to time, a “Chatham Representative”). The Chatham
Representative shall be entitled to continue to remain a member of the Company’s Board of Directors
and the Company, together with the Stockholders, shall cause the Chatham Representative to be
re-elected for successive terms so long as the Warrants remain outstanding and Chatham or any of
its affiliates is the holder thereof with the right to purchase under the

21

 

Warrants at least five percent (5%) of the Stock of the Company on a Fully-Diluted Basis, or Chatham or any of its
affiliates are an owner of at least five percent (5%) of the Stock of the Company (such period, the
“Chatham Representative Period”). While any Chatham Representative is a member of the
Company’s Board of Directors, the Observer Rights described above shall not be deemed to be in
effect. The Chatham Representative may only be removed with the prior written consent of Chatham
Capital and if so removed, must be replaced with a new representative designated in writing by
Chatham Capital if desired by Chatham Capital. In the event any Chatham Representative shall
resign, the Company shall promptly replace such person with a new representative designated in
writing by Chatham Capital who shall then become the Chatham Representative. At the conclusion of
the Chatham Representative Period, no further obligation shall exist to cause the Chatham
Representative to remain a member of the Company’s Board of Directors. Because of the difficulty
of measuring economic losses to Chatham Capital as a result of a breach of the foregoing covenants
and agreements, and because of the immediate and irreparable damage that could be caused to Chatham
Capital for which it would have no other adequate remedy, the Company acknowledges and agrees that
the foregoing covenants and agreements may be enforced against it by injunctions, restraining
orders and other equitable remedies.

[Signature Pages Follow]

22

 

          IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered as of
the date first above written.

	 	 	 	 	 
	 	COMPANY:

BROOKSIDE TECHNOLOGY HOLDINGS CORP.

 	 
	 	By:  	 	 
	 
	 	Name:  	 	 
	 	Title:  

Address:

	 
	 
	 	
Facsimile: 	 
	 

[Signature Page to Warrantholder Rights Agreement]

 

	 	 	 	 	 
	 	WARRANTHOLDERS:

CHATHAM CAPITAL MANAGEMENT III, LLC, not individually, but as
agent for Chatham Investment Fund 
QP III, LLC and Chatham
Investments Fund III, LLC

 	 
	 	By:  	Chatham Capital Holdings, Inc.
 	 
	 	Its:   Manager	 
	 	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	Name:  	 
	 	Title:  	 
	 

[Signature Page to Warrantholder Rights Agreement]

 

	 	 	 	 	 
	 	STOCKHOLDERS:

 	 
	 	
 	 
	 	Mike Dance 	 
	 	 	 
	 
	 	 	 
	 	
 	 
	 	Mike Nole 	 
	 	 	 
	 
	 	 	 
	 	
 	 
	 	 	 
	 	 	 
	 
	 	 	 
	 	
 	 
	 	 	 
	 	 	 
	 
	 	 	 
	 	
 	 
	 	 	 
	 	 	 
	 
	 	 	 
	 	
 	 
	 	 	 
	 	 	 
	 
	 	VICIS CAPITAL MASTER FUND — SERIES A

 	 
	 	By:  	 	 
	 	Name:  	 
	 	Title:  	 
	 
	 	VICIS CAPITAL MASTER FUND — SERIES B

 	 
	 	By:  	 	 
	 	Name:  	 
	 	Title:  	 
	 

[Signature Page to Warrantholder Rights Agreement]EX-10.07 VICIS SECURITIES PURCHASE AND LOAN CONVER

Exhibit 10.07

SECURITIES PURCHASE AND LOAN CONVERSION AGREEMENT

          This SECURITIES PURCHASE AND LOAN CONVERSION AGREEMENT, dated as of September 23, 2008 (this
“Agreement”), is by and between Brookside Technology Holdings Corp., a Florida corporation (the
“Company”), and Vicis Capital Master Fund (“Vicis”).

RECITALS:

          A. Pursuant to the Company’s Credit Agreement dated as of September 26, 2007 (the “Prior
Senior Credit Agreement”) and the related Revolving Loan Note (the “Prior Senior Note”) (which
Vicis acquired from Hilco Financial LLC (“Hilco”)), the Company owes $7,100,000 to Vicis (plus
interest thereon from July 3, 2008 at 10% per annum), and Pursuant to the Subordinated Note
Purchase Agreement (the “DD Subordinated Note Purchase Agreement”) and the related Subordinated
Promissory Note (the “DD Subordinated Note”) dated as of August 30, 2007, and substituted and
amended as of September 26, 2007, which the Company acquired from DD Growth Premium Fund (“DD”),
the Company owes $1,000,000 to Vicis (plus interest thereon from August 30, 2007 at 10% per annum)
(collectively, the “Vicis Debt”).

          B. In connection with the Company’s acquisition of Standard-Tel Networks, LLC (“STN”), the
Company is obtaining a new senior secured credit facility (the “New Senior Credit Facility”) from
CHATHAM INVESTMENT FUND III, LLC, CHATHAM INVESTMENT FUND III QP, LLC (collectively, “Chatham”).

          C. In connection with the closing of the Company’s acquisition of STN and the New Senior
Credit Facility, the Company and Vicis have agreed that, in full satisfaction of the Vicis Debt,
at Closing (as defined below): (i) the Company will pay $2,250,000, in cash, to Vicis; (ii) the
Company will deliver to Vicis a new subordinated note in the original principal amount of
$1,500,000, in the form attached hereto as Exhibit B (the “New Subordinated Note”), and
(iii) Vicis will convert the balance of the Vicis Debt, including all accrued interest through the
Closing, as calculated in Exhibit C attached hereto, into shares of the Company’s Series A
Convertible Preferred Stock (the “Series A Preferred Stock”) at $1.00 per share, all as further
contemplated hereby.

AGREEMENT:

          In consideration of the foregoing recitals and for good and other valuable consideration
hereinafter set forth, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto, intending to be legally bound, hereby agree as follows:

ARTICLE I

PURCHASE AND SALE OF SECURITIES

          1. Purchase and Sale of Series A Preferred Stock. In full satisfaction of the Vicis
Debt, the parties hereto agree that, at Closing: (a) the Company shall pay $2,250,000 in cash to
Vicis; (b) the Company shall execute and deliver to Vicis the New Subordinated Note; and (c) Vicis
will convert the balance of the Vicis Debt, including all accrued interest through the

 

 

Closing, as calculated in Exhibit C attached hereto, existing under the Prior Senior
Note and DD Subordinated Note into shares of the Series A Preferred Stock at a conversion price of
$1.00 per share (the “Acquired Shares”), as calculated in Exhibit C attached hereto. Any
shares of Common Stock issuable upon conversion of the Series A Preferred Stock issued pursuant
hereto to Vicis are herein referred to as the “Conversion Shares;” and the New Subordinated Note,
the Acquired Shares and the Conversion Shares are collectively referred to herein as the
“Securities.”

     2. Closing. The closing (the “Closing”) of the transactions contemplated by Section 1
above shall take place immediately prior to the Company’s acquisition of STN.

     3. Closing Deliveries. At the Closing, the Company shall (a) pay $2,250,000 in cash to
Vicis, (b) deliver or cause to be delivered to Vicis the New Subordinated Note, and (c) deliver or
cause to be delivered to Vicis a certificate in the name of Vicis evidencing the Acquired Shares.
At the Closing, Vicis shall deliver to the Company, for cancellation, all original promissory notes
representing the Vicis Debt, including the Prior Senior Note and the DD Subordinated Note.

     4. Release. From and after the Closing: (a) the Prior Senior Credit Agreement, the
Prior Senior Note, the DD Subordinated Note Purchase Agreement and the DD Subordinated Note
(collectively, the “Vicis Loan Documents”), shall automatically be deemed to be terminated,
satisfied and of no further force and effect; (b) Vicis hereby fully releases, acquits, and forever
discharges the Company and all of its subsidiaries, affiliates, successors and assigns, together
with their respective past and present directors, officers, shareholders, employees, agents,
attorneys and representatives (collectively, the “Released Parties”) of and from any and all
rights, claims, demands, damages, actions, and causes of action, of any nature whatsoever, whether
known or unknown, whether arising at law or in equity, and whether direct or indirect, which Vicis
may have had, may now have, or may hereafter have, against the Released Parties by reason of any
matter, cause, happening or thing arising under the Vicis Loan Documents, except for any claims
involving fraud, willful misconduct, breach of fiduciary duty or criminal acts by any Released
Party; and (c) the Company shall be entitled, and is hereby authorized, to terminate all liens on
its assets filed by DD, Vicis, Hilco or any of their affiliates.

     5. Securities Law Matters. The Company and Vicis are executing and delivering this
Agreement in accordance with and in reliance upon the exemption from securities registration
afforded by Section 4(2) of the U.S. Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder (the “Securities Act”), including Regulation D (“Regulation D”),
and/or upon such other exemption from the registration requirements of the Securities Act as may be
available with respect to any or all of the investments to be made hereunder.

     6. Related Matters. Any and all pledges of stock by Michael Nole and/or Michael Dance
to Dynamic or Vicis are hereby terminated and of no further force and effect.

ARTICLE II

REPRESENTATIONS AND WARRANTIES

2

 

     1. Representations and Warranties of the Company. The Company hereby represents and
warrants to Vicis, as of the date hereof and the Closing Date (except as set forth on the Schedule
of Exceptions attached hereto with each numbered Schedule corresponding to the section number
herein), as follows:

          a. Organization, Good Standing and Power. The Company is a corporation duly incorporated,
validly existing and in good standing under the laws of the State of Florida and has the requisite
corporate power to own, lease and operate its properties and assets and to conduct its business as
it is now being conducted. The Company is duly qualified as a foreign corporation to do business
and is in good standing in every jurisdiction in which the nature of the business conducted or
property owned by it makes such qualification necessary except for any jurisdiction(s) (alone or in
the aggregate) in which the failure to be so qualified will not have a Material Adverse Effect. For
the purposes of this Agreement, “Material Adverse Effect” means any material adverse effect on the
business, operations, properties, prospects, or financial condition of the Company and its
Subsidiaries (as defined below) on the transactions contemplated hereby or by the agreements and
instruments to be entered into in connection herewith or any condition, circumstance, or situation
that would prohibit or otherwise materially interfere with the ability of the Company to perform
any of its obligations under this Transaction Documents (defined below) in any material respect.

          b. Authorization; Enforcement. The Company has the requisite corporate power and authority to
enter into and perform this Agreement, the New Subordinated Note and each of the other agreements
or instruments entered into by the parties hereto in connection with the transactions contemplated
by this Agreement (collectively, the “Transaction Documents”) and to issue and sell the Securities
in accordance with the terms hereof. The execution, delivery and performance of the Transaction
Documents by the Company and the consummation by it of the transactions contemplated thereby have
been duly and validly authorized by all necessary corporate action, and no further consent or
authorization of the Company, its Board of Directors or stockholders is required. When executed and
delivered by the Company, each of the Transaction Documents shall constitute a valid and binding
obligation of the Company enforceable against the Company in accordance with its terms, except as
such enforceability may be limited by applicable bankruptcy, reorganization, moratorium,
liquidation, conservatorship, receivership or similar laws relating to, or affecting generally the
enforcement of, creditor’s rights and remedies or by other equitable principles of general
application.

          c. Capitalization. The issued and outstanding shares of capital stock of the Company as of the
Closing Date is as set forth on Exhibit A. All of the outstanding shares of the Common
Stock and any other outstanding security of the Company have been duly and validly authorized.
Except for the Securities, or as disclosed in Schedule (II)(1)(c) attached hereto:

               (i) no holder of shares of the Company’s capital stock has any preemptive rights or any other
similar rights or has been granted or holds any liens or encumbrances suffered or permitted by the
Company;

               (ii) there are no outstanding options, warrants, scrip, rights to subscribe to, calls or
commitments of any character whatsoever relating to, or securities or rights convertible into, or
exercisable or exchangeable for, any shares of capital stock of the Company

3

 

or any Subsidiary, or contracts, commitments, understandings or arrangements by which the
Company or any Subsidiary is or may become bound to issue additional shares of capital stock of the
Company or any Subsidiary or options, warrants, scrip, rights to subscribe to, calls or commitments
of any character whatsoever relating to, or securities or rights convertible into, or exercisable
or exchangeable for, any shares of capital stock of the Company or any Subsidiary;

               (iii) there are no outstanding debt securities, notes, credit agreements, credit facilities or
other agreements, documents or instruments evidencing Indebtedness (as defined in Section 1(s)
below) of the Company or any Subsidiary in excess of $100,000 or by which the Company or a
Subsidiary is or may become bound and involves Indebtedness in excess of $100,000;

               (iv) there are no financing statements securing obligations in any material amounts, either
singly or in the aggregate, filed in connection with the Company or its Subsidiaries;

               (v) there are no agreements or arrangements under which the Company or any Subsidiary is
obligated to register the sale of any of their securities under the Securities Act of 1933, as
amended (the “Securities Act”);

               (vi) there are no outstanding securities or instruments of the Company or any Subsidiary that
contain any redemption or similar provisions, and there are no contracts, commitments,
understandings or arrangements by which the Company or any Subsidiary is or may become bound to
redeem a security of the Company or a Subsidiary;

               (vii) there are no securities or instruments containing antidilution or similar provisions
that will be triggered by the issuance of the Securities; and

               (viii) the Company does not have any stock appreciation rights or “phantom stock” plans or
agreements or any similar plan or agreement.

          d. Subsidiaries. The Company has no subsidiary other than Brookside Technology Partners, Inc.
(“BTP”) and U.S. Voice & Data, LLC (“USVD” and together with BTP, the “Subsidiaries”). The Company
owns 100% of such Subsidiaries. For the purposes of this Agreement, “subsidiary” shall mean any
corporation or other entity of which at least a majority of the securities or other ownership
interest having ordinary voting power (absolutely or contingently) for the election of directors or
other persons performing similar functions are at the time owned directly or indirectly by the
Company and/or any of its other Subsidiaries. Each Subsidiary is validly existing and in good
standing under the laws of the jurisdiction in which it is organized, and has all requisite entity
power and authority to carry on its business as now conducted. Each Subsidiary is duly qualified as
a foreign corporation to do business and is in good standing in every jurisdiction in which its
ownership of property or the nature of the business conducted by it makes such qualification
necessary, except to the extent that the failure to be so qualified or be in good standing would
not have a Material Adverse Effect.

          e. Securities Filings. The Common Stock of the Company is currently reported on the OTC
Bulletin Board and is registered pursuant to the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), and the Company has filed all reports, schedules,

4

 

forms, statements and other documents required to be filed by it with the Commission pursuant
to the reporting requirements of the Exchange Act (all of the foregoing, including filings
incorporated by reference therein, being referred to herein as the “Commission Documents”). As of
their respective dates, the Commission Documents 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 such filings when made by the Company do not contain any
untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary in order to make the statements therein, in light of the circumstances under which
they were made, not misleading. The financial statements of the Company included in the Commission
Documents comply in all material respects with applicable accounting requirements and the rules and
regulations of the Commission (defined below) with respect thereto as in effect at the time of
filing. Such financial statements have been prepared in accordance with United States generally
accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”),
except as may be otherwise specified in such financial statements or the notes thereto and except
that unaudited financial statements may not contain all footnotes required by GAAP and remain
subject to year end adjustments, and fairly present in all material respects the financial position
of the Company and its consolidated subsidiaries as of and for the dates thereof and the results of
operations and cash flows for the periods then ended, subject, in the case of unaudited statements,
to normal year-end audit adjustments.

          f. Actions Pending. There is no action, suit, claim, investigation, arbitration, alternate
dispute resolution proceeding or other proceeding pending or, to the knowledge of the Company,
threatened against or involving the Company or any of its respective properties or assets, other
than demands and threats made by the prior owners of USVD, notice of which Vicis hereby
acknowledges being made aware of. There are no outstanding orders, judgments, injunctions, awards
or decrees of any court, arbitrator, governmental or regulatory body, or a self regulatory
authority or trading market against the Company or any officers or directors of the Company in
their capacities as such. To the Company’s knowledge, neither the Company nor any Subsidiary, nor
any director or executive officer thereof (in his/her capacity as such), is or, within the last
five years, has been the subject of any action involving a claim of violation of or liability under
federal or state securities laws or a claim of breach of fiduciary duty. To the knowledge of the
Company, there has not been, and there is not pending or threatened in writing, any investigation
by the United States Securities and Commission (the “Commission” or “SEC”) involving the Company or
any current director or executive officer of the Company. The Commission has not issued any stop
order or other order suspending the effectiveness of any registration statement filed by the
Company under the Exchange Act or the Securities Act.

          g. Compliance with Law. The business of the Company and the Subsidiaries has been and is
presently being conducted in accordance with all applicable federal, state and local governmental
laws, rules, regulations and ordinances (including, without limitation, rules and regulations of
each governmental and regulatory agency, self regulatory organization and trading market applicable
to the Company or any Subsidiary).

          h. Taxes. The Company has accurately prepared and filed all federal, state and other tax
returns required by law to be filed by it, has paid or made provisions for the payment of all taxes
shown to be due and all additional assessments, and adequate provisions

5

 

have been and are reflected in the financial statements of the Company for all current taxes
and other charges to which the Company is subject and which are not currently due and payable. None
of the federal income tax returns of the Company or any Subsidiary have been audited by the
Internal Revenue Service. The Company has no knowledge of any additional assessments, adjustments
or contingent tax liability (whether federal or state) of any nature whatsoever, whether pending or
threatened against the Company for any period, nor of any basis for any such assessment, adjustment
or contingency.

          i. Employees. Neither the Company nor any Subsidiary has any collective bargaining
arrangements or agreements covering any of its employees. Except as set forth in Schedule II(1)(i),
no Executive Officer of the Company (as defined in Rule 501(f) of the Securities Act) has notified
the Company that such officer intends to leave the Company or otherwise terminate such officer’s
employment with the Company. No Executive Officer of the Company, to the knowledge of the Company,
is, or is now, in violation of any material term of any employment contract, confidentiality,
disclosure or proprietary information agreement, non-competition agreement, or any other contract
or agreement or any restrictive covenant, and, to the actual knowledge of the Company, the
continued employment of each such executive officer does not subject the Company or any Subsidiary
to any liability with respect to any of the foregoing matters. The Company and each Subsidiary are
in compliance with all federal, state, local and foreign laws and regulations respecting employment
and employment practices, terms and conditions of employment and wages and hours, except where
failure to be in compliance would not, either individually or in the aggregate, reasonably be
expected to result in a Material Adverse Effect.

          j. Public Utility Holding Company Act and Investment Company Act Status. The Company is not a
“holding company” or a “public utility company” as such terms are defined in the Public Utility
Holding Company Act of 1935, as amended. The Company is not, and immediately after receipt of
payment for the Securities will not be, an “investment company,” an “affiliated person” of,
“promoter” for or “principal underwriter” for, or an entity “controlled” by an “investment
company,” within the meaning of the Investment Company Act.

          k. ERISA. No liability to the Pension Benefit Guaranty Corporation has been incurred with
respect to any Plan by the Company which has not been satisfied by the Company. As used in this
section, the term “Plan” shall mean an “employee pension benefit plan” (as defined in Section 3 of
ERISA) which is or has been established or maintained, or to which contributions are or have been
made, by the Company or any Subsidiary or by any trade or business, whether or not incorporated,
which, together with the Company or any Subsidiary, is under common control, as described in
Section 2(b)14(b) or (c) of the Code.

          l. Securities Act of 1933. Based in material part upon the representations herein of Vicis,
the Company has complied and will comply with all applicable federal and state securities laws in
connection with the offer, issuance and sale of the Securities hereunder. Assuming the accuracy of
the representations and warranties in Article IV hereof (and assuming no change in applicable law
and no unlawful distribution of the Securities by Vicis or other Persons), no registration under
the Securities Act is required for the offer and sale of the Securities by the Company to Vicis as
is contemplated hereby. Neither the Company nor anyone acting on its behalf, directly or
indirectly, has or will sell, offer to sell or solicit offers to buy any

6

 

of the Securities or similar securities to, or solicit offers with respect thereto from, or
enter into any negotiations relating thereto with, any person, or has taken or will take any action
so as to (i) bring the issuance and sale of any of the Securities under the registration provisions
of the Securities Act and applicable state securities laws, or (b) or (ii) trigger shareholder
approval provisions under the rules or regulations of any trading market., and neither the Company
nor any of its affiliates, nor any person acting on its or their behalf, has engaged in any form of
general solicitation or general advertising (within the meaning of Regulation D under the
Securities Act) in connection with the offer or sale of any of the Securities.

          m. No Integrated Offering. Neither the Company, nor any of its affiliates, nor any person
acting on its or their behalf, has directly or indirectly made any offers or sales of any security
or solicited any offers to buy any security under circumstances that would cause the offering of
the Securities pursuant to this Agreement to be integrated with prior offerings by the Company for
purposes of the Securities Act, which would prevent the Company from selling the Securities
pursuant to Regulation D and Rule 506 thereof under the Securities Act, or any applicable
exchange-related stockholder approval provisions, nor will the Company or any of its affiliates or
subsidiaries take any action or steps that would cause the offering of the Securities to be
integrated with other offerings.

          n. Issuance of Securities. The Securities to be issued at the Closing have been duly
authorized by all necessary corporate action and, when paid for or issued in accordance with the
terms hereof, the Securities shall be validly issued and outstanding, free and clear of all liens,
encumbrances and rights of refusal of any kind. When the Conversion Shares are issued and paid for
in accordance with the terms of this Agreement, such shares will be duly authorized by all
necessary corporate action and validly issued and outstanding, fully paid and nonassessable, free
and clear of all liens, encumbrances and rights of refusal of any kind and the holders shall be
entitled to all rights accorded to a holder of such security.

          o. No Conflicts. The execution, delivery and performance of the Transaction Documents by the
Company, and the consummation by the Company of the transactions contemplated hereby and thereby,
and the issuance of the Securities as contemplated hereby, do not and will not (i) violate or
conflict with any provision of the Company’s Articles of Incorporation (the “Articles”) or Bylaws
(the “Bylaws”), each as amended to date, or any Subsidiary’s comparable charter documents; (ii)
conflict with, or constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights of termination, amendment, acceleration
or cancellation of, any agreement, mortgage, deed of trust, indenture, note, bond, license, lease
agreement, instrument or obligation to which the Company or any of its Subsidiaries is a party or
by which the Company or any of its Subsidiaries’ respective properties or assets are bound; or
(iii) result in a violation of any federal, state, local or foreign statute, rule, regulation,
order, judgment or decree (including federal and state securities laws and regulations and rules
and regulations of any governmental or any regulatory agency, self-regulatory organization, or
trading market) applicable to the Company or any of its Subsidiaries or by which any property or
asset of the Company or any of its Subsidiaries are bound or affected, except, in all cases, for
such conflicts, defaults, terminations, amendments, acceleration, cancellations and violations as
would not, individually or in the aggregate, have a Material Adverse Effect (other than violations
pursuant to clauses (i) or (iii) (with respect to federal and state securities laws)). Neither the
Company nor any of its

7

 

Subsidiaries is required under federal, state, foreign or local law, rule or regulation to
obtain any consent, authorization or order of, or make any filing or registration with, any court
or governmental agency in order for it to execute, deliver or perform any of its obligations under
the Transaction Documents or issue and sell the Securities in accordance with the terms hereof
(other than any filings, consents and approvals which may be required to be made by the Company
under applicable state and federal securities laws, rules or regulations).

          p. No Violation. Except as set forth in Schedule II(1)(c), neither the Company nor any
Subsidiary (i) is in default under or in violation of (and no event has occurred that has not been
waived that, with notice or lapse of time or both, would result in a default by the Company or any
Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in
default under or that it is in violation of, any indenture, loan or credit agreement or any other
agreement or instrument to which it is a party or by which it or any of its properties is bound,
except such that, individually or in the aggregate, such default(s) and violations(s) would not
have a Material Adverse Effect, (ii) is in violation of any order of any court, arbitrator or
governmental body, or (iii) is in violation of any of the provisions of its certificate or articles
of incorporation, bylaws or other organizational or charter documents.

          q. Dilutive Effect. The Company understands and acknowledges that its obligation to
issue the Conversion Shares upon conversion of the Acquired Shares is absolute and unconditional
regardless of the dilutive effect that such issuance may have on the ownership interests of other
stockholders of the Company.

          r. Placement Agent’s Fees. No brokerage or finder’s fee or commission are or will be
payable to any Person with respect to the transactions contemplated by this Agreement based upon
arrangements made by the Company or any of its affiliates. The Company agrees that it shall be
responsible for the payment of any placement agent’s fees, financial advisory fees, or brokers’
commissions (other than for Persons engaged by Vicis or any of its affiliates) relating to or
arising out of the transactions contemplated hereby. The Company shall pay, and hold Vicis harmless
against, any liability, loss or expense (including, without limitation, reasonable attorney’s fees
and out-of-pocket expenses) arising in connection with any claim for any such fees or commissions.

          s. Indebtedness and Other Contracts. Except as disclosed in the Commission Documents,
neither the Company nor any Subsidiary (a) has any outstanding Indebtedness (as defined below in
this Section), (b) is a party to any contract, agreement or instrument, the violation of which, or
default under, by any other party to such contract, agreement or instrument would result in a
Material Adverse Effect, (c) is in violation of any term of or in default under any contract,
agreement or instrument relating to any Indebtedness, except where such violations and defaults
would not result, individually or in the aggregate, in a Material Adverse Effect, or (d) is a party
to any contract, agreement or instrument relating to any Indebtedness, the performance of which, in
the judgment of the Company’s officers, has or is expected to have a Material Adverse Effect. For
purposes of this Agreement: (x) “Indebtedness” of any Person means, without duplication (i) all
indebtedness for borrowed money, (ii) all obligations issued, undertaken or assumed as the deferred
purchase price of property or services (other than trade payables entered into in the ordinary
course of business), (iii) all reimbursement or payment obligations with respect to letters of
credit, surety bonds and other similar

8

 

instruments, (iv) all obligations evidenced by notes, bonds, debentures or similar
instruments, including obligations so evidenced incurred in connection with the acquisition of
property, assets or businesses, (v) all indebtedness created or arising under any conditional sale
or other title retention agreement, or incurred as financing, in either case with respect to any
property or assets acquired with the proceeds of such indebtedness (even though the rights and
remedies of the seller or bank under such agreement in the event of default are limited to
repossession or sale of such property), (vi) all monetary obligations under any leasing or similar
arrangement which, in connection with generally accepted accounting principles, consistently
applied for the periods covered thereby, is classified as a capital lease, (vii) all indebtedness
referred to in clauses (i) through (vi) above secured by (or for which the holder of such
Indebtedness has an existing right, contingent or otherwise, to be secured by) any mortgage, lien,
pledge, change, security interest or other encumbrance upon or in any property or assets (including
accounts and contract rights) owned by any Person, even though the Person which owns such assets or
property has not assumed or become liable for the payment of such indebtedness, and (viii) all
Contingent Obligations in respect of indebtedness or obligations of others of the kinds referred to
in clauses (i) through (vii) above; (y) “Contingent Obligation” means, as to any Person, any direct
or indirect liability, contingent or otherwise, of that Person with respect to any indebtedness,
lease, dividend or other obligation of another Person if the primary purpose or intent of the
Person incurring such liability, or the primary effect thereof, is to provide assurance to the
obligee of such liability that such liability will be paid or discharged, or that any agreements
relating thereto will be complied with, or that the holders of such liability will be protected (in
whole or in part) against loss with respect thereto; and (z) “Person” means an individual, a
limited liability company, a partnership, a joint venture, a corporation, a trust, an
unincorporated organization and a government or any department or agency thereof.

          t. Absence of Certain Changes or Developments. Except as disclosed in Schedule
II(1)(t) attached hereto or as disclosed in the Commission Documents or as contemplated herein and
in the Transaction Documents, since December 31, 2007:

          i. there has been no Material Adverse Effect, and no event or circumstance has occurred or
exists with respect to the Company or its businesses, properties, operations or financial
condition, which, under Exchange Act, Securities Act, or rules or regulations of any Trading
Market, requires public disclosure or announcement by the Company but which has not been so
publicly announced or disclosed;

          ii. the Company has not:

               (a) issued any stock, bonds or other corporate securities or any right, options or warrants
with respect thereto, except pursuant to the exercise or conversion of securities outstanding as of
such date;

               (b) borrowed any amount in excess of $250,000 or incurred or become subject to any other
liabilities in excess of $250,000 (absolute or contingent) except current liabilities incurred in
the ordinary course of business which are comparable in nature and amount to the current
liabilities incurred in the ordinary course of business during the comparable portion of its prior
fiscal year, as adjusted to reflect the current nature and volume of the business of the Company;

9

 

               (c) discharged or satisfied any Lien or encumbrance in excess of $250,000 or paid any
obligation or liability (absolute or contingent) in excess of $250,000, other than current
liabilities paid in the ordinary course of business and payments of principal and interest under
existing Indebtedness disclosed in the Commission Documents;

               (d) declared or made any payment or distribution of cash or other property to stockholders
with respect to its stock, or purchased or redeemed, or made any agreements so to purchase or
redeem, any shares of its capital stock, in each case in excess of $50,000 individually or $100,000
in the aggregate;

               (e) sold, assigned or transferred any other tangible assets, or canceled any debts or claims,
in each case in excess of $250,000, except in the ordinary course of business;

               (f) sold, assigned or transferred any patent rights, trademarks, trade names, copyrights,
trade secrets or other intangible assets or intellectual property rights in excess of $250,000, or
disclosed any proprietary confidential information to any person except to customers in the
ordinary course of business;

               (g) suffered any material losses or waived any rights of material value, whether or not in the
ordinary course of business, or suffered the loss of any material amount of prospective business;

               (h) made any changes in employee compensation except in the ordinary course of business and
consistent with past practices;

               (i) made capital expenditures or commitments therefor that aggregate in excess of $250,000;

               (j) entered into any material transaction, whether or not in the ordinary course of business
that has not been disclosed in the Commission Documents;

               (k) suffered any material damage, destruction or casualty loss, whether or not covered by
insurance;

               (l) experienced any material problems with labor or management in connection with the terms
and conditions of their employment;

               (m) altered its method of accounting, except to the extent required by GAAP;

               (n) issued any equity securities to any officer, director or affiliate (as such term is
defined in Rule 144 of the Securities Act), except pursuant to existing Company stock, option,
equity incentive or similar incentive plans; or

               (o) entered into an agreement, written or otherwise, to take any of the foregoing actions.

10

 

          u. Solvency. The Company has not taken, nor does it have any intention to take, any
steps to seek protection pursuant to any bankruptcy or similar law. The Company does not have any
actual knowledge nor has it received any written notice that its creditors intend to initiate
involuntary bankruptcy proceedings or any actual knowledge of any fact that, as of the date hereof,
would reasonably lead a creditor to do so. After giving effect to the transactions contemplated
hereby to occur at the Closing and in connection with the New Senior Credit Facility, the Company
will not be Insolvent (as hereinafter defined). For purposes of this Agreement, “Insolvent” means
(i) the Company is unable to pay its debts and liabilities, subordinated, contingent or otherwise,
as such debts and liabilities become absolute and matured, (ii) the Company intends to incur or
believes that it will incur debts that would be beyond its ability to pay as such debts mature or
(iii) the Company has unreasonably small capital with which to conduct the business in which it is
engaged as such business is now conducted and is proposed to be conducted.

          v. Off-Balance Sheet Arrangements. There is no transaction, arrangement, or other
relationship between the Company and an unconsolidated or other off balance sheet entity that is
required to be disclosed by the Company in its Exchange Act filings and is not so disclosed or that
if made or not made would be reasonably likely to have a Material Adverse Effect.

          w. Transactions With Affiliates. Except as set forth in the Commission Documents, none
of the officers, directors or employees of the Company is presently a party to any transaction with
the Company or any Subsidiary (other than for ordinary course services as employees, 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, director or employee or, to the knowledge of the
Company, any corporation, partnership, trust or other entity in which any such officer, director,
or employee has a substantial interest or is an officer, director, trustee or partner.

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

          y. Title. Except as set forth in the Commission Documents, the Company and each
Subsidiary have good and marketable title to all personal property owned by them which is material
to their respective business, in each case free and clear of all liens. Any real property and
facilities held under lease by the Company or any Subsidiary are held by them under valid,
subsisting and enforceable leases with such exceptions as are not material and do not interfere
with the use made and proposed to be made of such property and buildings by the Company or any
Subsidiary.

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          z. Intellectual Property Rights. The Company and its Subsidiaries own or possess the
rights to use all patents, trademarks, domain names (whether or not registered) and any patentable
improvements or copyrightable derivative works thereof, websites and intellectual property rights
relating thereto, service marks, trade names, copyrights, licenses and authorizations which are
necessary for the conduct of its business as now conducted (collectively, the “Intellectual
Property Rights”) without any conflict with the rights of others, except any failures as,
individually or in the aggregate, are not reasonably likely to have a Material Adverse Effect.
Neither the Company nor any Subsidiary has received a written notice that the Intellectual Property
Rights used by the Company or any Subsidiary violates or infringes upon the rights of any Person.
To the knowledge of the Company, all such Intellectual Property Rights are enforceable and there is
no existing infringement by another Person of any of the Intellectual Property Rights. The Company
and its Subsidiaries have taken reasonable measures to protect the value of the Intellectual
Property Rights.

          aa. Environmental Laws. The Company and each of its Subsidiaries (a) are in compliance
with any and all Environmental Laws (as hereinafter defined), (b) have received all permits,
licenses or other approvals required of them under applicable Environmental Laws to conduct their
respective businesses and (c) are in compliance with all terms and conditions of any such permit,
license or approval where, in each of the foregoing clauses (a), (b) and (c), the failure to so
comply could be reasonably expected to have, individually or in the aggregate, a Material Adverse
Effect. The term “Environmental Laws” means all federal, state, local or foreign laws relating to
pollution or protection of human health or the environment (including, without limitation, ambient
air, surface water, groundwater, land surface or subsurface strata), including, without limitation,
laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants,
contaminants, or toxic or hazardous substances or wastes (collectively, “Hazardous Materials”) into
the environment, or otherwise relating to the manufacture, processing, distribution, use,
treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all
authorizations, codes, decrees, demands or demand letters, injunctions, judgments, licenses,
notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or
approved thereunder.

          bb. Material Contracts. Each contract of the Company that involves expenditures or
receipts in excess of $500,000 (each, a “Material Contract”) is in full force and effect and is
valid and enforceable in accordance with its terms. The Company is and has been in full compliance
with all applicable terms and requirements of each Material Contract and no event has occurred or
circumstance exists that (with or without notice or lapse of time) may contravene, conflict with or
result in a violation or breach of, or give the Company or any other entity the right to declare a
default or exercise any remedy under, or to accelerate the maturity or performance of, or to
cancel, terminate or modify any Material Contract. The Company has not given or received from any
other Person any notice or other communication (whether oral or written) regarding any actual,
alleged, possible or potential violation or breach of, or default under, any Material Contract.

          cc. Ranking of Series A Preferred Stock. No capital stock of the Company is senior to
or ranks pari passu with the Series A Preferred Stock in right of payment, whether with respect of
payment of redemptions, interest, damages or upon liquidation or dissolution or otherwise.

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          dd. Manipulation of Price. The Company has not, and to its knowledge no one acting on
its behalf has, taken, directly or indirectly, any action designed to cause or to result or that
could reasonably be expected to cause or result, in the stabilization or manipulation of the price
of any security of the Company to facilitate the sale or resale of any of the Securities.

          ee. Listing and Maintenance Requirements. The Company has not, in the 12 months
preceding the date hereof, received notice from any trading market on which the Common Stock is or
has been listed or quoted to the effect that the Company is not in compliance with the listing or
maintenance requirements of such trading market. The Company is in compliance with all such
maintenance requirements.

          ff. Application of Takeover Protections. The Company and its Board of Directors have
taken all necessary action, if any, in order to render inapplicable any control share acquisition,
business combination, poison pill (including any distribution under a rights agreement) or other
similar anti-takeover provision under the Company’s Certificate of Incorporation (or similar
charter documents) or the laws of its state of incorporation that is or could become applicable to
Vicis as a result of Vicis and the Company fulfilling their obligations or exercising their rights
under the Transaction Documents, including without limitation the Company’s issuance of the
Securities and Vicis’s ownership of the Securities.

          gg. Disclosure. All written disclosure provided to Vicis regarding the Company, its
business and the transactions contemplated hereby, including the Schedules to this Agreement,
furnished by or on behalf of the Company are true and correct and do not contain any untrue
statement of a material fact or omit to state any material fact necessary in order to make the
statements made therein, in light of the circumstances under which they were made, not misleading.

          2. Representations and Warranties of Vicis. Vicis hereby represents and warrants to
the Company as follows as of the date hereof and as of the Closing Date:

               a. Organization and Standing of Vicis. Vicis is a trust duly organized, validly existing and
in good standing under the laws of the jurisdiction of its organization.

               b. Authorization and Power. Vicis has the requisite power and authority to enter into and
perform the Transaction Documents and to purchase or otherwise acquire the Securities being issued
to it hereunder. The execution, delivery and performance of the Transaction Documents by Vicis and
the consummation by it of the transactions contemplated hereby have been duly authorized by all
necessary corporate or partnership action, and no further consent or authorization of such Vicis,
as applicable, or its Board of Directors, stockholders, or partners, as the case may be, is
required. When executed and delivered by Vicis, the Transaction Documents shall constitute valid
and binding obligations of Vicis enforceable against such Vicis in accordance with their terms,
except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation, conservatorship, receivership or similar laws relating to, or affecting
generally the enforcement of, creditor’s rights and remedies or by other equitable principles of
general application.

13

 

               c. No Conflict. The execution, delivery and performance of the Transaction Documents by Vicis
and the consummation by Vicis of the transactions contemplated thereby and hereby do not and will
not (i) violate any provision of Vicis’s charter or organizational documents; (ii) conflict with,
or constitute a default (or an event which with notice or lapse of time or both would become a
default) under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, mortgage, deed of trust, indenture, note, bond, license, lease
agreement, instrument or obligation to which Vicis is a party or by which Vicis’s respective
properties or assets are bound; or (iii) result in a violation of any federal, state, local or
foreign statute, rule, regulation, order, judgment or decree (including federal and state
securities laws and regulations) applicable to Vicis by which any property or asset of Vicis is
bound or affected, except, in all cases, other than violations pursuant to clauses (i) or (iii)
(with respect to federal and state securities laws) above, for such conflicts, defaults,
terminations, amendments, acceleration, cancellations and violations as would not, individually or
in the aggregate, materially and adversely affect Vicis’s ability to perform its obligations under
the Transaction Documents.

               d. Acquisition for Investment. Vicis is acquiring the Securities solely for its own account
and not with a view to or for sale in connection with distribution. Vicis does not have a present
intention to sell any of the Securities, or a present arrangement (whether or not legally binding)
or intention to effect any distribution of any of the Securities to or through any person or
entity; provided, however, that by making the representations herein, Vicis does not agree to hold
the Securities for any minimum or other specific term and reserves the right to dispose of the
Securities at any time in accordance with federal and state securities laws applicable to such
disposition. Vicis acknowledges that it (i) has such knowledge and experience in financial and
business matters such that Vicis is capable of evaluating the merits and risks of Vicis’s
investment in the Company; (ii) is able to bear the financial risks associated with an investment
in the Securities; and (iii) has been given full access to such records of the Company and the
Subsidiaries and to the officers of the Company and the Subsidiaries as it has deemed necessary or
appropriate to conduct its due diligence investigation.

               e. Rule 144. Vicis acknowledges that the Securities have not been registered under the
Securities Act of 1933, as amended (the “Act”), or any applicable state securities laws in reliance
upon exemption provisions of the Act and such other laws; and accordingly, no Federal or state
agency has made any recommendation or endorsement as to, or otherwise passed on the merits of,
purchasing the Securities. Vicis further acknowledges that there is no public market for the
Securities, other than a limited market for the Company’s shares of Common Stock, and that it will
not be possible to readily liquidate its investment. Vicis must bear the economic risks of
investment for an indefinite period of time and Vicis understands that the Securities must be held
indefinitely unless such Securities are registered under the Securities Act or an exemption from
registration is available. Vicis acknowledges that such person is familiar with Rule 144 of the
rules and regulations of the Commission, as amended, promulgated pursuant to the Securities Act
(“Rule 144”), and that such Vicis has been advised that Rule 144 permits resales only under certain
circumstances. Vicis understands that, to the extent that Rule 144 is not available, such Vicis
will be unable to sell any Securities without either registration under the Securities Act or the
existence of another exemption from such registration requirement.

14

 

               f. Independent Inquiry. Vicis has been given (i) access to all books and records, legal
documents and other material information of the Company; (ii) access to all material contracts and
documents of the Company relating to the Securities and the Company’s business; and (iii) an
opportunity to ask questions of and receive answers from the executive officers of the Company,
regarding the information in (i) and (ii) above. Vicis has made such investigation and examination
of the affairs of the Company and has obtained such information relating thereto as he or she deems
necessary to verify the accuracy of the information furnished to him or her. Vicis has received no
representation or warranty from any person regarding the Company or its business or prospects, or
the Securities; and Vicis acknowledges that the ability of the Company to achieve its business
objective is uncertain. Vicis understands that an investment in the Company is extremely risky and
acknowledges reviewing all of the Risk Factors contained in the Commission Documents.

               g. General. Vicis understands that the Securities are being offered and sold in reliance on a
transactional exemption from the registration requirements of federal and state securities laws and
the Company is relying upon the truth and accuracy of the representations, warranties, agreements,
acknowledgments and understandings of such Vicis set forth herein in order to determine the
applicability of such exemptions and the suitability of such Vicis to acquire the Securities. The
information provided to the Company by Vicis is true and accurate and contains no material
misstatements. Vicis understands that no United States federal or state agency or any government or
governmental agency has passed upon or made any recommendation or endorsement of the Securities.
Commencing on the date that Vicis was initially contacted regarding an investment in the
Securities, its has not engaged in any short sale of any of the Securities and will not engage in
any such short sale prior to the consummation of the transactions contemplated by this Agreement.

               h. No General Solicitation. Vicis acknowledges that the Securities were not offered to such
Vicis, as applicable, by means of any form of general or public solicitation or general
advertising, or publicly disseminated advertisements or sales literature, including (i) any
advertisement, article, notice or other communication published in any newspaper, magazine, or
similar media, or broadcast over television or radio; or (ii) any seminar or meeting to which such
Vicis, as applicable, was invited by any of the foregoing means of communications. Vicis in making
the decision to purchase the Securities, has relied upon independent investigation made by it and
has not relied on any information or representations made by third parties.

               i. Accredited Vicis. Vicis is an “accredited investor” (as defined in Rule 501 of Regulation
D), and such Vicis has such experience in business and financial matters that it is capable of
evaluating the merits and risks of an investment in the Securities. Such Vicis is not required to
be registered as a broker-dealer under Section 15 of the Exchange Act and such Vicis is not a
broker-dealer. Vicis acknowledges that an investment in the Securities is speculative and involves
a high degree of risk.

               j. Sophistication. Vicis has sufficient knowledge and experience in business and financial
matters to evaluate the merits and risks of an investment in the Company and is able to bear the
economic risks inherent in this investment and has the ability, at the present time, to afford a
complete loss of the undersigned’s entire investment in the Company. Vicis’s overall commitment to
investments which are not readily marketable is not

15

 

disproportionate to his or her net worth in light of his or her business or investments, and
Vicis’s investment in the Company will not cause such overall commitment to be disproportionate.
Vicis has adequate means of providing for his or her current financial needs and possible personal
contingencies and has no need for liquidity in this investment.

               k. Regulation M. Vicis has complied and will comply with Regulation M promulgated under the
Exchange Act with respect to the transactions contemplated by this Agreement.

ARTICLE III

COVENANTS

     The Company covenants with Vicis as to each provision in this Article III as follows,
which covenants are for the benefit of Vicis and its permitted assignees.

     1. Securities Compliance. The Company shall notify the Commission in accordance with
its rules and regulations of the transactions contemplated by any of the Transaction Documents and
shall take all other necessary action and proceedings as may be required and permitted by
applicable law, rule and regulation, for the legal and valid issuance of the Securities to Vicis or
their respective subsequent holders.

     2. Listing; Filings. The Company will take all action necessary to continue the
trading of its Common Stock on the OTC Bulletin Board and if and when issued to list the Conversion
Shares. The Company further agrees, if the Company applies to have the Common Stock traded on any
other trading market, it will include in such application all of the Conversion Shares, and will
take such other action as is necessary to cause all of the Conversion Shares to be listed on such
other trading market as promptly as possible. The Company will take all action reasonably necessary
to continue the listing and trading of its Common Stock on, and will comply in all respects with
the Company’s reporting, filing and other obligations under the bylaws or rules of, each such
Trading Market on which the Company’s Common Stock is listed or trades. Subject to the terms of the
Transaction Documents, the Company further covenants that it will take such further action as Vicis
may reasonably request, all to the extent required from time to time to enable Vicis to sell its
shares of Common Stock without registration under the Securities Act within and subject to the
limitations provided by Rule 144 promulgated under the Securities Act.

     3. Inspection Rights. Provided same would not be in violation of Regulation FD, the
Company shall permit, during normal business hours and upon reasonable request and reasonable
notice, Vicis, or any employees, agents or representatives thereof, for purposes reasonably related
to such Vicis’s interests as a stockholder, to examine the publicly available, non-confidential
records and books of account of, and visit and inspect the properties, assets, operations and
business of the Company and any subsidiary, and to discuss the publicly available, non-confidential
affairs, finances and accounts of the Company and any subsidiary with any of its officers,
consultants, directors, and key employees.

16

 

     4. Compliance with Laws. The Company shall comply, and cause each subsidiary to
comply, with all applicable laws, rules, regulations and orders, noncompliance with which would be
reasonably likely to have a Material Adverse Effect.

     5. Keeping of Records and Books of Account. The Company shall keep and cause each
subsidiary to keep adequate records and books of account, in which complete entries will be made in
accordance with GAAP consistently applied, reflecting all financial transactions of the Company and
its subsidiaries, and in which, for each fiscal year, all proper reserves for depreciation,
depletion, obsolescence, amortization, taxes, bad debts and other purposes in connection with its
business shall be made.

     6. Other Agreements. The Company shall not enter into any agreement which, by its
terms, would restrict or impair the Company’s or any subsidiary’s right or ability to perform under
this Article III.

     7. Use of Proceeds. The net proceeds from the sale of the Securities hereunder shall
be used by the Company in its sole discretion, including for the acquisition of Standard Tel
Acquisition LLC and Trans-West Network Solutions and for working capital and general corporate
purposes, including, but not limited to, growth and capital initiatives, investor and public
relations, consulting fees, transaction related fees and payment of fees due to Vicis as
contemplated hereby.

     8. Reporting Status. For a period of not less than two (2) years after the Closing,
(a) the Company shall timely file all reports required to be filed with the Commission pursuant to
the Exchange Act, and the Company shall not terminate its status as an issuer required to file
reports under the Exchange Act even if the Exchange Act or the rules and regulations thereunder
would permit such termination, and (b) the Company shall retain an investor relations firm,
selected by the Company, which systematically prepares and distributes information to potential
investors about developments in the Company’s business as part of an active investor relations
program.

     9. Transfer Taxes. All applicable sales taxes, documentary transfer taxes, recording
and filing fees, and other costs (but not including, without limitation, any attorney’s fees
incurred by the Company or income, capital gains, intangible or similar taxes) that may be due or
payable as a result of the conveyance or deliver of the Securities to be conveyed and transferred
or other transactions contemplated hereby, whether levied on the Company or Vicis shall be paid by
the Company.

     10. Authorization of and Reservation of Additional Shares of Common Stock. On or prior
to Closing, the Company shall take all action necessary to reserve sufficient shares for the full
issuance of the Conversion Shares and thereafter the Company will at all times cause there to be
reserved for issuance a sufficient number of shares of Common Stock for the issuance of the
Conversion Shares.

     11. Maintenance of Corporate Existence. The Company shall and shall cause its
subsidiaries to, maintain in full force and effect its corporate existence, rights and franchises
and all material terms of licenses and other rights to use licenses, trademarks, trade names,
service

17

 

marks, copyrights, patents or processes owned or possessed by it and necessary to the conduct
of its business, except where the failure to maintain such corporate existence, rights, franchises,
licenses and rights to use licenses, trademarks, trade names, service marks, copyrights, patents or
processes would not (a) result in a Material Adverse Effect or (b) materially adversely affect the
rights of Vicis under any Transaction Document.

     12. Maintenance of Properties. The Company shall and shall cause its subsidiaries to,
keep each of its properties necessary to the conduct of its business in good repair, working order
and condition, reasonable wear and tear excepted, and from time to time make all needful and proper
repairs, renewals, replacements, additions and improvements thereto; and the Company shall and
shall its subsidiaries to at all times comply with each material provision of all material leases
to which it is a party or under which it occupies property.

     13. Payment of Taxes. The Company shall and shall cause its subsidiaries to, promptly
pay and discharge, or cause to be paid and discharged when due and payable, all lawful taxes,
assessments and governmental charges or levies imposed upon the income, profits, assets, property
or business of the Company and its subsidiaries; provided, however, that any such tax, assessment,
charge or levy need not be paid if the validity thereof shall be contested timely and in good faith
by appropriate proceedings, if the Company or its subsidiaries shall have set aside on its books
adequate reserves with respect thereto, and the failure to pay shall not be prejudicial in any
material respect to the holders of the Securities, and provided, further, that the Company or its
subsidiaries will pay or cause to be paid any such tax, assessment, charge or levy forthwith upon
the commencement of proceedings to foreclose any Lien which may have attached as security therefor.

     14. Payment of Indebtedness. The Company shall, and shall cause its subsidiaries to,
pay or cause to be paid when due all Indebtedness incident to the operations of the Company or its
subsidiaries (including, without limitation, claims or demands of workmen, material-men, vendors,
suppliers, mechanics, carriers, warehousemen and landlords) which, if unpaid might become a Lien
(except for Permitted Liens) upon the assets or property of the Company or its subsidiaries, except
where the Company (or its subsidiary, as the case may be) disputes the payment of such Indebtedness
in good faith by appropriate proceedings

     15. Maintenance of Insurance. The Company shall and shall cause its subsidiaries to,
keep its assets which are of an insurable character insured by financially sound and reputable
insurers against loss or damage by theft, fire, explosion and other risks customarily insured
against by companies in the line of business of the Company or its subsidiaries, in amounts
sufficient to prevent the Company and its subsidiaries from becoming a co-insurer of the property
insured; and the Company shall and shall cause its subsidiaries to maintain, with financially sound
and reputable insurers, insurance against other hazards and risks and liability to persons and
property to the extent and in the manner customary for companies in similar businesses similarly
situated or as may be required by law, including, without limitation, general liability, fire and
business interruption insurance, and product liability insurance as may be required pursuant to any
license agreement to which the Company or its subsidiaries is a party or by which it is bound.

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     16. Payment of the Preferred Share Dividends. The Company shall pay the dividends on,
and redeem, the Acquired Shares, in the time, the manner and the form as provided in the
Certificate of Designation for the Series A Preferred Stock.

     17. Further Assurances. From time to time the Company shall execute and deliver to
Vicis and Vicis shall execute and deliver to the Company such other instruments, certificates,
agreements and documents and take such other action and do all other things as may be reasonably
requested by the other party in order to implement or effectuate the terms and provisions of this
Agreement and any of the Securities

     For purposes of Articles IV and V the term “subsidiary” shall be deemed to include each
Subsidiary and any subsidiary of the Company acquired or formed after the date hereof.

ARTICLE V

NEGATIVE COVENANTS

     The Company hereby covenants and agrees, so long as more than 25% of the aggregate amount of
authorized shares of Series A Preferred Stock remain outstanding (or such amount as adjusted for
stock splits, recapitalizations and similar transactions), it will not (and not allow any
subsidiary to), without the prior written consent of the holder(s) of more than 50% of number of
shares of Series A Preferred Stock outstanding (the “Majority Holders”), directly or indirectly:

     1. Distributions and Redemptions. (a) Except with respect to the Series A Preferred
Stock, declare or pay any dividends or make any distributions to any holder(s) of any shares of
capital stock of the Company or (a) purchase, redeem or otherwise acquire for value, directly or
indirectly, any shares of Common Stock of the Company or warrants or rights to acquire such Common
Stock, except as may be required by the terms of the Series A Preferred Stock; or (iii) purchase,
redeem or otherwise acquire for value, directly or indirectly, any shares of preferred stock of the
Company or warrants or rights to acquire such stock, except as may be required by the terms of such
preferred stock.

     2. Reclassification. Effect any reclassification, combination or reverse stock split
of the Common Stock.

     3. Indebtedness. Create, incur, assume, suffer, permit to exist, or guarantee,
directly or indirectly, any Indebtedness, excluding, however, from the operation of this covenant:

               (a) Indebtedness to the extent disclosed in the Commission Documents filed prior to the date
hereof and otherwise existing on the date hereof;

               (b) Indebtedness which may, from time to time be incurred or guaranteed by the Company which
in the aggregate principal amount does not exceed $250,000 and is subordinate to the Indebtedness
under this Agreement;

               (c) the endorsement of instruments for the purpose of deposit or collection in the ordinary
course of business;

19

 

               (d) Indebtedness relating to contingent obligations of the Company and its subsidiaries under
guaranties in the ordinary course of business of the obligations of suppliers, customers, and
licensees of the Company and its subsidiaries;

               (e) Indebtedness relating to loans from the Company to its subsidiaries;

               (f) Indebtedness relating to capital leases in an amount not to exceed $250,000; or

               (g) accounts or notes payable arising out of the purchase of merchandise, supplies, equipment,
software, computer programs or services in the ordinary course of business.

               4. Capital Stock. Except for issuances to Vicis, issue any equity security that is
senior to or ranks pari passu with the Series A Preferred Stock, whether with respect to right of
payment of redemptions, interest, damages or upon liquidation or dissolution or otherwise.

               5. Liquidation or Sale. Sell, transfer, lease or otherwise dispose of 10% or more of
its consolidated assets (as shown on the most recent financial statements of the Company or the
subsidiary, as the case may be) in any single transaction or series of related transactions (other
than the sale of inventory in the ordinary course of business), or liquidate, dissolve,
recapitalize or reorganize in any form of transaction.

               6. Change of Control Transaction. Enter into a Change in Control Transaction. For
purposes of this Agreement, “Change in Control Transaction” means the occurrence of (a) an
acquisition by an individual or legal entity or “group” (as described in Rule 13d-5(b)(1)
promulgated under the Exchange Act) of effective control (whether through legal or beneficial
ownership of capital stock of the Company, by contract or otherwise) of in excess of fifty percent
(50%) of the voting securities of the Company (except that the acquisition of Securities by Vicis
shall not constitute a Change in Control for purposes of this Section), (b) a replacement at one
time or over time of more than one-half of the members of the Board of the Company which is not
approved by a majority of those individuals who are members of the Board on the date hereof (or by
those individuals who are serving as members of the Board on any date whose nomination to the Board
was approved by a majority of the members of the Board who are members on the date hereof), (c) the
merger or consolidation of the Company or any subsidiary of the Company in one or a series of
related transactions with or into another entity (except in connection with a merger involving the
Company solely for the purpose, and with the sole effect, of reorganizing the Company under the
laws of another jurisdiction; provided that the certificate of incorporation and bylaws (or similar
charter or organizational documents) of the surviving entity are substantively identical to those
of the Company and do not otherwise adversely impair the rights of Vicis), or (d) the execution by
the Company of an agreement to which the Company is a party or by which it is bound, providing for
any of the events set forth above in (a), (b) or (c).

               7. Amendment of Charter Documents. Amend or waive any provision of the Certificate of
Incorporation or Bylaws of the Company in any way that materially adversely affects the rights of
Vicis without the prior written consent of Vicis.

20

 

ARTICLE VI

CERTIFICATE LEGEND

     1. Legend. Each certificate representing the Securities shall be stamped or otherwise
imprinted with a legend substantially in the following form (in addition to any legend required by
applicable state securities or “blue sky” laws):

THE SECURITIES REPRESENTED BY THIS CERTIFICATE (THE “SECURITIES”) HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR
ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF
UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES
LAWS OR THE COMPANY SHALL HAVE RECEIVED AN OPINION OF COUNSEL THAT REGISTRATION OF
SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE
STATE SECURITIES LAWS IS NOT REQUIRED.

     Prior to registration of the Conversion Shares under the Securities Act, all such certificates
shall bear the restrictive legend specified in this Section. Certificates evidencing the Conversion
Shares shall not contain any legend (including the legend set forth in this Section), (i) while a
registration statement (including the Registration Statement) covering the resale of such security
is effective under the Securities Act, or (ii) following any sale of such Conversion Shares
pursuant to Rule 144, or (iii) if such Conversion Shares are eligible for sale under Rule 144 by
Vicis without limitation as to volume or manner of sale, or (iv) if such legend is not required
under applicable requirements of the Securities Act (including judicial interpretations and
pronouncements issued by the Staff of the Commission). The Company shall cause its counsel to issue
a legal opinion to the Company’s transfer agent promptly after the effective date of a registration
statement covering such Conversions Shares, if required by the Company’s transfer agent, to effect
the removal of the legend hereunder. If all or any portion of the Acquired Shares is converted at a
time when there is an effective registration statement to cover the resale of the Conversion
Shares, such Conversion Shares, as the case may be, shall be issued free of all legends. The
Company agrees that following the effective date of the registration statement covering Conversion
Shares or at such time as such legend is no longer required under this Section, it will, no later
than five (5) trading days following the delivery by Vicis to the Company or the Company’s transfer
agent of a certificate representing Conversion Shares, as the case may be, issued with a
restrictive legend (such date, the “Delivery Date”), deliver or cause to be delivered to Vicis a
certificate representing such Securities that is free from all restrictive and other legends. The
Company may not make any notation on its records or give instructions to any transfer agent of the
Company that enlarge the restrictions on transfer set forth in this Section. Whenever a certificate
representing the Conversion Shares is required to be issued to Vicis without a legend, in lieu of
delivering physical certificates representing the Conversion Shares, provided the Company’s
transfer agent is participating in the Depository Trust Company (“DTC”) Fast Automated Securities
Transfer program, the Company shall use its reasonable best efforts to cause its transfer agent to
electronically transmit the Conversion Shares to Vicis by

21

 

crediting the account of such Vicis’s Prime Broker with DTC through its Deposit Withdrawal
Agent Commission (“DWAC”) system (to the extent not inconsistent with any provisions of this
Agreement).

     2. Liquidated Damages. The Company understands that a delay in the delivery of
unlegended certificates for the Conversion Shares as set forth in Section 1 hereof beyond the
Delivery Date could result in economic loss to Vicis. If the Company fails to deliver to a Vicis
such shares via DWAC or a certificate or certificates pursuant to this Section hereunder by the
Delivery Date, the Company shall pay to Vicis, in cash, as partial liquidated damages and not as a
penalty, for each $500 of Conversion Shares (based on the closing price of the Common Stock
reported by the principal trading market on the date such Securities are submitted to the Company’s
transfer agent) subject to Section 1, $10 per trading day (increasing to $15 per trading day five
(5) trading days after such damages have begun to accrue and increasing to $20 per trading day ten
(10) trading days after such damages have begun to accrue) for each trading day after the Legend
Removal Date until such certificate is delivered. Nothing herein shall limit Vicis’s right to
pursue actual damages for the Company’s failure to deliver certificates representing any Securities
as required by the Transaction Documents, and Vicis shall have the right to pursue all remedies
available to it at law or in equity including, without limitation, a decree of specific performance
and/or injunctive relief.

     3. Sales by Vicis. Vicis agrees that the removal of the restrictive legend from
certificates representing Securities as set forth in Section 1 is predicated upon the Company’s
reliance that Vicis will sell any Securities pursuant to either the registration requirements of
the Securities Act, including any applicable prospectus delivery requirements, or an exemption
therefrom.

ARTICLE VII

INDEMNIFICATION

     1. General Indemnity. The Company agrees to indemnify, defend and hold harmless Vicis
(and their respective directors, officers, affiliates, agents, successors and assigns) from and
against any and all losses, liabilities, deficiencies, costs, damages and expenses (including,
without limitation, reasonable attorneys’ fees, charges and disbursements) incurred by Vicis as a
result of any inaccuracy in or breach of the representations, warranties or covenants made by the
Company herein. Vicis agrees to indemnify and hold harmless the Company and its directors,
officers, affiliates, agents, successors and assigns from and against any and all losses,
liabilities, deficiencies, costs, damages and expenses (including, without limitation, reasonable
attorneys’ fees, charges and disbursements) incurred by the Company as result of any inaccuracy in
or breach of the representations, warranties or covenants made by such Vicis herein.

     2. Indemnification Procedure. Any party entitled to indemnification under this
Article VII (an “indemnified party”) will give written notice to the indemnifying party of
any matter giving rise to a claim for indemnification; provided, that the failure of any party
entitled to indemnification hereunder to give notice as provided herein shall not relieve the
indemnifying party of its obligations under this Article VII except to the extent that the
indemnifying party is actually prejudiced by such failure to give notice. In case any such action,
proceeding or claim is

22

 

brought against an indemnified party in respect of which indemnification is sought hereunder,
the indemnifying party shall be entitled to participate in and, unless in the reasonable judgment
of the indemnifying party a conflict of interest between it and the indemnified party exists with
respect to such action, proceeding or claim (in which case the indemnifying party shall be
responsible for the reasonable fees and expenses of one separate counsel for the indemnified
parties), to assume the defense thereof with counsel reasonably satisfactory to the indemnified
party. In the event that the indemnifying party advises an indemnified party that it will contest
such a claim for indemnification hereunder, or fails, within thirty (30) days of receipt of any
indemnification notice to notify, in writing, such person of its election to defend, settle or
compromise, at its sole cost and expense, any action, proceeding or claim (or discontinues its
defense at any time after it commences such defense), then the indemnified party may, at its
option, defend, settle or otherwise compromise or pay such action or claim. In any event, unless
and until the indemnifying party elects in writing to assume and does so assume the defense of any
such claim, proceeding or action, the indemnified party’s costs and expenses arising out of the
defense, settlement or compromise of any such action, claim or proceeding shall be losses subject
to indemnification hereunder. The indemnified party shall cooperate fully with the indemnifying
party in connection with any negotiation or defense of any such action or claim by the indemnifying
party and shall furnish to the indemnifying party all information reasonably available to the
indemnified party which relates to such action or claim. The indemnifying party shall keep the
indemnified party fully apprised at all times as to the status of the defense or any settlement
negotiations with respect thereto. If the indemnifying party elects to defend any such action or
claim, then the indemnified party shall be entitled to participate in such defense with counsel of
its choice at its sole cost and expense. The indemnifying party shall not be liable for any
settlement of any action, claim or proceeding effected without its prior written consent.
Notwithstanding anything in this Article VII to the contrary, the indemnifying party shall
not, without the indemnified party’s prior written consent, settle or compromise any claim or
consent to entry of any judgment in respect thereof which imposes any future obligation on the
indemnified party or which does not include, as an unconditional term thereof, the giving by the
claimant or the plaintiff to the indemnified party of a release from all liability in respect of
such claim. The indemnification obligations to defend the indemnified party required by this
Article VI shall be made by periodic payments of the amount thereof during the course of
investigation or defense, as and when bills are received or expense, loss, damage or liability is
incurred, so long as the indemnified party shall refund such moneys if it is ultimately determined
by a court of competent jurisdiction that such party was not entitled to indemnification. The
indemnity agreements contained herein shall be in addition to (a) any cause of action or similar
rights of the indemnified party against the indemnifying party or others, and (b) any liabilities
the indemnifying party may be subject to pursuant to the law. No indemnifying party will be liable
to the indemnified party under this Agreement to the extent, but only to the extent that a loss,
claim, damage or liability is attributable to the indemnified party’s breach of any of the
representations, warranties or covenants made by such party in this Agreement or in the other
Transaction Documents.

ARTICLE VIII

MISCELLANEOUS

23

 

     1. TO RESIDENTS OF FLORIDA: THE INTEREST OFFERED HEREIN HAVE NOT BEEN REGISTERED WITH
THE FLORIDA DIVISION OF SECURITIES. PURSUANT TO FLORIDA STATUTES, SECTION 517.061(11) (A) (5),
INVESTORS MAY ELECT, WITHIN THREE (3) BUSINESS DAYS AFTER DELIVERY OF THEIR SUBSCRIPTION AGREEMENT
AND THE PURCHASE PRICE FOR THE INTEREST, TO WITHDRAW THEIR SUBSCRIPTION AND RECEIVE A FULL REFUND
(WITHOUT INTEREST) OF SUCH PURCHASE PRICE. THIS WITHDRAWAL WILL BE WITHOUT ANY FURTHER LIABILITY TO
ANY PERSON. TO ACCOMPLISH SUCH WITHDRAWAL, AN INVESTOR SHOULD SEND A LETTER INDICATING THE
INTENTION TO WITHDRAW, POSTMARKED PRIOR TO THE END OF THE THIRD BUSINESS DAY AFTER DELIVERY OF
FUNDS TO THE PARTNERSHIP, RETURN RECEIPT REQUESTED, TO THE COMPANY AT THE ADDRESS SET FORTH HEREIN.
ANY ORAL REQUESTS FOR RESCISSION SHOULD BE ACCOMPANIED BY A REQUEST FOR WRITTEN CONFIRMATION THAT
THE ORAL REQUEST WAS RECEIVED ON A TIMELY BASIS.

     2. Fees and Expenses. Each party shall pay the fees and expenses of its advisors,
counsel, accountants and other experts, if any, and all other expenses, incurred by such party
incident to the negotiation, preparation, execution, delivery and performance of this Agreement.

     3. Governing Law; Consent to Jurisdiction; Venue. This Agreement shall be governed by
and construed in accordance with the internal laws of the State of Florida, without giving effect
to any of the conflicts of law principles which would result in the application of the substantive
law of another jurisdiction. This Agreement shall not be interpreted or construed with any
presumption against the party causing this Agreement to be drafted. The parties agree that venue
for any dispute arising under this Agreement will lie exclusively in the state or federal courts
located in Hillsborough County, Florida, and the parties irrevocably waive any right to raise forum
non conveniens or any other argument that Florida is not the proper venue. The parties irrevocably
consent to personal jurisdiction in the state and federal courts of the state of Florida. Each
party hereto consent to process being served in any such suit, action or proceeding by mailing a
copy thereof to such party at the address in effect for notices to it under this Agreement and
agrees that such service shall constitute good and sufficient service of process and notice
thereof. Nothing in this section shall affect or limit any right to serve process in any other
manner permitted by law. The parties hereto hereby agree that the prevailing party in any suit,
action or proceeding arising out of or relating to the Securities, this Agreement or the other
Transaction Documents, shall be entitled to reimbursement for reasonable legal fees from the
non-prevailing party. The parties hereby waive all rights to a trial by jury.

     4. Entire Agreement; Amendment. This Agreement and the Transaction Documents contain
the entire understanding and agreement of the parties with respect to the matters covered hereby
and they supersede all prior understandings and agreements with respect to said subject matter, all
of which are merged herein. No provision of this Agreement may be waived or amended other than by a
written instrument signed by the Company and Vicis.

     5. Notices. All notices and other communications given or made pursuant to this
Agreement shall be in writing and shall be deemed effectively given: (a) upon personal delivery to
the party to be notified; (b) when sent by confirmed electronic mail or facsimile if

24

 

sent during normal business hours of the recipient, and if not so confirmed, then on the next
business day; (c) five (5) days after having been sent by registered or certified mail, return
receipt requested, postage prepaid; or (d) one (1) business day after deposit with a nationally
recognized overnight courier, specifying next day delivery, with written verification of receipt.
All communications shall be sent to the respective parties at their address as set forth below or
to such address or facsimile number as subsequently modified by written notice given in accordance
with this section.

All notices to the Company shall be sent to:

Brookside Technology Holdings Corp.

15500 Roosevelt Blvd., Ste. 101

Clearwater, FL 33760

Attn: Michael Nole, Chief Executive Officer

Facsimile: (813) 854-1045

If to Vicis:

126 East 56th Street

Tower 56, Suite 700

New York, NY 10022

Any party hereto may from time to time change its address for notices by giving written notice of
such changed address to the other parties hereto.

     6. Waivers. No waiver by any party of any default with respect to any provision,
condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future
or a waiver of any other provision, condition or requirement hereof, nor shall any delay or
omission of any party to exercise any right hereunder in any manner impair the exercise of any such
right accruing to it thereafter.

     7. Headings. The article, section and subsection headings in this Agreement are for
convenience only and shall not constitute a part of this Agreement for any other purpose and shall
not be deemed to limit or affect any of the provisions hereof.

     8. Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the parties and their successors and assigns. After the Closing, the assignment by a
party to this Agreement of any rights hereunder shall not affect the obligations of such party
under this Agreement.

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

     10. Survival. The representations and warranties shall survive the execution and
delivery hereof and the Closing.

25

 

     11. Counterparts. This Agreement may be executed in any number of counterparts, all of
which taken together shall constitute one and the same instrument and shall become effective when
counterparts have been signed by each party and delivered to the other parties hereto, it being
understood that all parties need not sign the same counterpart.

     12. Severability. The provisions of this Agreement are severable and, in the event
that any court of competent jurisdiction shall determine that any one or more of the provisions or
part of the provisions contained in this Agreement shall, for any reason, be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not
affect any other provision or part of a provision of this Agreement and this Agreement shall be
reformed and construed as if such invalid or illegal or unenforceable provision, or part of such
provision, had never been contained herein, so that such provisions would be valid, legal and
enforceable to the maximum extent possible.

     13. Recitals. The parties hereto agree the Recitals set forth above are true and
accurate.

[Remainder of this page intentionally left blank; Signature page follows]

26

 

[Signature page to Securities Purchase and Loan Conversion Agreement]

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

	 	 	 	 	 
	Brookside Technology Holdings Corp.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

Michael Nole, Chief Executive Officer
	 	 
	 
	 	 	 	 
	PURCHASER OF SERIES A PREFERRED STOCK	 	 
	Vicis Capital Master Fund	 	 
	By: Vicis Capital LLC	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Chris Phillips, Managing Director	 	 

27

 

Exhibit A

Capitalization

          As of the date hereof, the Company has 93,845,190 shares of common stock and 4,850,332 shares
of Series A Preferred Stock issued and outstanding.

28

 

Exhibit B

Form of New Subordinated Note

29

 

Exhibit C

Accrued Interest

	 	 	 	 	 	 	 
	Vicis
	 	Sep	 	 	8,000.00	 
	Vicis
	 	Oct	 	 	40,000.00	 
	Vicis
	 	Nov	 	 	40,000.00	 
	Vicis
	 	Dec	 	 	40,000.00	 
	Vicis
	 	Jan	 	 	40,000.00	 
	Vicis
	 	Feb	 	 	40,000.00	 
	Vicis
	 	Mar	 	 	40,000.00	 
	Vicis
	 	Apr	 	 	40,000.00	 
	Vicis
	 	May	 	 	40,000.00	 
	Vicis
	 	June	 	 	40,000.00	 
	Vicis
	 	July (through July 3rd)	 	 	3,945.21	 
	 
	 	 	 	 	 	 
	Dynamic Decisions
	 	Sep	 	 	8,219.18	 
	Dynamic Decisions
	 	Oct	 	 	8,493.15	 
	Dynamic Decisions
	 	Nov	 	 	8,219.18	 
	Dynamic Decisions
	 	Dec	 	 	8,493.15	 
	Dynamic Decisions
	 	Jan	 	 	8,493.15	 
	Dynamic Decisions
	 	Feb	 	 	7,945.21	 
	Dynamic Decisions
	 	Mar	 	 	8,493.15	 
	Dynamic Decisions
	 	Apr	 	 	8,219.18	 
	Dynamic Decisions
	 	May	 	 	8,219.18	 
	Dynamic Decisions
	 	June	 	 	8,219.18	 
	Dynamic Decisions
	 	July	 	 	8,493.15	 
	Dynamic Decisions
	 	Aug	 	 	8,493.15	 
	Dynamic Decisions
	 	Sep (thru the 22nd)	 	 	6,027.40	 
	Vicis (Hilco Note)
	 	June	 	 	19,452.05	 
	Vicis (Hilco Note)
	 	July	 	 	60,301.37	 
	Vicis (Hilco Note)
	 	August	 	 	60,301.37	 
	Vicis (Hilco Note)
	 	Sep (thru the 22nd)	 	 	58,356.16	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 
	Total Accrued
Interest
@ 6/30/08
	 	 	 	$	676,383.56	 
	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Hilco Note
	 	 	 	 	7,100,000	 
	DD Note
	 	 	 	 	1,000,000	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Total Value of
Notes
	 	 	 	$	8,776,384	 
	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Less:
	 	 	 	 	 	 
	Cash Received
	 	 	 	 	(2,250,000	)
	Note — Cash
Collateral
	 	 	 	 	(1,500,000	)
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	Net converted
to Series A
	 	 	 	$	5,026,384	 
	 
	 	 	 	 	 

30

 

Schedule (II)(1)(c)

     As of the date hereof, the Company has 93,845,190 shares of common stock and 4,850,332 shares
of Series A Preferred Stock issued and outstanding, all of which have certain anti-dilution
protections and redemption provisions. The Company has granted certain registration rights to the
holders of the Series A Preferred Stock.

     The Company has granted the following warrants, all of which are outstanding, all of which
have certain anti-dilution protections:

	 	 	 
	Series	 	Number Outstanding
	A
	 	21,698,836
	B
	 	37,498,836
	C
	 	5,329,534
	D
	 	24,000,000
	E
	 	61,273,835
	F
	 	250,000,000

     The Company has granted four options to officers of the Company entitling them to purchase up
to 14,000,000 shares of common stock.

     The Company has incurred other Indebtedness as set forth in the Commission Documents.

31

 

Schedule II(1)(i)

     As Vicis has been made aware, Scott Fischer and Michael Diamond, executive officers of USVD,
tendered their resignations in connection with the difficulties the Company was having with Hilco,
but as of yet neither has acted on such resignations.

32

 

Schedule II(1)(t)

     Per the terms of the Series A Preferred Stock, the Company has been paying dividends to such
holders in stock.

     Fischer and Diamond have threatened to resign. Schedule II(1)(i).

     The Company has entered into the STN purchase agreement, as disclosed in Commission Documents,
and anticipates entering into a Credit Agreement with CHATHAM CREDIT MANAGEMENT III, LLC.

33

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