Document:

Exhibit 10.15

                          SECURITIES PURCHASE AGREEMENT

                            Dated as of May 12, 2006

                                      among

                              NETWOLVES CORPORATION

                                       AND

                           THE INVESTORS NAMED HEREIN

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                          SECURITIES PURCHASE AGREEMENT

Securities  Purchase  Agreement (the "Purchase  Agreement",  or the "Agreement")
dated as of May 12, 2006,  among NETWOLVES  CORPORATION,  a New York corporation
(the "Company"), and the investors listed on the signature pages hereto (each an
"Investor" and collectively, the "Investors").

     WHEREAS,  the  Company  desired to sell (a) 18% senior  secured  promissory
notes in the principal amount of up to $665,000 (the "April Notes"), in the form
attached as Exhibit A hereto,  and (b) up to 700,000  shares  ("Shares")  of the
Company's  common stock,  $0.0033 par value per share (the "Common  Stock") at a
price of $0.05 per share or 100 shares for each  $95.00 of  principal  amount of
April  Notes  sold,  pursuant  to the  provisions  of  this  Agreement;  and the
Investors  desire to purchase  from the Company and Company  desires to sell the
April Notes and the Shares.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements set
forth in this  Agreement,  and for other good and  valuable  consideration,  the
receipt and sufficiency of which are hereby acknowledged,  the parties do hereby
agree as follows:

     In  consideration  for  the  premises,  and for  other  good  and  valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:

                                   ARTICLE I

                                   DEFINITIONS

     Section 1.01  Definitions.  As used in this Agreement,  the following terms
shall have the following  meanings  (such  meanings to be equally  applicable to
both the singular and plural forms of the terms defined):

     "Affiliate"  of  any  Person  means  (a)  any  Person  which,  directly  or
indirectly,  is in control of, is controlled by, or is under common control with
such Person, or (b) any Person who is a director or officer or member or partner
(i) of such Person or (ii) of any Person  described in clause (a) above. For the
purposes of this definition,  "control"  (including,  with correlative meanings,
the terms  "controlling",  "controlled by" and "under common control with"),  as
applied to any Person,  means either (x) the power,  directly or indirectly,  to
vote 10% or more of the securities having ordinary voting power for the election
of directors (or persons  performing  similar  functions) of such Person, or (y)
the  possession,  directly  or  indirectly,  of the power to direct or cause the
direction of the  management  and policies of that Person,  whether  through the
ownership of voting securities, by contract or otherwise.

     "Aggregate Amount" has the meaning set out in Section 2.03(a).

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     "Agreement"  means this  Purchase  Agreement,  as the same may be  amended,
supplemented or otherwise modified from time to time.

     "Business  Day"  means a day other  than  Saturday,  Sunday or other day on
which  commercial  banks in New York City are  authorized  or required by law to
close.

     "Capital  Stock"  means any and all shares,  interests,  participations  or
other equivalents  (however  designated) of capital stock of a corporation,  any
and all  equivalent  ownership  interests in a Person (other than a corporation)
and any and all warrants or options to purchase any of the foregoing.

     "Change In Control"  with respect to a Person means (i) the sale,  transfer
or other  disposition  of all or  substantially  all of such  Person or (ii) any
merger or  consolidation of such Person with or into another Person or any other
corporate  reorganization  (including any sale of equity interests  representing
50% or more of the voting  power of the  outstanding  equity  interests  of such
Person),  if  Persons  who were not  holders  of 50% or more of the  outstanding
equity  interests  of such Person  immediately  prior to such  proposed  merger,
consolidation or other  reorganization would own immediately after such proposed
merger, consolidation or the reorganization more than 50% of the voting power of
the outstanding equity interests of such Person.

     "Closing" has the meaning specified in Section 2.01(b).

     "Collateral" has the meaning specified in the Security Agreement.

     "Common Stock" means the common stock of the Company.

     "Copyrights"  has the meaning set forth in the definition of  "Intellectual
Property."

     "Current  Account  Receivable"  shall mean, with respect to the Company and
its Subsidiaries on a consolidated basis, the amount of accounts  receivables of
the Company and its  Subsidiaries  calculated in accordance  with GAAP which are
less than sixty (60) days past due.

     "Debt" of any Person at any date means (a) all  indebtedness of such Person
for borrowed  money or for the deferred  purchase  price of property or services
(other  than  trade  liabilities  incurred  for goods and  services  used in the
ordinary course of business and payable in accordance with customary practices),
(b) any other  indebtedness  of such Person which is evidenced by a note,  bond,
debenture or other similar instrument,  (c) all obligations of such Person under
Purchase  Leases,  (d) all  obligations of such Person in respect of acceptances
issued or  created  for the  account  of such  Person,  and (e) all  liabilities
secured by any Lien on any property owned by such Person even though such Person
has not assumed or otherwise become liable for the payment thereof.

     "Default"  means any event or condition  that, with notice or lapse of time
or both, would become an Event of Default.

     "Environmental Laws" means all laws, rules, regulations, codes, ordinances,
technical standards, orders, decrees, judgments, injunctions, notices or binding
agreements  issued,  promulgated or entered into by any governmental  authority,

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relating in any way to the  environment,  preservation or reclamation of natural
resources,  the  management,  release or  threatened  release  of any  hazardous
material or to health and safety matters.

     "Event of Default" has the meaning specified in Section 6.01.

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

     "Purchase  Lease"  means  any  lease of  property,  real or  personal,  the
obligations  of the lessee in respect of which are required in  accordance  with
GAAP to be capitalized on a balance sheet of the lessee.

     "Governing  Documents"  shall  mean  (a) the  articles  or  certificate  of
incorporation and the bylaws of a corporation;  (b) any charter,  certificate of
formation or similar  document adopted or filed in connection with the creation,
formation  or  organization  of any other  entity and any  operating  agreement,
management  agreement or similar document or an entity; and (c) any amendment or
supplement to any of the foregoing.

     "Governmental Authority" means any nation or government, any state or other
political subdivision thereof and any entity exercising executive,  legislative,
judicial, regulatory or administrative functions of or pertaining to government.

     "Indemnified Party" has the meaning specified in Section 8.05(a).

     "Intellectual   Property"  means  (i)  inventions  (whether  patentable  or
unpatentable  and  whether or not  reduced to  practice),  and all  improvements
thereto; (ii) all patents, patent applications and patent disclosures,  together
with  all  reissuances,  continuations,  continuations-in-part,  revisions,  and
extensions thereof (collectively,  "Patents"); (iii) trademarks,  service marks,
logos,  trade  names  and  corporate  names,  together  with  all  translations,
adaptations,   derivations  and  combinations  thereof,  and  all  applications,
registrations and renewals in connection therewith (collectively, "Trademarks"),
(iv)  copyrightable  works, all copyrights and all  registrations,  registration
applications  and  renewals  in  connection  therewith  and mask  works  and all
registrations,  registration  applications and renewals in connection  therewith
(collectively,  "Copyrights");  (v) proprietary  computer  software and programs
(including object code and source code) and other proprietary  rights and copies
and tangible embodiments thereof (in whatever form or medium);  (vi) proprietary
database  technologies,  systems,  structures  and  architectures  (and  related
processes, formulae, compositions,  improvements, devices, know-how, inventions,
discoveries,  concepts,  ideas, designs,  methods and information) and any other
related  information,  however documented;  (vii) all industrial designs and any
registrations  and  applications  therefor;  (viii) all Trade  Secrets and Other
Proprietary  Information and (ix) any similar or equivalent rights to any of the
foregoing anywhere in the world.

     "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended
from time to time, and the regulations promulgated and rulings issued hereunder.

     "Investors" has the meaning set out in the Recitals to this Agreement.

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     "Lien" means any lien, charge, claim, mortgage,  security interest or other
charge  or  encumbrance  of  any  kind,  or  any  other  type  of   preferential
arrangement, upon or with respect to any property, including any title retention
agreement or any leases in the nature thereof and any easement,  right of way or
other encumbrance on title to real property.

     "Transaction Documents" means this Agreement,  the Security Agreement,  the
April Notes and any additional agreements executed by the parties after the date
hereof in order to perfect or continue  the  perfection  of a security  interest
granted under the Security Agreement and the Registration Rights Agreement.

     "Material  Adverse  Effect"  means (I) with respect to the  Company,  (a) a
material  adverse  effect on the business,  operations,  properties or condition
(financial or  otherwise) or prospects of the Company,  (b) the inability of the
Company to perform any of its  obligations  hereunder  or under any of the other
Transaction  Documents to which it is a party,  or (c) an adverse  effect on the
validity or enforceability  of this Agreement or any other Transaction  Document
or the rights or remedies of the Investor hereunder or thereunder; and (II) with
respect to a Person other than the  Company,  a material  adverse  effect on the
business,  operations,  properties  or condition  (financial  or  otherwise)  or
prospects of such Person or any Affiliates of such Person.

     "Maturity  Date" means,  with  respect to the April Notes,  the earliest to
occur of: (a) the date that is eighteen (18) months  following the Closing;  (b)
the accelerated  date or dates on which the Company  achieves certain net income
as set  forth in this  Agreement;  or (c) the date on which an Event of  Default
occurs.

     "April Notes" means the secured  promissory notes of the Company payable to
the order of the Investors in the aggregate principal amount or up to $665,000 ,
in  substantially  the form of Exhibit A hereto,  evidencing the indebtedness of
the Company to the Investors under the transactions made by the Investors to the
Company hereunder.

     "Patents"  has the meaning  set forth in the  definition  of  "Intellectual
Property."

     "Permitted  Debt" means any Debt that ranks junior in priority to the April
Notes in all respects.

     "Permitted  Liens" means Liens that have received the express prior written
approval of all the Investors,  which Investors may withhold or provide in their
sole and absolute  discretion,  including  liens recorded in connection with the
$403,750 Principal Amount of Promissory Notes issued in March 2006.

     "Person" means an individual,  corporation,  partnership,  business  trust,
joint  venture,   association,   joint  stock  company,  trust,   unincorporated
organization,  joint venture,  limited  liability  company or other entity, or a
government or any agency or political subdivision thereof.

     "Registration  Rights  Agreement"  means that certain  registration  rights
agreement, dated as of even date herewith, between the Company and the Investor,
in the form attached hereto as Exhibit C.

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     "Securities Act" means the US Securities Act of 1933, as amended.

     "Security  Agreement"  means that certain security  agreement,  dated as of
even date herewith,  by and between the Company and the  Investors,  in the form
attached hereto as Exhibit B.

     "Subsidiary"  means  any  corporation  or other  legal  entity of which the
Company  (either  alone or  through or  together  with any other  Subsidiary  or
Subsidiaries)  is the general partner or managing entity or of which 50% or more
of the  Capital  Stock  or other  equity  interests  the  holders  of which  are
generally  entitled to vote for the election of the board of directors or others
performing  similar  functions  of such  corporation  or other  legal  entity is
directly or  indirectly  owned or  controlled  by the Company  (either  alone or
through  or  together  with any other  Subsidiary  or  Subsidiaries),  including
without limitation.

     "Tax Returns" has the meaning specified in Section 4.01(f).

     "Trademarks"  has the meaning set forth in the definition of  "Intellectual
Property."

     "Trade Secrets and Other Proprietary  Information"  means (i) trade secrets
and confidential  business  information  (including without limitation,  product
specifications,  data, know-how, inventions and ideas, past, current and planned
research and  development,  customer  lists,  current and  anticipated  customer
requirements,  price lists, market studies and business plans); (ii) any and all
information  concerning  the  business and affairs of a person  (which  includes
historical financial statements,  financial projections and budgets,  historical
and  projected  sales,  capital  spending  budgets  and  plans,  the  names  and
backgrounds  of  key  personnel  and  personnel   training  and  techniques  and
materials), however documented; (iii) any and all notes, analyses, compilations,
studies, summaries, and other material prepared by or for a person containing or
based,  in whole or in  part,  on any  information  included  in the  foregoing,
however  documented;  and (iv) all databases and data collections and all rights
therein.

     "Wholly Owned  Subsidiary"  of any Person means a Subsidiary of such Person
all of the outstanding Capital Stock of which shall at the time be owned by such
Person or by one or more  Wholly  Owned  Subsidiaries  of such Person or by such
Person and one or more Wholly Owned Subsidiaries of such Person.

     Section  1.02  Computation  of  Time  Periods.  In  this  Agreement  in the
computation of periods of time from a specified date to a later  specified date,
the word "from" means "from and  including"  and the words "to" and "until" each
mean "to but excluding".

     Section  1.03  Accounting  Terms.  All  accounting  terms not  specifically
defined  herein shall be construed in accordance  with U.S.  generally  accepted
accounting principles ("GAAP").

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                                   ARTICLE II

                   PURCHASE AND SALE OF APRIL NOTES AND SHARES

     Section 2.01 Purchase and Sale.

     (a)  Commitment.  On the terms and subject to the  conditions  contained in
this  Agreement,  in reliance  upon the  representations  and  warranties of the
Company set forth herein and in the other Transaction Documents to which it is a
party,  the Investors  agree to purchase at the Closing (as hereafter  defined),
and the Company  agrees to issue and sell to the  Investors at the Closing,  the
amount  of April  Notes  and the  number  of  Shares  set  forth  opposite  each
Investor's name on the signature pages hereto,  for an aggregate  purchase price
equal to the sum of the  principal  amount of the April  Notes and the number of
Shares purchased at a price of $.05 per Share s (the "Purchase Price").

     (b) Closing.  Subject in any and all events to the  satisfaction in full of
the  conditions  set forth in Article III hereof,  as of the Closing (as defined
below),  the  Company  shall  deliver to the  Investors,  the April Note and the
Shares,  against  payment of the Purchase  Price to the  Company.  Except as may
otherwise be consented to by the Company, the minimum purchase for each Investor
shall be $50,000 consisting of a $45,000 April Note, and 50,000 Shares.

     The  closing  of the  purchase  and sale of  $700,000  principal  amount of
funding,  inclusive of the April Note and Stock  purchase  under this  Agreement
(the  "Closing")  shall be held at the offices of Company (or  remotely  via the
exchange of documents and signatures), on or before April ___, 2006.

     For purposes of this  Agreement,  the terms  "Closing" and "Closing  Date",
unless otherwise indicated, refer to the applicable closing and closing date.

     (c) Note.  The April Notes will be deemed  subject to this  Agreement  upon
their  issuance.  Any and all payments  hereunder shall be made in United States
dollars in immediately available funds.

     (d) Seniority.  The April Notes, together with $403,750 principal amount of
Notes issued in March 2006 ("March  Notes") shall be the senior  indebtedness of
the Company.  Without the prior written consent of all of the Investors, and all
of the  investors in the March Notes,  which may be withheld or provided in each
person's sole and absolute discretion, the Company shall not incur nor suffer to
exist any indebtedness  other than Permitted Debt. All Permitted Debt shall rank
junior in priority,  in all respects, to the April Notes and March Notes and the
security  interests of Investors  granted pursuant to the Security  Agreement in
connection  therewith,  in accordance  with this Agreement and the  transactions
contemplated hereby.

     Section 2.02 Interest.

     (a) Interest.  The April Notes shall bear interest on the unpaid  principal
amount  thereof  from the date of the  Closing  to the date  repaid in full at a
monthly  percentage  rate equal to 18% per annum payable in arrears on a monthly
basis  commencing  June 1, 2006.  Interest  shall be  computed on the basis of a
360-day year of twelve 30-day months for the actual number of days elapsed.

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     Section 2.03 Repayment.

     (a) Maturity Date  Repayment.  On the Maturity  Date,  the Company shall be
liable to pay to the Investors the aggregate outstanding principal amount of the
April  Notes,  together  with all interest  accrued  thereon  (such  outstanding
principal  amount,  together  with  such  accrued  interest,  being  called  the
"Aggregate  Amount"),  together  with all other  amounts in respect of the April
Notes  then  owing to the  Investor  hereunder  and under the other  Transaction
Documents,  whether for costs and expenses or  otherwise,  as limited by Section
8.13.

     (b)  Prepayment.  (i) The Company  shall have the right to prepay the April
Notes on or after  September 1, 2006 at 105% of the  principal  amount  together
with accrued  interest;  (ii) each Investors shall have the right to demand full
payment of its respective April Note in the event (x) Company reports net income
before taxes of at least  $500,000 in any  calendar  quarter,  or (y)  Company's
default hereunder or under the April Notes.

     Section 2.04 Security  Agreement.  As security for, among other things, the
Company's  obligations  under this  Agreement,  the April  Notes and each of the
other  Transaction  Documents to which the Company is a party, the Company shall
at the Closing  enter into the Security  Agreement  and grant to the  Investors,
perfected  security  interest in the  Collateral (as such term is defined in the
Security  Agreement)  which shall rank in priority  pari passu to the March 2006
Notes, and shall include, but shall not be limited to, the Intellectual Property
of the Company.

                                  ARTICLE III

                  CONDITIONS OF INVESTOR OBLIGATIONS AT CLOSING

     Section 3.01  Conditions  Precedent to the Closing.  The obligations of the
Investors  under  subsection 1.1 of this Agreement is subject to the fulfillment
on or before the Closing of each of the following conditions:

     (a) Transaction Documents and Shares Delivered. The Company shall have duly
executed and delivered the Transaction  Documents to which it is a party and all
documents   contemplated   hereby  and  thereby,   and  delivered  signed  stock
certificates representing the Shares.

     (b) Additional  Documents  Delivered.  The Company shall have duly executed
and delivered to the Investors the following  documents,  each dated the date of
the  Closing  (unless  otherwise   provided  herein),   in  form  and  substance
satisfactory to the Investors:

          (i)  Copies  of the  resolutions  of the  Board  of  Directors  of the
          Company,  which  resolutions,   among  other  things,   authorize  the
          execution and delivery by the Company of, and the  performance  by the
          Company under this  Agreement and the other  Transaction  Documents to
          which  it  is  a  party  and  the  consummation  of  the  transactions
          contemplated hereby and thereby, and the issuance of the Shares.

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          (ii)  Copies  of  all   documents  and   instruments,   including  all
          authorizations,  consents  and  approvals  of,  evidence  of all other
          actions by, and notices and filings with, all governmental authorities
          and  regulatory  bodies  or other  Persons  to which the  Company  has
          contractual,  legal or regulatory obligations as shall be required for
          the   consummation   of,  and  the  execution  and  delivery  of,  the
          Transaction  Documents  to  which it is a party  and the  transactions
          contemplated hereby and thereby, and the issuance of the Shares.

          (iii) Copies of the Governing  Documents of the Company,  certified as
          of a recent date prior to the Closing by an officer of the Company.

          (iv) A certificate of the Company, signed by an officer of the Company
          (the statements made in which  certificate  shall be true on and as of
          the Closing),  certifying:  (A) the truth in all material  respects of
          the  representations  and  warranties  made  by  the  Company  in  the
          Transaction  Documents to which it is a party;  (B) the absence of any
          event occurring and  continuing,  or resulting from the Transaction or
          the application of the proceeds  therefrom,  that constitutes or could
          constitute a Default or an Event of Default;  and (C) the satisfaction
          of all conditions  precedent by the Company to the  obligations of the
          Investors to purchase the April Notes and the Shares.

          (v) A signed copy of a  certificate  of the Secretary or an officer of
          the Company  certifying the names and true  signatures of the officers
          of the Company  authorized to sign each Transaction  Document to which
          the  Company  is a party,  and the  other  documents  to be  delivered
          hereunder and thereunder.

          (vi) Such other approvals,  opinions or documents as the Investors may
          reasonably request.

     (c) Security Interest Perfected.  The Company shall have taken or caused to
be taken such actions as may be  necessary  or  desirable so that the  Investors
have,  together  with the  March  Note  holders,  a valid and  perfected,  first
priority  security  interest in the  Collateral,  as such term is defined in the
Security Agreement including,  but not limited to, the intellectual  property of
the Company.

     (d) No  Event of  Default.  As of the  Closing  Date no  event  shall  have
occurred or be  continuing  or could  reasonably  be expected to result from the
Transaction  or from the  application  of the  proceeds  therefrom,  that  could
constitute a Default or an Event of Default.

     (e) Absence of Material  Change.  As of the Closing Date, there has been no
event  that has  caused or may cause a Material  Adverse  Effect on the  Company
since the date of this Agreement.

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                                   ARTICLE IV

                         REPRESENTATIONS AND WARRANTIES

     Section 4.01 Representations and Warranties.  The Company hereby represents
and warrants that, at the date of this Agreement:

     (a) Due  Incorporation,  Etc.  The  Company  is a company  duly  organized,
validly  existing and in good standing under the laws of the jurisdiction of its
incorporation and has full corporate power and corporate authority to own, lease
and operate its  property  and assets and to conduct its  business as  presently
conducted and as proposed to be conducted by it. The Company has full  corporate
power and corporate  authority to enter into and perform its  obligations  under
the Transaction Documents, to issue the Shares and to carry out the transactions
contemplated by the Transaction Documents.  The Company is duly qualified and is
authorized  to do business and is in good standing as a foreign  corporation  in
all  jurisdictions  in which the nature of its  business  and its  ownership  or
leasing of property makes such qualification necessary.

     (b)  Enforceability:   No  Conflict.  Each  of  the  Transaction  Documents
constitutes  a valid  and  binding  obligation  of the  Company  enforceable  in
accordance with its terms,  subject to laws of general  application  applying to
the Company and relating to  bankruptcy,  insolvency,  and the relief of debtors
and rules of law  applying to the Company and  governing  specific  performance,
injunctive  relief and other  equitable  remedies.  Neither  the  execution  and
delivery of any  Transaction  Document to which the Company is a party,  nor the
performance by the Company of its obligations thereunder nor the issuance of the
Shares, (i) will conflict with or result in a breach of, or constitute a default
under the Company's  Governing  Documents or any other document to which Company
or its  Affiliates is a party,  or (ii) will conflict with or result in a breach
of, or constitute a default under or result in the creation or imposition of any
Lien upon any of the property or assets of the Company under any applicable law,
rule, governmental regulation,  judgment,  decree, indenture,  mortgage, deed of
trust or other  instrument  or  agreement  to which  the  Company  or any of its
Affiliates may be or become a party or by which it may be or become bound.

     (c)  Litigation.  There  is no  pending  or,  to the  Company's  knowledge,
threatened  litigation,  investigation,  action or  proceeding  of or before any
court,  arbitrator  or  governmental  agency  (i) which  purports  to affect the
legality,  validity or enforceability  of any Transaction  Document or (ii) that
could have a  Material  Adverse  Effect  against  (a) the  Company or any of its
officers,  directors or employees (in their  capacity as such) or (b) any of the
properties  of the  Company.  The  Company  is not a  party  or  subject  to the
provisions of any order,  writ,  injunction,  judgment or decree of any court or
governmental agency or instrumentality.  There is no action, suit, proceeding or
investigation  by the  Company  currently  pending  which  is  likely  to have a
Material Adverse Effect.

     (d) Capitalization and Voting Rights. The number of authorized,  issued and
outstanding  capital stock of the Company is set forth in the Company's publicly
available  filings  with the  Securities  and  Exchange  Commission.  Except  as
disclosed  therein,  no securities of the Company or any Subsidiary are entitled
to preemptive or similar rights,  nor is any holder of securities of the Company
or any  Subsidiary  entitled to preemptive or similar  rights arising out of any
agreement or  understanding  with the Company or any Subsidiary by virtue of any
of  the  Transaction  Documents.  Except  as  disclosed  therein,  there  are no
outstanding  options,   warrants,  script  rights  to  subscribe  to,  calls  or

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commitments of any character whatsoever relating to, or securities,  except as a
result of the  purchase  and sale of the  Securities,  or rights or  obligations
convertible  into or  exchangeable  for,  or  giving  any  Person  any  right to
subscribe for or acquire, any shares of Common Stock, or contracts, commitments,
understandings, or arrangements by which the Company or any Subsidiary is or may
become bound to issue additional shares of Common Stock, or securities or rights
convertible or exchangeable into shares of Common Stock.

     (e) Valid Issuance of April Notes and Shares. The April Note and the Shares
being purchased by the Investors hereunder,  when issued, sold, and delivered in
accordance with the terms hereof for the consideration provided for herein, will
be duly and  validly  issued,  and,  in the case of the  Shares,  fully paid and
non-assessable  and, based in part upon the  representations of the Investors in
this  Agreement,  will be issued in compliance  with all applicable  federal and
state securities laws.

     (f) No  Violation.  The  Company  is not in  violation  of,  nor  does  the
execution of any of the Transaction Documents by the Company or the consummation
of the transactions  contemplated  hereby or thereby result in the violation of,
(i) any  term of the  Company's  Governing  Documents  or (ii)  any  term of any
agreement  or  instrument  to which the  Company  is a party or by which any are
bound  in any  respect  which  has or  could be  reasonably  expected  to have a
Material Adverse Effect.

     (g) Taxes.  The  Company  has  accurately  prepared  and  timely  filed all
federal,  state local and foreign  reports,  returns,  estimates,  declarations,
information returns and statements with respect to income taxes (together,  "Tax
Returns") that are required to be filed by it and has paid or made provision for
the payment of all such taxes due with  respect to the  periods  covered by such
Tax Returns,  in all material respects.  No such Tax Returns of the Company have
been audited by any taxing authority,  and there are no waivers in effect of the
applicable  statute of limitations for any period.  No deficiency  assessment or
proposed  adjustment of federal income taxes or state or municipal  taxes of the
Company is pending and the Company has no knowledge  of any  proposed  liability
for any tax to be  imposed  on the  Company.  For the  purpose  of this  Section
4.01(f), "tax" or "taxes" shall mean all federal, state, local or foreign taxes,
including  but  not  limited  to  income,  gross  receipts,   windfall  profits,
alternative minimum, value added, severance,  property,  production, sales, use,
license, excise, franchise,  employment,  withholding or similar taxes, together
with any interest,  additions or penalties with respect thereto and any interest
in respect of such additions or penalties.

     (h) Security  Interest  Generally.  The Security  Agreement is effective to
create,  and with the delivery of the Collateral will create,  when filed in the
appropriate  jurisdiction,  in  favor  of the  Investors,  a  legal,  valid  and
enforceable first priority perfected security interest in the Collateral.

     (i) Financial Condition

          (i) The unaudited  financial  statements of Company for the six months
     ended  December  31,  2006  as  filed  with  the  Securities  and  Exchange
     Commission  are complete  and correct in all material  respects and present
     fairly the consolidated financial position and condition of Company at such

                                       xi
<PAGE>

     date. All such financial  statements,  including the related  schedules and
     notes  thereto,   have  been  prepared  in  accordance  with  GAAP  applied
     consistently  throughout  the  periods  disclosed  therein.  There  are  no
     liabilities or obligations as of such date not disclosed therein.

          (ii)  Since  December  31,  2006,  there  has  been no  change  in the
     financial  position or  condition of the Company,  nor any  development  or
     event  which has had or could  reasonably  be  expected  to have a Material
     Adverse Effect,  except that Company has continued to sustain net operating
     losses through March 31, 2006..

     (j) Title to Properties:  Liens and Encumbrances.  The Company (i) has good
and  valid  title to all of its  owned  properties  and  assets,  both  real and
personal,   tangible  and  intangible,   reflected  on  the  Interim   Financial
Statements,  and such properties and assets are subject to no mortgage,  pledge,
lien,  security  interest,  conditional  sale  agreement,  encumbrance or charge
except for Permitted Liens and routine statutory liens securing  liabilities not
yet due and payable and minor  liens,  encumbrances,  restrictions,  exceptions,
reservations, limitations and other imperfections that do not materially detract
from the value of the assets as a whole or the present use of such  assets,  and
(ii) is not in default  or in breach in any  material  respect  of any  material
leases or  licenses,  and holds a valid  leasehold  or licensed  interest in the
material property it leases or that is licensed to it.

     (k) Intellectual Property Rights

          (i) Ownership and Other Rights;  Sufficiency of Intellectual  Property
     Assets.  Company  owns or  possesses  adequate  licenses,  re-marketing  or
     sublicensing  rights,  or other rights to use, free and clear of all Liens,
     all of its Intellectual  Property used in the conduct of Company's business
     as presently conducted.  Such Intellectual  Property of Company constitutes
     all the  Intellectual  Property rights material to the conduct of Company's
     business as  presently  conducted  and are all such  Intellectual  Property
     rights  necessary  to  operate  such  business  after the  Closing  Date in
     substantially the same manner as such business has been operated by Company
     prior thereto.

          (ii) No Pending or Threatened  Infringement  Claims.  No litigation is
     now pending  and no notice or other  claim in writing has been  received by
     Company,  (A) alleging  that Company has engaged in any activity or conduct
     that infringes upon,  violates or constitutes the  unauthorized  use of the
     Intellectual  Property  rights of any third  party or (B)  challenging  the
     ownership,  use, validity or  enforceability  of any Intellectual  Property
     owned or exclusively licensed by or to Company.

          (iii) Actions to Protect Intellectual  Property. The Company has taken
     commercially  reasonable  steps to protect  its rights in its  Intellectual
     Property  and  maintain  the  confidentiality  of all  of its  confidential
     information.

     (l) Restricted Payments. The Company has not (i) except with respect to its
Preferred  Stock,  declared  or paid any  dividends  or  authorized  or made any
distribution  upon or with respect to any class or series of its Capital  Stock,

                                      xii
<PAGE>

(ii) made any  Transactions  or advances to any Person,  other than  advances of
expenses  to  employees  in the  ordinary  course of  business,  or (iii)  sold,
exchanged or otherwise disposed of any of its assets or rights.

     (m) Not a Guarantor.  The Company is not a guarantor or  indemnitor  of any
indebtedness of any other Person.

     (n) ERISA. Neither the Company nor any Subsidiary  maintains,  sponsors, or
contributes to any program or arrangement  that is an "employee  pension benefit
plan," an "employee  welfare benefit plan" or a  "multiemployer  plan," as those
terms are defined in Sections 3(2),  3(1), and 3(37) of the Employee  Retirement
Income Security Act of 1974, as amended.

     (o) Governmental  Consents. No consent,  approval,  order, or authorization
of, or registration,  qualification,  designation,  declaration, or filing with,
any federal, state, local or foreign Governmental Authority to which the Company
is subject is required in connection with the  consummation of the  transactions
contemplated by this Agreement.

     (p)  Compliance.  The Company has  complied  with the  requirements  of all
applicable laws,  rules,  regulations and orders of any Governmental  Authority,
noncompliance   with  which,   individually  or  in  the  aggregate  with  other
non-compliances,  has had or could  reasonably  be  expected to cause a Material
Adverse  Effect on the  Company.  The  Company  possesses  and is  operating  in
compliance with all licenses, certificates, consents, authorities, approvals and
permits from all state, federal, foreign and other regulatory agencies or bodies
necessary   to  conduct  the   business  now  operated  by  it  except  for  any
nonpossession  or  noncompliance  which has not had and could not  reasonably be
expected to cause a Material Adverse Effect on the Company,  and the Company has
not  received  any  notice  of   proceedings   relating  to  the  revocation  or
modification  of any such  permit or any  circumstance  which  would  lead it to
believe that such  proceedings  are  reasonably  likely which,  singly or in the
aggregate, if the subject of an unfavorable decision, ruling or finding, has had
or could  reasonably  be  expected  to cause a  Material  Adverse  Effect on the
Company.

     (q)  Insurance.  To the  knowledge of the Company,  the amount and types of
insurance  carried by the Company,  and the terms and  conditions  thereof,  are
adequate  for the  Company's  business  and  with  respect  to the  transactions
contemplated hereby.

     (r) Full Disclosure.  This Agreement,  the attached schedules and exhibits,
the other Transaction  Documents and other documents called for hereby delivered
by the  Company  to the  Investors  or its  attorneys  or agents  in  connection
herewith or therewith or with the transactions  contemplated  hereby or thereby,
all taken together,  do not contain any untrue  statement of a material fact nor
omit to  state a  material  fact  necessary  in  order  to make  the  statements
contained herein or therein not misleading.

                                      xiii
<PAGE>

                                    ARTICLE V

                                    COVENANTS

     Section 5.01 Affirmative Covenants.  The Company covenants and agrees that,
so long as any amount is outstanding under any of the Transaction Documents, the
Company shall, unless waived by all the Investors in writing:

     (a) Notice of  Defaults.  Promptly  upon and in any event within 5 business
days after any executive  officer of the Company  obtaining  knowledge  thereof,
give  notice  to  the  Investors  (i)  of any  development,  including,  without
limitation,  any litigation,  investigation or proceeding affecting the Company,
which has a Material  Adverse  Effect,  could  reasonably  be expected to have a
Material  Adverse  Effect or, in the case of any  litigation,  investigation  or
other proceeding,  which could, if adversely decided,  reasonably be expected to
have a Material  Adverse  Effect and (ii) of a Default or Event of Default under
this Agreement,  each such notice being in the form of an officers' certificate,
signed by an executive officer of the Company,  specifying,  to the extent known
by the Company, the nature and period of existence of any such event.

     (b) Corporate  Existence.  The Company shall at all times preserve and keep
in full force and effect its corporate  existence and all of its material rights
and shall continue to conduct its business in the ordinary course.

     (c) Maintenance of Properties; Insurance. The Company will maintain in good
repair,  working  order and  condition,  ordinary  wear and tear  excepted,  all
material  properties used or useful in the business of the Company and from time
to time  will make or cause to be made all  appropriate  repairs,  renewals  and
replacements  thereof  which  it  deems  necessary  in its  reasonable  business
judgment.  The Company  will  maintain,  with  financially  sound and  reputable
insurers,  insurance with respect to its properties and business against loss or
damage  of the  kinds and with  respect  to  liability  customarily  carried  or
maintained under similar circumstances by corporations of established reputation
engaged in similar businesses.

     (d) Compliance with Laws. The Company shall comply with the requirements of
all  applicable  laws,  rules,   regulations  and  orders  of  any  Governmental
Authority, noncompliance with which, individually or in the aggregate with other
non-compliances, could reasonably be expected to cause a Material Adverse Effect
on the Company.

     (e) Monthly Receivables Certificate. Within ten (10) days following the end
of each calendar  month,  furnish to each  Investor a  certificate  of its chief
financial  officer  that,  as of the end of the preceding  calendar  month,  the
Current Accounts  Receivable exceeded  $1,500,000,  and specifying the amount of
the Current Accounts Receivable as of month end.

     (f) Maintain Current Account Receivable. At all times while the April Notes
remain  outstanding,  maintain  Current  Account  Receivable  of  no  less  than
$1,500,000.

     (g) Use of Proceeds.  The Company  shall use the proceeds  from the sale of
the April Notes and the Shares for working capital purposes.

                                      xiv
<PAGE>

     Section 5.02 Negative Covenants.  The Company covenants and agrees that, so
long as any  amount  is  outstanding  under  any of the  Transaction  Documents,
neither it nor any of its Subsidiaries shall, without the written consent of all
the Investors:

     (a)  Additional  Debt.  Create,  incur,  assume or suffer to exist any Debt
other than Debt arising under this Agreement and the other Transaction Documents
and Permitted Debt.

     (b) Liens. Create,  incur, assume or suffer to exist any Lien, upon or with
respect  to  any  of  its  properties  of  any  character  (including,   without
limitation,  accounts)  whether now owned or,  hereafter  acquired,  or sign any
security  agreement  authorizing any secured party  thereunder to file or assign
any accounts or other right to receive income, other than Permitted Liens.

     (c) Change in Nature of Business. Make any material change in the nature of
its business as it exists on the date hereof.

                                   ARTICLE VI

     Representations  and  Warranties of the  Investors.  Each of the Investors,
severally and not jointly, hereby represent and warrant as to itself that:

     Section 6.01 Authorization.  The Transaction Documents constitute valid and
legally binding obligations of the Investor enforceable in accordance with their
terms,   except   (i)  as   limited  by   applicable   bankruptcy,   insolvency,
reorganization,  moratorium,  and other  laws of general  application  affecting
enforcement of creditors'  rights generally and (ii) as limited by laws relating
to the  availability  of  specific  performance,  injunctive  relief,  or  other
equitable remedies.

     Section 6.02  Purchase  Entirely  for Own Account.  The April Notes and the
Shares to be purchased by the Investor (collectively,  the "Securities") will be
acquired for  investment  for the  Investor's own account and not with a view to
the resale or distribution of any part thereof.  The Investor represents that it
has full power and authority to enter into this Agreement.

     Section 6.03 Disclosure of Information.  The Investor  acknowledges that it
has received all the information  that it has requested  relating to the Company
and the purchase of the April Notes and the Shares and has had an opportunity to
review and question the Company in connection with all public filings of Company
under applicable state and federal rules and regulations,  or as required by the
Securities and Exchange  Commission or state regulatory  agencies.  The Investor
further  represents  that it has had an opportunity to ask questions and receive
answers from the Company  regarding the terms and  conditions of the offering of
the April Notes and the Shares. The foregoing, however, does not limit or modify
the  representations  and  warranties  of the  Company  in  Article  IV of  this
Agreement or the right of the Investor to rely thereon.

     Section 6.04 Accredited Investor.  The Investor is an "accredited investor"
within the meaning of Rule 501 of  Regulation D of the  Securities  and Exchange
Commission (the "SEC"), as presently in effect.

                                       xv
<PAGE>

     Section 6.05 Restricted  Securities.  Investor  understands  that the April
Note and the Shares  that it is  purchasing  are  characterized  as  "restricted
securities"  under  the  federal  securities  laws  inasmuch  as they are  being
acquired from the Company in a transaction not involving a public offering,  and
that under such laws and applicable  regulations  such  securities may be resold
without  registration under the Act, only in certain limited  circumstances.  In
this connection,  the Investor represents that it is familiar with SEC Rule 144,
as presently in effect, and understands the resale  limitations  imposed thereby
and by the Act.

     Section 6.06 Legends. It is understood that the certificates evidencing the
April  Notes and the Shares  may bear a legend in  substantially  the  following
form:

     "THE SECURITIES  REPRESENTED BY THIS  CERTIFICATE  HAVE NOT BEEN REGISTERED
UNDER THE  SECURITIES  ACT OF 1933,  AS AMENDED (THE "ACT"),  AND ARE SUBJECT TO
RESTRICTIONS ON TRANSFERABILITY AS SET FORTH IN THIS CERTIFICATE. THE SECURITIES
REPRESENTED HEREBY MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF IN THE
ABSENCE OF AN EFFECTIVE  REGISTRATION  STATEMENT  UNDER THE ACT OR AN OPINION OF
COUNSEL,  REASONABLY  ACCEPTABLE TO COUNSEL FOR THE COMPANY,  TO THE EFFECT THAT
THE  PROPOSED  SALE,  TRANSFER,   OR  DISPOSITION  MAY  BE  EFFECTUATED  WITHOUT
REGISTRATION UNDER THE ACT."

     Section 6.07  Investor  Questionnaire.  If  requested  by the Company,  the
Investor  covenants  to  execute  and  deliver  to the  Company  prior to, at or
promptly  following  the  Closing  an  investor  questionnaire  supplied  by the
Company.

                                  ARTICLE VII

                                EVENTS OF DEFAULT

     Section 7.01 Events of Default.  If any of the following  events (an "Event
of Default") shall occur and be continuing:

     (a) The Company shall fail to pay the principal of, or any interest on, the
April Notes or any other amount payable under any Transaction  Document to which
it is a party within ten (10)  business  days after such amount  becomes due and
payable; or

     (b)  Any  representation  or  warranty  made  by the  Company  under  or in
connection with any  Transaction  Document to which it is a party shall prove to
have been incorrect in any material respect when made; or

     (c) The Company shall fail to deliver the officer's certificate required to
be  delivered  pursuant to Section  5.01(e),  and such  failure  shall  continue
unremedied for a period of ten (10) business days; or

     (d) The Company  shall fail to perform or observe any other term,  covenant
or agreement  contained in any  Transaction  Document to which it is a party and

                                      xvi
<PAGE>

such failure  shall  continue  unremedied  for a period of fifteen (15) business
days after  notice of such  failure to  perform is  delivered  in writing to the
Company; or

     (e) A default shall occur under the Security Agreement; or

     (f) The Company shall generally not pay its debts as such debts become due,
or shall admit in writing its  inability to pay its debts  generally,  or either
shall make a general assignment for the benefit of creditors;  or any proceeding
shall be instituted by or against the Company  seeking to adjudicate the Company
as bankrupt or insolvent,  or seeking liquidation,  winding up,  reorganization,
arrangement,  adjustment,  protection,  relief, or composition of the Company or
its debt under any law relating to bankruptcy,  insolvency or  reorganization or
relief  of  debtors,  or  seeking  the  entry  of an  order  for  relief  or the
appointment of a receiver, trustee, or other similar official for the Company or
for any  substantial  part of its property,  or seeking a warrant of attachment,
execution or similar process  against any substantial  part of its property and,
in the case of any such proceeding  instituted against the Company,  either such
proceeding shall remain  undismissed or unstayed for a period of 90 days, or any
of the actions sought in such proceeding  (including,  without  limitation,  the
entry of an order for relief against, or the appointment of a receiver, trustee,
custodian or other  similar  official for, or for any  substantial  part of, the
Company's  property) shall occur; or the Company shall take corporate  action to
authorize any of the actions set forth above in this subsection (f); or

     (g) Any judgment or order for the payment of money in excess of  US$250,000
shall be rendered against the Company, and either (i) an enforcement  proceeding
shall have been  commenced by any creditor  upon such  judgment or order or (ii)
there shall have been a period of 10  consecutive  days  during  which a stay of
enforcement  of such  judgment  or  order,  by  reason  of a  pending  appeal or
otherwise, shall not be in effect; or

     (h) Any  non-monetary  judgment  or order  shall be  rendered  against  the
Company that could be reasonably likely to have a Material Adverse Effect on the
Company,  and there shall be any period of 10  consecutive  days during  which a
stay of enforcement or such judgment or order,  by reason of a pending appeal or
otherwise, shall not be in effect; or

     (i) Any provision of any Transaction  Document after delivery thereof shall
for any reason cease to be valid and binding on the Company or the Company shall
so state in writing.

     Section 7.02 Remedies. In the case of an Event of Default:

     (a) with  respect to Section  7.01(a)  through  7.01(e) and with respect to
Sections  7.01(g) through (h), the Investors may,  individually  with respect to
its  respective  April  Note,  or in the  aggregate,  by notice to the  Company,
declare the principal  amount then  outstanding of, and the accrued interest on,
the April Notes and all other amounts payable by the Company hereunder and under
the April Notes and the Security Agreement

     (b) to be  forthwith  due and  payable,  whereupon  such  amounts  shall be
immediately due and payable in cash,  without  presentment,  demand,  protest or
other  formalities of any kind, all of which are hereby  expressly waived by the
Company; and

                                      xvii
<PAGE>

     (c) with respect to Section  7.01(f),  the unpaid  principal  amount of and
accrued interest on the April Notes and all other amounts payable by the Company
hereunder and under the April Notes shall  automatically  become immediately due
and payable, in cash, without presentment,  demand, protest or other formalities
of any kind, all of which are hereby expressly waived by the Company.

                                  ARTICLE VIII

                                  MISCELLANEOUS

     Section 8.01 Amendments.

     (a) No amendment,  modification,  termination or waiver of any provision of
this Agreement, the April Notes or any other Transaction Document, or consent to
any departure by the Company or the Investors  therefrom,  shall in any event be
effective  without  the  written  concurrence  of  the  Company  and  all of the
Investors provided however,  each Investor may individually  extend the Maturity
Date of its April Note in its sole and absolute discretion.

     (b) Any waiver or consent shall be effective only in the specific  instance
and for the specific  purpose for which it was given.  No notice to or demand on
the Company in any case shall entitle the Company to any other or further notice
or  demand in  similar  or other  circumstances.  Any  amendment,  modification,
termination,  waiver or consent  effected in accordance with this Section 8 time
outstanding, its assigns and, if signed by the Company, the Company.

     Section 8.02 Notices.  All notices,  demands or other  communications to be
given or delivered  under or by reason of the  provisions of this Agreement will
be in writing and will be deemed to have been given when delivered personally or
mailed by certified or registered  mail,  return  receipt  requested and postage
prepaid, to the recipient.  Such notices,  defends and other communications will
be sent to the addresses set forth below:

     If to the Investors, to them at their respective addresses set forth in the
signature pages hereof:

     If to the Company, to:

                  NetWolves Corporation
                  4805 Independence Parkway
                  Suite 101
                  Tampa, Florida  33634
                  Attn:  Mr. Peter Castle
                  Telephone:  813-286-8644
                  Fax:  813-286-3661

                                      xviii

<PAGE>

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

                  Beckman, Lieberman, & Barandes, LLP
                  116 John Street
                  Suite 1313
                  New York, NY  10038
                  Attn:  David H. Lieberman, Esq.
                  Telephone:  212-608-3500
                  Fax:  212-608-9687

     Section 8.03 No Waiver;  Remedies.  No failure on the part of the Investors
to  exercise,  and no delay in  exercising,  any  right  hereunder  or under any
Transaction  Document shall operate as a waiver thereof, nor shall any single or
partial  exercise  of any such  right  preclude  any other or  further  exercise
thereof or the exercise of any other right.  The  remedies  herein  provided are
cumulative and not exclusive of any remedies provided by law.

     Section 8.04 Binding Effect.  This Agreement shall become effective when it
shall have been executed by the Company and the Investors and  thereafter  shall
be binding  upon and inure to the benefit of the Company and the  Investors  and
their respective successors and assigns,  except that the Company shall not have
the right to  assign  or  otherwise  transfer  all or any part of its  rights or
obligations  hereunder or any interest  herein without the prior written consent
of the Investor.

     Section 8.05 Indemnity.

     (a) The Company  agrees to indemnify  and hold  harmless the  Investors and
each of its  Affiliates  and  their  respective  directors,  officers,  members,
managers, employees, agents, representatives,  assignees and controlling persons
(each,  an  "Indemnified  Party")  from and against any and all losses,  claims,
damages,  expenses and  liabilities  (including  the cost of any  investigation,
litigation, or other proceedings, regardless of whether any Indemnified Party is
a party thereto), and fees, disbursements and other charges of counsel, joint or
several, to which such Indemnified Party may become subject under any applicable
law and related to or arising  out of (i) any  transaction  contemplated  by the
Transaction  Documents  or  the  execution,  delivery  and  performance  of  the
Transaction  Documents  or  any  other  document  in  any  way  relating  to the
Transaction,  the other transactions  contemplated by the Transaction  Documents
(as such  documentation  may be amended,  modified or  supplemented) or (ii) any
breach of a  representation,  warranty or covenant  contained in any Transaction
Documents.  The Company will not be liable under the  foregoing  indemnification
provision to an Indemnified  Party to the extent that any loss,  claim,  damage,
liability or expense is found in a final,  non-appealable judgment by a court of
competent jurisdiction to have resulted from such Indemnified Party's bad faith,
gross  negligence,  or knowing violation of law. The Company also agrees that no
Indemnified  Party shall have any  liability  (whether  direct or  indirect,  in
contract  or tort or  otherwise)  to the  Company,  or any  security  holders or
creditors  thereof,  related to or arising out of the  execution,  delivery  and
performance  of any  Transaction  Document  or any  other  document  in any  way
relating to any of the  Transactions or the other  transactions  contemplated by
the Transaction Documents,  except to the extent that any loss, claim, damage or

                                      xix
<PAGE>

liability  is  found  in a  final,  non-appealable  judgment  by a court to have
resulted  from such  Indemnified  Party's bad faith or gross  negligence  or any
breach of this Agreement.

     (b) If the  indemnification of an Indemnified Party provided for in Section
8.06(a) is for any reason held  unenforceable,  the Company agrees to contribute
to the losses, claims, damages and liabilities for which such indemnification is
held  unenforceable  (i) in such  proportion  as is  appropriate  to reflect the
relative benefits to the Company,  on the one hand, and such Indemnified  Party,
on  the  other  hand,  of  the  transactions  contemplated  by  the  Transaction
Documents,  including,  without  limitation,  the  Transactions  and  the  other
transactions  contemplated  by any other  document in any way relating to any of
the Transactions (whether or not any of such transaction is consummated) or (ii)
if (but only if) the  allocation  provided  for in clause  (i) is for any reason
held unenforceable, in such proportion as is appropriate to reflect not only the
relative  benefits  referred to in clause (i) but also the relative fault of the
Company, on the one hand, and such Indemnified Party, on the other hand, as well
as any other relevant equitable considerations;  provided, however, that, to the
extent  permitted by applicable law, in no event shall any Indemnified  Party be
required to contribute an aggregate  amount in excess of the aggregate  interest
and costs and expenses  actually  paid to such  Indemnified  Party in connection
with the Transaction

     Section 8.07 Governing Law. This  Agreement,  the Security  Agreement,  the
Registration  Rights  Agreement  and the April Notes  shall be governed  by, and
construed in accordance with, the laws of the State of New York,  without regard
to principles of conflicts of laws.

     Section 8.08 Execution in  Counterparts.  This Agreement may be executed in
any  number  of  counterparts  and by  different  parties  thereto  in  separate
counterparts,  each of which when so executed  shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.

Section 8.09      Consent to Jurisdiction.

     (a) The Company hereby  irrevocably  submits to the jurisdiction of any New
York State or federal  court  sitting in the City of New York,  New York, in any
action or proceeding  arising out of or relating to this  Agreement or any other
Transaction Document,  and the Company hereby irrevocably agrees that all claims
in respect of such action or proceeding  may be heard and determined in such New
York, New York state court or such federal court. The Company hereby irrevocably
waives,  to the  fullest  extent it may  effectively  do so,  the  defense of an
inconvenient forum to the maintenance of such action or proceeding.  The Company
hereby  irrevocably  consents  to the  service  of  copies  of any  summons  and
complaint  and any other  process  which  may be  served  in any such  action or
proceeding by certified mail, return receipt requested,  or by delivering a copy
of such process to the Company,  at its address  specified in Section 8.02 or by
any other method  permitted by law. The Company  agrees that a final judgment in
any such action or proceeding  shall be conclusive  and may be enforced in other
jurisdictions by suit on the judgment or by any other manner provided by law.

                                       xx
<PAGE>

     (b) Nothing in this Section 8.09 shall affect the right of the Investors to
serve legal process in any other manner  permitted by law or affect the right of
the  Investors  to bring any action or  proceeding  against the Company or their
property in the courts of other jurisdictions.

     Section 8.10 Waiver Of Jury Trial.  EACH OF THE COMPANY,  AND THE INVESTORS
HEREBY IRREVOCABLY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM  (WHETHER BASED ON CONTRACT,  TORT OR OTHERWISE)  ARISING OUT OF OR
RELATING TO ANY OF THE TRANSACTION  DOCUMENTS,  ANY DOCUMENT DELIVERED UNDER THE
TRANSACTION  DOCUMENTS,  THE APRIL  NOTES OR THE  ACTIONS OF THE COMPANY AND THE
INVESTORS  IN  THE  NEGOTIATION,  ADMINISTRATION,   PERFORMANCE  OR  ENFORCEMENT
THEREOF.

     Section 8.11 Other Activities, Publicity and Confidentiality.

     (a) No Promotion.  Except as otherwise  required by law, the Company agrees
that it will not,  without the prior  written  consent of the  Investors in each
instance,  (i) use in  advertising,  publicity,  or  otherwise  the  name of the
Investors,  or any affiliate of the Investor,  or any partner or employee of the
Investors, nor any trade name, trademark,  trade device, service mark, symbol or
any abbreviation, contraction or simulation thereof owned by the Investor or its
affiliates, or (ii) represent,  directly or indirectly,  that any product or any
service provided by the Company has been approved or endorsed by the Investors.

     (b)  Confidentiality.  Except  as  required  by law,  regulation  or  legal
process,  the Investors agrees, and agrees to cause any of its  representatives,
employees,  legal counsel,  advisors, agents or affiliates, to keep confidential
and not disclose (other than, in the case of any such representative,  employee,
advisor,  agent or affiliate,  to the Investors),  or divulge any  confidential,
proprietary,  secret  or  non-public  information  which  the  Investors  or its
representatives,  employees,  legal counsel,  advisors, agents or affiliates may
obtain from the Company (including but not limited to financial  statements) and
not use  such  information  other  than for the  benefit  of the  Company  or in
furtherance of the  Investors'  rights as a Investor or investor of the Company,
provided that no such information  shall be deemed to be non-public if it (i) is
or  becomes  generally  available  to the  public  other  than as a result  of a
disclosure by the Investors or its respective agents, representatives, advisors,
legal counsel or employees;  (ii) is or becomes  available to the Investors on a
non-confidential  basis  from a source  (other  than the  Company  or one of its
officers,   directors,  agents,   representatives  or  employees)  that  is  not
prohibited from disclosing such information by a legal, contractual or fiduciary
obligation;  or (iii) was known to the  Investors  on a  non-confidential  basis
prior to its  disclosure to it by the Company,  and provided  further that,  any
other term of this Agreement to the contrary notwithstanding,  the Company shall
not be obligated to disclose any information to a competitor of the Company.

     Section 8.12 Decisions and Other  Determinations.  For all purposes of this
Agreement, any provision which provides for a decision or other determination to
be made by any party  hereto at its option or  election,  or in its  discretion,
shall be made in the sole and absolute  discretion of such party,  which each of
the parties hereto hereby acknowledges and confirms may be arbitrary.

                                      xxi
<PAGE>

     Section 8.13 Interest Laws.  Notwithstanding  any provision to the contrary
contained in this  Agreement,  the Company shall not be required to pay, and the
Investor  shall not be  permitted  to contract  for,  take,  reserve,  charge or
receive,  any compensation  which  constitutes  interest under applicable law in
excess of the maximum amount of interest  permitted by law ("Excess  Interest").
If any Excess Interest is provided for or determined in a final,  non-appealable
judgment by a court of competent  jurisdiction to have been provided for in this
Agreement or otherwise  contracted  for, taken,  reserved,  charged or received,
then in such event: (A) the provisions of this Section shall govern and control;
(B) the  Company  shall not be  obligated  to pay any Excess  Interest;  (C) any
Excess Interest that the Investors may have  contracted  for,  taken,  reserved,
charged or received hereunder shall be, at the Investor's option, (I) applied as
a credit  against the  outstanding  balance of the April Note (not to exceed the
maximum amount  permitted by law), (II) refunded to the payor thereof,  or (III)
any  combination  of the  foregoing;  (D) the  interest  provided  for  shall be
automatically reduced to the maximum lawful rate allowed from time to time under
applicable law (the "Maximum Rate"),  and this Agreement shall be deemed to have
been, and shall be, reformed and modified to reflect such reduction; and (E) the
Company shall have no action  against the Investors due to any Excess  Interest.
The terms of this Section shall be deemed incorporated into the April Notes.

     Section 8.14 Further Assurances. To the extent permitted by applicable law,
the Company shall use its best efforts to obtain any consent of any Person which
may be  required  in  connection  with the  performance  or  enforcement  of any
Transaction Document and any transfer,  pledge,  assignment or grant of security
interest in  Collateral  contemplated  hereby and  thereby,  and will  cooperate
fully,  and use its best  efforts to in  effecting  any such  transfer,  pledge,
assignment or grant of security  interest or in connection  with each Investor's
exercise of its rights and remedies pursuant to the Transaction Documents.

                                      xxii
<PAGE>

     IN WITNESS  WHEREOF,  the parties  hereto have caused this  Agreement to be
executed by their respective officers thereunto duly authorized,  as of the date
first above written.

                                  NETWOLVES CORPORATION

                                  By: /s/ Peter C. Castle
                                  --------------------------------------------
                                  Name:   Peter C. Castle
                                  Title: Chief Financial Officer

                                  AGREED AND ACCEPTED by all Investors
                                  pursuant to their respective executed
                                  Financing Signature Page

                                     xxiii
<PAGE>

                                    EXHIBIT A

                         FORM OF SECURED PROMISSORY NOTE

                  (AS PER EXECUTION COPY DELIVERED TO INVESTOR)

                                      xxiv
<PAGE>

                                    EXHIBIT B

                           FORM OF SECURITY AGREEMENT

                  (AS PER EXECUTION COPY DELIVERED TO INVESTOR)

                                      xxv
<PAGE>

                                    EXHIBIT C

                      FORM OF REGISTRATION RIGHTS AGREEMENT

                  (AS PER EXECUTION COPY DELIVERED TO INVESTOR)

                                      xxviExhibit 10.1

October 6 2006

William T. Monahan
9 Edmondson Drive
West Chester, Pennsylvania 19382

Dear Bill:

This letter agreement confirms your employment as Interim Chief Executive
Officer ("CEO") of Novelis Inc. effective as of August 28, 2006. As Interim CEO,
your employment with Novelis will be "at will" and, as such, may be terminated
at any time, by either you or Novelis, with or without advance notice or cause.

While you are Interim CEO, Novelis will continue its search for a permanent
Chief Executive Officer. At the discretion of the Board, you will continue to
serve as Chairman of the Board of Directors.

      Beginning September 1, 2006, and so long as you are Interim CEO:

        o    Novelis will pay you a base salary of $ 65,000 per month, payable
             in accordance with the Company's normal payroll cycle and subject
             to all applicable tax and other withholdings;
        o    You will continue to receive separate compensation to which you
             would otherwise be entitled as Chairman of the Board;
        o    You will be eligible for incentive compensation, if any, in the
             sole and exclusive discretion of the Board;
        o    Novelis will reimburse you for all reasonable business expenses
             incurred in accordance with its customary policies;
        o    You will not be eligible to participate in the Company's employee
             benefit plans.
        o    Due to the temporary status of your employment, you will not be
             entitled to any separation or severance-related pay following your
             termination of employment as Interim CEO.

Please acknowledge acceptance of the foregoing by executing the letter below and
returning it to my attention. Please retain a copy for your records.

Sincerely,

/s/ Clarence J. Chandran
--------------------------------------
Clarence J. Chandran
Chair of the Human Resources Committee
of the Board of Directors

ACCEPTANCE:

/s/ William T. Monahan               10/9/2006
---------------------------          ---------
William T. Monahan                   Date

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