Document:

EXHIBIT
10.1

    
      

      

      

      WAIVER
AGREEMENT

      THIS WAIVER AGREEMENT
(this
“Agreement”) dated as of 20th  July,
2009, by and Universal Travel Group, a Nevada corporation, with headquarters
located at Shennan Road, Hualian Center, Room 301-309, Shenzhen, the People’s
Republic of China (the “ Company ”), and the investors
listed on the Schedule of Buyers in the Securities Purchase Agreement (each, a “
Buyer ” and
collectively, the “ Buyers
”).

      

      

      BACKGROUND

      A.         
In connection with the
Securities Purchase Agreement by and among the parties hereto of August 28, 2008 (the “ Securities Purchase
Agreement ”), the Company
has agreed, upon the terms and subject to the conditions of the Securities
Purchase Agreement, to issue and sell to each Buyer (i) shares (the “
Common
Shares ”) of the Company's
common stock, par value $0.001 per share (the “ Common Stock
”), and (ii) warrants (the
“ Warrants
”) which will be
exercisable to purchase shares of Common Stock (as exercised, the “ Warrant Shares
”) in accordance with the
terms of the Warrants.

      

      B.         
In accordance with the terms of the Securities Purchase Agreement, the Company
had agreed to provide certain registration rights under the Securities Act of
1933, as amended, and the rules and regulations thereunder, or any similar
successor statute (collectively, the “ 1933 Act ”), and applicable
state securities laws and pursuant thereto had entered into a Registration
Rights Agreement on August 28, 2008 (the “Registration Rights
Agreement”).

      

      C.         
In consultation with the Buyers, the Company did not file the registration
statement on Form S-1to register the Registrable Securities pursuant to Section
2 of the Registration Statement and in connection therewith, the Company has
asked the Buyers and Buyers are agreeable to waiving  their rights to
any damages that may or have accrued to the Buyers as a result of such
non-registration as of the date hereof.

      

      NOW, THEREFORE,  in
consideration of the premises,  the parties hereto agree as
follows:

      
        	
                1.  

              	
                Definitions.  Unless
      other wise defined, all the terms used herein shall have the same meaning
      as in the Securities Purchase Agreement and the Registration Rights
      Agreement.

              

      

       

      
        	
                2.  

              	
                Waiver. Subject
      to the terms and conditions  hereof, the Buyers hereby,
      irrevocably and unconditionally agree with the Company to waive their
      rights to any damages and liabilities arising out of the non-registration
      of the Registrable Securities pursuant to the Registration Rights
      Agreement, in particular to Section 2 of the said agreement as of the date
      hereof. The foregoing waiver is not and shall not be construed as an
      amendment, waiver or modification of the Registration Rights Agreement
      except as expressly provided
herein.

              

      

       

      
        	
                3.  

              	
                No  Waiver;  Other  Defaults
      .  Nothing contained  in this
      Waiver  Agreement  shall be
      construed  or  interpreted  or is intended
      as a waiver of or  limitation  on any  other
      rights,  powers,  privileges  or remedies
      that the Buyers have or may have  under
      the  Registration Rights
Agreement.

              

      

       

      
        	
                4.  

              	
                Counterparts.  This
      Waiver  Agreement  may be executed by the
      parties  hereto  in
      any  number  of  separate  counterparts,  and  all  of  said
      counterparts  taken  together  shall
      be  deemed to  constitute  one and the same
      instrument.

              

      

       

      
        	
                5.  

              	
                Governing Law.
      All questions concerning the construction, validity, enforcement and
      interpretation of this Agreement shall be governed by the internal laws of
      the State of New York, without giving effect to any choice of law or
      conflict of law provision or rule (whether of the State of New York or any
      other jurisdictions) that would cause the application of the laws of any
      jurisdictions other than the State of New York.  Each party
      hereby irrevocably submits to the exclusive jurisdiction of the state and
      federal courts sitting in The City of New York, Borough of Manhattan, for
      the adjudication of any dispute hereunder or in connection herewith or
      with any transaction contemplated hereby or discussed herein, and hereby
      irrevocably waives, and agrees not to assert in any suit, action or
      proceeding, any claim that it is not personally subject to the
      jurisdiction of any such court, that such suit, action or proceeding is
      brought in an inconvenient forum or that the venue of such suit, action or
      proceeding is improper.  Each party hereby irrevocably waives
      personal service of process and consents to process being served in any
      such suit, action or proceeding by mailing a copy thereof to such party at
      the address for such notices to it under this Agreement and agrees that
      such service shall constitute good and sufficient service of process and
      notice thereof.  Nothing contained herein shall be deemed to
      limit in any way any right to serve process in any manner permitted by
      law.  If any provision of this Agreement shall be invalid or
      unenforceable in any jurisdiction, such invalidity or unenforceability
      shall not affect the validity or enforceability of the remainder of this
      Agreement in that jurisdiction or the validity or enforceability of any
      provision of this Agreement in any other jurisdiction.  The
      Company hereby appoints Sichenzia Ross Friedman Ference LLP with offices
      at 61 Broadway, 32nd
      Floor, New York, NY 10006, as its agent for service of process in New
      York.  EACH
      PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO
      REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN
      CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION
      CONTEMPLATED HEREBY.

              

      

       

      
        	
                6.  

              	
                Releases. The
      Buyers further  release the Company and their  direct
      and indirect stockholders and other affiliates, officers,
      employees,   directors  and  agents  (“Releasees”)
      from any and all  claims, demands, liabilities,
      responsibilities,  disputes, causes of action (whether at law or
      in equity) and  obligations of every
      nature  whatsoever,  whether liquidated or
      unliquidated, known or unknown, matured or
      unmatured,   fixed or
      contingent  (collectively,  the "Claims") that the
      Buyers may have against them,  arising from or relating to
      any  actions
      or  inactions  of  Releasees  on
      or prior to the
      date  hereof  with  respect  to
      the Registration Rights Agreement.

              

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      IN WITNESS WHEREOF, each Buyer
and the Company have caused their respective signature page to this Waiver
Agreement to be duly executed as of the date first written above.

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            	 	COMPANY:	 
	 	 	 
	 	UNIVERSAL
      TRAVEL GROUP	 
	 	 	 
	 	 	 
	 	By:	
                                    /s/ Jiangping Jiang

                                  	 
	 	 	
                                    Name:
      Jiangping Jiang

                                    Title:   Chief
      Executive Officer

                                  	 

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      IN WITNESS WHEREOF, each Buyer
and the Company have caused their respective signature page to this Waiver
Agreement to be duly executed as of the date first written above.

       

      
        

        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	 	
                                      BUYER:

                                    	 
	 	 	 
	 	ACCESS
      AMERICA FUND, LP	 
	 	 	 
	 	 	 
	 	By:	
                                      /s/ Christopher Efird

                                    	 
	 	 	
                                      Name:
      Christopher Efird

                                      Title:
      President

                                    	 

                            

                          

                        

                      

                    

                  

                

              

            

          

        

         

        
           

          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	 	
                                          BUYER:

                                        	 
	 	 	 
	 	CHINAMERICA
      FUND LP	 
	 	 	 
	 	 	 
	 	By:	
                                          /s/ Beau Johnson

                                        	 
	 	 	
                                          Name:
      Beau Johnson

                                          Title:
      Managing  Partner

                                        	 

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

             

             

            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	 	
                                              BUYER:

                                            	 
	 	 	 
	 	POPE
      INVESTMENT II LLC	 
	 	 	 
	 	 	 
	 	By:	
                                              /s/ William P. Wells

                                            	 
	 	 	
                                              Name:  William
      P. Wells

                                              Title: President,
      Pope Asset Management

                                            	 

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

                 

                
                   

                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            	 	
                                                    BUYER:

                                                  	 
	 	 	 
	 	HELLER
      CAPITAL INVESTMENTS, LLC	 
	 	 	 
	 	 	 
	 	By:	
                                                    /s/ Ronald I. Heller

                                                  	 
	 	 	
                                                    Name:
      Ronald I. Heller

                                                    Title:
      CIO

                                                  	 

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                       

                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                      

                      
                        
                           

                           

                           

                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    	 	
                                                            BUYER:

                                                          	 
	 	 	 
	 	CGM
      as C/F RONALD I. HELLER IRA	 
	 	 	 
	 	 	 
	 	By:	
                                                            /s/ Ronald I. Heller

                                                          	 
	 	 	
                                                            Name:
      Ronald I. Heller

                                                            Title:

                                                          	 

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                               

                               

                            

                          

                        

                      

                    

                  

                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              	 	
                                                      BUYER:

                                                    	 
	 	 	 
	 	INVESTMENT
      HUNTER, LLC	 
	 	 	 
	 	 	 
	 	By:	
                                                      /s/ Gary C. Evans

                                                    	 
	 	 	
                                                      Name:
      Gary C. Evans

                                                      Title:
      Manager

                                                    	 

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                         

                         

                      

                    

                    
                      
                        
                          
                          

                        

                        
                          
                          

                          
                            

                          

                        

                        
                          
                          

                        

                      

                    

                  

                

              

            

          

        

      

       

       

      
         

        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  	 	
                                          BUYER:

                                        	 
	 	 	 
	 	MARED
      INVESTMENTS	 
	 	 	 
	 	 	 
	 	By:	
                                          /s/ Edward R. Rashid

                                        	 
	 	 	
                                          Name:
      Edward R. Rashid

                                          Title:
      President

                                        	 

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

             

             

          

        

        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    	 	
                                            BUYER:

                                          	 
	 	 	 
	 	HIGH
      CAPITAL FUNDING, LLC	 
	 	 	 
	 	 	 
	 	By:	
                                            /s/ Daniel A. Rappaport

                                          	 
	 	 	
                                            Name:
      Daniel A. Rappaport

                                            Title:

                                          	 

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

               

            

          

        

      

                 

       

      
         

        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	 	
                                              BUYER:

                                            	 
	 	 	 
	 	MERRILL
      LYNCH, PIERCE, FENNER & SMITH, FBO BEAU L. JOHNSON
	 	 	 
	 	 	 
	 	By:	
                                              /s/ Beau Johnson

                                            	 
	 	 	
                                              Name:
      Beau Johnson

                                              Title:Unassociated Document

    SECURITIES
PURCHASE AGREEMENT

     

    This
Securities Purchase Agreement (this “Agreement”) is dated
as of July 20, 2009 among OmniReliant Holdings, Inc., a Nevada corporation (the
“Company”), and
Vicis Capital Master Fund, a sub-trust of the Vicis Capital Series Master Trust,
a unit trust organized and existing under the laws of the Cayman Islands (the
“Purchaser”).

     

               WHEREAS,
pursuant to those certain Securities Purchase Agreements, by and among the
Company and Vicis, Vicis is the holder of (a) shares of Series C, Series D, and
Series F Convertible Preferred Stock of the Company (the “Preferred Shares”)
and (b) those certain warrants issued by the Company listed on Schedule 2.1
hereto (the “Existing
Vicis Warrants”).

     

    WHEREAS, Vicis’s conversion of the
Preferred Shares into shares of Common Stock is subject to contain conversion
caps (the “Conversion
Caps”) that prevent Vicis from converting an amount of such Preferred
Shares to the extent  that Vicis would beneficially own (i) greater
than 4.99% of the outstanding Common Stock of the Company, and (ii) greater than
9.99% of the outstanding Common Stock of the Company.

     

    WHEREAS, pursuant to the terms and
conditions of this Agreement and pursuant to Section 4(2) of the Securities Act
of 1933, as amended (the “Securities Act”) and
Rule 506 promulgated thereunder, the Company wishes to (a) waive the Conversion
Caps and (b) issue and sell to the Purchaser, and the Purchaser wishes to
acquire from the Company, a warrant in the form attached hereto as Exhibit A (the “Warrant”) to purchase
95,506,276 shares of Common Stock, par value $.00001 per share (the “Common Stock”), of
the Company at an exercise price of twenty five cents ($0.25) per share in
exchange for (y) an additional investment by Vicis of $5,000,000 (the “Purchase Price”) and
(z) the surrender by Vicis of the Existing Vicis Warrants to the Company for
cancellation.

     

    WHEREAS, the Preferred Shares are
subject to certain anti-dilution provisions (the “Ratchet Provisions”)
that require the Company to reduce the conversion price of the Preferred Shares
in the event that the Company is deemed to issue its Common Stock in certain
transactions for a price less than the conversion price of the Preferred
Shares.

     

    WHEREAS, the Purchaser’s acquisition of
the Warrant hereunder triggers the Ratchet Provisions in the Preferred Shares,
and the Company has agreed to reduce the conversion price of the Preferred
Shares as hereinafter set forth.

     

    NOW,
THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement,
and for other good and valuable consideration the receipt and adequacy of which
are hereby acknowledged, the Company and Purchaser agree as
follows:

     

    ARTICLE
I

    DEFINITIONS

     

    1.1           Definitions.  In
addition to the terms defined elsewhere in this Agreement, the following terms
have the meanings indicated in this Section
1.1:

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Affiliate” means any
Person that, directly or indirectly through one (1) or more intermediaries,
controls or is controlled by or is under common control with a Person, as such
terms are used in and construed under Rule 144 under the Securities
Act.  With respect to a Purchaser, any investment fund or managed
account that is managed on a discretionary basis by the same investment manager
as such Purchaser will be deemed to be an Affiliate of such
Purchaser.

     

    “Business Day” means
any day except Saturday, Sunday, any day which shall be a federal legal holiday
in the United States or any day on which banking institutions in the State of
New York are authorized or required by law or other governmental action to
close.

     

    “Closing” means the
closing of the purchase and sale of the Securities pursuant to Section
2.1.

     

    “Closing Date” means
the Trading Day when all of the Transaction Documents have been executed and
delivered by the applicable parties thereto, and all conditions precedent to (i)
the Purchaser’s obligations to pay the Purchase Price and (ii) the Company’s
obligations to deliver the Securities have been satisfied or
waived.

     

    “Commission” means the
U.S. Securities and Exchange Commission.

     

    “Common Stock” means
the common stock of the Company, par value $.00001 per share, and any other
class of securities into which such securities may hereafter be reclassified or
changed into.

     

    “Common Stock
Equivalents” means any securities of the Company or the Subsidiaries
which would entitle the holder thereof to acquire at any time Common Stock,
including, without limitation, any debt, preferred stock, rights, options,
warrants or other instrument that is at any time convertible into or exercisable
or exchangeable for, or otherwise entitles the holder thereof to receive, Common
Stock.

     

    “Disclosure Schedules”
shall have the meaning ascribed to such term in Section 3.1.

     

    “Exchange Act” means
the Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder.

     

               “Exempt Issuance”
means: (a) shares of Common Stock or options to purchase Common Stock issued to
employees, officers, directors or consultants of the Company pursuant to any
stock or option plan duly adopted by a majority of the non-employee members of
the Board of Directors of the Company or a majority of the members of a
committee of non-employee directors established for such purpose, (b) securities
issued upon the exercise or exchange of or conversion of any Securities issued
hereunder and/or other securities (including the stock rights set forth on Schedule 3.1(g))
exercisable or exchangeable for or convertible into shares of Common Stock
issued and outstanding on the date of this Agreement, provided that, unless set
forth on Schedule
3.1(g), such securities have not been amended since the date of this
Agreement to increase the number of such securities or to decrease the exercise,
exchange or conversion price of any such securities, (c) securities issued
pursuant to acquisitions or strategic transactions approved by a majority of the
directors, provided that any such issuance shall only be to a Person which is,
itself or through its subsidiaries, an operating company in a business
synergistic with the business of the Company, as determined by a majority of the
directors, and in which the Company receives benefits in addition to the
investment of funds, but shall not include a transaction in which the Company is
issuing securities primarily for the purpose of raising capital or to an entity
whose primary business is investing in securities.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     “Liens” means a lien,
charge, security interest, encumbrance, right of first refusal, preemptive right
or other restriction.

     

    “Material Adverse
Effect” shall have the meaning assigned to such term in Section
3.1(b).

     

    “Person” means 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.

     

    “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.

     

     “Required Approvals”
shall have the meaning ascribed to such term in Section 3.1(e).

     

    “Required Minimum”
means, as of any date, 110% of the maximum aggregate number of shares of Common
Stock then issued or potentially issuable in the future pursuant to the
Transaction Documents, including any underlying shares issuable upon exercise or
conversion in full of all Warrants (including a reasonable reserve for
underlying shares issuable as payment of dividends), ignoring any conversion or
exercise limits set forth therein.

     

     “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.

     

     “Securities” means the
Warrants and the Warrant Shares.

     

    “Securities Act” means
the Securities Act of 1933, as amended, and the rules and regulations
promulgated hereunder.

     

     “Short Sales” shall
include all “short sales” as defined in Rule 200 of Regulation SHO under the
Exchange Act (but shall not be deemed to include the location and/or reservation
of borrowable shares of Common Stock).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     “Subsidiary” means any
subsidiary of the Company as set forth on Schedule
3.1(a).

     

    “Trading Day” means a
day on which the Common Stock is traded on a Trading Market.

     

    “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 Nasdaq Capital Market, the American
Stock Exchange, the New York Stock Exchange, the Nasdaq National Market, the OTC
Bulletin Board, or “Pink Sheets” published by Pink Sheets, LLC (or a similar
organization or agency succeeding to its functions of reporting
prices).

     

    “Transaction
Documents” means this Agreement, the Warrants, and any other documents or
agreements executed in connection with the transactions contemplated
hereunder.

     

    “VWAP” of a share of
Common Stock as of a particular date (the “Determination Date”) shall mean the
price determined by the first of the following clauses that applies: (a) if
shares of Common Stock are traded on a national securities exchange (an
“Exchange”), the weighted average of the closing sale price of a share of the
Common Stock of the Company on the last five (5) Trading Days prior to the
Determination Date reported on such Exchange as reported in The Wall Street
Journal (weighted with respect to the trading volume with respect to each such
day); (b) if shares of Common Stock are not traded on an Exchange but trade in
the over-the-counter market and such shares are quoted on the National
Association of Securities Dealers Automated Quotations System (“NASDAQ”), the
weighted average of the closing  sale price of a share of the Common
Stock of the Company on the last five (5) Trading Days prior to the
Determination Date reported on NASDAQ as reported in The Wall Street Journal
(weighted with respect to the trading volume with respect to each such day); (c)
if such shares are an issue for which last sale prices are not reported on
NASDAQ, the average of the closing sale price, in each case on the last five (5)
Trading Days (or if the relevant price or quotation did not exist on any of such
days, the relevant price or quotation on the next preceding Business Day on
which there was such a price or quotation) prior to the Determination Date as
reported by the Over the Counter Bulletin Board (the “OTCBB”), or any other
successor organization; (d) if no closing sales price is reported for the Common
Stock by the OTCBB or any other successor organization for such day, the average
of the closing sale price, in each case on the last five (5) Trading Days (or if
the relevant price or quotation did not exist on any of such days, the relevant
price or quotation on the next preceding business day on which there was such a
price or quotation) prior to the Determination Date as reported
by  the "pink sheets" by the Pink Sheets, LLC, or any successor
organization, (e) if no closing sales price is reported for the Common Stock by
the OTCBB or any other successor organization for such day, then the average of
the high and low bid and asked price of any of the market makers for the Common
Stock as  reported on the OTCBB or in the "pink sheets" by the Pink
Sheets, LLC on the last five (5) Trading Days; or (e) in all other cases, the
fair market value of a share of Common Stock as determined by an independent
appraiser selected in good faith by the holder and reasonably acceptable to the
Company.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    “Warrants” means the
warrants issued pursuant to this Agreement.

     

    “Warrant Shares” means
the shares of Common Stock issuable upon exercise of the Warrants.

     

    ARTICLE
II

    PURCHASE
AND SALE; SHARE EXCHANGE

     

    2.1           Closing.  On
the Closing Date, upon the terms and subject to the conditions set forth herein,
concurrent with the execution and delivery of this Agreement by the parties
hereto, the Company wishes to (a) waive the Conversion Caps and (b) issue and
sell to the Purchaser, and the Purchaser wishes to acquire from the Company, the
Warrant in
exchange for (y) Purchase Price and (z) the surrender by Vicis of the Existing
Vicis Warrants to the Company for cancellation.  A list of all
unexercised warrants held in the Purchaser’s name is set forth on Schedule
2.1.  The Purchaser shall deliver via wire transfer or a
certified check immediately available funds equal to the Purchase Price and the
Company shall deliver to the Purchaser the Warrant and the other items set forth
in Section 2.2
issuable at the Closing.  Upon satisfaction of the conditions set
forth in Sections
2.2 and 2.3, the Closing
shall occur at the offices of the Company’s counsel, Sichenzia Ross Friedman
Ference LP, 61 Broadway, 32nd Floor,
New York, NY 10006, or such other location as the parties shall mutually
agree.

     

    2.2           Deliveries.

     

    (a)           On
the Closing Date, the Company shall deliver or cause to be delivered to the
Purchaser the following:

     

    (i)           this
Agreement duly executed by the Company;

     

    (ii)           the
Warrant, in the name of the Purchaser and in the form of Exhibit A attached
hereto, to purchase 95,506,276 shares of Common Stock, with an exercise price
equal to twenty five cents ($0.25),

     

    (iii)           written
confirmation from the Company to the effect that the conversion price of the
Preferred Shares has been reduced to twenty five cents ($0.25) per share;
and

     

    (iv)           any
required consents or waivers; and

    

    (b)           On
the Closing Date, the Purchaser shall deliver or cause to be delivered to the
Company the following:

     

    (i)           this
Agreement duly executed by such Purchaser;

     

    (ii)

     

    (iii)           the
Purchase Price by wire transfer to the account as specified in writing by the
Company;

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    2.3           Closing
Conditions.

     

    (a)           The
obligations of the Company hereunder in connection with the Closing are subject
to the following conditions being met:

     

    (i)           the
accuracy in all material respects when made and on the Closing Date of the
representations and warranties of the Purchaser contained herein;

     

    (ii)           all
obligations, covenants and agreements of the Purchaser required to be performed
at or prior to the Closing Date shall have been performed;

     

    (iii)           The
Company shall have filed the appropriate documentation with the Secretary of
State of Nevada to remove the Conversion Caps from the terms of its Series C,
Series D, and Series F Convertible Preferred Stock; and

     

    (iv)           the
delivery by the Purchaser of the items set forth in Section 2.2(b) of
this Agreement.

     

    (b)           The
obligations of the Purchaser hereunder in connection with the Closing are
subject to the following conditions being met:

     

    (i)           the
accuracy in all material respects on the Closing Date of the representations and
warranties of the Company contained herein;

     

    (ii)           all
obligations, covenants and agreements of the Company required to be performed at
or prior to the Closing Date shall have been performed;

     

    (iii)           the
delivery by the Company of the items set forth in Section 2.2(a) of
this Agreement; and

     

    (iv)           there
shall have been no Material Adverse Effect with respect to the Company since the
date of the Balance Sheet.

     

    

    ARTICLE
III

    REPRESENTATIONS
AND WARRANTIES

     

    3.1           Representations and
Warranties of the Company.  Except as set forth under the
corresponding section of the disclosure schedules delivered to the Purchaser
concurrently herewith (the “Disclosure
Schedules”) which Disclosure Schedules shall be deemed a part hereof and
to qualify any representation or warranty otherwise made herein to the extent of
such disclosure, the Company hereby makes the representations and warranties set
forth below to Purchaser.

     

    (a)           Subsidiaries.  All
of the direct and indirect subsidiaries of the Company are set forth on Schedule
3.1(a).  The Company owns, directly or indirectly, all of the
capital stock or other equity interests of each Subsidiary free and clear of any
Liens, and all the issued and outstanding shares of capital stock of each
Subsidiary are validly issued and are fully paid, non-assessable and free of
preemptive and similar rights to subscribe for or purchase
securities.  If the Company has no Subsidiaries, then all other
references in the Transaction Documents to the Subsidiaries or any of them will
be disregarded.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)           Organization and
Qualification.  The Company and each of the Subsidiaries is an
entity duly incorporated or otherwise organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation or organization
(as applicable), with the requisite corporate power and authority to own and use
its properties and assets and to carry on its business as currently
conducted.  Neither the Company nor any Subsidiary is in violation or
default of any of the provisions of its respective certificate or articles of
incorporation, bylaws or other organizational or charter
documents.  The Company and each of the Subsidiaries is duly qualified
to conduct business and is in good standing as a foreign corporation or other
entity in each jurisdiction in which the nature of the business conducted or
property owned by it makes such qualification necessary, except where the
failure to be so qualified or in good standing, as the case may be, could not
have or reasonably be expected to result in (i) a material adverse effect on the
legality, validity or enforceability of any Transaction Document, (ii) a
material adverse effect on the results of operations, assets, business,
prospects or condition (financial or otherwise) of the Company and the
Subsidiaries, taken as a whole, or (iii) a material adverse effect on the
Company’s ability to perform in any material respect on a timely basis its
obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse
Effect”) and no Proceeding has been instituted in any such jurisdiction
revoking, limiting or curtailing or seeking to revoke, limit or curtail such
corporate power and authority or qualification.

     

    (c)           Authorization;
Enforcement.  The Company has the requisite corporate power and
authority to enter into and to consummate the transactions contemplated by each
of the Transaction Documents and otherwise to carry out its obligations
hereunder and thereunder.  Except as set forth on Schedule 3.1(c), the
execution and delivery of each of the Transaction Documents by the Company and
the consummation by it of the transactions contemplated hereby and thereby have
been duly authorized by all necessary corporate action on the part of the
Company and no further action is required by the Company, its board of directors
or its stockholders in connection therewith other than in connection with the
Required Approvals.  Each Transaction Document has been (or upon
delivery will have been) duly executed by the Company and, when delivered in
accordance with the terms hereof and thereof, will constitute the valid and
binding obligation of the Company enforceable against the Company in accordance
with its terms except (i) as limited by general equitable principles and
applicable bankruptcy, insolvency, reorganization, moratorium and other laws of
general application affecting enforcement of creditors’ rights generally, (ii)
as limited by laws relating to the availability of specific performance,
injunctive relief or other equitable remedies and (iii) insofar as
indemnification and contribution provisions may be limited by applicable
law.

     

    (d)           No
Conflicts.  Except as set forth on Schedule 3.1(d), the
execution, delivery and performance of the Transaction Documents by the Company
and the consummation by the Company of the other transactions contemplated
hereby and thereby do not and will not: (i) conflict with or violate any
provision of the Company’s or any Subsidiary’s certificate or articles of
incorporation, bylaws or other organizational or charter documents, or
(ii)conflict with, or constitute a default (or an event that with notice or
lapse of time or both would become a default) under, result in the creation of
any Lien upon any of the properties or assets of the Company or any Subsidiary,
or give to others any rights of termination, amendment, acceleration or
cancellation (with or without notice, lapse of time or both) of, any agreement,
credit facility, debt or other instrument (evidencing a Company or Subsidiary
debt or otherwise) or other understanding to which the Company or any Subsidiary
is a party or by which any property or asset of the Company or any Subsidiary is
bound or affected, or (iii) subject to the Required Approvals, conflict with or
result in a violation of any law, rule, regulation, order, judgment, injunction,
decree or other restriction of any court or governmental authority to which the
Company or a Subsidiary is subject (including federal and state securities laws
and regulations), or by which any property or asset of the Company or a
Subsidiary is bound or affected; except in the case of each of clauses (ii) and
(iii), such as could not have or reasonably be expected to result in a Material
Adverse Effect.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (e)           Filings, Consents and
Approvals.  Except as set forth on Schedule 3.1(e), the Company
is not required to obtain any consent, waiver, authorization or order of, give
any notice to, or make any filing or registration with, any court or other
federal, state, local or other governmental authority or other Person in
connection with the execution, delivery and performance by the Company of the
Transaction Documents, other than (i) the filing with the Commission of the
Registration Statement and the declaration of its effectiveness by the
Commission, (ii) the notice and/or application(s) to each applicable Trading
Market for the issuance and sale of the Securities and the listing of the
Warrant Shares for trading thereon in the time and manner required thereby, and
(iii) the filing of Form D with the Commission and such filings as are required
to be made under applicable state securities laws  (collectively, the
“Required
Approvals”).

     

    (f)           Issuance of the
Securities.  The Securities are duly authorized and, when
issued and paid for in accordance with the applicable Transaction Documents,
will be duly and validly issued, fully paid and nonassessable, free and clear of
all Liens imposed by the Company other than restrictions on transfer provided
for in the Transaction Documents.  The Warrant Shares, when issued in
accordance with the terms of the Transaction Documents, will be validly issued,
fully paid and nonassessable, free and clear of all Liens imposed by the
Company.  The Company has reserved from its duly authorized capital
stock a number of shares of Common Stock for issuance of the Warrant Shares at
least equal to the Required Minimum on the date hereof.

     

    (g)           Capitalization.  Immediately
before the Closing, the authorized capital stock of the Company consists of: (i)
400,000,000 shares of Common Stock, of which (A) 14,509,225 shares are issued
and outstanding, (B) no shares of Common Stock are held in treasury, (C)
20,619,128 shares are reserved for issuance upon conversion of the Series C
Convertible Preferred Stock, (D) 14,000,000 shares are reserved for issuance
upon conversion of the Series D Convertible Preferred Stock, (E) 61,960,971 shares are reserved for issuance upon
the conversion, exchange, or exercise of the warrants identified on Schedule 3.1(g)
attached hereto, and (F) 2,145,000 shares are reserved for issuance upon the
conversion, exchange, or exercise of the warrants and options identified on
Schedule 3.1(g)
attached hereto; and (ii) 100,000,000 shares of Preferred Stock, of which 3,000
shares have been designated as “Series A Convertible Preferred Stock,” 0 of
which are issued and outstanding, none of which are held in treasury, or
reserved for issuance, 1,000 shares have been designated as “Series B
Convertible Preferred Stock,” 0 of which are issued and outstanding, and none of
which are held in treasury, or reserved for issuance, 10,309,564 shares have
been designated as “Series C Convertible Preferred Stock, 10,309,564 shares of
which are issued and outstanding, and none of which are held in treasury, or
reserved for issuance, and 7,000,000 shares have been designated as “Series D
Convertible Preferred Stock, 7,000,000 shares of which are issued and
outstanding, and none of which are held in treasury, or reserved for
issuance;   10,000,000 shares have been designated as “Series E
Convertible Preferred Stock, 10,000,000 shares of which are issued and
outstanding, and none of which are held in treasury, or reserved for issuance
(8,333,333 shares of Common Stock are reserved for issuance upon conversion of
the Series E Convertible Preferred Stock, and 101,605,970 shares are reserved
for issuance upon the conversion, exchange, or exercise of outstanding warrants
and options (inclusive of the Series E Warrants)) and 10,000,000 shares have
been designated as “Series F Convertible Preferred Stock, 10,000,000 shares of
which are issued and outstanding, and none of which are held in treasury, or
reserved for issuance.  Except as set forth on Schedule 3.1(g), no
Person has any right of first refusal, preemptive right, right of participation,
or any similar right to participate in the transactions contemplated by the
Transaction Documents.  Except as a result of the purchase and sale of
the Securities or as set forth on Schedule 3.1(g),
there are no outstanding options, warrants, script rights to subscribe to, calls
or commitments of any character whatsoever relating to, or securities, rights or
obligations convertible into or exercisable or exchangeable for, or giving any
Person any right to subscribe for or acquire, any shares of Common Stock, or
contracts, commitments, understandings or arrangements by which the Company or
any Subsidiary is or may become bound to issue additional shares of Common Stock
or Common Stock Equivalents.  Except as set forth on Schedule 3.1(g), the
issuance and sale of the Securities will not obligate the Company to issue
shares of Common Stock or other securities to any Person (other than the
Purchaser) and will not result in a right of any holder of Company securities to
adjust the exercise, conversion, exchange or reset price under any of such
securities.  All of the outstanding shares of capital stock of the
Company are validly issued, fully paid and nonassessable, have been issued in
compliance with all federal and state securities laws, and none of such
outstanding shares was issued in violation of any preemptive rights or similar
rights to subscribe for or purchase securities.  Except as set forth
on Schedule
3.1(g), no further approval or authorization of any stockholder, the
Board of Directors of the Company or others is required for the issuance and
sale of the Securities.  Except as set forth on Schedule 3.1(g),
there are no stockholders agreements, voting agreements or other similar
agreements with respect to the Company’s capital stock to which the Company is a
party or, to the knowledge of the Company, between or among any of the Company’s
stockholders.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (h)           SEC Reports; Financial
Statements.  Except as set forth on Schedule 3.1(h), the
Company has filed all reports, schedules, forms, statements and other documents
required to be filed by the Company under the Securities Act and the Exchange
Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years
preceding the date hereof (or such shorter period as the Company was required by
law or regulation to file such material) (the foregoing materials, including the
exhibits thereto and documents incorporated by reference therein, being
collectively referred to herein as the “SEC Reports”) on a timely basis or has
received a valid extension of such time of filing and has filed any such SEC
Reports prior to the expiration of any such extension.  As of their
respective dates, the SEC Reports complied in all material respects with the
requirements of the Securities Act and the Exchange Act, as applicable, and none
of the SEC Reports, when filed, contained any untrue statement of a material
fact or omitted to state a material fact required to be stated therein or
necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading.  Except as
set forth on Schedule 3.1(h), the financial statements of the Company included
in the SEC Reports comply in all material respects with applicable accounting
requirements and the rules and regulations of the Commission with respect
thereto as in effect at the time of filing.  Such financial statements
have been prepared in accordance with United States generally accepted
accounting principles applied on a consistent basis during the periods involved
(“GAAP”), except as may be otherwise specified in such financial statements or
the notes thereto and except that unaudited financial statements may not contain
all footnotes required by GAAP, and fairly present in all material respects the
financial position of the Company and its consolidated Subsidiaries as of and
for the dates thereof and the results of operations and cash flows for the
periods then ended, subject, in the case of unaudited statements, to normal,
immaterial, year-end audit adjustments.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (i)           Material
Changes.  Since the date of the latest audited financial
statements included within the SEC Reports, except as specifically disclosed in
a subsequent SEC Report filed prior to the date hereof, (i) there has been no
event, occurrence or development that has had or that could reasonably be
expected to result in a Material Adverse Effect, (ii) the Company has not
incurred any material liabilities (contingent or otherwise) other than (A) trade
payables and accrued expenses incurred in the ordinary course of business
consistent with past practice and (B) liabilities not required to be reflected
in the Company’s financial statements pursuant to GAAP or disclosed in filings
made with the Commission, (iii) the Company has not materially altered its
method of accounting, (iv) the Company has not declared or made any dividend or
distribution of cash or other property to its stockholders or purchased,
redeemed or made any agreements to purchase or redeem any shares of its capital
stock and (v) the Company has not issued any equity securities to any officer,
director or Affiliate, except pursuant to existing Company stock option or stock
grant plans.

     

    (j)           Litigation.  Except
as set forth on Schedule 3.1(j) or as set
forth in the SEC Reports, there is no action, suit, inquiry, notice of
violation, proceeding or investigation pending or, to the knowledge of the
Company, threatened against or affecting the Company, any Subsidiary or any of
their respective properties before or by any court, arbitrator, governmental or
administrative agency or regulatory authority (federal, state, county, local or
foreign) (collectively, an “Action”) which (i)
adversely affects or challenges the legality, validity or enforceability of any
of the Transaction Documents or the Securities or (ii) could, if there were an
unfavorable decision, have or reasonably be expected to result in a Material
Adverse Effect.  Neither the Company nor any Subsidiary, nor, to the
best of the knowledge of the Company, any director or officer thereof, is or has
been the subject of any Action involving a claim of violation of or liability
under federal or state securities laws or a claim of breach of fiduciary
duty.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (k)           Labor
Relations.  No material labor dispute exists or, to the
knowledge of the Company, is imminent with respect to any of the employees of
the Company or any Subsidiary which could reasonably be expected to result in a
Material Adverse Effect.  None of the Company’s or its Subsidiaries’
employees is a member of a union that relates to such employee’s relationship
with the Company, and neither the Company nor any of its Subsidiaries is a party
to a collective bargaining agreement, and the Company and its Subsidiaries
believe that their relationships with their employees are good.  No
executive officer, to the knowledge of the Company, is, or is now expected to
be, in violation of any material term of any employment contract,
confidentiality, disclosure or proprietary information agreement or
non-competition agreement, or any other contract or agreement or any restrictive
covenant, and, to the knowledge of the Company, the continued employment of each
such executive officer does not subject the Company or any of its Subsidiaries
to any liability with respect to any of the foregoing matters.  To the
knowledge of the Company, the Company and its Subsidiaries are in compliance
with all U.S. federal, state, local and foreign laws and regulations relating to
employment and employment practices, terms and conditions of employment and
wages and hours, except where the failure to be in compliance could not,
individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect.

     

    (l)           Compliance.  Except
as set forth on Schedule 3.1(l),
neither the Company nor any Subsidiary (i) is in material default under or in
violation of (and no event has occurred that has not been waived that, with
notice or lapse of time or both, would result in a default by the Company or any
Subsidiary under), nor has the Company or any Subsidiary received notice of a
claim that it is in default under or that it is in violation of, any indenture,
loan or credit agreement or any other agreement or instrument to which it is a
party or by which it or any of its properties is bound (whether or not such
default or violation has been waived), (ii) is in violation of any order of any
court, arbitrator or governmental body, or (iii) to the knowledge of the
Company, is or has been in violation of any statute, rule or regulation of any
governmental authority, including without limitation all foreign, federal, state
and local laws applicable to its business and all such laws that affect the
environment, except in each case as could not have or reasonably be expected to
result in a Material Adverse Effect.

     

    (m)           Regulatory
Permits.  Except as set forth in Schedule 3.1(m)
hereto, the Company and the Subsidiaries possess all certificates,
authorizations and permits issued by the appropriate federal, state, local or
foreign regulatory authorities necessary to conduct their respective businesses
as described in the SEC Reports, except where the failure to possess such
permits could not have or reasonably be expected to result in a Material Adverse
Effect (“Material
Permits”), and neither the Company nor any Subsidiary has received any
notice of proceedings relating to the revocation or modification of any Material
Permit.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (n)           Title to
Assets.  The Company and the Subsidiaries have good and
marketable title in fee simple to all real property owned by them and good and
marketable title in all personal property owned by them that is material to the
business of the Company and the Subsidiaries, in each case free and clear of all
Liens, except for Liens as do not materially affect the value of such property
and do not materially interfere with the use made and proposed to be made of
such property by the Company and the Subsidiaries, Liens for the payment of
federal, state or other taxes, the payment of which is neither delinquent nor
subject to penalties and Liens set forth on Schedule
3.1(n).  Any real property and facilities held under lease by
the Company and the Subsidiaries are held by them under valid, subsisting and
enforceable leases with which the Company and the Subsidiaries are in
compliance.

     

    (o)           Patents and
Trademarks.  Except as set forth on Schedule 3.1(o), to
our knowledge, the Company and the Subsidiaries have, or have rights to use, all
patents, patent applications, trademarks, trademark applications, service marks,
trade names, trade secrets, inventions, copyrights, licenses and other
intellectual property rights and similar rights necessary or material for use in
connection with their respective businesses as described in the SEC Reports and
which the failure to so have could have a Material Adverse Effect (collectively,
the “Intellectual
Property Rights”).  Neither the Company nor any Subsidiary has
received a notice (written or otherwise) that the Intellectual Property Rights
used by the Company or any Subsidiary violate or infringe upon the rights of any
Person unless such notice has been resolved without a Material Adverse Effect.
To the knowledge of the Company, all such Intellectual Property Rights are
enforceable and there is no existing infringement by another Person of any of
the Intellectual Property Rights.  The Company and its Subsidiaries
have taken reasonable security measures to protect the secrecy, confidentiality
and value of all of their intellectual properties, except where failure to do so
could not, individually or in the aggregate, reasonably be expecting to have a
Material Adverse Effect.

     

    (p)           Insurance.  Except
as set forth in Schedule 3.1(p)
hereto, the Company and the Subsidiaries are insured by insurers of recognized
financial responsibility against such losses and risks and in such amounts as
are prudent and customary in the businesses in which the Company and the
Subsidiaries are engaged, including, but not limited to, directors and officers
insurance coverage at least equal to the aggregate Subscription
Amount.  Neither the Company nor any Subsidiary has any reason to
believe that it will not be able to renew its existing insurance coverage as and
when such coverage expires or to obtain similar coverage from similar insurers
as may be necessary to continue its business without a significant increase in
cost.

     

    (q)           Transactions With Affiliates
and Employees.  Except as set forth in the SEC Reports or as
set forth on Schedule
3.1(q), none of the officers or directors of the Company or any
Subsidiary and, to the knowledge of the Company, none of the employees of the
Company or any Subsidiary is presently a party to any transaction with the
Company or any Subsidiary (other than for services as employees, officers and
directors), including any contract, agreement or other arrangement providing for
the furnishing of services to or by, providing for rental of real or personal
property to or from, or otherwise requiring payments to or from any officer,
director or such employee or, to the knowledge of the Company, any entity in
which any officer, director, or any such employee has a substantial interest or
is an officer, director, trustee or partner, other than (i) for payment of
salary or consulting fees for services rendered, (ii) reimbursement for expenses
incurred on behalf of the Company or a Subsidiary and (iii) for other employee
benefits, including stock option or stock grant agreements under any stock plans
of the Company.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (r)           No Disagreements with
Auditors and Lawyers.  To the knowledge of the Company, there
are no material disagreements of any kind presently existing, or reasonably
anticipated by the Company to arise, between the Company and the auditors and
lawyers formerly or presently employed by the Company.

     

    (s)           Certain
Fees.  Except as set forth on Schedule 3.1(s), no
brokerage or finder’s fees or commissions are or will be payable by the Company
to any broker, financial advisor or consultant, finder, placement agent,
investment banker, bank or other Person with respect to the transactions
contemplated by the Transaction Documents.  Except as set forth on
Schedule
3.1(s), the Purchaser shall have no obligation with respect to any fees
or with respect to any claims made by or on behalf of other Persons for fees of
a type contemplated in this Section that may be due in connection with the
transactions contemplated by the Transaction Documents.

     

    (t)           Private
Placement.  Assuming the accuracy of the Purchaser’s
representations and warranties set forth in Section 3.2, no
registration under the Securities Act is required for the offer and sale of the
Securities by the Company to the Purchaser as contemplated hereby.

     

    (u)           Investment Company.
The Company is not, and is not an Affiliate of, and immediately after receipt of
payment for the Securities, will not be or be an Affiliate of, an “investment
company” within the meaning of the Investment Company Act of 1940, as
amended.  The Company shall conduct its business in a manner so that
it will not become subject to the Investment Company Act.

     

    (v)           Registration
Rights.  Other than as set forth on Schedule 3.1(v) or as
set forth in the SEC Reports, no Person has any right to cause the Company to
effect the registration under the Securities Act of any securities of the
Company.

     

    (w)           Disclosure.    All
disclosure furnished by or on behalf of the Company to the Purchaser regarding
the Company, its business and the transactions contemplated hereby, including
the Disclosure Schedules to this Agreement, is true and correct and does not
contain any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements made therein, in light of the
circumstances under which they were made, not misleading. The Company
acknowledges and agrees that Purchaser has not made any representations or
warranties with respect to the transactions contemplated hereby other than those
specifically set forth in Section 3.2
hereof.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (x)           No Integrated
Offering. Assuming the accuracy of the Purchaser’s representations and
warranties set forth in Section 3.2, neither
the Company, nor any of its affiliates, nor any Person acting on its or their
behalf has, directly or indirectly, made any offers or sales of any security or
solicited any offers to buy any security, under circumstances that would cause
this offering of the Securities to be integrated with prior offerings by the
Company for purposes of the Securities Act.

     

    (y)           Solvency.  Based
on the financial condition of the Company as of the Closing Date after giving
effect to the receipt by the Company of the proceeds from the sale of the
Securities hereunder, (i) the fair saleable value of the Company’s assets
exceeds the amount that will be required to be paid on or in respect of the
Company’s existing debts and other liabilities (including known contingent
liabilities) as they mature, (ii) the Company’s assets do not constitute
unreasonably small capital to carry on its business as now conducted and as
proposed to be conducted including its capital needs taking into account the
particular capital requirements of the business conducted by the Company, and
projected capital requirements and capital availability thereof and (iii) the
current cash flow of the Company, together with the proceeds the Company would
receive, were it to liquidate all of its assets, after taking into account all
anticipated uses of the cash, would be sufficient to pay all amounts on or in
respect of its liabilities when such amounts are required to be
paid.  The Company does not intend to incur debts beyond its ability
to pay such debts as they mature (taking into account the timing and amounts of
cash to be payable on or in respect of its debt).  The Company has no
knowledge of any facts or circumstances which lead it to believe that it will
file for reorganization or liquidation under the bankruptcy or reorganization
laws of any jurisdiction within one (1) year from the Closing Date.

     

    (z)            Schedule 3.1(z) sets
forth as of the dates thereof all outstanding secured and unsecured Indebtedness
of the Company or any Subsidiary, or for which the Company or any Subsidiary has
commitments.  For the purposes of this Agreement, “Indebtedness” shall
mean (a) any liabilities for borrowed money or amounts owed (other than trade
accounts payable incurred in the ordinary course of business) in excess of
$50,000, (b) all guaranties, endorsements and other contingent obligations in
respect of Indebtedness of others, whether or not the same are or should be
reflected in the Company’s balance sheet (or the notes thereto), except
guaranties by endorsement of negotiable instruments for deposit or collection or
similar transactions in the ordinary course of business; and (c) the present
value of any lease payments in excess of $50,000 due under leases required to be
capitalized in accordance with GAAP.  Neither the Company nor any
Subsidiary is in default with respect to any Indebtedness.

     

    (aa)           Tax Status.  The
Company has timely filed all tax returns, reports, declarations, statements, and
other information required by law to be filed with or supplied to any taxing
authority with respect to the Taxes (as defined below) owed by the Company (the
“Tax
Returns”).  All Taxes due and payable on or before the Closing
have been paid or will be paid prior to the time they become
delinquent.  All Taxes that the Company is or was required by law to
withhold or collect have been duly withheld or collected and, to the extent
required, have been paid to the proper governmental entity.  The
Company has not been advised (a) that any of the Tax Returns have been or are
being examined or audited as of the date hereof, (b) that any such examination
or audit is currently threatened or contemplated, or (c) of any deficiency in
assessment or proposed judgment to its Taxes.  The Company has no
knowledge of any liability for any Taxes to be imposed upon its properties or
assets as of the date of this Agreement that are not adequately provided for on
the Balance Sheet.  The Company has delivered or made available to the
Investor true and complete copies of all federal income Tax Returns, examination
reports, and statements of deficiencies filed by, assessed against or agreed to
by the Company in the past three years.  The Company has never been a
member of a consolidated or affiliated group of corporations filing a
consolidated or combined income Tax Return, nor does the Company have any
liability for Taxes of any other person or entity.  The Company is not
a party to any tax allocation or sharing arrangement or tax indemnity
agreement.  For purposes of this Agreement, the term “Taxes”
shall mean all taxes, charges, fees, levies, or other similar assessments or
liabilities, including, without limitation, income, gross receipts, ad valorem,
premium, value-added, excise, real property, personal property, sales, use,
transfer, withholding, employment, payroll, and franchise taxes imposed by the
United States of America or any other governmental entity, and any interest,
fines, penalties, assessments, or additions to tax resulting from, attributable
to or incurred in connection with any tax or any contest or dispute
thereof.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (bb)           No General
Solicitation. Neither the Company nor any person acting on behalf of the
Company has offered or sold any of the Securities by any form of general
solicitation or general advertising.  The Company has offered the
Securities for sale only to the Purchaser.

     

    (cc)           Acknowledgment Regarding
Purchaser’s Purchase of Securities.  The Company acknowledges
and agrees that the Purchaser is acting solely in the capacity of an arm’s
length purchaser with respect to the Transaction Documents and the transactions
contemplated thereby.  The Company further acknowledges that no
Purchaser is acting as a financial advisor or fiduciary of the Company (or in
any similar capacity) with respect to the Transaction Documents and the
transactions contemplated thereby and any advice given by Purchaser or any of
their respective representatives or agents in connection with the Transaction
Documents and the transactions contemplated thereby is merely incidental to the
Purchaser’s purchase of the Securities.  The Company further
represents to Purchaser that the Company’s decision to enter into this Agreement
and the other Transaction Documents has been based solely on the independent
evaluation of the transactions contemplated hereby by the Company and its
representatives.

     

    (dd)           Acknowledgement Regarding
Purchaser’s Trading Activity.  Anything in this Agreement or
elsewhere herein to the contrary notwithstanding, it is understood and
acknowledged by the Company (i) that the Purchaser has not been asked to agree,
nor has Purchaser agreed, to desist from purchasing or selling, long and/or
short, securities of the Company, or “derivative” securities based on securities
issued by the Company or to hold the Securities for any specified term; (ii)
that past or future open market or other transactions by the Purchaser,
including Short Sales, and specifically including, without limitation, Short
Sales or “derivative” transactions, before or after the closing of this or
future private placement transactions, may negatively impact the market price of
the Company’s publicly-traded securities; (iii) that Purchaser, and
counter-parties in “derivative” transactions to which any such Purchaser is a
party, directly or indirectly, presently may have a “short” position in the
Common Stock, and (iv) that Purchaser shall not be deemed to have any
affiliation with or control over any arm’s length counter-party in any
“derivative” transaction.  The Company further understands and
acknowledges that (a)  Purchaser may engage in hedging activities at
various times during the period that the Securities are outstanding, including,
without limitation, during the periods that the value of the Warrant Shares
deliverable with respect to Securities are being determined and (b) such hedging
activities (if any) could reduce the value of the existing stockholders' equity
interests in the Company at and after the time that the hedging activities are
being conducted.  The Company acknowledges that such aforementioned
hedging activities do not constitute a breach of any of the Transaction
Documents.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (ee)           Manipulation of
Price.  The Company has not, and to its knowledge no one acting
on its behalf has, (i) taken, directly or indirectly, any action designed to
cause or to result in the stabilization or manipulation of the price of any
security of the Company to facilitate the sale or resale of any of the
Securities, (ii) except as set forth on Schedule 3.1(ff) or
private transactions not involving a market maker, sold, bid for, purchased, or
paid any compensation for soliciting purchases of, any of the securities of the
Company  or (iii) paid or agreed to pay to any person any compensation
for soliciting another to purchase any other securities of the Company, other
than, in the case of clauses (ii) and (iii), compensation paid to the Company’s
placement agent in connection with the placement of the Securities.

     

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

     

    (a)           Organization;
Authority.  Purchaser is an entity duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
organization with full right, corporate or partnership power and authority to
enter into and to consummate the transactions contemplated by the Transaction
Documents and otherwise to carry out its obligations hereunder and
thereunder.  The execution, delivery and performance by such Purchaser
of the transactions contemplated by this Agreement have been duly authorized by
all necessary corporate or similar action on the part of
Purchaser.  Each Transaction Document to which it is a party has been
duly executed by Purchaser, and when delivered by Purchaser in accordance with
the terms hereof, will constitute the valid and legally binding obligation of
Purchaser, enforceable against it in accordance with its terms, except (i) as
limited by general equitable principles and applicable bankruptcy, insolvency,
reorganization, moratorium and other laws of general application affecting
enforcement of creditors’ rights generally, (ii) as limited by laws relating to
the availability of specific performance, injunctive relief or other equitable
remedies and (iii) insofar as indemnification and contribution provisions may be
limited by applicable law.

     

    (b)           Own
Account.  Purchaser understands that the Securities are
“restricted securities” and have not been registered under the Securities Act or
any applicable state securities law and is acquiring the Securities as principal
for its own account and not with a view to or for distributing or reselling such
Securities or any part thereof in violation of the Securities Act or any
applicable state securities law, has no present intention of distributing any of
such Securities in violation of the Securities Act or any applicable state
securities law and has no direct or indirect arrangement or understandings with
any other persons to distribute or regarding the distribution of such Securities
(this representation and warranty not limiting such Purchaser’s right to sell
the Securities pursuant to a registration statement or otherwise in compliance
with applicable federal and state securities laws) in violation of the
Securities Act or any applicable state securities law.  Purchaser is
acquiring the Securities hereunder in the ordinary course of its
business.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c)           Purchaser
Status.  At the time Purchaser was offered the Securities, it
was, and at the date hereof it is, and on each date on which it exercises any
Warrants it will be either: (i) an “accredited investor” as defined in Rule 501
under the Securities Act or (ii) a “qualified institutional buyer” as defined in
Rule 144A(a) under the Securities Act.  Such Purchaser is not required
to be registered as a broker-dealer under Section 15 of the Exchange
Act.

     

    (d)           Experience of Such
Purchaser.  Purchaser, either alone or together with its
representatives, has such knowledge, sophistication and experience in business
and financial matters so as to be capable of evaluating the merits and risks of
the prospective investment in the Securities, and has so evaluated the merits
and risks of such investment.  Purchaser is able to bear the economic
risk of an investment in the Securities and, at the present time, is able to
afford a complete loss of such investment.

     

    (e)           General
Solicitation.  Purchaser is not purchasing the Securities as a
result of any advertisement, article, notice or other communication regarding
the Securities published in any newspaper, magazine or similar media or
broadcast over television or radio or presented at any seminar or any other
general solicitation or general advertisement.

     

    (f)           Short Sales and
Confidentiality Prior To The Date Hereof.  Other than the
transaction contemplated hereunder, Purchaser has not directly or indirectly,
nor has any Person acting on behalf of or pursuant to any understanding with
Purchaser, executed any disposition, including Short Sales, in the securities of
the Company during the period commencing from the time that Purchaser first
received a term sheet (written or oral) from the Company or any other Person
setting forth the material terms of the transactions contemplated hereunder
until the date hereof (“Discussion
Time”).  Notwithstanding the foregoing, in the case of a
Purchaser that is a multi-managed investment vehicle whereby separate portfolio
managers manage separate portions of Purchaser's assets and the portfolio
managers have no direct knowledge of the investment decisions made by the
portfolio managers managing other portions of Purchaser's assets, the
representation set forth above shall only apply with respect to the portion of
assets managed by the portfolio manager that made the investment decision to
purchase the Securities covered by this Agreement.  Other than to
other Persons party to this Agreement, Purchaser has maintained the
confidentiality of all disclosures made to it in connection with this
transaction (including the existence and terms of this
transaction).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (g)           Risk
Factors.  Purchaser hereby agrees and acknowledges that it has
been informed of the following: (i) there are factors relating to the subsequent
transfer of any Securities acquired hereunder that could make the resale of such
Securities difficult; and (ii) there is no guarantee that Purchaser will realize
any gain from the purchase of the Securities.  The purchase of the
Securities involves a high degree of risk and is subject to many
uncertainties.  These risks and uncertainties may adversely affect the
Company’s business, operating results and financial condition.  In
such an event, the trading price for the Common Stock could decline
substantially and Purchaser could lose all or part of its
investment.

     

    (h)           Due
Diligence.  Purchaser hereby agrees and acknowledges that
Purchaser has had an opportunity to meet with representatives of the Company and
to ask questions and receive answers to Purchaser’s satisfaction regarding the
Company’s proposed business and the Company’s financial condition in order to
assist Purchaser in evaluating the merits and risks of purchasing the
Securities.  All material documents and information pertaining to the
Company and the purchase of Securities hereunder that have been requested by
Purchaser have been made available to Purchaser.

     

    (i)           Certain
Fees.  Purchaser has not employed any broker or finder or
incurred any liability for any brokerage or investment banking fees,
commissions, finders’ structuring fees, financial advisory fees or other similar
fees in connection with the Transaction Documents.

     

    ARTICLE
IV

    OTHER
AGREEMENTS OF THE PARTIES

     

    4.1           Transfer
Restrictions.

     

    (a)           The
Securities may only be disposed of in compliance with state and federal
securities laws.  In connection with any transfer of Securities other
than pursuant to an effective registration statement or Rule 144, to the Company
or to an Affiliate of  Purchaser or in connection with a pledge as
contemplated in Section 4.1(b), the
Company may require the transferor thereof to provide to the Company an opinion
of counsel selected by the transferor and reasonably acceptable to the Company,
the form and substance of which opinion shall be reasonably satisfactory to the
Company, to the effect that such transfer does not require registration of such
transferred Securities under the Securities Act.  As a condition of
transfer, any such transferee shall agree in writing to be bound by the terms of
this Agreement and shall have the rights of a Purchaser under this
Agreement.

     

    (b)           The
Purchaser agrees to the imprinting, so long as is required by this Section 4.1, of a
legend on any of the Securities in the following form:

     

    NEITHER
THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE HAVE
BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES
COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER
THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM,
OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE
SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY.  THIS SECURITY AND THE SECURITIES ISSUABLE UPON [EXERCISE]
[CONVERSION] OF THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE
MARGIN ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (a)                      The
Company acknowledges and agrees that Purchaser may from time to time pledge
pursuant to a bona fide margin agreement with a registered broker-dealer or
grant a security interest in some or all of the Securities to a financial
institution that is an “accredited investor” as defined in Rule 501(a) under the
Securities Act and who agrees to be bound by the provisions of this Agreement
and, if required under the terms of such arrangement, Purchaser may transfer
pledged or secured Securities to the pledgees or secured
parties.  Such a pledge or transfer would not be subject to approval
of the Company, provided, however, the Company may require the Purchaser to
provide to the Company an opinion of counsel selcected by the Purchaser and
reasonably acceptable to the Company, the form and substance of which opinion
shall be reasonably satisfactory to the Company to the effect that such transfer
or pledge does not require registration of such transferred or pledged
Securities under the Securities Act.  At Purchaser’s expense, the
Company will execute and deliver such reasonable documentation as a pledgee or
secured party of Securities may reasonably request in connection with a pledge
or transfer of the Securities, including,  the preparation and filing
of any required prospectus supplement under Rule 424(b)(3) under the Securities
Act or other applicable provision of the Securities Act to appropriately amend
the list of selling stockholders thereunder.

     

    4.2           Acknowledgment of
Dilution.  The Company acknowledges that the issuance of the
Securities may result in dilution of the outstanding shares of Common Stock,
which dilution may be substantial under certain market
conditions.  The Company further acknowledges that its obligations
under the Transaction Documents, including without limitation its obligation to
issue the Warrant Shares pursuant to the Transaction Documents, are
unconditional and absolute and not subject to any right of set off,
counterclaim, delay or reduction, regardless of the effect of any such dilution
or any claim the Company may have against any Purchaser and regardless of the
dilutive effect that such issuance may have on the ownership of the other
stockholders of the Company.

     

    4.3           Integration.  The
Company shall not sell, offer for sale or solicit offers to buy or otherwise
negotiate in respect of any security (as defined in Section 2 of the Securities
Act) that would be integrated with the offer or sale of the Securities in a
manner that would require the registration under the Securities Act of the sale
of the Securities to the Purchaser.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.4           Shareholder Rights
Plan.  No claim will be made or enforced by the Company or,
with the consent of the Company, any other Person, that Purchaser is an
“Acquiring Person” under any control share acquisition, business combination,
poison pill (including any distribution under a rights agreement) or similar
anti-takeover plan or arrangement in effect or hereafter adopted by the Company,
or that Purchaser could be deemed to trigger the provisions of any such plan or
arrangement, by virtue of receiving Securities under the Transaction Documents
or under any other agreement between the Company and the Purchaser.

     

    4.5           Use of
Proceeds.  Except as set forth on Schedule 4.5 attached
hereto, the Company shall use the net proceeds from the sale of the Securities
hereunder for working capital purposes and not for the satisfaction of any
portion of the Company’s debt (other than payment of trade payables in the
ordinary course of the Company’s business and prior practices, including
attorney’s and professional fees), to redeem any Common Stock or Common Stock
Equivalents or to settle any outstanding litigation.

     

    4.6           Reimbursement.  If
Purchaser becomes involved in any capacity in any Proceeding by or against any
Person who is a stockholder of the Company (except as a result of sales,
pledges, margin sales and similar transactions by such Purchaser to or with any
other stockholder), solely as a result of Purchaser’s acquisition of the
Securities from the Company under this Agreement, the Company will reimburse
Purchaser for its reasonable legal and other expenses (including the cost of any
investigation preparation and travel in connection therewith) incurred in
connection therewith, as such expenses are incurred.  The
reimbursement obligations of the Company under this paragraph shall be in
addition to any liability which the Company may otherwise have, shall extend
upon the same terms and conditions to any Affiliates of the Purchaser who are
actually named in such action, proceeding or investigation, and partners,
directors, agents, employees and controlling persons (if any), as the case may
be, of the Purchaser and any such Affiliate, and shall be binding upon and inure
to the benefit of any successors, assigns, heirs and personal representatives of
the Company, the Purchaser and any such Affiliate and any such
Person.  The Company also agrees that neither the Purchaser nor any
such Affiliates, partners, directors, agents, employees or controlling persons
shall have any liability to the Company or any Person asserting claims on behalf
of or in right of the Company solely as a result of acquiring the Securities
under this Agreement.

     

    4.7           Indemnification of
Purchaser.   Subject to the provisions of this Section 4.7, the
Company will indemnify and hold Purchaser and its directors, officers,
shareholders, members, partners, employees and agents (and any other Persons
with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title), each Person who
controls Purchaser (within the meaning of Section 15 of the Securities Act and
Section 20 of the Exchange Act), and the directors, officers, shareholders,
agents, members, partners or employees (and any other Persons with a
functionally equivalent role of a Person holding such titles notwithstanding a
lack of such title or any other title) of such controlling person (each, a
“Purchaser
Party”) harmless from any and all losses, liabilities, obligations,
claims, contingencies, damages, costs and expenses, including all judgments,
amounts paid in settlements, court costs and reasonable attorneys’ fees and
costs of investigation that any such Purchaser Party may suffer or incur as a
result of or relating to (a) any breach of any of the representations,
warranties, covenants or agreements made by the Company in this Agreement or in
the other Transaction Documents or (b) any action instituted against Purchaser,
or any of its  Affiliates, by any stockholder of the Company who is
not an Affiliate of such Purchaser, solely as a result of such Purchaser’s
acquisition of the Securities pursuant to this Agreement (unless such action is
based upon a breach of such Purchaser’s representations, warranties or covenants
under the Transaction Documents or any agreements or understandings such
Purchaser may have with any such stockholder or any violations by the Purchaser
of state or federal securities laws or any conduct by such Purchaser which
constitutes fraud, gross negligence, willful misconduct or
malfeasance).  If any action shall be brought against any Purchaser
Party in respect of which indemnity may be sought pursuant to this Agreement,
such Purchaser Party shall promptly notify the Company in writing, and the
Company shall have the right to assume the defense thereof with counsel of its
own choosing reasonably acceptable to the Purchaser Party.  Any
Purchaser Party shall have the right to employ separate counsel in any such
action and participate in the defense thereof, but the fees and expenses of such
counsel shall be at the expense of such Purchaser Party except to the extent
that (i) the employment thereof has been specifically authorized by the Company
in writing, (ii) the Company has failed after a reasonable period of time to
assume such defense and to employ counsel or (iii) in such action there is, in
the reasonable opinion of such separate counsel, a material conflict on any
material issue between the position of the Company and the position of such
Purchaser Party, in which case the Company shall be responsible for the
reasonable fees and expenses of no more than one (1) such separate
counsel.  The Company will not be liable to any Purchaser Party under
this Agreement (i) for any settlement by a Purchaser Party effected without the
Company’s prior written consent, which shall not be unreasonably withheld or
delayed; or (ii) to the extent, but only to the extent that a loss, claim,
damage or liability is attributable to any Purchaser Party’s breach of any of
the representations, warranties, covenants or agreements made by such Purchaser
Party in this Agreement or in the other Transaction Documents, except if such
claim arises primarily from a breach of such Purchaser’s representations,
warranties or covenants under the Transaction Documents or any agreements or
understandings such Purchaser may have with any such stockholder or any
violations by the Purchaser of state or federal securities laws or any conduct
by such Purchaser which constitutes fraud, gross negligence, willful misconduct
or malfeasance..

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.8           Reservation and Listing of
Securities.

     

    (a)           The
Company shall maintain a reserve from its duly authorized shares of Common Stock
for issuance pursuant to the Transaction Documents in such amount as may be
required to fulfill its obligations in full under the Transaction
Documents.

     

    (b)           If,
on any date, the number of authorized but unissued (and otherwise unreserved)
shares of Common Stock is less than the Required Minimum on such date, then the
Board of Directors of the Company shall use commercially reasonable efforts to
amend the Company’s certificate or articles of incorporation to increase the
number of authorized but unissued shares of Common Stock to at least the
Required Minimum at such time, as soon as possible and in any event not later
than the 90th day after such date.

     

    4.9           Participation in Future
Financing.

     

    (a)           From
the date hereof until the date that is the one (1) year anniversary of the
Closing Date, upon any issuance by the Company or any of its Subsidiaries of
Common Stock or Common Stock Equivalents (a “Subsequent
Financing”), Purchaser shall have the pro-rata right to participate in
the Subsequent Financing on the same terms, conditions and price provided for in
the Subsequent Financing.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b)           At
least ten (10) Trading Days prior to the closing of the Subsequent Financing,
the Company shall deliver to Purchaser a written notice of its intention to
effect a Subsequent Financing (“Pre-Notice”), which
Pre-Notice shall ask Purchaser if it wants to review the details of such
financing (such additional notice, a “Subsequent Financing
Notice”).  Upon the request of Purchaser, and only upon a
request by such Purchaser, for a Subsequent Financing Notice, the Company shall
promptly, but no later than one (1) Trading Day after such request, deliver a
Subsequent Financing Notice to Purchaser.  The Subsequent Financing
Notice shall describe in reasonable detail the proposed terms of such Subsequent
Financing, the amount of proceeds intended to be raised thereunder, the Person
or Persons through or with whom such Subsequent Financing is proposed to be
effected, and attached to which shall be a term sheet or similar document
relating thereto.

     

    (c)           Any
Purchaser desiring to participate in such Subsequent Financing must provide
written notice to the Company by not later than 5:30 p.m. (New York City time)
on the 10th Trading Day after the Purchaser has received the Pre-Notice that the
Purchaser is willing to participate in the Subsequent Financing, the amount of
the Purchaser’s participation, and that the Purchaser has such funds ready,
willing, and available for investment on the terms set forth in the Subsequent
Financing Notice.  If the Company receives no notice from a Purchaser
as of such 10th Trading Day, such Purchaser shall be deemed to have notified the
Company that it does not elect to participate.

     

    (d)           If
by 5:30 p.m. (New York City time) on the 10th Trading Day after the Purchaser
has received the Pre-Notice, notifications by Purchaser of its willingness to
participate in the Subsequent Financing (or to cause their designees to
participate) is, in the aggregate, less than the total amount of the Subsequent
Financing, then the Company may effect the remaining portion of such Subsequent
Financing on the terms and with the Persons set forth in the Subsequent
Financing Notice.

     

    (e)           Notwithstanding
the foregoing, this Section 4.9 shall not
apply in respect of (i) an Exempt Issuance, and (ii) shares of Common Stock
issued solely in connection with dividends required to be paid under the terms
and conditions of the Series E Convertible Preferred Stock.

     

    4.10           Variable Rate
Transactions.  From the date hereof until the twelve (12) month
anniversary of the Closing Date, the Company shall be prohibited from effecting
or entering into an agreement to effect any Subsequent Financing involving a
“Variable Rate Transaction,”  The term “Variable Rate Transaction”
shall mean a transaction in which the Company issues or sells (i) any debt or
equity securities that are convertible into, exchangeable or exercisable for, or
include the right to receive additional shares of Common Stock either at a
conversion, exercise or exchange rate or other price that is based upon and/or
varies with the trading prices of or quotations in the public secondary market
for the shares  of Common Stock at any time after the initial issuance
of such debt or equity securities, or  (ii) enters into any agreement,
including, but not limited to, an equity line of credit, whereby the Company may
sell securities at a future determined price.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4.11           Form D; Blue Sky
Filings.  The Company agrees to timely file a Form D with
respect to the Securities as required under Regulation D and to provide a copy
thereof, promptly upon request of Purchaser. The Company shall take such action
as the Company shall reasonably determine is necessary in order to obtain an
exemption for, or to qualify the Securities for, sale to the Purchaser at the
Closing under applicable securities or “Blue Sky” laws of the states of the
United States, and shall provide evidence of such actions promptly upon request
of Purchaser.

     

    4.12           Short Sales and
Confidentiality After The Date Hereof. The Purchaser covenants that
neither it nor any Affiliate acting on its behalf or pursuant to any
understanding with it will execute any Short Sales during the period commencing
at the Discussion Time and ending at the time that the transactions contemplated
by this Agreement are first publicly announced.  The Purchaser
covenants that until such time as the transactions contemplated by this
Agreement are publicly disclosed by the Company, such Purchaser will maintain
the confidentiality of all disclosures made to it in connection with this
transaction (including the existence and terms of this
transaction).  Notwithstanding the foregoing, no Purchaser makes any
representation, warranty or covenant hereby that it will not engage in Short
Sales in the securities of the Company after the time that the transactions
contemplated by this Agreement are first publicly announced.

     

    ARTICLE
V

    MISCELLANEOUS

     

    5.1           Fees and
Expenses.  Except as expressly set forth in the Transaction
Documents to the contrary, each party shall pay the fees and expenses of its
advisers, counsel, accountants and other experts, if any, and all other expenses
incurred by such party incident to the negotiation, preparation, execution,
delivery and performance of this Agreement.  The Company shall pay all
transfer agent fees, stamp taxes and other taxes and duties levied in connection
with the delivery of any Securities to the Purchaser.

     

    5.2           Entire
Agreement.  The Transaction Documents, together with the
exhibits and schedules thereto, contain the entire understanding of the parties
with respect to the subject matter hereof and supersede all prior agreements and
understandings, oral or written, with respect to such matters, which the parties
acknowledge have been merged into such documents, exhibits and
schedules.

     

    5.3           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 (a) the date of transmission, if such notice or
communication is delivered via facsimile at the facsimile number set forth on
the signature pages attached hereto prior to 5:30 p.m. (New York City time) on a
Trading Day, (b) the next Trading Day after the date of transmission, if such
notice or communication is delivered via facsimile at the facsimile number set
forth on the signature pages attached hereto on a day that is not a Trading Day
or later than 5:30 p.m. (New York City time) on any Trading Day, (c) the 2nd
Trading Day following the date of mailing, if sent by U.S. nationally recognized
overnight courier service, or (d) upon actual receipt by the party to whom such
notice is required to be given.  The address for such notices and
communications shall be as set forth on the signature pages attached
hereto.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5.4           Amendments;
Waivers.  No provision of this Agreement may be waived,
modified, supplemented or amended except in a written instrument signed, in the
case of an amendment, by the Company and the Purchaser or, in the case of a
waiver, by the party against whom enforcement of any such waived provision is
sought.  No waiver of any default with respect to any provision,
condition or requirement of this Agreement shall be deemed to be a continuing
waiver in the future or a waiver of any subsequent default or a waiver of any
other provision, condition or requirement hereof, nor shall any delay or
omission of any party to exercise any right hereunder in any manner impair the
exercise of any such right.

     

    5.5           Headings.  The
headings herein are for convenience only, do not constitute a part of this
Agreement and shall not be deemed to limit or affect any of the provisions
hereof.

     

    5.6           Successors and
Assigns.  This Agreement shall be binding upon and inure to the
benefit of the parties and their successors and permitted
assigns.  The Company may not assign this Agreement or any rights or
obligations hereunder without the prior written consent of Purchaser (other than
by merger).  Purchaser may assign any or all of its rights under this
Agreement to any Person to whom such Purchaser assigns or transfers any
Securities, provided such transferee agrees in writing to be bound, with respect
to the transferred Securities, by the provisions of the Transaction Documents
that apply to the “Purchaser”.

     

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

     

    5.8           Governing
Law.  All questions concerning the construction, validity,
enforcement and interpretation of the Transaction Documents shall be governed by
and construed and enforced in accordance with the internal laws of the State of
New York, without regard to the principles of conflicts of law
thereof.  Each party agrees that all legal proceedings concerning the
interpretations, enforcement and defense of the transactions contemplated by
this Agreement and any other Transaction Documents (whether brought against a
party hereto or its respective affiliates, directors, officers, shareholders,
employees or agents) shall be commenced exclusively in the state and federal
courts sitting in New York County, New York.  Each party hereby
irrevocably submits to the exclusive jurisdiction of the state and federal
courts sitting in New York County, New York for the adjudication of any dispute
hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein (including with respect to the enforcement of any of the
Transaction Documents), and hereby irrevocably waives, and agrees not to assert
in any suit, action or proceeding, any claim that it is not personally subject
to the jurisdiction of any such court, that such suit, action or proceeding is
improper or is an inconvenient venue for such proceeding.  Each party
hereby irrevocably waives personal service of process and consents to process
being served in any such suit, action or proceeding by mailing a copy thereof
via registered or certified mail or overnight delivery (with evidence of
delivery) to such party at the address in effect for notices to it under this
Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof.  Nothing contained herein shall
be deemed to limit in any way any right to serve process in any other manner
permitted by law.  The parties hereby waive all rights to a trial by
jury.  If either party shall commence an action or proceeding to
enforce any provisions of the Transaction Documents, then the prevailing party
in such action or proceeding shall be reimbursed by the other party for its
reasonable attorneys’ fees and other costs and expenses incurred with the
investigation, preparation and prosecution of such action or
proceeding.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    5.9           Survival.  The
representations, warranties, covenants and other agreements contained herein
shall survive the Closing and the delivery, exercise and/or conversion of the
Securities, as applicable for a period of two (2) years from the date of this
Agreement.

     

    5.10           Execution.  This
Agreement may be executed in two (2) or more counterparts, all of which when
taken together shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to the
other party, it being understood that both parties need not sign the same
counterpart.  In the event that any signature is delivered by
facsimile transmission or by e-mail delivery of a “.pdf” format data file, such
signature shall create a valid and binding obligation of the party executing (or
on whose behalf such signature is executed) with the same force and effect as if
such facsimile or “.pdf” signature page were an original thereof.

     

    5.11           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.

     

    5.12           Remedies.  In
addition to being entitled to exercise all rights provided herein or granted by
law, including recovery of damages, the Purchaser and the Company will be
entitled to specific performance under the Transaction Documents.  The
parties agree that monetary damages may not be adequate compensation for any
loss incurred by reason of any breach of obligations contained in the
Transaction Documents and hereby agrees to waive and not to assert in any action
for specific performance of any such obligation the defense that a remedy at law
would be adequate.

     

    5.13           Construction. The
parties agree that each of them and/or their respective counsel has reviewed and
had an opportunity to revise the Transaction Documents and, therefore, the
normal rule of construction to the effect that any ambiguities are to be
resolved against the drafting party shall not be employed in the interpretation
of the Transaction Documents or any amendments hereto.

     

    (Remainder
of Page Intentionally Left Blank)

     (Signature
Pages Follow)

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

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

     

    
      
        	
                OMNIRELIANT
      HOLDINGS, INC.

                 

                 

                 

                 

              	
                Address for Notice:

              
	 
      	
                By:__________________________________

                Name: Paul
      Morrison

                Title: Chief
      Executive Officer

                 

              	
                14375
      Myerlake Circle

                Clearwater,
      FL 33760

                Tel:
      (813) 885-5998

                Fax:
      (813) 885-5911

              
	 
      	
                With
      a copy to (which shall not constitute notice):

                 

                 

                Darrin
      M. Ocasio, Esq.

                Sichenzia
      Ross Friedman Ference LLP

                61
      Broadway, 32nd
      Floor

                New
      York, New York  10006

                Tel:
      (212) 930-9700

                Fax:
      (212) 930-9725

                 

              	 
      

      

    

    

    (Remainder
of Page Intentionally Left Blank)

    (Signature Page For Purchaser
Follows)

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    [PURCHASER
SIGNATURE PAGES TO SECURITIES

    PURCHASE
AGREEMENT]

    

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

     

    Name of
Purchaser:  Vicis Capital Master Fund

     

    Signature of Authorized Signatory of
Purchaser:                                                                                                                                          

     

    Name of
Authorized Signatory:    Christopher Phillips

     

    Title of
Authorized Signatory:      Managing Director,
Vicis Capital LLC, investment advisor to Vicis Capital Master Fund

     

    Email
Address of
Purchaser:        cphillips@viciscapital.com

     

    Facsimile
Number of Purchaser:   (212) 909-4601

     

    Jurisdiction
of Organization of Purchaser: Cayman Islands trust

     

    Address
for Notice of Purchaser:

     

    Vicis
Capital LLC

    Attn:
Chris Phillips

    445 Park
Avenue, 16th Floor

    New York,
NY  10022

    

    

    

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

    

    Vicis
Capital LLC

    Attn:
Rich Duda

    445 Park
Avenue, 16th Floor

    New York,
NY  10022

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]