Document:

Exhibit 10.9

THIS WARRANT AND ANY SHARES OF COMMON STOCK ISSUED UPON EXERCISE HEREOF HAVE NOT
BEEN  REGISTERED  UNDER  THE  SECURITIES  ACT OF 1933, AS AMENDED, AND HAVE BEEN
ACQUIRED  FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE
OR  DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION MAY BE AFFECTED WITHOUT AN
EFFECTIVE  REGISTRATION  STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL THAT
SUCH  REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

                                    XA, INC.

                               WARRANT TO PURCHASE
                                 100,000 SHARES
                                 OF COMMON STOCK
                             (SUBJECT TO ADJUSTMENT)
                         (Void after October 23, 2011)

                                                             October 23,  2006

     This  certifies  that  for  value, VISION OPPORTUNITY MASTER FUND, LTD., or
registered  assigns  (the "HOLDER"), is entitled, subject to the terms set forth
                           ------
below,  at  any  time  from  and after October 23, 2006 (the "ORIGINAL ISSUANCE
                                                               -----------------
DATE") and before 5:00 p.m., Eastern Time, on October 23, 2011 (the "EXPIRATION
----                                                                  ----------
DATE"),  to  purchase  from  XA, INC., a Nevada corporation (the "COMPANY"), ONE
----                                                              -------
HUNDRED  THOUSAND  (100,000) shares (subject to adjustment as described herein),
of  common  stock,  par  value  $0.001  per  share,  of the Company (the "COMMON
                                                                          ------
STOCK"),  upon surrender hereof, at the principal office of the Company referred
-----
to  below, with a duly executed subscription form in the form attached hereto as
EXHIBIT  A  and  simultaneous  payment therefor in lawful, immediately available
----------
money  of  the United States or otherwise as hereinafter provided, at an initial
exercise price per share of $0.30 (the "PURCHASE PRICE").  The Purchase Price is
                                        --------------
subject  to further adjustment as provided in SECTION 4 below.  The term "COMMON
                                              ---------                   ------
STOCK" shall include, unless the context otherwise requires, the stock and other
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securities  and  property  at  the  time  receivable  upon  the exercise of this
Warrant.  The  term  "WARRANT,"  as used herein, shall mean this Warrant and any
                      -------
other  Warrants  delivered  in  substitution  or  exchange  therefor as provided
herein.

     This  Warrant  is  being  issued by the Company together with an 11% Senior
Secured  Convertible  Promissory  Note  (the  "NOTE")  pursuant to the terms and
                                               ----
conditions  set forth in the Securities Purchase Agreement dated the date hereof
by and between the Holder, each other Warrantholder and the Company (the "SPA"),
                                                                          ---
in connection with the sale by the Company to the Holder of the principal amount
of  $1,250,000  in  Notes  (the  "BRIDGE  FINANCING").
                                  -----------------

<PAGE>

     1. Exercise. This Warrant may be exercised at any time or from time to time
        --------
from and after the Original Issuance Date and before 5:00 p.m., Eastern Time, on
October  ___,  2011,  unless  such  Warrant is terminated pursuant to Section 6,
below, on any business day, for the full number of shares of Common Stock called
for  hereby,  by  surrendering it at the principal office of the Company, at 875
North Michigan Avenue, Suite 2626, Chicago, IL 60611, with the subscription form
duly  executed,  together  with  payment in an amount equal to (a) the number of
shares of Common Stock called for on the face of this Warrant, multiplied (b) by
the  Purchase  Price.  Payment  of  the  Purchase  Price may be made at Holder's
choosing  either:  (1) by payment in immediately available funds; or (2) in lieu
of  any cash payment, if this Warrant is exercised on a date when a Registration
Statement (as defined in the Registration Rights Agreement), covering the resale
of  the  shares  of  Common Stock issuable upon exercise of this Warrant has not
been  declared  effective  by  the  Securities  and  Exchange  Commission  (the
"COMMISSION"),  or  is no longer in effect, in exchange for the number of shares
 ----------
of  Common  Stock  equal to the product of (x) the number of shares to which the
Warrants  are  being  exercised  multiplied  by (y) a fraction, the numerator of
which  is  the  Purchase  Price  and the denominator of which is the Fair Market
Value  (as  defined below). This Warrant may be exercised for less than the full
number  of shares of Common Stock at the time called for hereby, except that the
number  of  shares  receivable upon the exercise of this Warrant as a whole, and
the  sum  payable  upon  the  exercise  of  this  Warrant  as  a whole, shall be
proportionately  reduced.  Upon a partial exercise of this Warrant in accordance
with  the  terms hereof, this Warrant shall be surrendered, and a new Warrant of
the  same  tenor and for the purchase of the number of such shares not purchased
upon  such  exercise shall be issued by the Company to Holder without any charge
therefor.  A Warrant shall be deemed to have been exercised immediately prior to
the  close  of  business  on  the date of its surrender for exercise as provided
above,  and  the  person entitled to receive the shares of Common Stock issuable
upon  such  exercise  shall  be  treated  for all purposes as the holder of such
shares  of  record  as  of  the  close  of business on such date. Within two (2)
business days after such date, the Company shall issue and deliver to the person
or  persons  entitled  to receive the same a certificate or certificates for the
number of full shares of Common Stock issuable upon such exercise, together with
cash,  in  lieu  of  any fraction of a share, equal to such fraction of the then
Fair  Market  Value  on  the date of exercise of one full share of Common Stock.

     "FAIR MARKET VALUE" shall mean, as of any date: (i) if shares of the Common
      -----------------
Stock  are  listed on a national securities exchange, the average of the closing
prices  as  reported  for composite transactions during the ten (10) consecutive
trading  days preceding the trading day immediately prior to such date or, if no
sale  occurred on a trading day, then the mean between the closing bid and asked
prices  on such exchange on such trading day; (ii) if shares of the Common Stock
are  not  so  listed  but  are traded on the NASDAQ National Market ("NNM"), the
                                                                      ----
average  of  the  closing  prices  as  reported  on  the NNM during the ten (10)
consecutive  trading  days  preceding  the trading day immediately prior to such
date or, if no sale occurred on a trading day, then the mean between the highest
bid  and lowest asked prices as of the close of business on such trading day, as
reported  on the NNM; or if applicable, the Nasdaq Capital Market ("NCM"), (iii)
                                                                    ---
if  not  then  included  for quotation on the NNM or the NCM, the average of the
highest  reported  bid  and  lowest reported asked prices as reported by the OTC

<PAGE>

Bulletin  Board of the National Quotation Bureau, as the case may be; or (iv) if
the  shares  of  the  Common Stock are not then publicly traded, the fair market
price of the Common Stock as determined in good faith by the independent members
of  the  Board  of  Directors  of  the  Company and the Holders of all Warrants.

     2.  Shares  Fully Paid; Payment of Taxes. All shares of Common Stock issued
upon  the  exercise  of  this  Warrant  shall  be validly issued, fully paid and
non-assessable,  and  the  Company  shall  pay  all taxes and other governmental
charges  (other  than income taxes to the holder) that may be imposed in respect
of  the  issue  or  delivery  thereof.

     3.  Transfer and Exchange. (a) Neither this Warrant nor the Common Stock to
be issued upon exercise hereof (the "WARRANT SHARES") have been registered under
the  Act  or  any state securities laws ("BLUE SKY LAWS"). This Warrant has been
acquired  for  investment purposes and not with a view to distribution or resale
and  may  not  be,  sold,  or  otherwise  transferred  without: (i) an effective
registration  statement  for such Warrant under the Act and such applicable Blue
Sky  Laws;  or (ii) an opinion of counsel reasonably satisfactory to the Company
that registration is not required under the Act or under any applicable Blue Sky
Laws.

          (b)  Upon compliance with applicable federal and state securities laws
     as  set forth in SECTION 3(A), above, this Warrant and all rights hereunder
     are  transferable,  in  whole  or  in  part,  on  the  books of the Company
     maintained for such purpose at its Principal Office by the Holder in person
     or  by  duly  authorized  attorney, upon surrender of this Warrant together
     with  a  completed and executed assignment form in the form attached hereto
     as  EXHIBIT  B,  and  payment  of  any  necessary  transfer  tax  or  other
     governmental  charge imposed upon such transfer. Upon any partial transfer,
     the  Company  will  issue  and  deliver  to the assignee a new Warrant with
     respect to the shares of Common Stock for which it is exercisable that have
     been  transferred, and will deliver to the Holder a new Warrant or Warrants
     with  respect  to  the shares of Common Stock not so transferred. A Warrant
     may  be  transferred  only  by  the procedure set forth herein. No transfer
     shall  be  effective  until  such  transfer is recorded on the books of the
     Company,  provided  that such transfer is recorded promptly by the Company,
     and  until  such  transfer  on  such  books,  the  Company  shall treat the
     registered  Holder  hereof  as  the  owner of the Warrant for all purposes.

          (c)  This  Warrant  is exchangeable at the Principal Office for two or
     more  new  Warrants, each in the form of this Warrant, to purchase the same
     aggregate  number  of shares of Common Stock, each new Warrant to represent
     the  right  to purchase such number of shares as the Holder shall designate
     at  the  time of such exchange, but which shall not exceed the total number
     of  shares  for  which  this  Warrant may be from time to time exercisable.

          (d)  Transfer  of  the Warrant Shares issued upon the exercise of this
     Warrant  shall  be  restricted in the same manner and to the same extent as
     the  Warrant,  and  the certificates representing such Warrant Shares shall
     bear  substantially  the  following  legend, until such Warrant Shares have
     been  registered  under  the  Act  or may be removed as otherwise permitted
     under  the  Act:

          "THE  SHARES  OF  COMMON  STOCK  REPRESENTED  BY THIS CERTIFICATE HAVE
          NOT  BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
          "ACT"),  OR  ANY  APPLICABLE  STATE  SECURITIES  LAW  AND  MAY  NOT BE
          TRANSFERRED  UNTIL  (i) A REGISTRATION STATEMENT UNDER THE ACT OR SUCH

<PAGE>

          APPLICABLE  STATE  SECURITIES  LAWS  SHALL  HAVE BECOME EFFECTIVE WITH
          REGARD  THERETO, OR (ii) IN THE OPINION OF COUNSEL SATISFACTORY TO THE
          COMPANY,  REGISTRATION  UNDER  THE  ACT  OR  SUCH  APPLICABLE  STATE
          SECURITIES  LAWS  IS  NOT  REQUIRED  IN  CONNECTION WITH SUCH PROPOSED
          TRANSFER."

          (e)  The  Holder and the Company agree to execute such other documents
     and  instruments  as  counsel  to the Company deems necessary to effect the
     compliance  of  the  issuance of this Warrant and any Warrant Shares issued
     upon  exercise  hereof  with  applicable federal and state securities laws,
     including  compliance  with  applicable  exemptions  from  the registration
     requirements  of  such  laws.

     4.  Anti-Dilution  Provisions. The Purchase Price in effect at any time and
         -------------------------
the number and kind of securities issuable upon conversion of this Warrant shall
be  subject to adjustment from time to time upon the happening of certain events
as  follows:

          A. Adjustment for Stock Splits and Combinations. If the Company at any
     time  or  from  time  to time on or after the date of Warrant issuance (the
     "ORIGINAL  ISSUANCE  DATE") effects a subdivision of the outstanding Common
     Stock,  the  Purchase  Price  then  in  effect  immediately  before  that
     subdivision  shall  be  proportionately  decreased,  and conversely, if the
     Company  at any time or from time to time on or after the Original Issuance
     Date  combines the outstanding shares of Common Stock into a smaller number
     of  shares,  the  Purchase  Price  then  in  effect  immediately before the
     combination  shall  be proportionately increased. Any adjustment under this
     SECTION  4(A)  shall  become effective at the close of business on the date
     the  subdivision  or  combination  becomes  effective.

          B.  Adjustment for Certain Dividends and Distributions. If the Company
     at  any  time  or  from time to time on or after the Original Issuance Date
     makes  or  fixes  a  record date for the determination of holders of Common
     Stock  entitled  to  receive,  a  dividend or other distribution payable in
     additional shares of Common Stock, then and in each such event the Purchase
     Price then in effect shall be decreased as of the time of such issuance or,
     in the event such record date is fixed, as of the close of business on such
     record date, by multiplying the Purchase Price then in effect by a fraction
     (1)  the  numerator  of which is the total number of shares of Common Stock
     issued  and  outstanding  immediately prior to the time of such issuance or
     the  close of business on such record date and (2) the denominator of which
     shall  be the total number of shares of Common Stock issued and outstanding
     immediately  prior to the time of such issuance or the close of business on
     such  record  date  plus  the  number of shares of Common Stock issuable in
     payment  of  such dividend or distribution; provided, however, that if such
     record  date  is  fixed  and  such  dividend  is  not fully paid or if such
     distribution  is  not  fully  made on the date fixed therefor, the Purchase
     Price  shall  be recomputed accordingly as of the close of business on such
     record date and thereafter the Purchase Price shall be adjusted pursuant to
     this  SECTION  4(B)  as  of the time of actual payment of such dividends or
     distributions.

          C. Adjustments for Other Dividends and Distributions. In the event the
     Company  at any time or from time to time on or after the Original Issuance
     Date  makes,  or  fixes  a  record date for the determination of holders of
     Common  Stock entitled to receive, a dividend or other distribution payable

<PAGE>

     in securities of the Company other than shares of Common Stock, then and in
     each  such  event  provision  shall be made so that the Holders of Warrants
     shall receive upon exercise thereof, in addition to the number of shares of
     Common  Stock receivable thereupon, the amount of securities of the Company
     which  they  would  have  received  had  their Warrants been exercised into
     Common  Stock on the date of such event and had they thereafter, during the
     period  from  the  date of such event to and including the conversion date,
     retained  such  securities  receivable  by  them  as  aforesaid during such
     period,  subject  to  all  other  adjustments called for during such period
     under  this  SECTION  4  with  respect  to the rights of the Holders of the
                  ----------
     Warrants.

          D.  Adjustment for Reclassification, Exchange and Substitution. In the
              ----------------------------------------------------------
     event  that  at  any  time  or  from  time to time on or after the Original
     Issuance  Date, the Common Stock issuable upon the exercise of the Warrants
     is  changed  into  the same or a different number of shares of any class or
     classes  of  stock,  whether  by  recapitalization,  reclassification  or
     otherwise  (other  than  a  subdivision  or  combination of shares or stock
     dividend  or  a  reorganization,  merger,  consolidation or sale of assets,
     provided  for elsewhere in this SECTION 4), then and in any such event each
                                     ---------
     Holder of Warrants shall have the right thereafter to exercise such Warrant
     to  receive  the kind and amount of stock and other securities and property
     receivable upon such recapitalization, reclassification or other change, by
     holders  of  the  maximum  number  of shares of Common Stock for which such
     Warrants  could  have  been  exercised  immediately  prior  to  such
     recapitalization,  reclassification  or  change,  all  subject  to  further
     adjustment  as  provided  herein.

          E.  Recapitalization, Reorganization, Reclassification, Consolidation,
              ------------------------------------------------------------------
     Merger  or  Sale.
     ----------------

               (i) In case the Company after the Original Issuance Date shall do
          any  of the following (each, a "Triggering Event"): (a) consolidate or
                                          ----------------
          merge  with  or  into any other individual or entity ("Person")and the
          Company  shall  not be the continuing or surviving corporation of such
          consolidation or merger, or (b) permit any other Person to consolidate
          with or merge into the Company and the Company shall be the continuing
          or  surviving  Person  but,  in  connection with such consolidation or
          merger, any common or preferred stock ("Capital Stock") of the Company
          shall  be changed into or exchanged for Securities of any other Person
          or  cash  or  any other property, or (c) transfer all or substantially
          all  of  its properties or assets to any other Person, or (d) effect a
          capital reorganization or reclassification of its Capital Stock, then,
          and  in the case of each such Triggering Event, proper provision shall
          be  made  to  the  Exercise  Price and the number of shares of Warrant
          Shares  that  may  be purchased upon exercise of this Warrant so that,
          upon  the  basis  and  the  terms  and  in the manner provided in this
          Warrant,  the  Holder  of  this  Warrant  shall  be  entitled upon the
          exercise  hereof at any time after the consummation of such Triggering
          Event,  to  the  extent  this  Warrant  is not exercised prior to such
          Triggering Event, to receive at the Exercise Price as adjusted to take
          into account the consummation of such Triggering Event, in lieu of the
          Common Stock issuable upon such exercise of this Warrant prior to such
          Triggering  Event,  the  Securities,  cash  and property to which such
          Holder  would  have  been  entitled  upon  the  consummation  of  such
          Triggering  Event  if such Holder had exercised the rights represented
          by  this  Warrant  immediately prior thereto (including the right of a
          shareholder  to elect the type of consideration it will receive upon a
          Triggering  Event),  subject  to  adjustments  (subsequent  to  such

<PAGE>

          corporate  action) as nearly equivalent as possible to the adjustments
          provided for elsewhere in this Section 4, and the Exercise Price shall
          be  adjusted  to  equal  the  product  of (A) the closing price of the
          common stock of the continuing or surviving corporation as a result of
          such Triggering Event as of the date immediately preceding the date of
          the  consummation  of  such  Triggering  Event  multiplied  by (B) the
          quotient  of (i) the Exercise Price divided by (ii) the per share Fair
          Market  Value of the Common Stock as of the date immediately preceding
          the  Original  Issuance  Date;  provided,  however,  the Holder at its
                                          --------   -------
          option  may  elect to receive an amount in cash equal to the lesser of
          (a)  the  value  of  this  Warrant  calculated  in accordance with the
          Black-Scholes  formula;  and  (b)  $1.00 (subject to adjustment in the
          event  the  Company  affects  a  stock  split)  per  Warrant  Share.
          Immediately  upon  the  occurrence  of a Triggering Event, the Company
          shall  notify  the  Holder  in  writing  of  such Triggering Event and
          provide  the  calculations  in  determining  the  number  of shares of
          Warrant  Shares  issuable  upon  exercise  of  the new warrant and the
          adjusted  Exercise Price. Upon the Holder's request, the continuing or
          surviving corporation as a result of such Triggering Event shall issue
          to  the  Holder  a  new  warrant of like tenor evidencing the right to
          purchase  the  adjusted  number  of  shares  of Warrant Shares and the
          adjusted  Exercise  Price pursuant to the terms and provisions of this
          Section  4(a)(i).  Notwithstanding the foregoing to the contrary, this
          Section  4(a)(i)  shall only apply if the surviving entity pursuant to
          any  such  Triggering  Event  is  a company that has a class of equity
          securities registered pursuant to the Securities Exchange Act of 1934,
          as  amended,  and  its  common stock is listed or quoted on a national
          securities  exchange,  national  automated quotation system or the OTC
          Bulletin Board. In the event that the surviving entity pursuant to any
          such  Triggering  Event  is  not  a  public company that is registered
          pursuant  to  the  Securities Exchange Act of 1934, as amended, or its
          common  stock  is  not  listed  or  quoted  on  a  national securities
          exchange,  national  automated  quotation  system  or the OTC Bulletin
          Board, then the Holder shall have the right to demand that the Company
          pay to the Holder an amount in cash equal to the value of this Warrant
          calculated  in  accordance  with  the  Black-Scholes  formula.

               (ii)  In  the  event  that the Holder has elected not to exercise
          this  Warrant  prior to the consummation of a Triggering Event and has
          also  elected  not  to receive an amount in cash equal to the value of
          this  Warrant  calculated in accordance with the Black-Scholes formula
          pursuant  to  the  provisions of Section 4(a)(i) above (and subject to
          the  limit  described  in  Section  4(a)(i),  above),  so  long as the
          surviving  entity  pursuant  to any Triggering Event is a company that
          has a class of equity securities registered pursuant to the Securities
          Exchange  Act  of  1934, as amended, and its common stock is listed or
          quoted on a national securities exchange, national automated quotation
          system  or  the  OTC  Bulletin Board, the surviving entity and/or each
          Person  (other  than the Company) which may be required to deliver any
          Securities,  cash  or  property  upon  the exercise of this Warrant as
          provided  herein shall assume, by written instrument delivered to, and
          reasonably  satisfactory  to,  the  Holder  of  this  Warrant, (A) the
          obligations  of  the  Company  under  this Warrant (and if the Company
          shall  survive  the  consummation  of  such  Triggering  Event,  such

<PAGE>

          assumption  shall be in addition to, and shall not release the Company
          from,  any  continuing  obligations of the Company under this Warrant)
          and (B) the obligation to deliver to such Holder such Securities, cash
          or  property  as,  in accordance with the foregoing provisions of this
          subsection  (a),  such  Holder  shall  be entitled to receive, and the
          surviving  entity  and/or  each  such  Person  shall  have  similarly
          delivered  to  such  Holder  an  opinion  of counsel for the surviving
          entity  and/or  each  such  Person,  which counsel shall be reasonably
          satisfactory  to  such  Holder,  or  in  the  alternative,  a  written
          acknowledgement  executed  by the President or Chief Financial Officer
          of the Company, stating that this Warrant shall thereafter continue in
          full  force  and  effect  and  the  terms  hereof  (including, without
          limitation,  all  of  the  provisions of this subsection (a)) shall be
          applicable  to  the  Securities,  cash or property which the surviving
          entity  and/or  each  such  Person may be required to deliver upon any
          exercise  of  this  Warrant  or  the  exercise  of any rights pursuant
          hereto.

          F.  Sale  of  Shares  Below  Purchase  Price:
              ----------------------------------------

               (1)  If  at  any time or from time to time following the Original
          Issuance  Date,  the  Company  issues  or  sells,  or is deemed by the
          express  provisions  of  this  SECTION  4(F)  to  have issued or sold,
                                         ------------
          Additional Shares of Common Stock (as hereinafter defined), other than
          as  a  dividend  or other distribution on any class of stock and other
          than  upon  a subdivision or combination of shares of Common Stock, in
          either  case as provided in SECTION 4(A) above, for an Effective Price
          (as  hereinafter  defined) less than the then existing Purchase Price,
          then  and  in each such case the then existing Purchase Price shall be
          reduced,  as  of  the opening of business on the date of such issue or
          sale,  to  a  price  equal  to the Effective Price for such Additional
          Shares  of  Common  Stock.

               (2)  For  the  purpose  of  making  any adjustment required under
          SECTION  4(F), the consideration received by the Company for any issue
          ------------
          or  sale  of securities shall (I) to the extent it consists of cash be
          computed  at  the  amount of cash received by the Company, (II) to the
          extent  it  consists  of  property other than cash, be computed at the
          fair  value  of that property as determined in good faith by the board
          of  directors of the Company (the "BOARD"), (III) if Additional Shares
                                             -----
          of  Common  Stock,  Convertible Securities (as hereinafter defined) or
          rights or options to purchase either Additional Shares of Common Stock
          or Convertible Securities are issued or sold together with other stock
          or securities or other assets of the Company for a consideration which
          covers  both,  be  computed  as  the  portion  of the consideration so
          received  that may be reasonably determined in good faith by the Board
          to be allocable to such Additional Shares of Common Stock, Convertible
          Securities  or rights or options, and (IV) be computed after reduction
          for  all expenses payable by the Company in connection with such issue
          or  sale.

               (3)  For  the  purpose  of  the adjustment required under SECTION
                                                                         -------
          4(F),  if  the Company issues or sells any rights, warrants or options
          ----
          for  the purchase of, or stock or other securities convertible into or
          exchangeable  for, Additional Shares of Common Stock (such convertible
          or  exchangeable  stock or securities being hereinafter referred to as
          "CONVERTIBLE  SECURITIES")  and  if  the  Effective  Price  of  such
           -----------------------
          Additional Shares of Common Stock is less than the Purchase Price then
          in  effect,  then  in  each  case  the Company shall be deemed to have
          issued  at  the time of the issuance of such rights, warrants, options
          or  Convertible  Securities the maximum number of Additional Shares of
          Common  Stock  issuable  upon exercise, conversion or exchange thereof
          and  to have received as consideration for the issuance of such shares
          an  amount  equal  to  the  total amount of the consideration, if any,
          received  by  the  Company  for the issuance of such rights, warrants,
          options  or  Convertible Securities, plus, in the case of such rights,
          warrants  or  options,  the  minimum amounts of consideration, if any,
          payable  to  the Company upon the exercise of such rights, warrants or
          options,  plus,  in  the  case  of Convertible Securities, the minimum
          amounts  of  consideration, if any, payable to the Company (other than
          by  cancellation  of  liabilities  or  obligations  evidenced  by such
          Convertible  Securities)  upon  the conversion or exchange thereof. No
          further  adjustment  of the Purchase Price, adjusted upon the issuance
          of  such rights, warrants, options or Convertible Securities, shall be
          made as a result of the actual issuance of Additional Shares of Common

<PAGE>

          Stock  on  the exercise of any such rights, warrants or options or the
          conversion or exchange of any such Convertible Securities. If any such
          rights  or options or the conversion or exchange privilege represented
          by  any  such  Convertible Securities shall expire without having been
          exercised,  the  Purchase  Price  adjusted  upon  the issuance of such
          rights,  warrants,  options  or  Convertible  Securities  shall  be
          readjusted  to  the Purchase Price which would have been in effect had
          an  adjustment  been made on the basis that the only Additional Shares
          of  Common Stock so issued were the Additional Shares of Common Stock,
          if  any,  actually  issued  or  sold  on  the exercise of such rights,
          warrants,  or  options  or  rights  of  conversion or exchange of such
          Convertible Securities, and such Additional Shares of Common Stock, if
          any,  were  issued  or sold for the consideration actually received by
          the  Company  upon  such  exercise,  plus  the  consideration, if any,
          actually  received by the Company for the granting of all such rights,
          warrants, or options, whether or not exercised, plus the consideration
          received  for  issuing  or selling the Convertible Securities actually
          converted  or  exchanged,  plus  the  consideration,  if any, actually
          received  by the Company (other than by cancellation of liabilities or
          obligations  evidenced  by  such  Convertible  Securities)  on  the
          conversion  or  exchange  of  such  Convertible  Securities.

               (4)  For  the  purpose  of  the adjustment required under SECTION
                                                                         -------
          4(F),  if  the  Company  issues  or sells, or is deemed by the express
          ----
          provisions  of  this  SECTION  4 to have issued or sold, any rights or
                                ----------
          options  for  the  purchase  of  Convertible  Securities  and  if  the
          Effective  Price  of  the Additional Shares of Common Stock underlying
          such  Convertible  Securities  is less than the Purchase Price then in
          effect,  then  in  each  such case the Company shall be deemed to have
          issued  at  the  time  of  the  issuance of such rights or options the
          maximum  number  of  Additional  Shares  of Common Stock issuable upon
          conversion  or  exchange of the total amount of Convertible Securities
          covered  by  such  rights  or  options  and  to  have  received  as
          consideration  for  the  issuance  of such Additional Shares of Common
          Stock an amount equal to the amount of consideration, if any, received
          by  the  Company for the issuance of such rights, warrants or options,
          plus  the  minimum  amounts  of  consideration, if any, payable to the
          Company  upon  the  exercise of such rights, warrants or options, plus
          the  minimum  amount  of consideration, if any, payable to the Company
          (other than by cancellation of liabilities or obligations evidenced by
          such  Convertible  Securities) upon the conversion or exchange of such
          Convertible  Securities.  No further adjustment of the Purchase Price,
          adjusted  upon the issuance of such rights, warrants or options, shall
          be  made  as  a  result  of  the  actual  issuance  of the Convertible
          Securities  upon  the  exercise of such rights, warrants or options or
          upon the actual issuance of Additional Shares of Common Stock upon the
          conversion  or exchange of such Convertible Securities. The provisions
          of paragraph (3) above for the readjustment of the Purchase Price upon
          the  expiration  of  rights,  warrants  or  options  or  the rights of
          conversion  or  exchange of Convertible Securities shall apply mutatis
                                                                         -------
          mutandis  to  the  rights, warrants options and Convertible Securities
          --------
          referred  to  in  this  paragraph  (4).

               (5)  "ADDITIONAL SHARES OF COMMON STOCK" shall mean all shares of
                     ---------------------------------
          Common  Stock  (or  any  debt  or  equity  securities  conversion  or
          exercisable  into  Common Stock) issued by the Company on or after the
          Original  Issuance  Date,  whether  or  not subsequently reacquired or
          retired  by  the  Company, other than (I) the Warrant Shares, (II) the
          shares  of  Common  Stock  issuable upon conversion of the Note, (III)
          shares of Common Stock issuable upon exercise of warrants, options and
          convertible  securities  outstanding  as of the Original Issuance Date

<PAGE>

          (provided  that  the  terms  of  such  warrants,  options  and
          convertible  securities  are  not modified after the Original Issuance
          Date to adjust the exercise price), (IV) shares of Common Stock issued
          pursuant  to  any  event  for which adjustment is made to the Purchase
          Price  under  SECTION  4  hereof  or  to  the exercise price under the
                        ----------
          anti-dilution  provisions  of  any  securities  outstanding  as of the
          Original Issuance Date (including the Notes), (V) up to 250,000 shares
          issued  for  professional  services,  provided  that  such issuance is
          approved  by  the  Board,  (VI)  up  to  25,000 shares issued to Chris
          Spencer  as  per the terms of his consulting agreement, or (VII) up to
          666,667  shares  of  Common  Stock issuable to Mastodon Ventures, Inc.
          pursuant  to  a warrant. The "EFFECTIVE PRICE" of Additional Shares of
                                        ---------------
          Common  Stock shall mean the quotient determined by dividing the total
          number  of Additional Shares of Common Stock issued or sold, or deemed
          to have been issued or sold by the Company under this SECTION 4F, into
                                                                ----------
          the aggregate consideration received, or deemed to have been received,
          by  the  Company  for  such  issue  under  this  SECTION  4F, for such
                                                           -----------
          Additional  Shares  of  Common  Stock.

               (6)  Other  than  a  reduction  pursuant  to  its  applicable
          anti-dilution provisions, any reduction in the conversion price of any
          Convertible  Security,  whether  outstanding  on the Original Issuance
          Date  or  thereafter,  or the price of any option, warrant or right to
          purchase  Common  Stock  or  any  Convertible  Security  (whether such
          option,  warrant or right is outstanding on the Original Issuance Date
          or  thereafter),  to an Effective Price less than the current Purchase
          Price,  shall be deemed to be an issuance of such Convertible Security
          and  all such options, warrants or rights at such Effective Price, and
          the  provisions  of  SECTIONS 4(F)(3), (4) and (5) shall apply thereto
                               ---------------   ---     ---
          mutatis  mutandis.

               (7) Any time an adjustment is made to the Purchase Price pursuant
          to SECTION 4(F), a corresponding proportionate change shall be made to
             -----------
          the  number of shares of Common Stock issuable upon conversion of this
          Warrant.

          G.  No  Adjustments  in  Certain  Circumstances.  No adjustment in the
              -------------------------------------------
     Purchase  Price  shall  be required unless such adjustment would require an
     increase  or decrease of at least one ($0.01) cent in such price; provided,
     however,  that any adjustments which by reason of this SECTION 4(G) are not
                                                            -----------
     required  to be made shall be carried forward and taken into account in any
     subsequent adjustment required to be made hereunder. All calculations under
     this  SECTION  4(G)  shall  be  made  to the nearest cent or to the nearest
           ------------
     one-hundredth  of  a  share,  as  the  case  may  be.

     5.  Notices  of  Record  Date.  In  case:
         -------------------------

          A.  the Company shall take a record of the holders of its Common Stock
     (or  other  stock or securities at the time receivable upon the exercise of
     the  Warrants) for the purpose of entitling them to receive any dividend or
     other distribution, or any right to subscribe for or purchase any shares of
     stock  of any class or any other securities, or to receive any other right,
     or

          B.  of any capital reorganization of the Company, any reclassification
     of  the  capital  stock  of the Company, any consolidation or merger of the
     Company  with  or  into  another  corporation,  or any conveyance of all or
     substantially  all  of the assets of the Company to another corporation, or

<PAGE>

          C.  of  any  voluntary  dissolution,  liquidation or winding-up of the
     Company;  then, and in each such case, the Company will mail or cause to be
     mailed  to  each  holder  of  a  Warrant  at  the time outstanding a notice
     specifying,  as  the  case  may be, (a) the date on which a record is to be
     taken  for the purpose of such dividend, distribution or right, and stating
     the  amount  and  character of such dividend, distribution or right, or (b)
     the  date  on  which  such reorganization, reclassification, consolidation,
     merger,  conveyance,  dissolution, liquidation or winding-up is expected to
     take place, and the time, if any is to be fixed, as of which the holders of
     record  of Common Stock (or such stock or securities at the time receivable
     upon  the  exercise  of  the  Warrants) shall be entitled to exchange their
     shares  of  Common Stock (or such other stock or securities) for securities
     or  other  property deliverable upon such reorganization, reclassification,
     consolidation,  merger, conveyance, dissolution, liquidation or winding-up,
     such  notice  shall  be  mailed  at  least  ten (10) days prior to the date
     therein  specified.

     6.  Expiration  of the Warrant. This Warrant and all rights hereunder shall
         --------------------------
expire  automatically  if  the Holder (as defined in the Note) fails to exercise
its  Optional  Conversion  Right within thirty (30) days of the later of (a) the
date  a  registration statement registering the Underlying Shares (as defined in
the Note) is declared effective with the Securities and Exchange Commission; and
(b)  the  date  the  Company  has  consummated  a Qualified Private Offering (as
defined  in  the  Note).

     7. Loss or Mutilation. Upon receipt by the Company of evidence satisfactory
        ------------------
to  it  (in  the  exercise of reasonable discretion) of the ownership of and the
loss,  theft, destruction or mutilation of any Warrant and (in the case of loss,
theft  or  destruction)  of  indemnity  satisfactory  to  it (in the exercise of
reasonable  discretion),  and  (in  the  case  of mutilation) upon surrender and
cancellation thereof, the Company will execute and deliver in lieu thereof a new
Warrant  of  like  tenor.

     8.  Reservation of Common Stock. The Company shall at all times reserve and
         ---------------------------
keep  available  for  issue  upon  the  exercise  of Warrants such number of its
authorized  but  unissued shares of Common Stock as will be sufficient to permit
the  exercise  in full of all outstanding Warrants. All of the shares of Commons
Stock issuable upon the exercise of the rights represented by this Warrant will,
upon  issuance  and  receipt  of  the Purchase Price therefor, be fully paid and
nonassessable,  and  free from all preemptive rights, rights of first refusal or
first  offer,  taxes,  liens and charges of whatever nature, with respect to the
issuance  thereof.

     9. Registration Rights Agreement. The Holder of this Warrant is entitled to
        -----------------------------
have  the Warrant Shares registered for resale under the Act, pursuant to and in
accordance with the Registration Rights Agreement dated as of the date hereof by
and  between  the  Holder,  all  other  holders  of  Warrants  and  the Company.

     10.  No  Rights as Stockholder Conferred by Warrants. The Warrant shall not
          -----------------------------------------------
entitle the Holder hereof to any of the rights, either at law or in equity, of a
stockholder  of the Company. The Holder shall, upon the exercise thereof, not be
entitled to any dividend that may have accrued or which may previously have been
paid  with respect to shares of stock issuable upon the exercise of the Warrant,
except  as  may  otherwise  be  provided  in  SECTION  4  hereof.
                                              ----------

<PAGE>

     11.  Notices.  All notices and other communications from the Company to the
          -------
Holder  of  this Warrant shall be mailed by first class, registered or certified
mail,  postage prepaid, and/or a nationally recognized overnight courier service
to  the  address  furnished  to  the  Company  in  writing  by  the  Holder.

     12. Change; Modifications; Waiver. No terms of this Warrant may be amended,
         -----------------------------
waived  or modified except by the express written consent of the Company and the
holders of not less than 50.1% of the shares of Common Stock then issuable under
outstanding Warrants issued in connection with the Financing; provided, however,
that no such amendment or waiver shall reduce the Warrant Share Number, increase
the  Purchase  Price,  shorten  the  period  during  which  this  Warrant may be
exercised  or modify any provision of this Section 12 without the consent of the
Holder  of  this  Warrant.  Notwithstanding the foregoing sentence, the Purchase
Price  will  be subject to adjustment in the event of a forward or reverse stock
split.  No  consideration  shall  be  offered  or paid to any person to amend or
consent  to a waiver or modification of any provision of this Warrant unless the
same  consideration  is  also  offered  to  all  holders  of  the  Warrants.

     13.  Endorsement of Warrants. The Warrant when presented or surrendered for
          -----------------------
exchange,  transfer  or registration shall be accompanied (if so required by the
Company) by an assignment in the form attached hereto as EXHIBIT B or such other
written  instrument  of  transfer,  in  form  satisfactory  to the Company, duly
executed  by  the  registered  Holder  or  by  his  duly  authorized  attorney.

     14.  Agreement  of  Warrant  Holders.  The  Holder,  and to the extent that
          -------------------------------
portions  of  this  Warrant  are  assigned  and there is more than one Holder of
warrants  exercisable  for  the  Warrant  Shares,  every holder of a Warrant, by
accepting  the  same,  consents  and  agrees with the Company and with all other
Warrant  holders  that:  (a)  the Warrants are transferable only as permitted by
SECTION 3 above; (b) the Warrants are transferable only on the registry books of
the  Company  as  herein  provided;  and  (c) the Company may deem and treat the
person in whose name the Warrant certificate is registered as the absolute owner
thereof  and  of the Warrants evidenced thereby for all purposes whatsoever, and
the  Company  shall  not  be  affected  by  any  notice  to  the  contrary,

     15.  Payment  of  Taxes. The Company will pay all stamp, transfer and other
          ------------------
similar  taxes  payable in connection with the original issuance of this Warrant
and  the  shares  of  Common  Stock  issuable  upon  exercise thereof, provided,
however,  that  the  Company shall not be required to (i) pay any such tax which
may be payable in respect of any transfer involving the transfer and delivery of
this  Warrant  or  the issuance or delivery of certificates for shares of Common
Stock issuable upon exercise thereof in a name other than that of the registered
Holder  of  this  Warrant or (ii) issue or deliver any certificate for shares of
Common Stock upon the exercise of this Warrant until any such tax required to be
paid  under  clause  (i) shall have been paid, all such tax being payable by the
holder  of  this  Warrant  at  the  time  of  surrender.

     16. Ownership Cap and Exercise Restriction. Notwithstanding anything to the
         --------------------------------------
contrary  set  forth  in  this  Warrant, at no time may a Holder of this Warrant
exercise  this  Warrant  if  the  number  of shares of Common Stock to be issued
pursuant to such exercise would exceed, when aggregated with all other shares of
Common  Stock  owned by such Holder at such time, the number of shares of Common
Stock  which  would  result in such Holder beneficially owning (as determined in

<PAGE>

accordance  with  Section 13(d) of the Exchange Act and the rules thereunder) in
excess  of  9.9%  of  the  then  issued  and outstanding shares of Common Stock;
provided, however, that upon a holder of this Warrant providing the Company with
-----------------
sixty-one (61) days notice (pursuant to Section 13 hereof) (the "Waiver Notice")
                                                                 -------------
that  such  Holder  would like to waive this Section 7 with regard to any or all
shares  of  Common  Stock issuable upon exercise of this Warrant, this Section 7
will  be  of  no  force or effect with regard to all or a portion of the Warrant
referenced in the Waiver Notice; provided, further, that this provision shall be
                                 --------  -------
of  no  further  force  or  effect  during  the  sixty-one (61) days immediately
preceding  the  expiration  of  the  term  of  this  Warrant.

     17.  Fractional  Interest.  The  Company  shall  not  be  required to issue
          --------------------
fractional  shares of Common Stock on the exercise of this Warrant. If more than
one  Warrant shall be presented for exercise at the same time by the Holder, the
number of full shares of Common Stock which shall be issuable upon such exercise
shall be computed on the basis of the aggregate number of shares of Common Stock
acquirable  on exercise of the Warrants so presented. If any fraction of a share
of Common Stock would, except for the provisions of this SECTION 17, be issuable
                                                         ----------
on the exercise of any Warrant (or specified portion thereof), the Company shall
pay  an  amount  in  cash calculated by it to be equal to the Purchase Price per
share multiplied by such fraction computed to the nearest whole cent. The Holder
by his acceptance of this Warrant expressly waives any and all rights to receive
any  fraction  of  a share of Common Stock or a stock certificate representing a
fraction  of  a  share  of  Common  Stock.

     18.  Entire  Agreement.  This  Warrant  constitutes  the  full  and  entire
          -----------------
understanding  and agreement among the parties with regard to the subject matter
hereof and no party shall be liable or bound to any other party in any manner by
any  representations, warranties, covenants or agreements except as specifically
set  forth  herein.

     19. Successors and Assigns. All covenants and provisions of this Warrant by
         ----------------------
or  for  the benefit of the Company or the Holder of this Warrant shall bind and
inure  to  the  benefit of their respective successors, permitted assigns, heirs
and  personal  representatives.

     20.  Termination.  This Warrant shall terminate at 5:00 p.m., Eastern Time,
          -----------
on  the  Expiration  Date or upon such earlier date on which all of this Warrant
has  been  exercised  (the  "TERMINATION  DATE").
                             -----------------

     21.  Headings. The headings in this Warrant are for purposes of convenience
          --------
in  reference  only,  and  shall  not  be  deemed  to  constitute a part hereof.

     22.  Governing  Law, Etc. This Agreement shall be governed by and construed
          -------------------
exclusively  in  accordance  with  the  internal  laws  of the State of New York
without  regard  to the conflicts of laws principles thereof. The parties hereto
hereby  irrevocably  agree  that  any suit or proceeding arising directly and/or
indirectly  pursuant  to  or  under this Agreement, shall be brought solely in a
federal or state court located in the City, County and State of New York. By its
execution  hereof,  the parties hereby covenant and irrevocably submit to the in
personam  jurisdiction  of  the  federal  and  state courts located in the City,

<PAGE>

County  and  State of New York and agree that any process in any such action may
be  served  upon any of them personally, or by certified mail or registered mail
upon them or their agent, return receipt requested, with the same full force and
effect  as  if  personally served upon them in New York City. The parties hereto
waive  any  claim  that  any such jurisdiction is not a convenient forum for any
such suit or proceeding and any defense or lack of in personam jurisdiction with
respect  thereto.  In  the  event  of  any  such action or proceeding, the party
prevailing  therein  shall be entitled to payment from the other party hereto of
all  of  its  reasonable  legal  fees  and  expenses.

                   Remainder of Page Intentionally Left Blank

<PAGE>

                             WARRANT SIGNATURE PAGE
                             ----------------------

Dated:  October 23,  2006

                                          XA,  INC.

                                          By: /s/ Joseph Wagner
                                             -------------------------------
                                                Name:  Joseph  Wagner
                                                Title:  President  &  CEO

Vision Opportunity Master Fund, LTD.
100,000  Shares

<PAGE>

                                    EXHIBIT A

                                SUBSCRIPTION FORM
                                -----------------

                 (To be executed only upon exercise of Warrant)

     The undersigned registered owner of this Warrant irrevocably exercises this
Warrant  and  purchases  _______  shares  of  the  Common  Stock  of  XA,  Inc.,
purchasable  with  this  Warrant, and herewith makes payment therefor (either in
cash  or  pursuant to the cashless exercise provisions set forth in SECTION 1 of
the Warrant), all at the price and on the terms and conditions specified in this
Warrant.

Dated:
      ----------------------

                                  -----------------------------------------
                                  (Signature  of  Registered  Owner

                                  -----------------------------------------
                                  (Street  Address)

                                  -----------------------------------------
                                  (City  /  State  /  Zip  Code)

<PAGE>

                                    EXHIBIT B

                               FORM OF ASSIGNMENT
                               ------------------

     FOR  VALUE RECEIVED the undersigned registered owner of this Warrant hereby
sells,  assigns and transfers unto the Assignee named below all of the rights of
the  undersigned  under the within Warrant, with respect to the number of shares
of  Common  Stock  set  forth  below:

     Name  of  Assignee           Address           Number  of  Shares
     ------------------          ---------          ------------------

and  does  hereby  irrevocably constitute and appoint __________________________
Attorney  to  make  such  transfer  on the books of XA, Inc., maintained for the
purpose,  with  full  power  of  substitution  in  the  premises.

Dated:
       ---------------------

                                  -------------------------------------
                                  (Signature)

                                  ------------------------------------
                                  (Witness)

     The undersigned Assignee of the Warrant hereby makes to XA, Inc., as of the
date  hereof,  with  respect  to  the  Assignee,  all of the representations and
warranties  made  by the Holder, and the undersigned Assignee agrees to be bound
by  all  the  terms  and conditions of the Warrant and the XA, Inc. Registration
Rights  Agreement,  dated as of ______ __, 2006, by and between XA, Inc. and the
Holder.

Dated:
      -----------------

                                           --------------------------------
                                            (Signature)

<PAGE>Exhibit 10.10

                          REGISTRATION RIGHTS AGREEMENT

     This  Registration  Rights Agreement (this "AGREEMENT") is made and entered
                                                 ---------
into  as  of October 23, 2006, by and among XA, Inc., a Nevada corporation (the
"COMPANY")  and  each  Holder  of  the  Notes and Warrants issued by the Company
 -------
pursuant to a Securities Purchase Agreement, dated as of the date hereof, by and
between  each  Investor  and  the  Company  (the  "SPA").
                                                   ---

     The  Underlying  Shares  shall  have  the  registration rights as set forth
herein.

     The  Company  and  the  Investor  hereby  agree  as  follows:

     1.  DEFINITIONS.  Capitalized  terms  used and not otherwise defined herein
that are defined in the SPA shall have the meanings given such terms in the SPA.
As  used  in  this  Agreement,  the  following  terms  shall  have the following
meanings:

     "CLOSING  DATE"  means  the  date  of  the  closing  of  the  Financing.
      -------------

     "COMMISSION"  means  the  United States Securities and Exchange Commission.
      ----------

     "COMMON STOCK" means the Company's common stock par value $0.001 per share.
      ------------

     "CONVERSION  SHARES"  means  all  shares  of  Common  Stock  issuable  upon
      ------------------
conversion  of  the  Notes.

     "DEMAND  EFFECTIVENESS  DATE"  shall  have the meaning set forth in Section
      ---------------------------
2(b).

     "DEMAND  FILING  DATE"  shall  have  the meaning set forth in Section 2(b).
      --------------------

     "DEMAND  NOTICE"  shall  have  the  meaning  set  forth  in  Section  2(b).
      --------------

     "DEMAND REGISTRATION STATEMENT" shall have the meaning set forth in Section
      -----------------------------
2(b).

     "EFFECTIVENESS PERIOD" shall mean from the date hereof until the earlier to
      -------------------
occur  of  the  date  when  all Registrable Securities covered by a Registration
Statement  either  (a) have been sold pursuant to a Registration Statement or an
exemption  from  the  registration  requirements  of the Securities Act, and (b)
pursuant  to  a  written  opinion of Company counsel acceptable to the Company's
transfer  agent  and  the legal counsel for the Holders, may be sold pursuant to
Rule  144(k).

     "EXCHANGE  ACT"  means  the  Securities  Exchange  Act of 1934, as amended.
      -------------

     "HOLDER" or "HOLDERS" means the holder or holders, as the case may be, from
      --------   --------
time  to  time  of  Registrable  Securities  (including any permitted assignee).

     "INDEMNIFIED  PARTY"  shall  have  the  meaning  set forth in Section 5(c).
      ------------------

     "INDEMNIFYING  PARTY"  shall  have  the  meaning set forth in Section 5(c).
      -------------------

<PAGE>

     "INVESTOR"  shall mean each purchaser of Notes and Warrants pursuant to the
      --------
SPA.

     "INVESTORS"  shall  mean,  collectively,  each  Investor.
      ---------

     "LOSSES"  shall  have  the  meaning  set  forth  in  Section  5(a).
      ------

     "MANDATORY  EFFECTIVENESS  DATE"  means,  with  respect  to  the  Mandatory
      ------------------------------
Registration  Statement  required  to  be filed pursuant to Section 2(a) of this
Agreement.

     "MANDATORY  FILING  DATE" shall have the meaning set forth in Section 2(a).
      -----------------------

     "MANDATORY  REGISTRATION  DATE" shall have the meaning set forth in Section
      -----------------------------
2(a).

     "MANDATORY  REGISTRATION  STATEMENT"  shall  have  the meaning set forth in
      ----------------------------------
Section  2(a).

     "NOTES"  means  the  11% Senior Secured Convertible Promissory Notes in the
      -----
aggregate  amount  of  $1,500,000  issued  to  certain  Investors  including the
Investor.

     "PERSON"  shall  mean  an  individual  or  corporation, partnership, trust,
      ------
incorporated  or  unincorporated  association,  joint venture, limited liability
company,  joint  stock company, government (or an agency or subdivision thereof)
or  other  entity  of  any  kind.

     "PRIOR  CLOSING"  shall  mean  the  August  8,  2006 closing of the sale of
      --------------
$1,250,000  in  11%  Senior Subordinated Secured Convertible Promissory Notes by
the  Company.

     "PRIOR  CLOSING  DATE"  shall  mean  August  8,  2006.
      --------------------

     "PRIVATE  OFFERING"  shall  mean  a  private  placement  of  the  Company's
      -----------------
securities  in  which  the  Company  receives  gross  proceeds  of  no less than
$3,000,000, and (ii) the effective purchase price of the Common Stock securities
sold  in  the Private Offering is $1.50 or more per share (subject to adjustment
for  stock  splits,  etc.)

     "PROCEEDING"  means  an  action,  claim,  suit, investigation or proceeding
      ----------
(including,  without limitation, an investigation or partial proceeding, such as
a  deposition),  whether  commenced  or  threatened.

     "PROSPECTUS"  means  the  prospectus included in the Registration Statement
      ----------
(including,  without  limitation,  a  prospectus  that  includes any information
previously  omitted from a prospectus filed as part of an effective registration
statement  in  reliance upon Rule 430A promulgated under the Securities Act), as
amended  or supplemented by any prospectus supplement, with respect to the terms
of  the  offering  of  any  portion  of the Conversion Registrable Securities or
Exchange  Registrable  Securities covered by the Registration Statement, and all
other  amendments  and  supplements  to the Prospectus, including post-effective
amendments,  and  all  material  incorporated  by  reference  or  deemed  to  be
incorporated  by  reference  in  such  Prospectus.

     "REGISTRABLE  SECURITIES"  means  (i)  the  Underlying Shares, and (ii) any
      -----------------------
shares  of  Common  Stock  issued  or issuable upon any stock split, dividend or

<PAGE>

other  distribution, recapitalization, anti-dilution adjustment or similar event
with  respect to the foregoing or in connection with any provisions in the Notes
and/or  Warrants.

     "REGISTRATION  STATEMENT"  means  any registration statement required to be
      ----------------------
filed hereunder (which, at the Company's option, may be an existing registration
statement  of the Company previously filed with the Commission, but not declared
effective),  including (in each case) the Prospectus, amendments and supplements
to  the  registration statement or Prospectus, including pre- and post-effective
amendments,  all exhibits thereto, and all material incorporated by reference or
deemed  to  be  incorporated  by  reference  in  the  registration  statement.

     "RULE  144"  means  Rule  144 promulgated by the Commission pursuant to the
      ---------
Securities  Act,  as  such Rule may be amended from time to time, or any similar
rule  or regulation hereafter adopted by the Commission having substantially the
same  effect  as  such  Rule.

     "RULE  415"  means  Rule  415 promulgated by the Commission pursuant to the
      ---------
Securities  Act,  as  such Rule may be amended from time to time, or any similar
Rule  or regulation hereafter adopted by the Commission having substantially the
same  effect  as  such  Rule.

     "RULE  424"  means  Rule  424 promulgated by the Commission pursuant to the
      ---------
Securities  Act,  as  such Rule may be amended from time to time, or any similar
Rule  or regulation hereafter adopted by the Commission having substantially the
same  effect  as  such  Rule.

     "SECURITIES  ACT"  means  the  Securities  Act  of  1933,  as  amended.
      ---------------

     "TRADING  DAY"  means  (a)  a  day on which the Common Stock is traded on a
      ------------
Trading  Market, or (b) if the Common Stock is not quoted on a Trading Market, a
day  on  which  the  Common  Stock  is  quoted in the over-the-counter market as
reported  by  the  National  Quotation  Bureau  Incorporated  (or  any  similar
organization  or  agency  succeeding  to  its  functions  of  reporting  price);
provided, that in the event that the Common Stock is not listed or quoted as set
forth  in  (a),  and  (b)  hereof,  then  Trading Day shall mean a Business Day;

     "TRADING  MARKET"  means  the  following  markets or exchanges on which the
      ---------------
Common  Stock  is  listed or quoted for trading on the date in question: the OTC
Bulletin  Board,  the  American Stock Exchange, the New York Stock Exchange, the
Nasdaq  National  Market  or  the  Nasdaq  SmallCap  Market.

     "UNDERLYING  SHARES"  means  collectively,  all  Conversion  Shares and the
      ------------------
Warrant  Shares.

     "WARRANT SHARES" means all shares of Common Stock issuable upon exercise of
      --------------
the  Warrants.

     "WARRANTS"  means  the  Common  Stock  purchase  warrants  in the amount of
      --------
187,500  shares  issued  to the Investor by the Company which are exercisable at
$1.10  per share, Common Stock purchase warrants in the amount of 100,000 shares
issued  to the Investor by the Company which are exercisable at $0.30 per share,
Common  Stock  purchase warrants in the amount of 133,333 shares assigned to the
Investor  by  Sands  Brothers  Venture  Capital,  LLC, and Common Stock purchase
warrants in the amount of 100,000 assigned to the Investor by Mastodon Ventures,
Inc.,  which warrants were granted to Mastodon Ventures, Inc. in connection with
the  Prior  Closing,  which  warrants  are  exercisable  at  $0.30  per  share.

<PAGE>

     2.  Registration.
         ------------

          (a)  Mandatory  Registration.  Provided  that  a  closing of a Private
               -----------------------
     Offering  has  not  previously occurred, the Company shall, on the date six
     (6) months from the Prior Closing Date (the "MANDATORY REGISTRATION DATE"),
                                                  ---------------------------
     file  with  the  Commission  a  Registration  Statement  (the  "MANDATORY
                                                                     ---------
     REGISTRATION  STATEMENT"),  no  later  than  forty-five (45) days from such
     -----------------------
     Mandatory  Registration  Date  (the  "MANDATORY FILING DATE"), covering the
                                           ---------------------
     resale of all of the Registrable Securities for an offering to be made on a
     continuous basis pursuant to Rule 415. The Mandatory Registration Statement
     required  hereunder  shall be on Form S-1, Form SB-2 or Form S-3 (except if
     the  Company  is  not  then eligible to register for resale the Registrable
     Securities  on Form S-1, Form SB-2 or Form S-3, in which case the Mandatory
     Registration  Statement  shall be on another appropriate form in accordance
     herewith).  The  Mandatory  Registration Statement required hereunder shall
     contain  the Plan of Distribution, attached hereto as ANNEX A (which may be
                                                           -------
     modified  to  respond to comments, if any, received by the Commission). The
     Company  shall  cause  the  Mandatory  Registration  Statement  to  become
     effective,  no later than ninety (90) days after the Mandatory Filing Date,
     (the  "MANDATORY  EFFECTIVENESS  DATE")  and  remain  effective as provided
            ------------------------------
     herein.  The  Company  shall  use  its  best efforts to cause the Mandatory
     Registration  Statement  to  be declared effective under the Securities Act
     and shall use its best efforts to keep the Mandatory Registration Statement
     continuously  effective under the Securities Act until the earlier date (i)
     when  all  Registrable  Securities have been sold pursuant to the Mandatory
     Registration  Statement,  and (ii) two (2) years from the effective date of
     the  Mandatory Registration Statement provided all the Holders can sell all
     of  their  shares,  without  limitation,  pursuant  to  Rule  144(k) of the
     Securities  Act.

          (b)  Demand  Registration  Rights.  At any time commencing on the date
               ----------------------------
     nine  (9)  months  following  the Prior Closing Date, the Holders owning no
     less  than  50.1%  of  the  aggregate  principal  amount  of the Notes then
     outstanding shall have the one-time right, by written notice signed by such
     50.1%  of Holders, provided to the Company (the "DEMAND NOTICE"), to demand
                                                      -------------
     the  Company to register for resale all Registrable Securities under and in
     accordance  with  the  provisions  of the Securities Act by filing with the
     Commission  a  Registration  Statement  covering  the  resale of all of the
     Registrable  Securities  (the "DEMAND REGISTRATION STATEMENT"). Such Demand
                                    -----------------------------
     Registration  Statement  shall  be  (i)  filed  by  the  Company  with  the
     Commission  no later than forty-five (45) days after receipt by the Company
     of  the  Demand  Notice  (the  "DEMAND  FILING  DATE"),  and  (ii) declared
                                     --------------------
     effective by the Commission no later than ninety (90) days after the Demand
     Filing  Date  (the  "DEMAND  EFFECTIVENESS  DATE"). The Demand Registration
                          ---------------------------
     Statement  required  hereunder shall be on Form S-1 or Form SB-2 (except if
     the  Company  is  not  then eligible to register for resale the Registrable
     Securities  on Form S-1 or Form SB-2, in which case the Demand Registration
     Statement  shall  be  on another appropriate form). The Demand Registration
     Statement  required  hereunder  shall  contain  the  Plan  of Distribution,
     attached  hereto  as ANNEX A (which may be modified to respond to comments,
                          -------
     if  any,  received  by  the  Commission). The Company shall keep the Demand
     Registration  Statement  continuously  effective  under  the Securities Act

<PAGE>

     until the earlier of (i) the date when all Registrable Securities have been
     sold  pursuant to the Demand Registration Statement, and (ii) two (2) years
     from the effective date of the Demand Registration Statement if the Holders
     can  sell  all of their shares, without limitation, pursuant to Rule 144(k)
     of  the  Securities  Act.

          (c)  Filing  Default  Damages.  If  a Demand Registration Statement or
               ------------------------
     Mandatory  Registration  Statement  (as the case may be) is not filed on or
     prior  to  the Demand Filing Date or Mandatory Filing Date (as the case may
     be),  then  the  Company shall pay to the Holders of the Underlying Shares,
     for  each  thirty  (30)  day  period  of  such failure and until the date a
     Mandatory  Registration  Statement or Demand Registration Statement (as the
     case  may  be)  is  filed  and/or  the  Registrable  Securities may be sold
     pursuant  to Rule 144(k), as the case may be, an amount in cash, as partial
     liquidated  damages  and not as a penalty, equal to two (2%) percent of the
     aggregate  gross proceeds paid by the Holders for the Notes. If the Company
     fails  to  pay any partial liquidated damages pursuant to this Section 2(c)
                                                                    ------------
     in  full  within  five  (5) days of the date payable, the Company shall pay
     interest  thereon at a rate of 18% per annum (or such lesser maximum amount
     that  is  permitted  to be paid by applicable law) to the Holders, accruing
     daily  from  the  date  such  partial liquidated damages are due until such
     amounts,  plus  all  such  interest  thereon,  are  paid  in  full.

          (d)  Effectiveness,  Etc. Default Damages. If a Mandatory Registration
               ------------------------------------
     Statement  or  Demand  Registration  Statement  (as the case may be) is not
     declared  effective  by  the  Commission  on  or  prior  to  the  Mandatory
     Effectiveness  Date  or the Demand Effectiveness Date (as the case may be),
     or  the  Commission declared any such Registration Statement effective, but
     the  Holders  of  Registrable  Securities  cannot  sell  such  Registrable
     Securities  thereunder, for any reason or no reason, then the Company shall
     pay  to  the Holder, for each thirty (30) day period until the Registration
     Statement  is  declared effective (or the Holders of Registrable Securities
     can  sell  thereunder,  as the case may be), an amount in cash equal to two
     (2%)  percent  of  the aggregate gross proceeds paid by the Holders for the
     Notes  in  the  Financing.

          (e) Piggyback Registrations Rights. If, at any time following the date
              ------------------------------
     hereof,  and  there is not an effective Registration Statement covering the
     Registrable  Securities and the Company shall determine to prepare and file
     with  the  Commission  a registration statement relating to an offering for
     its own account or the account of others under the Securities Act of any of
     its  equity  securities,  other  than  on  Form  S-4  or  Form S-8 (each as
     promulgated under the Securities Act) or their then equivalents relating to
     equity securities to be issued solely in connection with any acquisition of
     any  entity  or  business  or equity securities issuable in connection with
     stock  option  or other employee benefit plans, then the Company shall send
     to  each Holder a written notice of such determination at least twenty (20)
     days  prior  to  the  filing  of  any such registration statement and shall
     automatically  include  in  such  registration  statement  all  Registrable
     Securities;  provided,  however,  that  (i)  if,  at  any time after giving
                  --------   -------
     written  notice of is intention to register any securities and prior to the
     effective  date of the registration statement filed in connection with such
     registration,  the  Company  determines  for any reason not to proceed with
     such  registration,  the  Company  will  be  relieved  of its obligation to
     register  any  Registrable Securities in connection with such registration,
     and (ii) in case of a determination by the Company to delay registration of
     its  securities, the Company will be permitted to delay the registration of
     Registrable Securities for the same period as the delay in registering such
     other  securities.

     3.  Registration  Procedures. In connection with the Company's registration
         ------------------------
obligations  hereunder,  and  during  the  period  during  which  the Company is
required  or  elects  to  keep  a  registration  statement  effective  (the
"EFFECTIVENESS  PERIOD"),  the  Company  shall:
 ---------------------

<PAGE>

          (a)  Not  less  than five (5) business days prior to the filing of the
     Registration  Statement  or  any  related  Prospectus  or  any amendment or
     supplement  thereto,  the  Company shall furnish to Holders, a draft of the
     Registration  Statement,  or  any  related  Prospectus  or any amendment or
     supplement  thereto.

          (b)  (i)  Prepare  and  file  with  the  Commission  such  amendments,
     including  post-effective amendments, to the Registration Statement and the
     Prospectus  used  in  connection  therewith as may be necessary to keep the
     Registration  Statement  continuously  effective  as  to  the  applicable
     Registrable Securities for the Effectiveness Period; (ii) cause the related
     Prospectus  to  be  amended  or  supplemented  by  any  required Prospectus
     supplement,  and as so supplemented or amended to be filed pursuant to Rule
     424;  and  (iii)  respond to any comments received from the Commission with
     respect  to  the  Registration  Statement  or  any  amendment  thereto.

          (c) Notify as promptly as reasonably possible, but no later than three
     (3)  business  days,  each Holder of Registrable Securities included in the
     Registration  Statement:  (i)  (A)  when  a  Prospectus  or  any Prospectus
     supplement  or  post-effective  amendment to the Registration Statement has
     been  filed,  provided  such  Holder has previously requested in writing to
                   --------
     receive notice of such filing; (B) when the Commission notifies the Company
     whether there will be a "review" of the Registration Statement and whenever
     the  Commission comments in writing on the Registration Statement, provided
                                                                        --------
     such  Holder  has previously requested in writing to receive notice of such
     notification; and (C) when the Registration Statement or any post-effective
     amendment  has  become  effective; (ii) of any request by the Commission or
     any  other  Federal  or  state  governmental authority during the period of
     effectiveness  of  the Registration Statement for amendments or supplements
     to  the Registration Statement or Prospectus or for additional information;
     (iii)  of  the  issuance  by  the  Commission or any other federal or state
     governmental  authority  of  any stop order suspending the effectiveness of
     the  Registration  Statement  covering  any  or  all  of  the  Registrable
     Securities  or  the initiation of any Proceedings for that purpose; (iv) of
     the  receipt  by  the  Company  of  any  notification  with  respect to the
     suspension  of  the qualification or exemption from qualification of any of
     the  Registrable Securities for sale in any jurisdiction, or the initiation
     of  any Proceeding for such purpose; and (v) of the occurrence of any event
     or  passage  of  time  that  makes the financial statements included in the
     Registration  Statement  ineligible  for inclusion therein or any statement
     made  in  the  Registration  Statement  or  Prospectus  or  any  document
     incorporated  or  deemed  to be incorporated therein by reference untrue in
     any  material  respect  or  that requires any revisions to the Registration
     Statement,  Prospectus  or  other  documents  so  that,  in the case of the
     Registration  Statement  or the Prospectus, as the case may be, it will not
     contain  any  untrue  statement  of  a  material  fact or omit to state any
     material  fact  required  to  be  stated  therein  or necessary to make the
     statements  therein,  in  light  of the circumstances under which they were
     made,  not  misleading.

          (d)  Use  its  best  efforts  to avoid the issuance of, or, if issued,
     obtain  the withdrawal of (i) any order suspending the effectiveness of the
     Registration  Statement,  or  (ii)  any suspension of the qualification (or
     exemption from qualification) of any of the Registrable Securities for sale
     in  any  jurisdiction,  at  the  earliest  practicable  moment.

          (e)  Promptly  deliver to each Holder no later than three (3) business
     days  after  the  Effectiveness Date, without charge, two (2) copies of the
     Prospectus  or  Prospectuses  (including  each form of prospectus) and each
     amendment  or  supplement thereto (and, upon the request of the Holder such
     additional copies as such Persons may reasonably request in connection with

<PAGE>

     resales  by  the  Holder  of  Registrable  Securities).  The Company hereby
     consents  to  the  use  of such Prospectus and each amendment or supplement
     thereto  by  the  Holder  in  connection  with the offering and sale of the
     Registrable  Securities  covered  by  such  Prospectus and any amendment or
     supplement  thereto,  except  after  the  giving  of any notice pursuant to
     Section  3(c).
     ------------

          (f) Prior to any resale of Registrable Securities by a Holder, use its
     best  efforts  to register or qualify or cooperate with the selling Holders
     in connection with the registration or qualification (or exemption from the
     registration  or  qualification)  of  such  Registrable  Securities for the
     resale  by  the  Holder  under  the  securities  or  Blue  Sky laws of such
     jurisdictions within the United States as any Holder reasonably requests in
     writing,  to  keep  such  registration  or  qualification  (or  exemption
     therefrom)  effective during the Effectiveness Period and to do any and all
     other acts or things reasonably necessary to enable the disposition in such
     jurisdictions  of  the  Registrable  Securities covered by the Registration
     Statement;  provided,  however,  that  the Company shall not be required to
                 --------   -------
     qualify  generally  to do business in any jurisdiction where it is not then
     so  qualified,  subject  the  Company  to  any  material  tax  in  any such
     jurisdiction  where  it is not then so subject or file a general consent to
     service  of  process  in  any  such  jurisdiction.

          (g)  Upon the occurrence of any event contemplated by Section 3(c)(v),
                                                                --------------
     as  promptly  as  reasonably  possible,  prepare a supplement or amendment,
     including  a  post-effective  amendment, to the Registration Statement or a
     supplement to the related Prospectus or any document incorporated or deemed
     to  be  incorporated  therein  by  reference,  and  file any other required
     document  so  that,  as  thereafter  delivered,  neither  the  Registration
     Statement  nor  such  Prospectus  will  contain  an  untrue  statement of a
     material  fact  or  omit  to  state  a  material fact required to be stated
     therein  or  necessary  to  make  the  statements  therein, in light of the
     circumstances  under  which  they  were  made,  not  misleading.

          (h)  Use  its  best  efforts  to  comply with all applicable rules and
     regulations  of  the  Commission  relating  to  the  registration  of  the
     Registrable Securities pursuant to the Registration Statement or otherwise.

          (i)  The  Company  agrees  that  the Selling Shareholder Questionnaire
     attached  hereto as EXHIBIT A, satisfies all of the information required to
                         ---------
     be  provided  by each Holder in connection with the Registration Statement.
     The  Company  shall  not  be  required  to include any Holder that does not
     complete,  date  and  execute  a  Selling  Shareholder  Questionnaire.

          (j)  The Company shall either (a) cause all the Registrable Securities
     covered  by  a  Registration  Statement  to  be  listed  on each securities
     exchange  on  which  securities  of  the same class or series issued by the
     Company  are  then  listed,  if  any,  if  the  listing of such Registrable
     Securities  is  then  permitted  under  the  rules of such exchange, or (b)
     secure  designation and quotation of all the Registrable Securities covered
     by  the  Registration Statement on the Nasdaq National Market or the Nasdaq
     SmallCap  Market,  or, (c) if the Company is unsuccessful in satisfying the
     preceding  clauses  (a)  or (b), the Company shall secure the inclusion for
     quotation  on  The American Stock Exchange, Inc. or if it is unable to, the
     NASD  Bulletin  Board for such Registrable Securities and, without limiting
     the  generality  of  the  foregoing, to arrange for at least two (2) market
     makers  to  register  with  the National Association of Securities Dealers,
     Inc.  ("NASD")  as  such  with  respect to such Registrable Securities. The
            ------
     Company  shall  pay all fees and expenses in connection with satisfying its
     obligation  under  this  Section  3(j).
                              ------------

<PAGE>

          (k)  The  Company covenants that it shall 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 SEC thereunder so long as the Holder owns
     any  Registrable  Securities,  but  in  no event longer than two (2) years;
     provided,  however, the Company may delay any such filing but only pursuant
     --------   -------
     to  Rule  12b-25  under  the  Exchange Act, and the Company shall take such
     further  reasonable action as the Holder may reasonably request (including,
     without  limitation,  promptly  obtaining  any required legal opinions from
     Company  counsel  necessary  to  effect  the sale of Registrable Securities
     under  Rule  144 and paying the related fees and expenses of such counsel),
     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.

     4. Registration Expenses. All fees and expenses incident to the performance
        ---------------------
of  or  compliance  with  this  Agreement  by  the Company shall be borne by the
Company  whether  or  not  any  Registrable  Securities are sold pursuant to the
Registration  Statement,  other  than  fees and expenses of counsel or any other
advisor  retained  by  the Holders and discounts and commissions with respect to
the  sale  of  any  Registrable Securities by the Holders. The fees and expenses
referred to in the foregoing sentence shall include, without limitation, (i) all
registration  and  filing fees (including, without limitation, fees and expenses
(A) with respect to filings required to be made with the Trading Market on which
the  Common  Stock  is  then  listed  for  trading,  and  (B) in compliance with
applicable  state  securities  or  Blue  Sky  laws),  (ii)  printing  expenses
(including,  without  limitation,  expenses  of  printing  certificates  for
Registrable  Securities  and  of  printing  prospectuses  if  the  printing  of
prospectuses  is  reasonably  requested  by  the  holders  of  a majority of the
Registrable Securities included in the Registration Statement), (iii) messenger,
telephone  and delivery expenses, (iv) fees and disbursements of counsel for the
Company,  (v) Securities Act liability insurance, if the Company so desires such
insurance,  (vi)  fees  and  disbursements  in the amount of $20,000 for one (1)
counsel to the Purchasers who shall be Gusrae, Kaplan, Bruno & Nusbaum PLLC; and
(vii)  fees  and  expenses  of  all  other  Persons  retained  by the Company in
connection  with  the  consummation  of  the  transactions  contemplated by this
Agreement.

     5.  Indemnification
         ---------------

          (a) Indemnification by the Company. The Company shall, notwithstanding
              ------------------------------
     any  termination of this Agreement, indemnify and hold harmless the Holder,
     the  officers,  directors,  agents  and  employees  of  it, each Person who
     controls the Holder (within the meaning of Section 15 of the Securities Act
     or  Section 20 of the Exchange Act) and the officers, directors, agents and
     employees  of each such controlling Person, to the fullest extent permitted
     by  applicable  law,  from and against any and all losses, claims, damages,
     liabilities,  costs  (including,  without limitation, reasonable attorneys'
     fees)  and  expenses  (including  the  cost  (including without limitation,
     reasonable attorneys' fees) and expenses relating to an Indemnified Party's
     actions  to  enforce  the  provisions  of  this  Section  5) (collectively,
                                                      ----------
     "LOSSES"),  as  incurred,  to  the extent arising out of or relating to any
      ------
     untrue  or  alleged  untrue  statement  of a material fact contained in the
     Registration  Statement, any Prospectus or any form of prospectus or in any
     amendment  or  supplement  thereto  or  in  any  preliminary prospectus, or
     arising  out  of  or  relating  to  any  omission  or alleged omission of a
     material  fact  required  to  be  stated  therein  or necessary to make the
     statements  therein (in the case of any Prospectus or form of prospectus or
     supplement  thereto,  in  light  of the circumstances under which they were

<PAGE>

     made)  not  misleading,  except to the extent, but only to the extent, that
     (1)  such  untrue statements or omissions are based solely upon information
     regarding  such  Holder  furnished  (or  in  the  case  of an omission, not
     furnished)  in  writing  to  the  Company  by  or  on behalf of such Holder
     expressly  for  use therein, or to the extent that such information relates
     to  such  Holder  or  such  Holder's  proposed  method  of  distribution of
     Registrable  Securities  and was reviewed and expressly approved in writing
     by  such  Holder  expressly  for  use  in  the Registration Statement, such
     Prospectus  or  such  form  of Prospectus or in any amendment or supplement
     thereto  (it  being  understood that the Holder has approved Annex A hereto
     for this purpose), (2) in the case of an occurrence of an event of the type
     specified in Section 3(c)(ii)-(v), the use by such Holder of an outdated or
                  -------------------
     defective  Prospectus after the Company has notified such Holder in writing
     that  the  Prospectus  is outdated or defective and prior to the receipt by
     such  Holder of the Advice contemplated in Section 6(b), or (3) the failure
                                                -----------
     of  the Holder to deliver a prospectus prior to the confirmation of a sale.
     The Company shall notify the Holders promptly of the institution, threat or
     assertion  of  any  Proceeding  of which the Company is aware in connection
     with  the  transactions  contemplated  by  this  Agreement.

          (b)  Indemnification  by  Holder.  The Holder shall indemnify and hold
               ---------------------------
     harmless  the  Company, its directors, officers, agents and employees, each
     Person  who  controls  the Company (within the meaning of Section 15 of the
     Securities  Act  and  Section  20  of the Exchange Act), and the directors,
     officers,  agents  or employees of such controlling Persons, to the fullest
     extent  permitted  by  applicable  law,  from  and  against  all Losses, as
     incurred,  to  the  extent  arising  out of or based upon: (x) the Holder's
     failure  to  comply  with  the  prospectus  delivery  requirements  of  the
     Securities  Act or (y) any untrue or alleged untrue statement of a material
     fact  contained  in any Registration Statement, any Prospectus, or any form
     of  prospectus,  or  in  any  amendment  or  supplement  thereto  or in any
     preliminary  prospectus,  or  arising out of or relating to any omission or
     alleged  omission  of  a  material  fact  required  to be stated therein or
     necessary  to make the statements therein not misleading (i) to the extent,
     but only to the extent, that such untrue statement or omission is contained
     in  any  information  so  furnished  (or  in  the  case of an omission, not
     furnished)  in  writing  by  or  on  behalf  of  such Holder to the Company
     specifically for inclusion in the Registration Statement or such Prospectus
     or  (ii)  to  the  extent  that (1) such untrue statements or omissions are
     based  solely  upon  information regarding such Holder furnished (or in the
     case  of  an  omission,  not  furnished) in writing to the Company by or on
     behalf of such Holder expressly for use therein, or to the extent that such
     information  relates  to  such  Holder  or such Holder's proposed method of
     distribution  of  Registrable  Securities,  such Prospectus or such form of
     Prospectus or in any amendment or supplement thereto, or (2) in the case of
     an  occurrence  of  an event of the type specified in Section 3(c)(ii)-(v),
                                                           -------------------
     the  use  by  such  Holder of an outdated or defective Prospectus after the
     Company has notified such Holder in writing that the Prospectus is outdated
     or  defective  and  prior  to  the  receipt  by  such  Holder of the Advice
     contemplated in Section 6(b), or (3) the failure of the Holder to deliver a
                     -----------
     Prospectus  prior  to  the  confirmation  of  a sale. In no event shall the
     liability  of  any  selling  Holder hereunder be greater in amount than the
     dollar amount of the Subscription Amount paid by the Holder in the Purchase
     Agreement.

          (c) Conduct of Indemnification Proceedings. If any Proceeding shall be
              --------------------------------------
     brought  or asserted against any Person entitled to indemnity hereunder (an
     "INDEMNIFIED  PARTY"),  such  Indemnified  Party  shall promptly notify the
      ------------------
     Person from whom indemnity is sought (the "INDEMNIFYING PARTY") in writing,
                                                ------------------

<PAGE>

     and  the  Indemnifying  Party  shall  have  the right to assume the defense
     thereof, including the employment of counsel reasonably satisfactory to the
     Indemnified  Party  and  the  payment  of all fees and expenses incurred in
     connection  with  defense  thereof;  provided,  that  the  failure  of  any
                                          --------
     Indemnified  Party  to  give such notice shall not relieve the Indemnifying
     Party  of its obligations or liabilities pursuant to this Agreement, except
     (and only) to the extent that such failure shall have materially prejudiced
     the  Indemnifying  Party.

     An Indemnified Party shall have the right to employ separate counsel in any
such  Proceeding  and  to  participate  in the defense thereof, but the fees and
expenses  of  such  counsel shall be at the expense of such Indemnified Party or
Parties  unless:  (1)  the  Indemnifying Party has agreed in writing to pay such
fees  and  expenses;  (2)  the  Indemnifying Party shall have failed promptly to
assume  the  defense  of  such  Proceeding  and  to  employ  counsel  reasonably
satisfactory  to such Indemnified Party in any such Proceeding; or (3) the named
parties  to  any  such Proceeding (including any impleaded parties) include both
such  Indemnified  Party  and the Indemnifying Party, and such Indemnified Party
shall  have  been  advised  by  counsel that a conflict of interest is likely to
exist  if  the  same  counsel  were  to represent such Indemnified Party and the
Indemnifying  Party  (in  which  case,  if  such  Indemnified Party notifies the
Indemnifying  Party  in writing that it elects to employ separate counsel at the
expense  of  the  Indemnifying  Party, the Indemnifying Party shall not have the
right  to assume the defense thereof and the reasonable fees and expenses of one
separate counsel for all Indemnified Parties in any matters related on a factual
basis shall be at the expense of the Indemnifying Party). The Indemnifying Party
shall  not  be liable for any settlement of any such Proceeding affected without
its  written  consent,  which  consent  shall  not  be unreasonably withheld. No
Indemnifying  Party  shall, without the prior written consent of the Indemnified
Party,  effect  any settlement of any pending Proceeding in respect of which any
Indemnified  Party  is a party, unless such settlement includes an unconditional
release  of  such  Indemnified  Party  from all liability on claims that are the
subject  matter  of  such  Proceeding.

     All  reasonable  fees  and  expenses  of  the  Indemnified Party (including
reasonable  fees  and  expenses  to  the  extent  incurred  in  connection  with
investigating  or  preparing  to  defend  such  Proceeding  in  a  manner  not
inconsistent  with  this  Section)  shall  be  paid to the Indemnified Party, as
incurred,  within  ten  (10)  Trading  Days  of  written  notice  thereof to the
Indemnifying  Party;  provided,  that  the  Indemnified  Party  shall  promptly
reimburse  the  Indemnifying  Party  for  that portion of such fees and expenses
applicable  to  such actions for which such Indemnified Party is not entitled to
indemnification  hereunder,  determined  based  upon  the relative faults of the
parties.

          (d) Contribution. If a claim for indemnification under Section 5(a) or
              -------------                                      ------------
     Section  5(b)  is  unavailable to an Indemnified Party (by reason of public
     ------------
     policy or otherwise), 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 Losses, in such proportion as is
     appropriate  to  reflect  the  relative fault of the Indemnifying Party and
     Indemnified  Party  in connection with the actions, statements or omissions
     that  resulted  in  such  Losses  as  well  as any other relevant equitable
     considerations.  The  relative  fault  of  such  Indemnifying  Party  and

<PAGE>

     Indemnified  Party shall be determined by reference to, among other things,
     whether  any  action  in  question,  including any untrue or alleged untrue
     statement  of a material fact or omission or alleged omission of a material
     fact,  has  been  taken  or made by, or relates to information supplied by,
     such  Indemnifying  Party  or  Indemnified Party, and the parties' relative
     intent,  knowledge,  access  to  information  and opportunity to correct or
     prevent such action, statement or omission. The amount paid or payable by a
     party  as a result of any Losses shall be deemed to include, subject to the
     limitations  set  forth in Section 5(c), any reasonable attorneys' or other
                                ------------
     reasonable  fees  or expenses incurred by such party in connection with any
     Proceeding  to  the  extent such party would have been indemnified for such
     fees  or  expenses  if the indemnification provided for in this Section was
     available  to  such  party  in  accordance  with  its  terms.

          (e)  Rule  144.  As  long  as  any  Holder owns any Notes, Warrants or
               ---------
     Registrable  Securities,  the  Company  covenants to timely file (or obtain
     extensions  in respect thereof and file within the applicable grace period)
     all  reports  required  to  be  filed  by the Company after the date hereof
     pursuant  to  Section  13(a)  or  15(d) of the Exchange Act. As long as any
     Holder  owns  any Notes, Warrants or Registrable Securities, if the Company
     is  not  required to file reports pursuant to Section 13(a) or 15(d) of the
     Exchange  Act, it will prepare and furnish to the Holders and make publicly
     available  in  accordance with Rule 144(c) promulgated under the Securities
     Act  annual  and quarterly financial statements, together with a discussion
     and  analysis  of  such  financial  statements  in  form  and  substance
     substantially  similar  to  those  that  would  otherwise be required to be
     included in reports required by Section 13(a) or 15(d) of the Exchange Act,
     as  well as any other information required thereby, in the time period that
     such  filings would have been required to have been made under the Exchange
     Act. The Company further covenants that it will take such further action as
     any  Holder may reasonably request, all to the extent required from time to
     time  to  enable  such  person to sell Conversion Shares and Warrant Shares
     without  registration under the Securities Act within the limitation of the
     exemptions  provided  by  Rule  144  promulgated  under the Securities Act,
     including  providing  any  legal opinions relating to such sale pursuant to
     Rule  144,  if  such  person  is  deemed  by the Company's counsel to be in
     compliance  with  the rules and regulations set forth in Rule 144. Upon the
     request  of  any Holder, the Company shall deliver to such Holder a written
     certification  of  a  duly authorized officer as to whether it has complied
     with  such  requirements.

     6.  Miscellaneous.
         --------------

          (a)  Compliance.  The  Holder covenants and agrees that it will comply
               ----------
     with  the  prospectus  delivery  requirements  of  the  Securities  Act  as
     applicable  to  it  in  connection  with  sales  of  Registrable Securities
     pursuant  to  the  Registration  Statement.

          (b)  Amendments  and  Waivers.  The  provisions  of  this  Agreement,
               -------------------------
     including  the provisions of this sentence, may not be amended, modified or
     supplemented,  and  waivers  or  consents to departures from the provisions
     hereof  may not be given, unless the same shall be in writing and signed by
     the Company and each Holder of the then outstanding Registrable Securities.

          (c) Notices. Any and all notices or other communications or deliveries
              --------
     required  or  permitted  to  be  provided hereunder shall be in writing and
     shall  be deemed given and effective on the earliest of (i) the Trading Day
     following  the  date  of  delivery  to  the  courier  service,  if  sent by
     nationally recognized overnight courier service, (ii) the third Trading Day

<PAGE>

     following  the  date  of  mailing,  if  sent  by first-class, registered or
     certified  mail,  postage  prepaid,  (iii)  the  Trading  Day  following
     transmission  by electronic mail with receipt confirmed or acknowledged, or
     (iv) upon actual receipt by the party to whom such notice is required to be
     given.  The  address for such notices and communications shall be delivered
     and  addressed  as  set  forth  in  the Purchase Agreement or to such other
     address  as  shall  be  designated  in writing from time to time by a party
     hereto.

          (d)  Successors and Assigns. This Agreement shall inure to the benefit
               ----------------------
     of  and be binding upon the successors and permitted assigns of each of the
     parties  and  shall  inure  to  the  benefit  of  the  Holder.

          (e)  Execution and Counterparts. This Agreement may be executed in any
               --------------------------
     number  of  counterparts, each of which when so executed shall be deemed to
     be  an  original  and, all of which taken together shall constitute one and
     the  same  Agreement.  In  the  event  that  any  signature is delivered by
     facsimile  transmission,  such  signature  shall  create  a  valid  binding
     obligation  of  the  party  executing (or on whose behalf such signature is
     executed)  the  same  with  the  same force and effect as if such facsimile
     signature  were  the  original  thereof.

          (f)  Governing  Law. This Agreement shall be governed by and construed
               --------------
     exclusively  in  accordance with the internal laws of the State of New York
     without  regard  to  the  conflicts of laws principles thereof. The parties
     hereto  hereby  irrevocably  agree  that  any  suit  or  proceeding arising
     directly  and/or  indirectly  pursuant to or under this Agreement, shall be
     brought  solely in a federal or state court located in the City, County and
     State of New York. By its execution hereof, the parties hereby covenant and
     irrevocably submit to the in personam jurisdiction of the federal and state
     courts located in the City, County and State of New York and agree that any
     process in any such action may be served upon any of them personally, or by
     certified  mail or registered mail upon them or their agent, return receipt
     requested, with the same full force and effect as if personally served upon
     them  in  New  York  City. The parties hereto waive any claim that any such
     jurisdiction  is not a convenient forum for any such suit or proceeding and
     any  defense  or  lack of in personam jurisdiction with respect thereto. In
     the  event  of  any such action or proceeding, the party prevailing therein
     shall  be entitled to payment from the other party hereto of its reasonable
     counsel  fees  and  disbursements.

          (g)  Severability.  If any term, provision, covenant or restriction of
               ------------
     this  Agreement is held by a court of competent jurisdiction to be invalid,
     illegal,  void  or  unenforceable,  the remainder of the terms, provisions,
     covenants  and restrictions set forth herein shall remain in full force and
     effect  and  shall  in no way be affected, impaired or invalidated, and the
     parties  hereto shall use their commercially reasonable efforts to find and
     employ  an  alternative means to achieve the same or substantially the same
     result  as  that  contemplated  by  such  term,  provision,  covenant  or
     restriction.  It  is  hereby stipulated and declared to be the intention of
     the  parties that they would have executed the remaining terms, provisions,
     covenants  and  restrictions  without  including  any  of  such that may be
     hereafter  declared  invalid,  illegal,  void  or  unenforceable.

          (h)  Headings.  The  headings in this Agreement are for convenience of
               --------
     reference  only and shall not limit or otherwise affect the meaning hereof.

                  [Remainder of page intentionally left blank]

<PAGE>

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

                                         XA,  INC.

                                         By:/s/ Joseph Wagner
                                            --------------------------
                                            Joseph  Wagner
                                            President

<PAGE>

           INVESTOR'S SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT

Vision Opportunity Master Fund, LTD.
-----------------------------------

By: /s/ Adam Benowitz
   -------------------------
     Name: Adam Benowitz
     Title: Portfolio Manager

20 West 55th Street, 5th Floor
New York, NY 10019
----------------------------
Address

212-867-1416
----------------------------
Facsimile Number

<PAGE>

                                     ANNEX A
                                     -------

                              PLAN OF DISTRIBUTION
                              --------------------

     The  Selling  Stockholders  and  any  of  their  pledgees,  assignees  and
successors-in-interest  may,  from time to time, sell any or all of their shares
of  Common  Stock on any stock exchange, market or trading facility on which the
shares  are  traded  or  in private transactions. These sales may be at fixed or
negotiated  prices.  The  Selling  Stockholders  may  use any one or more of the
following  methods  when  selling  shares:

     -    ordinary  brokerage  transactions  and  transactions  in  which  the
          broker/dealer  solicits  purchasers;

     -    block trades  in  which  the  broker/dealer  will  attempt to sell the
          shares  as agent but may position and resell a portion of the block as
          principal  to  facilitate  the  transaction;

     -    purchases  by  a  broker/dealer  as  principal  and  resale  by  the
          broker/dealer  for  its  account;

     -    an exchange  distribution  in  accordance  with  the  Rules  of  the
          applicable  exchange;

     -    privately  negotiated  transactions;

     -    settlement  of  short  sales;

     -    broker/dealers  may  agree  with  the  Selling  Stockholders to sell a
          specified  number  of  such  shares  at  a stipulated price per share;

     -    a  combination  of  any  such  methods  of  sale;  and

     -    any  other  method  permitted  pursuant  to  applicable  law.

     The  Selling  Stockholders  may  also  sell shares under Rule 144 under the
Securities  Act,  if  available,  rather  than  under  this  prospectus.

     Broker/dealers  engaged  by  the Selling Stockholders may arrange for other
brokers/dealers  to participate in sales. Broker/dealers may receive commissions
from  the  Selling  Stockholders (or, if any broker/dealer acts as agent for the
purchaser  of  shares,  from  the  purchaser)  in  amounts to be negotiated. The
Selling Stockholders do not expect these commissions to exceed what is customary
in  the  types  of  transactions  involved.

     The  Selling  Stockholders may from time to time pledge or grant a security
interest in some or all of the shares of common stock owned by them and, if they
default in the performance of their secured obligations, the pledgees or secured

<PAGE>

parties  may  offer  and sell the shares of common stock from time to time under
this  prospectus,  or under an amendment to this prospectus under Rule 424(b)(3)
or other applicable provision of the Securities Act of 1933 amending the list of
Selling  Stockholders  to include the pledgee, transferee or other successors in
interest  as  Selling  Stockholders  under  this  prospectus.

The  Selling  Stockholders and any broker/dealers or agents that are involved in
selling  the shares may be deemed to be "underwriters" within the meaning of the
Securities  Act  in  connection  with such sales. In such event, any commissions
received  by  such  broker/dealers or agents and any profit on the resale of the
shares  purchased by them may be deemed to be underwriting commissions under the
Securities  Act. The Selling Stockholders have informed the Company that it does
not have any agreement or understanding, directly or indirectly, with any person
to  distribute  the  Common  Stock.

The  Company  is  required  to  pay  all  fees  and  expenses  incident  to  the
registration  of  the  shares.  The  Company has agreed to indemnify the Selling
Stockholders  against certain losses, claims, damages and liabilities, including
liabilities  under  the  Securities  Act.

<PAGE>

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