Document:

EXHIBIT
      10.20
 

    AMENDMENT
      TO

    CAPITAL
      CONTRIBUTION AGREEMENT

    

    THIS
      AMENDMENT TO CAPITAL CONTRIBUTION AGREEMENT (the
      “Agreement”)
      is
      made and entered into as of January 12, 2006 by
      and
      among IQ
      MICRO INC. (formerly
      IQ Medical Corp.), a Colorado corporation (“IQMC”),
      and
OSMOTEX
      USA, INC., a
      Florida
      corporation (“Osmotex”)
      (individually, the “Party”
and
      collectively, the “Parties”).

    

    RECITALS

    

    WHEREAS,
      the
      Parties entered into that certain Capital Contribution Agreement, on June 9,
      2005, (the “Original
      Agreement");
      

    

    WHEREAS,
      the
      Parties and Osmotex AS entered into the
      Amended and Restated Technology License Agreement (the “License
      Agreement”)
      on
      January 12, 2006, attached hereto as Exhibit
      A;
      and

    

    WHEREAS,
      the
      Parties desire to amend the Original Agreement to reflect IQMC’s payment of a
      license fee to Osmotex; and

    

    WHEREAS,
      Section
      6.3 of the Original Agreement provides that the Original Agreement may only
      be
      amended by a subsequent writing signed by all Parties; and

    

    WHEREAS,
      the
      Parties wish to document their agreement regarding these matters in this
      Agreement.

    

     NOW,
      THEREFORE,
      in
      consideration of the mutual terms, conditions and other agreements set forth
      herein, and for other valuable consideration, the receipt and adequacy of which
      are hereby conclusively acknowledged, the Parties hereto, intending to be
      legally bound, hereby agree as follows:

    

    1. Recitals.
      The
      foregoing recitals are true and correct. Each of the foregoing recitals to
      this
      Agreement are hereby incorporated into and made a part of this
      Agreement.

    

    2. Definitions.
      Unless
      indicated otherwise, each capitalized term used in this Agreement shall have
      the
      same meaning as set forth in the Original Agreement.

    

    3. Amendment
      of Article 1 of the Agreement.
      

    

    3.1 The
      heading of Article I of the Agreement is hereby deleted in its entirety and
      replaced with the following:

    

    “CAPITAL
      CONTRIBUTION; ISSUANCE OF SHARES; LICENSE FEE”

    
 

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    3.2 Section
      1.1 of Article I is hereby deleted in its entirety and replaced with the
      following:

    

    “(a) CAPITAL
      CONTRIBUTION AND ISSUANCE OF SHARES.
      Upon the terms and subject to the conditions set forth in this Agreement and
      in
      connection with the License Agreement, Osmotex contributed the Technology and
      Intellectual Property Rights (as defined in the License Agreement) (the “Capital
      Contribution”) to IQMC as a contribution to the capital of IQMC. IQMC accepted
      this Capital Contribution. In exchange for this Capital Contribution, IQMC
      issued 42,670,000 shares of its $0.0001 par value per share common stock (the
      “Shares”) to Osmotex.

    

    (b) LICENSE
      FEE.
      IQMC made payment of a license fee in the amount of $300,000 (the “License Fee”)
      of which Osmotex hereby acknowledges receipt and further acknowledges that
      IQMC
      did pay the License Fee in full.”

    

    4. Amendment
      to Section 2.3(c) of Article 2 of the Agreement.
      Section
      2.3(c) of Article 2 is hereby deleted in its entirety and replaced with the
      following:

    

    “Schedule
      2.3(c)
      contains a true and complete list of all of the shareholders of record on
      December 29, 2005 of IQMC Capital Stock along with the amounts owned by each
      such party.”

     

    5. Amendment
      to Section 2.4 of Article 2 of the Agreement.
      Section
      2.4 of Article 2 is hereby deleted in its entirety and replaced with the
      following:

    

    “INVESTMENTS;
      SUBSIDIARIES.
      Except as set forth in Schedule
      2.4,
      IQMC currently does not have and has never owned any subsidiary corporation,
      partnership or other business entity and has never made any investments in
      any
      other corporation, partnership or other business entities.”

    

    6. Amendment
      to Section 2.10 of Article 2 of the Agreement.
      Section
      2.10 of Article 2 is hereby deleted in its entirety and replaced with the
      following:

      

    “REAL
      PROPERTY.
      Except as set forth in Schedule
      2.10,
      IQMC does not currently own or lease any real property and has never owned
      or
      leased any real property.”

      

    7.Amendment
      to Section 2.14 of Article 2 of the Agreement.
      Section
      2.14 of Article 2 is hereby deleted in its entirety and replaced with the
      following:

      

    “MATERIAL
      CONTRACTS.
      Except as set forth in Schedule
      2.14,
      IQMC is not a party to any material contract or agreement (oral or
      written).”

     

    8. Amendment
      of Section 6.6 of Article 6 of the Agreement.
      Section
      6.6 of Article 6 of the Agreement is hereby deleted in its entirety and replaced
      with the following:

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
 

    “NOTICES.
      All notices, requests, consents and other communications required or permitted
      under this Agreement shall be in writing and shall be (as elected by the Person
      giving such notice) hand delivered by messenger or courier service or mailed
      by
      registered or certified mail (postage prepaid), return receipt requested,
      addressed to:

      

    
      
        	
                IQMC:
                  

              	
                IQ
                  Micro Inc.

                Attention:
                  Robert V. Rudman

                500
                  Australian Avenue, Suite 700

                West
                  Palm Beach, FL 33401

                561/514-0118

              
	
                 

                OSMOTEX:
                  

              	
                 

                Osmotex
                  USA, Inc.

                c/o
                  Osmotex AS

                Attention:
                  Svein Milford

                Solheimsgaten
                  16A

                5080
                  Bergen, Norway

                 

              

      

     

    or
      to such other address as any Party may designate by notice complying with the
      terms of this Section. Each such notice shall be deemed delivered (a) on
      the date delivered, if by messenger or courier service; and (b) either upon
      the date of receipt or refusal of delivery, if mailed.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF,
      the
      Parties hereto have executed this Amendment to Capital Contribution Agreement
      as
      of the date first above written.

    

    
      	 	 	 
	 	IQ
              MICRO
              INC.
	 
 	 
 	 
 
	 	By:  	/s/
              Robert V. Rudman
	 	
              
Name:
 Robert
              V. Rudman
	 	
              Its:
                  Chief
                Financial Officer, 

              Secretary and
                Treasurer

            

    

     

     

    
 

    
      
        	 	 	 
	 	OSMOTEX
                USA, INC.
	 
 	 
 	 
 
	 	By:  	/s/
                Johnny Christiansen
	 	
                
Name:
                Johnny Christiansen
	 	Its:  

      

    
 

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    

    EXHIBIT
      A

    

    AMENDED
      AND RESTATED TECHNOLOGY LICENSE AGREEMENT

    

     

     

     

     

    
 

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    
 

    
      	
              SCHEDULE
                2.3(c)

               

              CAPITAL
                STOCK

            
	
               

               

              NAME
                AND ADDRESS

            	
               

              TOTAL
                SHARES

            	 	
               

               

              NAME
                AND ADDRESS

            	
               

              TOTAL
                SHARES

            
	 	 	 	 	 
	
              Albany
                Consulting, Inc.

              c/o
                OCRA, Companies House

              Tower
                Street

              Ramsey

              Isle
                of Man

            	
              1,500

            	 	
              ALEXIS
                CAPITAL, INC.

              74900
                Highway 111, #123

              Indian
                Wells, CA 92210

            	
              1,000

            
	 	
               

            	 	 	 
	
              Avalon
                Marketing Ltd.

              500
                Australian Avenue So., #619

              West
                Palm Beach, FL 33401

            	
              1,750,000

            	 	
              Debora
                J. Borer

              7400
                E. Columbia Place

              Denver,
                CO 80231

            	
              100

            
	 	 	 	 	 
	
              John
                Burchette

            	
              250

            	 	
              Cede
                & Co.

              P.O.
                Box 20, Bowling Green Station

              New
                York, NY 10274

            	
              1,198,157

            
	 	 	 	 	 
	
              Abigail
                Doolittle

              231
                West 96th
                Street, #6C

              New
                York, NY 10025

            	
              125

            	 	
              Equity
                Investors, Inc.

              4530
                North 40th
                Street

              Phoenix,
                AZ 85018

            	
              100

            
	 	 	 	 	 
	
              Mary
                C. Fernandez

              P.O.
                Box 14411

              Albuquerque,
                NM 87111

            	
              100

            	 	
              Gregory
                Frost

              Tanner
                Propp & Farber

              99
                Park Avenue

              New
                York, NY 10016

            	
              500

            
	 	 	 	 	 
	
              Golden
                Capital Securities Ltd. 

              in
                Trust/Oxbridge Capital Limited

              Suite
                168

              1177
                West Hastings Street

              Vancouver,
                B.C.

              Canada
                V6E 2K3

            	
              1,250,000

            	 	
              Hossian
                Hafizi & Nahid 

              Hafizi,
                JTTEN

              10409
                NE 32nd
                Pl. Num. 8104

              Bellevue,
                WA 98004-1981

            	
              100

            
	 	 	 	 	 
	
              Impact
                Trading, Inc.

              1451
                W. Cypress Creek Rd., #204

              Ft.
                Lauderdale, FL 33309

            	
              1,250,000

            	 	
              Philip
                Johnston

              26
                King Street

              St.
                Pacome

              Quebec

              Canada
                GOL 3X0

            	
              1,750,000

            
	 	 	 	 	 
	
              Paul
                Kempin

              29752
                Baden Place

              Malibu,
                CA 90265

            	
              1,000

            	 	
              Lamlash
                Limited

              c/o
                Montague Sec Int’l Safety Square

              Bay
                Street & Bank Lane

              PO
                Box N-8303

              Nassau
                BAHAMAS

            	
              100

            
	 	 	 	 	 

    

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    
      	
              SCHEDULE
                2.3(c)

               

              CAPITAL
                STOCK

              (continued)

            
	
               

               

              NAME
                AND ADDRESS

            	
               

              TOTAL
                SHARES

            	 	
               

               

              NAME
                AND ADDRESS

            	
               

              TOTAL
                SHARES

            
	 	 	 	 	 
	
              Millenium
                Capital Corporation

              500
                Australian Ave. So., #619

              West
                Palm Beach, FL 33401

            	
              250,000

            	 	
              Millport
                Limited

              Suite
                No. 2, Seaton Place

              St.
                Heller, Jersey

              Channel
                Islands JE2 3QL

            	
              263

            
	 	 	 	 	 
	
              Montague
                Securities Int’l

              Saffrey
                Square Ste. 103A

              Bay
                Street Bank, LA Box N 8303

              Nassau
                N.P. BAHAMAS

            	
              3,815

            	 	
              Osmotex,
                USA, Inc.

              c/o
                Gunster Yoakley & Stewart, P.A.

              Broward
                Financial Center

              500
                East Broward Blvd., #1400

              Fort
                Lauderdale, FL 33394-3076

            	
              42,670,000

            
	 	 	 	 	 
	
              Donna
                Ann Perrotta

              83
                Throckmorton Lane

              Old
                Bridge, NJ 08857

            	
              750

            	 	
              Jonathan
                Pollon

              461
                Promontory Drive

              West
                Newport Beach, CA 92660

            	
              500

            
	 	 	 	 	 
	
              David
                Rapaport

              11666
                Montana Avenue

              Los
                Angeles, CA 90049

            	
              1,000

            	 	
              Richard
                D. Salpeter

              3
                Grove Isle Drive, Apt. 1705

              Coconut
                Grove, FL 33133

            	
              427

            
	 	 	 	 	 
	
              Patrick
                J. Soltis

              125
                Armistead Ct.

              Duluth,
                GA 30097

            	
              10,438

            	 	
              Swiss
                Corp. International

              125
                Armistead Ct.

              Duluth,
                GA 30097

            	
              1,925

            
	 	 	 	 	 
	
              Mark
                Taggatz

              350
                Kachina Cr.

              Las
                Vegas, NV 89123

            	
              55,000

            	 	
              Keith
                Taylor-Sharpe

              2169
                Inglehart Avenue

              St.
                Paul, MN 55104

            	
              250

            
	 	 	 	 	 
	
              Teekachand
                Tiwari

              924
                N. Eighteenth Cr. #10

              Hollywood,
                FL 33020

            	
              2,000

            	 	
              Derek
                Vanderryst

              1023
                West Lake

              Ft.
                Collins, CO 80523

            	
              100

            

    

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    SCHEDULE
      2.4

    

    INVESTMENTS;
      SUBSIDIARIES

    

    On
      July
      21, 2005, we formed IQ Micro (USA) Inc., a Florida corporation and our
      wholly-owned subsidiary. 

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    SCHEDULE
      2.10

    

    REAL
      PROPERTY

    

    Our
      executive office is located at 500 Australian Avenue, Suite 700, West Palm
      Beach, Florida, 33401. We have verbally agreed to a month-to-month lease for
      this single executive office in a shared office suite at a current lease rate
      of
      $2,500 per month.

    

    

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    SCHEDULE
      2.14

    

    MATERIAL
      CONTRACTS

    

    
      	
              1.  

               

            	 	
              Plan
                of Merger Enclave Products, Ltd. by and between Enclave Products,
                Ltd., a
                Colorado corporation, and Enclave Products, Ltd., a Colorado corporation,
                dated March 29, 2004. 

               

            
	
              2.  

               

            	 	
              Financing
                and Listing Agreement by and among IQ Medical Corp., Osmotex USA,
                Inc. and
                D.P. Martin & Associates, Inc., entered into on June 9,
                2005.

               

            
	
              3.  

               

            	 	
              Amendment
                to Financing and Listing Agreement by and among IQ Micro Inc., Osmotex
                USA, Inc. and D.P. Martin & Associates, Inc., entered into on December
                29, 2005.

               

            
	
              4.  

               

            	 	
              Capital
                Contribution Agreement by and among IQ Medical Corp. and Osmotex
                USA,
                Inc., entered into on June 9, 2005.

               

            
	
              5.  

               

            	 	
              Amended
                and Restated Technology License Agreement by and among IQ Micro Inc.,
                Osmotex AS and Osmotex USA, Inc. entered into on January 12,
                2006

               

            
	
              6.  

               

            	 	
              Securities
                Purchase Agreement by and among IQ Medical Corp. and Cornell Capital
                Partners, LP, dated as of August 12, 2005.

               

            
	
              7.  

               

            	 	
              Secured
                Convertible Debenture issued by IQ Medical Corp. to Cornell Capital
                Partners, LP, dated August 12, 2005.

               

            
	
              8.  

               

            	 	
              Warrant
                issued by IQ Medical Corp. to Cornell Capital Partners, LP, dated
                August
                12, 2005.

               

            
	
              9.  

               

            	 	
              Escrow
                Agreement by and among IQ Medical Corp. and David Gonzalez, Esq.,
                made and
                entered into as of August 12, 2005.

               

            
	
              10.  

               

            	 	
              Security
                Agreement by and between IQ Medical Corp. and Cornell Capital Partners,
                LP, entered into and made effective on August 12, 2005.

               

            
	
              11.  

               

            	 	
              Investor
                Registration Rights Agreement by and among IQ Medical Corp. and Cornell
                Capital Partners, LP, dated as of August 12, 2005.

               

            
	
              12.  

               

            	 	
              Securities
                Purchase Agreement by and among IQ Micro Inc. and Cornell Capital
                Partners, LP, dated as of November 30, 2005.

               

            
	
              13.  

               

            	 	
              Warrant
                issued by IQ Micro Inc. to Cornell Capital Partners, LP, dated November
                30, 2005.

               

            
	
              14.  

               

            	 	
              Secured
                Convertible Debenture issued by IQ Micro Inc. to Cornell Capital
                Partners,
                LP, dated November 30, 2005.

               

            
	
              15.  

               

            	 	
              Amended
                and Restated Investor Registration Rights Agreement by and among
                IQ Micro
                Inc. and Cornell Capital Partners, LP, dated as of November 30,
                2005.

               

            

    

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    
      	
              SCHEDULE
                2.14

               

              MATERIAL
                CONTRACTS 

              (continued)

               

            
	
              16.  

               

            	 	
              Amended
                and Restated Security Agreement by and between IQ Micro Inc. and
                Cornell
                Capital Partners, LP, entered into and made effective on November
                30,
                2005.

               

            
	
              17.  

               

            	 	
              Escrow
                Agreement by and among IQ Micro Inc. and David Gonzalez, Esq., made
                and
                entered into as of November 30, 2005.

               

            
	
              18.  

               

            	 	
              Management
                Agreement between I.Q. Medical Corp. and Robert Rudman, effective
                as of
                May 1, 2005.

               

            
	
              19.  

               

            	 	
              Management
                Agreement between I.Q. Micro Inc. and Jochri Consult AS, effective
                as of
                October 1, 2005.

               

            
	
              20.  

               

            	 	
              Consulting
                Agreement between Hawk Associates, Inc. and IQ Micro, made as of
                August 1,
                2005 for investor relations and financial media relations
                services.

               

            
	
              21.  

               

            	 	
              Consulting
                Agreement between Hawk Associates, Inc. and IQ Micro, made as of
                September
                1, 2005 for investor relations and financial media relations
                services.

               

            

    

    

    * Anticipated
      to be executed on the same date as this Agreement.

     

     

    
      
        
        

      

        11SECURITIES
      PURCHASE AGREEMENT

    

    

    THIS SECURITIES
      PURCHASE AGREEMENT
      (this
“Agreement”),
      dated
      as of February 2, 2006, by and among ADVAXIS,
      INC.,
      a
      Colorado corporation (the “Company”),
      and
      the Buyers listed on Schedule I attached hereto (individually, a
“Buyer”
or
      collectively “Buyers”).

     

    WITNESSETH

    

    WHEREAS,
      the
      Company and the Buyer(s) are executing and delivering this Agreement in reliance
      upon an exemption from securities registration pursuant to Section 4(2) and/or
      Rule 506 of Regulation D (“Regulation
      D”)
      as
      promulgated by the U.S. Securities and Exchange Commission (the “SEC”)
      under
      the Securities Act of 1933, as amended (the “Securities
      Act”);

     

    WHEREAS,
      the
      parties desire that, upon the terms and subject to the conditions contained
      herein, the Company shall issue and sell to the Buyer(s), as provided herein,
      and the Buyer(s) shall purchase Three Million Dollars ($3,000,000) of secured
      convertible debentures (the “Convertible
      Debentures”),
      which
      shall be convertible into shares of the Company’s common stock, par value $0.001
      (the “Common
      Stock”)
      (as
      converted, the “Conversion
      Shares”)
      of
      which One Million Five Hundred Thousand Dollars ($1,500,000) shall be funded
      on
      the fifth (5th)
      business day following the date hereof (the “First
      Closing”)
      and
      One Million Five Hundred Thousand Dollars ($1,500,000) shall be funded two
      (2)
      business days prior to the date the registration statement (the “Registration
      Statement”)
      is
      filed, pursuant to the Investor Registration Rights Agreement dated the date
      hereof, with the United States Securities and Exchange Commission (the
“SEC”)
      (the
“Second
      Closing”)
      (individually referred to as a “Closing”
      collectively referred to as the “Closings”),
      for a
      total purchase price of Three Million Dollars ($3,000,000), (the “Purchase
      Price”)
      in the
      respective amounts set forth opposite the Buyer(s) name on Schedule I (the
      “Subscription
      Amount”);
      and

     

    WHEREAS,
      contemporaneously with the execution and delivery of this Agreement, the parties
      hereto are executing and delivering a Registration Rights Agreement (the
“Investor
      Registration Rights Agreement”)
      pursuant to which the Company has agreed to provide certain registration rights
      under the Securities Act and the rules and regulations promulgated there under,
      and applicable state securities laws; and

     

    WHEREAS,
      the
      aggregate proceeds of the sale of the Convertible Debentures contemplated hereby
      shall be held in escrow pursuant to the terms of an escrow agreement (the
“Escrow
      Agreement”)
      among
      the Company, the Buyers, and David Gonzalez, Esq. (the “Escrow
      Agent”).

     

    WHEREAS,
      contemporaneously with the execution and delivery of this Agreement, the parties
      hereto are executing and delivering a Security Agreement (the “Security
      Agreement”)
      pursuant to which the Company has agreed to provide the Buyer a security
      interest in Pledged Collateral (as this term is defined in the Security
      Agreement) to secure the Company’s obligations under this Agreement, the
      Transaction Documents as defined in Section 3(b), or any other obligations
      of
      the Company to the Buyer; and

     

    WHEREAS,
      contemporaneously with the execution and delivery of this Agreement, the parties
      hereto are executing and delivering Irrevocable Transfer Agent Instructions
      (the
“Irrevocable
      Transfer Agent Instructions”).

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants and other agreements contained in this
      Agreement the Company and the Buyer(s) hereby agree as follows:

     

    1.  PURCHASE
      AND SALE OF CONVERTIBLE DEBENTURES.

     

    (a)  Purchase
      of Convertible Debentures.
      Subject
      to the satisfaction (or waiver) of the terms and conditions of this Agreement,
      the Buyer agrees, severally and not jointly, to purchase at each Closing and
      the
      Company agrees to sell and issue to the Buyer, severally and not jointly, at
      each Closing, Convertible Debentures in amounts corresponding with the
      Subscription Amount set forth opposite the Buyer’s name on Schedule I hereto.
      Upon execution hereof by a Buyer, the Buyer shall wire transfer the Subscription
      Amount set forth opposite his name on Schedule I in same-day funds to “David
      Gonzalez, Esq., as Escrow Agent for Advaxis, Inc./Cornell Capital Partners,
      LP”,
      which Subscription Amount shall be held in escrow pursuant to the terms of
      the
      Escrow Agreement (as hereinafter defined) and disbursed in accordance therewith.
      Notwithstanding the foregoing, a Buyer may withdraw his Subscription Amount
      and
      terminate this Agreement as to such Buyer at any time after the execution hereof
      and prior to one business day prior to the First Closing (as hereinafter
      defined).

     

    (b)  Closing
      Date.
      The
      First Closing of the purchase and sale of the Convertible Debentures shall
      take
      place at 10:00 a.m. Eastern Standard Time on the fifth (5th)
      business day following the date hereof, subject to notification of satisfaction
      of the conditions to the First Closing set forth herein and in Sections 6 and
      7
      below (or such later date as is mutually agreed to by the Company and the
      Buyer(s)) (the “First
      Closing Date”)
      and
      the Second Closing of the purchase and sale of the Convertible Debentures shall
      take place at 10:00 a.m. Eastern Standard Time two (2) business days prior
      to
      the date the Registration Statement is filed with the SEC, subject to
      notification of satisfaction of the conditions to the Second Closing set forth
      herein and in Sections 6 and 7 below (or such later date as is mutually agreed
      to by the Company and the Buyer(s)) (the “Second
      Closing Date”)
      (collectively referred to a the “Closing
      Dates”).
      The
      Closing shall occur on the respective Closing Dates at the offices of Yorkville
      Advisors, LLC, 3700 Hudson Street, Suite 3700, Jersey City, New Jersey 07302
      (or
      such other place as is mutually agreed to by the Company and the Buyer(s)).
      

     

    (c)  Escrow
      Arrangements; Form of Payment.
      Upon
      execution hereof by Buyer(s) and pending the Closings, the aggregate proceeds
      of
      the sale of the Convertible Debentures to Buyer(s) pursuant hereto shall be
      deposited in a non-interest bearing escrow account with the Escrow Agent,
      pursuant to the terms the Escrow Agreement. Subject to the satisfaction of
      the
      terms and conditions of this Agreement, on the Closing Dates, (i) the Escrow
      Agent shall deliver to the Company in accordance with the terms of the Escrow
      Agreement such aggregate proceeds for the Convertible Debentures to be issued
      and sold to such Buyer(s), minus, with respect to the First Closing, the fees
      to
      be paid directly from the proceeds delivered at the Closing as set forth herein,
      and (ii) the Company shall deliver to the Buyer at each Closing,
      Convertible Debentures which such Buyer is purchasing duly executed on behalf
      of
      the Company.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    2.  BUYER’S
      REPRESENTATIONS AND WARRANTIES.

     

    The
      Buyer
      represents and warrants, severally and not jointly, that:

     

    (a)  Investment
      Purpose.
      The
      Buyer is acquiring the Convertible Debentures and, upon conversion of
      Convertible Debentures, the Buyer will acquire the Conversion Shares then
      issued, for its own account for investment only and not with a view towards,
      or
      for resale in connection with, the public sale or distribution thereof, except
      pursuant to sales registered or exempted under the Securities Act; provided,
      however, that by making the representations herein, such Buyer reserves the
      right to dispose of the Conversion Shares at any time in accordance with or
      pursuant to an effective registration statement covering such Conversion Shares
      or an available exemption under the Securities Act.

     

    (b)  Accredited
      Investor Status.
      The
      Buyer is an “Accredited
      Investor”
as
      that
      term is defined in Rule 501(a)(3) of Regulation D.

     

    (c)  Reliance
      on Exemptions.
      The
      Buyer understands that the Convertible Debentures are being offered and sold
      to
      it in reliance on specific exemptions from the registration requirements of
      United States federal and state securities laws and that the Company is relying
      in part upon the truth and accuracy of, and such Buyer’s compliance with, the
      representations, warranties, agreements, acknowledgments and understandings
      of
      such Buyer set forth herein in order to determine the availability of such
      exemptions and the eligibility of such Buyer to acquire such
      securities.

     

    (d)  Information.
      The
      Buyer and its advisors (and his or, its counsel), if any, have been furnished
      with all materials relating to the business, finances and operations of the
      Company and information requested by such Buyer it deemed material to making
      an
      informed investment decision regarding his purchase of the Convertible
      Debentures and the Conversion Shares. The Buyer and its advisors, if any, have
      been afforded the opportunity to ask questions of the Company and its management
      in writing or in one or more conference telephone calls with the Company and
      its
      advisors. Such inquiries shall not modify, amend or affect such Buyer’s right to
      rely on the Company’s representations and warranties contained in Section 3
      below. The Buyer understands that its investment in the Convertible Debentures
      and the Conversion Shares involves a high degree of risk. The Buyer is in a
      position regarding the Company, which, based upon employment, family
      relationship or economic bargaining power, enabled and enables such Buyer to
      obtain information from the Company in order to evaluate the merits and risks
      of
      this investment. The Buyer has sought such accounting, legal and tax advice,
      as
      it has considered necessary to make an informed investment decision with respect
      to its acquisition of the Convertible Debentures and the Conversion
      Shares.

     

    (e)  No
      Governmental Review.
      The
      Buyer understands that no United States federal or state agency or any other
      government or governmental agency has passed on or made any recommendation
      or
      endorsement of the Convertible Debentures or the Conversion Shares, or the
      fairness or suitability of the investment in the Convertible Debentures or
      the
      Conversion Shares, nor have such authorities passed upon or endorsed the merits
      of the offering of the Convertible Debentures or the Conversion
      Shares.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (f)  Transfer
      or Resale.
      The
      Buyer understands that except as provided in the Investor Registration Rights
      Agreement: (i) the Convertible Debentures have not been and are not being
      registered under the Securities Act or any state securities laws, and may not
      be
      offered for sale, sold, assigned or transferred unless (A) subsequently
      registered thereunder, or (B) such Buyer shall have delivered to the Company
      an
      opinion of counsel reasonably satisfactory to the Company, in a generally
      acceptable form, to the effect that such securities to be sold, assigned or
      transferred may be sold, assigned or transferred pursuant to an exemption from
      such registration requirements; (ii) any sale of such securities made in
      reliance on Rule 144 under the Securities Act (or a successor rule
      thereto) (“Rule 144”)
      may be
      made only in accordance with the terms of Rule 144; and (iii) neither the
      Company nor any other person is under any obligation to register such securities
      under the Securities Act or any state securities laws or to comply with the
      terms and conditions of any exemption thereunder. The Company reserves the
      right
      to place stop transfer instructions against the shares and certificates for
      the
      Conversion Shares.

     

    (g)  Legends.
      The
      Buyer understands that the certificates or other instruments representing the
      Convertible Debentures and or the Conversion Shares shall bear a restrictive
      legend in substantially the following form (and a stop -transfer order may
      be
      placed against transfer of such stock certificates):

     

    THE
      SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE
      SECURITIES HAVE BEEN ACQUIRED SOLELY FOR INVESTMENT PURPOSES AND NOT WITH A
      VIEW
      TOWARD RESALE AND MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED
      IN
      THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
      THE
      SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS, OR
      AN
      OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT
      REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES LAWS. 

     

    The
      legend set forth above shall be removed and the Company within two (2) business
      days shall issue a certificate without such legend to the holder of the
      Conversion Shares upon which it is stamped, if, unless otherwise required by
      state securities laws, (i) in connection with a sale transaction, provided
      the
      Conversion Shares are registered under the Securities Act or (ii) in connection
      with a sale transaction, after such holder provides the Company with an opinion
      of counsel, which opinion shall be in form, substance and scope customary for
      opinions of counsel in comparable transactions, to the effect that a public
      sale, assignment or transfer of the Conversion Shares may be made without
      registration under the Securities Act. 

     

    (h)  Authorization,
      Enforcement.
      This
      Agreement has been duly and validly authorized, executed and delivered on behalf
      of such Buyer and is a valid and binding agreement of such Buyer enforceable
      in
      accordance with its terms, except as such enforceability may be limited by
      general principles of equity or applicable bankruptcy, insolvency,
      reorganization, moratorium, liquidation and other similar laws relating to,
      or
      affecting generally, the enforcement of applicable creditors’ rights and
      remedies.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    (i)  Receipt
      of Documents.
      The
      Buyer and his or its counsel has received and read in their entirety: (i) this
      Agreement and each representation, warranty and covenant set forth herein and
      the Transaction Documents (as defined herein); (ii) all due diligence and other
      information necessary to verify the accuracy and completeness of such
      representations, warranties and covenants; (iii) the Company’s Form 10-KSB for
      the fiscal year ended October 31, 2004; (iv) the Company’s Form 10-QSB for the
      fiscal quarter ended July 31, 2005 and (v) answers to all questions the Buyer
      submitted in writing or by email to the Company or in one or more conference
      telephone calls with the Company regarding an investment in the Company; and
      the
      Buyer has relied on the information contained therein and has not been furnished
      any other documents, literature, memorandum or prospectus.

     

    (j)  Due
      Formation of Corporate and Other Buyers.
      If the
      Buyer(s) is a corporation, trust, partnership or other entity that is not an
      individual person, it has been formed and validly exists and has not been
      organized for the specific purpose of purchasing the Convertible Debentures
      and
      is not prohibited from doing so.

     

    (k)  No
      Legal Advice From the Company.
      The
      Buyer acknowledges, that it had the opportunity to review this Agreement and
      the
      transactions contemplated by this Agreement with his or its own legal counsel
      and investment and tax advisors. The Buyer is relying solely on such counsel
      and
      advisors and not on any statements or representations of the Company or any
      of
      its representatives or agents for legal, tax or investment advice with respect
      to this investment, the transactions contemplated by this Agreement or the
      securities laws of any jurisdiction. 

     

    3.  REPRESENTATIONS
      AND WARRANTIES OF THE COMPANY.

     

    The
      Company represents and warrants as of the date hereof to each of the Buyers
      that, except as set forth in the SEC Documents (as defined herein) or in the
      Disclosure Schedule attached hereto (the “Disclosure
      Schedule”):

     

    (a)  Organization
      and Qualification.
      The
      Company and its subsidiaries are corporations duly organized and validly
      existing in good standing under the laws of the jurisdiction in which they
      are
      incorporated, and have the requisite corporate power to own their properties
      and
      to carry on their business as now being conducted. Each of the Company and
      its
      subsidiaries is duly qualified as a foreign corporation to do business and
      is in
      good standing in every jurisdiction in which the nature of the business
      conducted by it makes such qualification necessary, except to the extent that
      the failure to be so qualified or be in good standing would not have a material
      adverse effect on the Company and its subsidiaries taken as a
      whole.

     

    (b)  Authorization,
      Enforcement, Compliance with Other Instruments.
      (i) The Company has the requisite corporate power and authority to enter
      into and perform this Agreement, the Security Agreement, the Investor
      Registration Rights Agreement, the Irrevocable Transfer Agent Agreement, the
      Escrow Agreement, and any related agreements (collectively the “Transaction
      Documents”)
      and to
      issue the Convertible Debentures and the Conversion Shares in accordance with
      the terms hereof and thereof, (ii) the execution and delivery of the Transaction
      Documents by the Company and the consummation by it of the transactions
      contemplated hereby and thereby, including, without limitation, the issuance
      of
      the Convertible Debentures the Conversion Shares and the reservation for
      issuance and the issuance of the Conversion Shares issuable upon conversion
      or
      exercise thereof, have been duly authorized by the Company’s Board of Directors
      and no further consent or authorization is required by the Company, its Board
      of
      Directors or its stockholders, (iii) the Transaction Documents have been duly
      executed and delivered by the Company, and (iv) the Transaction Documents
      constitute the valid and binding obligations of the Company enforceable against
      the Company in accordance with their terms, except as such enforceability may
      be
      limited by general principles of equity or applicable bankruptcy, insolvency,
      reorganization, moratorium, liquidation or similar laws relating to, or
      affecting generally, the enforcement of creditors’ rights and remedies. The
      authorized officer of the Company executing the Transaction Documents knows
      of
      no reason why the Company cannot file the registration statement as required
      under the Investor Registration Rights Agreement or perform any of the Company’s
      other obligations under such documents. 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    (c)  Capitalization.
      The
      authorized capital stock of the Company consists of 500,000,000 shares of Common
      Stock, of which 38,262,265 shares of Common Stock are issued and outstanding.
      All of such outstanding shares have been validly issued and are fully paid
      and
      nonassessable. No shares of Common Stock are subject to preemptive rights or
      any
      other similar rights or any liens or encumbrances suffered or permitted by
      the
      Company. Except for 20,509,220 shares issuable upon exercise of outstanding
      warrants and 7,981,505 shares reserved for issuance upon exercise under the
      Company’s two stock option plan, as of the date of this Agreement, (i) there are
      no outstanding options, warrants, scrip, rights to subscribe to, calls or
      commitments of any character whatsoever relating to, or securities or rights
      convertible into, any shares of capital stock of the Company or any of its
      subsidiaries, or contracts, commitments, understandings or arrangements by
      which
      the Company or any of its subsidiaries is or may become bound to issue
      additional shares of capital stock of the Company or any of its subsidiaries
      or
      options, warrants, scrip, rights to subscribe to, calls or commitments of any
      character whatsoever relating to, or securities or rights convertible into,
      any
      shares of capital stock of the Company or any of its subsidiaries, (ii) there
      are no outstanding debt securities and (iii) there are no agreements or
      arrangements under which the Company or any of its subsidiaries is obligated
      to
      register the sale of any of their securities under the Securities Act (except
      pursuant to the Registration Rights Agreement) and (iv) there are no outstanding
      registration statements and there are no outstanding comment letters from the
      SEC or any other regulatory agency. There are no securities or instruments
      containing anti-dilution or similar provisions that will be triggered by the
      issuance of the Convertible Debentures as described in this Agreement. The
      Company has furnished to the Buyer true and correct copies of the Company’s
      Articles of Incorporation, as amended and as in effect on the date hereof (the
      “Articles
      of Incorporation”),
      and
      the Company’s By-laws, as in effect on the date hereof (the “By-laws”),
      and
      the terms of all securities convertible into or exercisable for Common Stock
      and
      the material rights of the holders thereof in respect thereto other than stock
      options issued to employees and consultants. 

     

    (d)  Issuance
      of Securities.
      The
      Convertible Debentures are duly authorized and, upon issuance in accordance
      with
      the terms hereof, shall be duly issued, fully paid and nonassessable, are free
      from all taxes, liens and charges with respect to the issue thereof. The
      Conversion Shares issuable upon conversion of the Convertible Debentures have
      been duly authorized and reserved for issuance. Upon conversion or exercise
      in
      accordance with the Convertible Debentures the Conversion Shares will be duly
      issued, fully paid and nonassessable.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    (e)  No
      Conflicts.
      The
      execution, delivery and performance of the Transaction Documents by the Company
      and the consummation by the Company of the transactions contemplated hereby
      will
      not (i) result in a violation of the Articles of Incorporation, any certificate
      of designations of any outstanding series of preferred stock of the Company
      or
      the By-laws or (ii) conflict with or constitute a default (or an event which
      with notice or lapse of time or both would become a default) under, or give
      to
      others any rights of termination, amendment, acceleration or cancellation of,
      any agreement, indenture or instrument to which the Company or any of its
      subsidiaries is a party, or result in a violation of any law, rule, regulation,
      order, judgment or decree (including federal and state securities laws and
      regulations and the rules and regulations of The National Association of
      Securities Dealers Inc.’s OTC Bulletin Board on which the Common Stock is
      quoted) applicable to the Company or any of its subsidiaries or by which any
      property or asset of the Company or any of its subsidiaries is bound or
      affected. Neither the Company nor any of its subsidiaries is in violation of
      any
      term of or in default under its Articles of Incorporation or By-laws or its
      organizational charter or by-laws, respectively, or any material contract,
      agreement, mortgage, indebtedness, indenture, instrument, judgment, decree
      or
      order or any statute, rule or regulation applicable to the Company or its
      subsidiaries. The business of the Company and its subsidiaries is not being
      conducted, and shall not be conducted in violation of any material law,
      ordinance, or regulation of any governmental entity. Except as specifically
      contemplated by this Agreement and as required under the Securities Act and
      any
      applicable state securities laws, the Company is not required to obtain any
      consent, authorization or order of, or make any filing or registration with,
      any
      court or governmental agency in order for it to execute, deliver or perform
      any
      of its obligations under or contemplated by this Agreement or the Registration
      Rights Agreement in accordance with the terms hereof or thereof. All consents,
      authorizations, orders, filings and registrations which the Company is required
      to obtain pursuant to the preceding sentence have been obtained or effected
      on
      or prior to the date hereof. The Company and its subsidiaries are unaware of
      any
      facts or circumstance, which might give rise to any of the
      foregoing.

     

    (f)  SEC
      Documents: Financial Statements.
      The
      Company has filed all reports, schedules, forms, statements and other documents
      required to be filed by it since January 1, 2003 with the SEC under the
      Securities Exchange Act of 1934, as amended (the “Exchange
      Act”)
      (all
      of the foregoing filed prior to the date hereof or amended after the date hereof
      and all exhibits included therein and financial statements and schedules thereto
      and documents incorporated by reference therein, being hereinafter referred
      to
      as the “SEC
      Documents”).
      The
      Company has delivered to the Buyers or their representatives, or made available
      through the SEC’s website at http://www.sec.gov., true and complete copies of
      the SEC Documents. As of their respective dates, the financial statements of
      the
      Company disclosed in the SEC Documents (the “Financial
      Statements”)
      complied as to form in all material respects with applicable accounting
      requirements and the published rules and regulations of the SEC with respect
      thereto. Such financial statements have been prepared in accordance with
      generally accepted accounting principles, consistently applied, during the
      periods involved (except (i) as may be otherwise indicated in such Financial
      Statements or the notes thereto, or (ii) in the case of unaudited interim
      statements, to the extent they may exclude footnotes or may be condensed or
      summary statements) and, fairly present in all material respects the financial
      position of the Company as of the dates thereof and the results of its
      operations and cash flows for the periods then ended (subject, in the case
      of
      unaudited statements, to normal year-end audit adjustments). No other
      information provided by or on behalf of the Company to the Buyer which is not
      included in the SEC Documents, including, without limitation, information
      referred to in this Agreement, contains any untrue statement of a material
      fact
      or omits to state any material fact necessary in order to make the statements
      therein, in the light of the circumstances under which they were made, not
      misleading.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    (g)  10(b)-5.
      The SEC
      Documents do not include any untrue statements of material fact, nor do they
      omit to state any material fact required to be stated therein necessary to
      make
      the statements made, in light of the circumstances under which they were made,
      not misleading.

     

    (h)  Absence
      of Litigation.
      There
      is no action, suit, proceeding, inquiry or investigation before or by any court,
      public board, government agency, self-regulatory organization or body pending
      against or affecting the Company, the Common Stock or any of the Company’s
      subsidiaries, wherein an unfavorable decision, ruling or finding would (i)
      have
      a material adverse effect on the transactions contemplated hereby (ii) adversely
      affect the validity or enforceability of, or the authority or ability of the
      Company to perform its obligations under, this Agreement or any of the documents
      contemplated herein, or (iii) have a material adverse effect on the business,
      operations, properties, financial condition or results of operations of the
      Company and its subsidiaries taken as a whole.

     

    (i)  Acknowledgment
      Regarding Buyer’s Purchase of the Convertible Debentures.
      The
      Company acknowledges and agrees that the Buyer(s) is acting solely in the
      capacity of an arm’s length purchaser with respect to this Agreement and the
      transactions contemplated hereby. The Company further acknowledges that the
      Buyer(s) is not acting as a financial advisor or fiduciary of the Company (or
      in
      any similar capacity) with respect to this Agreement and the transactions
      contemplated hereby and any advice given by the Buyer(s) or any of their
      respective representatives or agents in connection with this Agreement and
      the
      transactions contemplated hereby is merely incidental to such Buyer’s purchase
      of the Convertible Debentures or the Conversion Shares. 

     

    (j)  No
      General Solicitation.
      Neither
      the Company, nor any of its affiliates, nor any person acting on its or their
      behalf, has engaged in any form of general solicitation or general advertising
      (within the meaning of Regulation D under the Securities Act) in connection
      with
      the offer or sale of the Convertible Debentures or the Conversion
      Shares.

     

    (k)  No
      Integrated Offering.
      Neither
      the Company, nor any of its affiliates, nor any person acting on its or their
      behalf has, directly or indirectly, made any offers or sales of any security
      or
      solicited any offers to buy any security, under circumstances that would require
      registration of the Convertible Debentures or the Conversion Shares under the
      Securities Act or cause this offering of the Convertible Debentures or the
      Conversion Shares to be integrated with prior offerings by the Company for
      purposes of the Securities Act.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    (l)  Employee
      Relations.
      Neither
      the Company nor any of its subsidiaries is involved in any labor dispute nor,
      to
      the knowledge of the Company or any of its subsidiaries, is any such dispute
      threatened. None of the Company’s or its subsidiaries’ employees is a member of
      a union and the Company and its subsidiaries believe that their relations with
      their employees are good.

     

    (m)  Intellectual
      Property Rights.
      The
      Company and its subsidiaries own or possess adequate rights or licenses to
      use
      all trademarks, trade names, service marks, service mark registrations, service
      names, patents, patent rights, copyrights, inventions, licenses, approvals,
      governmental authorizations, trade secrets and rights necessary to conduct
      their
      respective businesses as now conducted. The Company and its subsidiaries do
      not
      have any knowledge of any infringement by the Company or its subsidiaries of
      trademark, trade name rights, patents, patent rights, copyrights, inventions,
      licenses, service names, service marks, service mark registrations, trade
      secrets or other similar rights of others, and, to the knowledge of the Company
      there is no claim, action or proceeding being made or brought against, or to
      the
      Company’s knowledge, being threatened against, the Company or its subsidiaries
      regarding trademark, trade name, patents, patent rights, invention, copyright,
      license, service names, service marks, service mark registrations, trade secret
      or other infringement, which if decided adversely would have a material adverse
      effect on the financial condition of the Company and its subsidiaries; and
      the
      Company and its subsidiaries are unaware of any facts or circumstances which
      might give rise to any of the foregoing.

     

    (n)  Environmental
      Laws.
      The
      Company and its subsidiaries are (i) to the Company’s knowledge, in compliance
      with any and all applicable foreign, federal, state and local laws and
      regulations relating to the protection of human health and safety, the
      environment or hazardous or toxic substances or wastes, pollutants or
      contaminants (“Environmental
      Laws”),
      (ii)
      have received all permits, licenses or other approvals required of them under
      applicable Environmental Laws to conduct their respective businesses and (iii)
      are in compliance with all material terms and conditions of any such permit,
      license or approval.

     

    (o)  Title.
      Any
      real property and facilities held under lease by the Company and its
      subsidiaries are held by them under valid, subsisting and enforceable leases
      with such exceptions as are not material and do not interfere with the use
      made
      and proposed to be made of such property and buildings by the Company and its
      subsidiaries.

     

    (p)  Insurance.
      The
      Company and each of its subsidiaries are insured by insurers of recognized
      financial responsibility against such losses and risks and in such amounts
      as
      management of the Company believes to be prudent and customary in the businesses
      in which the Company and its subsidiaries are engaged. Neither the Company
      nor
      any such subsidiary has been refused any insurance coverage sought or applied
      for and neither the Company nor any such subsidiary has any reason to believe
      that it will not be able to renew its existing insurance coverage as and when
      such coverage expires or to obtain similar coverage from similar insurers as
      may
      be necessary to continue its business at a cost that would not materially and
      adversely affect the condition, financial or otherwise, or the earnings,
      business or operations of the Company and its subsidiaries, taken as a
      whole.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    (q)  Regulatory
      Permits.
      The
      Company and its subsidiaries possess all material certificates, authorizations
      and permits issued by the appropriate federal, state or foreign regulatory
      authorities necessary to conduct their respective businesses, and neither the
      Company nor any such subsidiary has received any notice of proceedings relating
      to the revocation or modification of any such certificate, authorization or
      permit.

     

    (r)  Internal
      Accounting Controls.
      The
      Company and each of its subsidiaries maintain a system of internal accounting
      controls sufficient to provide reasonable assurance that (i) transactions are
      executed in accordance with management’s general or specific authorizations,
      (ii) transactions are recorded as necessary to permit preparation of financial
      statements in conformity with generally accepted accounting principles and
      to
      maintain asset accountability, and (iii) the recorded amounts for assets is
      compared with the existing assets at reasonable intervals and appropriate action
      is taken with respect to any differences.

     

    (s)  No
      Material Adverse Breaches, etc.
      Neither
      the Company nor any of its subsidiaries is subject to any charter, corporate
      or
      other legal restriction, or any judgment, decree, order, rule or regulation
      which in the judgment of the Company’s officers has or is expected in the future
      to have a material adverse effect on the business, properties, operations,
      financial condition, results of operations or prospects of the Company or its
      subsidiaries. Neither the Company nor any of its subsidiaries is in breach
      of
      any contract or agreement which breach, in the judgment of the Company’s
      officers, has or is expected to have a material adverse effect on the business,
      properties, operations, financial condition, results of operations or prospects
      of the Company or its subsidiaries.

     

    (t)  Tax
      Status.
      The
      Company and each of its subsidiaries has made and filed all federal and state
      income and all other tax returns, reports and declarations required by any
      jurisdiction to which it is subject and (unless and only to the extent that
      the
      Company and each of its subsidiaries has set aside on its books provisions
      reasonably adequate for the payment of all unpaid and unreported taxes) has
      paid
      all taxes and other governmental assessments and charges that are material
      in
      amount, shown or determined to be due on such returns, reports and declarations,
      except those being contested in good faith and has set aside on its books
      provision reasonably adequate for the payment of all taxes for periods
      subsequent to the periods to which such returns, reports or declarations apply.
      There are no unpaid taxes in any material amount claimed to be due by the taxing
      authority of any jurisdiction, and the officers of the Company know of no
      reasonable basis for any such claim.

     

    (u)  Certain
      Transactions.
      Except
      for arm’s length transactions pursuant to which the Company makes payments in
      the ordinary course of business upon terms no less favorable than the Company
      could obtain from third parties and other than the grant of stock options
      disclosed in the SEC Documents, none of the officers, directors, or employees
      of
      the Company is presently a party to any transaction with the Company (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 corporation, partnership, trust or other entity
      in
      which any officer, director, or any such employee has a substantial interest
      or
      is an officer, director, trustee or partner.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    (v)  Fees
      and Rights of First Refusal.
      The
      Company is not obligated to offer the securities offered hereunder on a right
      of
      first refusal basis or otherwise to any third parties including, but not limited
      to, current or former shareholders of the Company, underwriters, brokers, agents
      or other third parties.

     

    4.  COVENANTS.

     

    (a)  Best
      Efforts.
      Each
      party shall use its best efforts to timely satisfy each of the conditions to
      be
      satisfied by it as provided in Sections 6 and 7 of this Agreement.

     

    (b)  Form
      D.
      The
      Company agrees to file a Form D with respect to the Conversion Shares as
      required under Regulation D and to provide a copy thereof to the Buyer promptly
      after such filing. The Company shall, on or before the Closing Date, take such
      action as the Company shall reasonably determine is necessary to qualify the
      Conversion Shares, or obtain an exemption for the Conversion Shares for sale
      to
      the Buyers at the Closing pursuant to this Agreement under applicable securities
      or “Blue Sky” laws of the those states of the United States in which the Buyer
      has provided written notice to the Company of its intention to offer for sale
      the Conversion Shares, and shall provide evidence of any such action so taken
      to
      the Buyers on or prior to the Closing Date.

     

    (c)  Reporting
      Status.
      Until
      the earlier of (i) the date as of which the Buyer(s) may sell all of the
      Conversion Shares without restriction pursuant to Rule 144(k) promulgated under
      the Securities Act (or successor thereto), or (ii) the date on which (A) the
      Buyer(s) shall have sold all the Conversion Shares and (B) none of the
      Convertible Debentures are outstanding (the “Registration
      Period”),
      the
      Company shall file in a timely manner all reports required to be filed with
      the
      SEC pursuant to the Exchange Act and the regulations of the SEC thereunder,
      and
      the Company shall not terminate its status as an issuer required to file reports
      under the Exchange Act even if the Exchange Act or the rules and regulations
      thereunder would otherwise permit such termination.

     

    (d)  Use
      of
      Proceeds.
      The
      Company will use the proceeds from the sale of the Convertible Debentures for
      general corporate and working capital purposes.

     

    (e)  Reservation
      of Shares.
      The
      Company shall take all action reasonably necessary to at all times have
      authorized, and reserved for the purpose of issuance, such number of shares
      of
      Common Stock as shall be necessary to effect the issuance of the Conversion
      Shares. If at any time the Company does not have available such shares of Common
      Stock as shall from time to time be sufficient to effect the conversion of
      all
      of the Conversion Shares, the Company shall call and hold a special meeting
      of
      the shareholders within thirty (30) days of such occurrence, for the sole
      purpose of increasing the number of shares authorized. The Company’s management
      shall recommend to the shareholders to vote in favor of increasing the number
      of
      shares of Common Stock authorized. Management shall also vote all of its shares
      in favor of increasing the number of authorized shares of Common
      Stock.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (f)  Listings
      or Quotation.
      The
      Company shall promptly secure the listing or quotation of the Conversion Shares
      upon each national securities exchange, automated quotation system or The
      National Association of Securities Dealers Inc.’s Over-The-Counter Bulletin
      Board (“OTCBB”)
      or
      other market, if any, upon which shares of Common Stock are then listed or
      quoted (subject to official notice of issuance) and shall use its best efforts
      to maintain, so long as any other shares of Common Stock shall be so listed,
      such listing of all Conversion Shares from time to time issuable under the
      terms
      of this Agreement. The Company shall maintain the Common Stock’s authorization
      for quotation on the OTCBB.

     

    (g)  Fees
      and Expenses.
      

     

    (i)  Each
      of
      the Company and the Buyer(s) shall pay all costs and expenses incurred by such
      party in connection with the negotiation, investigation, preparation, execution
      and delivery of the Transaction Documents. The Company shall pay Yorkville
      Advisors LLC a fee equal to eight percent (8%) of the Purchase Price which
      shall
      be paid pro rata directly from the proceeds of each Closing. 

     

    (ii)  The
      Company has paid a structuring fee to Yorkville Advisors LLC of Fifteen Thousand
      Dollars ($15,000). 

     

    (iii)  The
      Company has paid Yorkville Advisors, LLC a non-refundable due diligence fee
      of
      Five Thousand Dollars ($5,000).

     

    (iv)  The
      Company shall issue to the Buyer at the First Closing: (A) a warrant to purchase
      Four Million Two Hundred Thousand (4,200,000) shares of the Company’s Common
      Stock for a period of five (5) years at an exercise price of $0.287 per
      share (the “A Warrant”)
      and
      (B) a warrant to purchase Three Hundred Thousand (300,000) shares of the
      Company’s Common Stock for a period of five (5) years at an exercise price
      of $0.3444 per share (the “B Warrant”
along
      with the A Warrant, the “Warrants”).
      The
      shares of Common Stock issuable under the Warrants shall collectively be
      referred to as the “Warrant
      Shares”.
      

     

    (v)  The
      Warrant Shares shall have “piggy-back” and demand registration rights.

     

    (h)  Corporate
      Existence.
      So long
      as any of the Convertible Debentures remain outstanding, the Company shall
      not
      directly or indirectly consummate any merger, reorganization, restructuring,
      reverse stock split consolidation, sale of all or substantially all of the
      Company’s assets or any similar transaction or related transactions (each such
      transaction, an “Organizational
      Change”)
      unless, prior to the consummation an Organizational Change, the Company obtains
      the written consent of the Buyer. In any such case, the Company will make
      appropriate provision with respect to such holders’ rights and interests to
      insure that the provisions of this Section 4(h) will thereafter be applicable
      to
      the Convertible Debentures.

     

    (i)  Transactions
      With Affiliates.
      So long
      as any Convertible Debentures are outstanding, the Company shall not, and shall
      cause each of its subsidiaries not to, enter into, amend, modify or supplement,
      or permit any subsidiary to enter into, amend, modify or supplement any
      agreement, transaction, commitment, or arrangement with any of its or any
      subsidiary’s officers, directors, person who were officers or directors at any
      time during the previous two (2) years, stockholders who beneficially own five
      percent (5%) or more of the Common Stock, or Affiliates (as defined below)
      or
      with any individual related by blood, marriage, or adoption to any such
      individual or with any entity in which any such entity or individual owns a
      five
      percent (5%) or more beneficial interest (each a “Related
      Party”),
      except for (a) customary employment arrangements and benefit programs on
      reasonable terms, (b) any investment in an Affiliate of the Company, (c) any
      agreement, transaction, commitment, or arrangement on an arms-length basis
      on
      terms no less favorable than terms which would have been obtainable from a
      person other than such Related Party, (d) any agreement, transaction,
      commitment, or arrangement which is approved by a majority of the disinterested
      directors of the Company; for purposes hereof, any director who is also an
      officer of the Company or any subsidiary of the Company shall not be a
      disinterested director with respect to any such agreement, transaction,
      commitment, or arrangement. “Affiliate”
for
      purposes hereof means, with respect to any person or entity, another person
      or
      entity that, directly or indirectly, (i) has a ten percent (10%) or more equity
      interest in that person or entity, (ii) has ten percent (10%) or more common
      ownership with that person or entity, (iii) controls that person or entity,
      or
      (iv) shares common control with that person or entity. “Control”
or
      “controls”
for
      purposes hereof means that a person or entity has the power, direct or indirect,
      to conduct or govern the policies of another person or entity.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    (j)  Transfer
      Agent.
      The
      Company covenants and agrees that, in the event that the Company’s agency
      relationship with the transfer agent should be terminated for any reason prior
      to a date which is two (2) years after the Closing Date, the Company shall
      immediately appoint a new transfer agent and shall require that the new transfer
      agent execute and agree to be bound by the terms of the Irrevocable Transfer
      Agent Instructions (as defined herein).

     

    (k)  Restriction
      on Issuance of the Capital Stock.
      So long
      as at least $500,000 principal amount of Convertible Debentures is outstanding,
      the Company shall not, without the prior written consent of the Buyer(s), (i)
      issue or sell shares of Common Stock or Preferred Stock without consideration
      or
      for a consideration per share less than the bid price of the Common Stock
      determined immediately prior to its issuance, except pursuant to the exercise
      of
      options or warrants outstanding on the date hereof, (ii) issue any preferred
      stock, warrant, option, right, contract, call, or other security or instrument
      granting the holder thereof the right to acquire Common Stock without
      consideration or for a consideration less than such Common Stock’s Bid Price
      determined immediately prior to it’s issuance, (iii) enter into any security
      instrument, other than the Security Agreement, granting the holder a security
      interest in any and all assets of the Company, or (iv) file any registration
      statement on Form S-8.

     

    (l)  Neither
      the Buyer(s) nor any of its affiliates have an open short position in the Common
      Stock of the Company, and the Buyer(s) agrees that it shall not, and that it
      will cause its affiliates not to, engage in any short sales of or hedging
      transactions with respect to the Common Stock as long as any Convertible
      Debentures shall remain outstanding. 

     

    (m)  Rights
      of First Refusal.
      For a
      period of 18 months from the date hereof, so
      long as
      any portion of Convertible Debentures are outstanding, if the Company intends
      to
      raise additional capital by the issuance or sale of capital stock of the
      Company, including without limitation shares of any class of common stock,
      any
      class of preferred stock, options, warrants or any other securities convertible
      or exercisable into shares of common stock (whether the offering is conducted
      by
      or through, an underwriter, or placement agent) the Company shall be obligated
      to offer to the Buyer such issuance or sale of capital stock, by providing
      in
      writing the principal amount of capital it intends to raise and outline of
      the
      material terms of such capital raise, prior to the offering such issuance or
      sale of capital stock  to any third parties including, but not limited to,
      current or former officers or directors, current or former shareholders and/or
      investors of the obligor, underwriters, brokers, agents or other third
      parties.  The Buyers shall have five (5) business days from receipt of such
      notice of the sale or issuance of capital stock to accept or reject all or
      a
      portion of the offering. 

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    5.  TRANSFER
      AGENT INSTRUCTIONS.

     

    (a)  The
      Company shall issue the Irrevocable Transfer Agent Instructions to its transfer
      agent irrevocably appointing David Gonzalez, Esq. as the Company’s agent for
      purpose of instructing the Transfer Agent to issue certificates, registered
      in
      the name of the Buyer(s) or its respective nominee(s), for the Conversion Shares
      representing such amounts of Convertible Debentures as specified from time
      to
      time by the Buyer(s) to the Company upon conversion of the Convertible
      Debentures, for interest owed pursuant to the Convertible Debenture, and for
      any
      and all Liquidated Damages (as this term is defined in the Investor Registration
      Rights Agreement). David Gonzalez, Esq. shall be paid a cash fee of Fifty
      Dollars ($50) for every occasion they act pursuant to the Irrevocable Transfer
      Agent Instructions. The Company shall not change its transfer agent without
      the
      express written consent of the Buyer(s), which may be withheld by the Buyer(s)
      in its sole discretion. Prior to registration of the Conversion Shares under
      the
      Securities Act, all such certificates shall bear the restrictive legend
      specified in Section 2(g) of this Agreement. The Company warrants that no
      instruction other than the Irrevocable Transfer Agent Instructions referred
      to
      in this Section 5, and stop transfer instructions to give effect to Section
      2(g)
      hereof (in the case of the Conversion Shares prior to registration of such
      shares under the Securities Act) will be given by the Company to its transfer
      agent and that the Conversion Shares shall otherwise be freely transferable
      on
      the books and records of the Company as and to the extent provided in this
      Agreement and the Investor Registration Rights Agreement. Nothing in this
      Section 5 shall affect in any way the Buyer’s obligations and agreement to
      comply with all applicable securities laws upon resale of Conversion Shares.
      If
      the Buyer and the Company are in compliance with all applicable federal and
      state securities laws and Buyer provides the Company with an opinion of counsel,
      in form, scope and substance customary for opinions of counsel in comparable
      transactions to the effect that registration of a resale by the Buyer(s) of
      any
      of the Conversion Shares is not required under the Securities Act, the Company
      shall within two (2) business days instruct its transfer agent to issue one
      or
      more certificates in such name and in such denominations as specified by the
      Buyer. The Company acknowledges that a breach by it of its obligations hereunder
      will cause irreparable harm to the Buyer by vitiating the intent and purpose
      of
      the transaction contemplated hereby. Accordingly, the Company acknowledges
      that
      the remedy at law for a breach of its obligations under this Section 5 will
      be
      inadequate and agrees, in the event of a breach or threatened breach by the
      Company of the provisions of this Section 5, that the Buyer(s) shall be
      entitled, in addition to all other available remedies, to an injunction
      restraining any breach and requiring immediate issuance and transfer, without
      the necessity of showing economic loss and without any bond or other security
      being required.

     

    6.  CONDITIONS
      TO THE COMPANY’S OBLIGATION TO SELL.

     

    The
      obligation of the Company hereunder to issue and sell the Convertible Debentures
      to the Buyer(s) at the Closings is subject to the satisfaction, at or before
      the
      Closing Dates, of each of the following conditions, provided that these
      conditions are for the Company’s sole benefit and may be waived by the Company
      at any time in its sole discretion:

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (a)  The
      Buyer
      shall have executed the Transaction Documents and delivered them to the
      Company.

     

    (b)  The
      Buyer(s) shall have delivered to the Escrow Agent the Purchase Price for
      Convertible Debentures as set forth next to its name as outlined on Schedule
      I
      attached hereto and the Escrow Agent shall have delivered the net proceeds
      to
      the Company by wire transfer of immediately available U.S. funds pursuant to
      the
      wire instructions provided by the Company.

     

    (c)  The
      representations and warranties of the Buyer(s) shall be true and correct in
      all
      material respects as of the date when made and as of the Closing Dates as though
      made at that time (except for representations and warranties that speak as
      of a
      specific date), and the Buyer(s) shall have performed, satisfied and complied
      in
      all material respects with the covenants, agreements and conditions required
      by
      this Agreement to be performed, satisfied or complied with by the Buyer(s)
      at or
      prior to the Closing Dates. 

     

    7.  CONDITIONS
      TO THE BUYER’S OBLIGATION TO PURCHASE.

     

    (a)  The
      obligation of the Buyer(s) hereunder to purchase the Convertible Debentures
      at
      the First Closing is subject to the satisfaction, at or before the First Closing
      Date, of each of the following conditions:

     

    (i)  The
      Company shall have executed the Transaction Documents and delivered the same
      to
      the Buyer(s).

     

    (ii)  The
      Common Stock shall be authorized for quotation on the OTCBB, trading in the
      Common Stock shall not have been suspended for any reason, and all the
      Conversion Shares issuable upon the conversion of the Convertible Debentures
      shall have been admitted to trading on the OTCBB upon issuance. 

     

    (iii)  The
      representations and warranties of the Company shall be true and correct in
      all
      material respects (except to the extent that any of such representations and
      warranties is already qualified as to materiality in Section 3 above, in which
      case, such representations and warranties shall be true and correct without
      further qualification) as of the date when made and as of the First Closing
      Date
      as though made at that time (except for representations and warranties that
      speak as of a specific date) and the Company shall have performed, satisfied
      and
      complied in all material respects with the covenants, agreements and conditions
      required by this Agreement to be performed, satisfied or complied with by the
      Company at or prior to the First Closing Date. If requested by the Buyer, the
      Buyer shall have received a certificate, executed by the President of the
      Company, dated as of the First Closing Date, to the foregoing effect and as
      to
      such other matters as may be reasonably requested by the Buyer including,
      without limitation an update as of the First Closing Date regarding the
      representation contained in Section 3(c) above.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    (iv)  The
      Company shall have executed and delivered to the Buyer(s) the Convertible
      Debentures in the respective amounts set forth opposite the Buyer(s) name on
      Schedule I attached hereto.

     

    (v)  The
      Buyer(s) shall have received an opinion of counsel from counsel to the Company
      in a form satisfactory to the Buyer(s).

     

    (vi)  
      The
      Company shall have provided to the Buyer(s) a certificate of good standing
      from
      the secretary of state of Colorado.

     

    (vii)  The
      Company shall have filed a form UCC-1 or such other forms as may be required
      to
      perfect the Buyer’s interest in the Pledged Property as detailed in the Security
      Agreement dated the date hereof and provided proof of such filing to the
      Buyer(s).

     

    (viii)  The
      Company shall have provided to the Buyer an acknowledgement, to the satisfaction
      of the Buyer, from the Company’s independent certified public accountants as to
      its ability to provide all consents required under the Security Act in order
      to
      file a registration statement in connection with this transaction, subject
      to
      any applicable going-concern qualification.

     

    (ix)  The
      Company shall have reserved out of its authorized and unissued Common Stock,
      solely for the purpose of effecting the conversion of the Convertible
      Debentures, shares of Common Stock to effect the conversion of all of the
      Conversion Shares then outstanding. 

     

    (x)  The
      Irrevocable Transfer Agent Instructions, in form and substance satisfactory
      to
      the Buyer, shall have been delivered to and acknowledged in writing by the
      Company’s transfer agent.

     

    (b)  The
      obligation of the Buyer(s) hereunder to accept the Convertible Debentures at
      the
      Second Closing is subject to the satisfaction, at or before the Second Closing
      Date, of each of the following conditions:

     

    (i)  The
      Common Stock shall be authorized for quotation on the OTCBB, trading in the
      Common Stock shall not have been suspended for any reason, and all the
      Conversion Shares issuable upon the conversion of the Convertible Debentures
      shall be admitted to trading the OTCBB upon issuance. 

     

    (ii)  The
      representations and warranties of the Company shall be true and correct in
      all
      material respects (except to the extent that any of such representations and
      warranties is already qualified as to materiality in Section 3 above, in which
      case, such representations and warranties shall be true and correct without
      further qualification) as of the date when made and as of the Second Closing
      Date as though made at that time (except for representations and warranties
      that
      speak as of a specific date) and the Company shall have performed, satisfied
      and
      complied in all material respects with the covenants, agreements and conditions
      required by this Agreement to be performed, satisfied or complied with by the
      Company at or prior to the Second Closing Date. If requested by the Buyer,
      the
      Buyer shall have received a certificate, executed by two officers of the
      Company, dated as of the Second Closing Date, to the foregoing effect and as
      to
      such other matters as may be reasonably requested by the Buyer including,
      without limitation an update as of the Second Closing Date regarding the
      representation contained in Section 3(c) above.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    (iii)  The
      Company shall have executed and delivered to the Buyer(s) at the applicable
      Closing, the Convertible Debentures in the amounts set forth opposite the
      Buyer(s) name on Schedule I attached hereto.

     

    (iv)  The
      Company shall have certified that all conditions to the Second Closing have
      been
      satisfied and that the Company will file the Registration Statement with the
      SEC
      in compliance with the rules and regulations promulgated by the SEC for filing
      thereof two (2) business days after the Second Closing. If requested by the
      Buyer, the Buyer shall have received a certificate, executed by the two officers
      of the Company, dated as of the Second Closing Date, to the foregoing effect.
      

     

    8.  INDEMNIFICATION.

     

    (a)  In
      consideration of the Buyer’s execution and delivery of this Agreement and
      acquiring the Convertible Debentures and the Conversion Shares hereunder, and
      in
      addition to all of the Company’s other obligations under this Agreement, the
      Company shall defend, protect, indemnify and hold harmless the Buyer(s) and
      each
      other holder of the Convertible Debentures and the Conversion Shares, and all
      of
      their officers, directors, employees and agents (including, without
      limitation, those retained in connection with the transactions contemplated
      by
      this Agreement) (collectively, the “Buyer
      Indemnitees”)
      from
      and against any and all actions, causes of action, suits, claims, losses, costs,
      penalties, fees, liabilities and damages, and expenses in connection therewith
      (irrespective of whether any such Buyer Indemnitee is a party to the action
      for
      which indemnification hereunder is sought), and including reasonable attorneys’
fees and disbursements (the “Indemnified
      Liabilities”),
      incurred by the Buyer Indemnitees or any of them as a result of, or arising
      out
      of, or relating to (i) any misrepresentation or breach of any representation
      or
      warranty made by the Company in this Agreement, the Convertible Debentures
      or
      the Investor Registration Rights Agreement or any other certificate, instrument
      or document contemplated hereby or thereby, (ii) any breach of any covenant,
      agreement or obligation of the Company contained in this Agreement, or the
      Investor Registration Rights Agreement or any other certificate, instrument
      or
      document contemplated hereby or thereby, or (iii) any cause of action, suit
      or
      claim brought or made against such Indemnitee and arising out of or resulting
      from the execution, delivery, performance or enforcement of this Agreement
      or
      any other instrument, document or agreement executed pursuant hereto by any
      of
      the parties hereto, any transaction financed or to be financed in whole or
      in
      part, directly or indirectly, with the proceeds of the issuance of the
      Convertible Debentures or the status of the Buyer or holder of the Convertible
      Debentures the Conversion Shares, as a Buyer of Convertible Debentures in the
      Company. To the extent that the foregoing undertaking by the Company may be
      unenforceable for any reason, the Company shall make the maximum contribution
      to
      the payment and satisfaction of each of the Indemnified Liabilities, which
      is
      permissible under applicable law.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    (b)  In
      consideration of the Company’s execution and delivery of this Agreement, and in
      addition to all of the Buyer’s other obligations under this Agreement, the Buyer
      shall defend, protect, indemnify and hold harmless the Company and all of its
      officers, directors, employees and agents (including, without limitation, those
      retained in connection with the transactions contemplated by this Agreement)
      (collectively, the “Company
      Indemnitees”)
      from
      and against any and all Indemnified Liabilities incurred by the Company
      Indemnitees or any of them as a result of, or arising out of, or relating to
      (i)
      any misrepresentation or breach of any representation or warranty made by the
      Buyer(s) in this Agreement, instrument or document contemplated hereby or
      thereby executed by the Buyer, (ii) any breach of any covenant, agreement or
      obligation of the Buyer(s) contained in this Agreement, the Investor
      Registration Rights Agreement or any other certificate, instrument or document
      contemplated hereby or thereby executed by the Buyer, or (iii) any cause of
      action, suit or claim brought or made against such Company Indemnitee based
      on
      material misrepresentations or due to a material breach and arising out of
      or
      resulting from the execution, delivery, performance or enforcement of this
      Agreement, the Investor Registration Rights Agreement or any other instrument,
      document or agreement executed pursuant hereto by any of the parties hereto.
      To
      the extent that the foregoing undertaking by the Buyer may be unenforceable
      for
      any reason, the Buyer shall make the maximum contribution to the payment and
      satisfaction of each of the Indemnified Liabilities, which is permissible under
      applicable law.

     

    9.  GOVERNING
      LAW: MISCELLANEOUS.

     

    (a)  Governing
      Law.
      This
      Agreement shall be governed by and interpreted in accordance with the laws
      of
      the State of New Jersey without regard to the principles of conflict of laws.
      The parties further agree that any action between them shall be heard in Hudson
      County, New Jersey, and expressly consent to the nonexclusive jurisdiction
      and
      venue of the Superior Court of New Jersey, sitting in Hudson County and the
      United States District Court for the District of New Jersey sitting in Newark,
      New Jersey for the adjudication of any civil action asserted pursuant to this
      Paragraph.

     

    (b)  Counterparts.
      This
      Agreement may be executed in two or more identical counterparts, all of which
      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.
      In
      the event any signature page is delivered by facsimile transmission, the party
      using such means of delivery shall cause four (4) additional original executed
      signature pages to be physically delivered to the other party within five (5)
      days of the execution and delivery hereof.

     

    (c)  Headings.
      The
      headings of this Agreement are for convenience of reference and shall not form
      part of, or affect the interpretation of, this Agreement.

     

    (d)  Severability.
      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.

     

    (e)  Entire
      Agreement, Amendments.
      This
      Agreement supersedes all other prior oral or written agreements between the
      Buyer(s), and the Company, and their respective affiliates and persons acting
      on
      their behalf with respect to the matters discussed herein, and this Agreement
      and the instruments referenced herein contain the entire understanding of the
      parties with respect to the matters covered herein and therein and, except
      as
      specifically set forth herein or therein, neither the Company nor any Buyer
      makes any representation, warranty, covenant or undertaking with respect to
      such
      matters. No provision of this Agreement may be waived or amended other than
      by
      an instrument in writing signed by the party to be charged with
      enforcement.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    (f)  Notices.
      Any
      notices, consents, waivers, or other communications required or permitted to
      be
      given under the terms of this Agreement must be in writing and will be deemed
      to
      have been delivered (i) upon receipt, when delivered personally; (ii) upon
      confirmation of receipt, when sent by facsimile; (iii) three (3) business days
      after being sent by U.S. certified mail, return receipt requested, or (iv)
      one
      (1) business day after deposit with a nationally recognized overnight delivery
      service, in each case properly addressed to the party to receive the same.
      The
      addresses and facsimile numbers for such communications shall be:

     

    
      	
              If
                to the Company, to:

            	
              Advaxis,
                Inc.

            
	 	
              212
                Carnegie Centre, Suite 206

            
	 	
              Princeton,
                NJ 08540

            
	 	
              Attention:
                Chief Executive Officer

            
	 	
              Telephone:  
                (201) 750-2347

            
	 	
              Facsimile:    
                (801)
                459-3596

            
	 	 
	
              With
                a copy to:

            	
              Reitler
                Brown & Rosenblatt LLC

            
	 	
              800
                Third Avenue, 21st
                Floor

            
	 	
              New
                York, NY 10022

            
	 	
              Attention: Gary
                Schonwald, Esq.

            
	 	
              Telephone:  
                (212)
                209-3090

            
	 	
              Facsimile:    
                (212)
                371-5500

            
	 	 
	 	 

    

    If
      to the
      Buyer(s), to its address and facsimile number on Schedule I, with copies to
      the
      Buyer’s counsel as set forth on Schedule I. Each party shall provide five (5)
      days’ prior written notice to the other party of any change in address or
      facsimile number.

     

    (g)  Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their respective successors and assigns. Neither the Company nor any Buyer
      shall
      assign this Agreement or any rights or obligations hereunder without the prior
      written consent of the other party hereto.

     

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

     

    (i)  Survival.
      Unless
      this Agreement is terminated under Section 9(l), the representations and
      warranties of the Company and the Buyer(s) contained in Sections 2 and 3, the
      agreements and covenants set forth in Sections 4, 5 and 9, and the
      indemnification provisions set forth in Section 8, shall survive the Closing
      for
      a period of two (2) years following the date on which the Convertible Debentures
      are converted in full. The Buyer(s) shall be responsible only for its own
      representations, warranties, agreements and covenants hereunder.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    (j)  Publicity.
      The
      Company and the Buyer(s) shall have the right to approve, before issuance any
      press release or any other public statement with respect to the transactions
      contemplated hereby made by any party; provided, however, that the Company
      shall
      be entitled, without the prior approval of the Buyer(s), to issue any press
      release or other public disclosure with respect to such transactions required
      under applicable securities or other laws or regulations (the Company shall
      use
      its best efforts to consult the Buyer(s) in connection with any such press
      release or other public disclosure prior to its release and Buyer(s) shall
      be
      provided with a copy thereof upon release thereof).

     

    (k)  Further
      Assurances.
      Each
      party shall do and perform, or cause to be done and performed, all such further
      acts and things, and shall execute and deliver all such other agreements,
      certificates, instruments and documents, as the other party may reasonably
      request in order to carry out the intent and accomplish the purposes of this
      Agreement and the consummation of the transactions contemplated
      hereby.

     

    (l)  Termination.
      In the
      event that the Closing shall not have occurred with respect to the Buyers on
      or
      before five (5) business days from the date hereof due to the Company’s or the
      Buyer’s failure to satisfy the conditions set forth in Sections 6 and 7 above
      (and the non-breaching party’s failure to waive such unsatisfied condition(s)),
      the non-breaching party shall have the option to terminate this Agreement with
      respect to such breaching party at the close of business on such date without
      liability of any party to any other party.

     

    (m)  No
      Strict Construction.
      The
      language used in this Agreement will be deemed to be the language chosen by
      the
      parties to express their mutual intent, and no rules of strict construction
      will
      be applied against any party.

     

    

    [REMAINDER
      PAGE INTENTIONALLY LEFT BLANK]

     

     

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF,
      the
      Buyers and the Company have caused this Securities Purchase Agreement to be
      duly
      executed as of the date first written above.

     

    

    
      	 	
              COMPANY:

            
	 	
              ADVAXIS,
                INC. 

            
	 	 
	 	
              By: /s/
                Roni Appel

            
	 	
              Name: Roni
                Appel

            
	 	
              Title: Chief
                Executive Officer

            
	 	 

    

    

    

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    

     

    SCHEDULE
      I

     

    SCHEDULE
      OF BUYERS 

     

    

    
      	
              Name

            	
              Signature

            	
              Address/Facsimile
                

              Number
                of Buyer

            	
              Amount
                of Subscription

            
	 	 	 	 
	 	 	 	 
	
              Cornell
                Capital Partners, LP

            	
              By: Yorkville
                Advisors, LLC

            	
              101
                Hudson Street - Suite 3700

            	
              $3,000,000

            
	 	
              Its: General
                Partner

            	
              Jersey
                City, NJ 07303

            	 
	 	 	
              Facsimile:  
                (201)
                985-8266

            	 
	 	 	 	 
	 	
              By: /s/
                Mark Angelo

            	 	 
	 	
              Name: Mark
                Angelo

            	 	 
	 	
              Its: Portfolio
                Manager

            	 	 
	 	 	 	 
	
              With
                a copy to: 

            	
              David
                Gonzalez, Esq.

            	
              101
                Hudson Street - Suite 3700

            	 
	 	 	
              Jersey
                City, NJ 07302

            	 
	 	 	
              Facsimile:  
                (201) 985-8266

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