Document:

kmaglobal8k091307ex101.htm

    
       

      Exhibit
        10.1

      

      SECURITIES
        PURCHASE AGREEMENT

      

      SECURITIES
        PURCHASE
        AGREEMENT (the “Agreement”), dated as of September 21, 2007 by and
        between KMA GLOBAL SOLUTIONS INTERNATIONAL, INC., a Nevada
        corporation (the “Company”), and the purchasers identified on the signature page
        hereto (each a “Buyer” and collectively, the “Buyers”).  Capitalized
        terms used herein and not otherwise defined herein are defined in Section
        1
        hereof.

      

      WHEREAS:

      

      Subject
        to the terms and conditions set
        forth in this Agreement and pursuant to Section 4(2) of the Securities Act
        of
        1933, as amended, the Company desires to issue and sell to the Buyers, and
        the
        Buyers, desire to purchase from the Company, Securities of the Company as
        more
        fully described in this Agreement,

      

      And
        in
        addition to the offer and sale to the Buyers of Securities contemplated hereby,
        the Company is concomitantly granting Securities to Incendia Management Group
        Inc., a Canadian corporation (the “Agent”), in consideration for services
        rendered in connection with the sale and purchase of Securities pursuant
        to this
        Agreement, as more fully described hereunder.

      

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

      

      1.           CERTAIN
        DEFINED TERMS.

      

      For
        purposes of this Agreement, the following terms shall have the following
        meanings:

      

      (a)           “Action”
        means any action, suite, inquiry, notice of violation, proceeding (including
        any
        partial proceeding such as a deposition) or investigation pending or threatened
        in writing against or affecting the Company, any Subsidiary or any of their
        respective properties before or by any court, arbitrator, governmental or
        administrative agency, regulatory authority (federal, state, county, local
        or
        foreign), stock market, stock exchange or trading facility.

      

      (b)           “Affiliate”
        means any Person that, directly or indirectly through one or more
        intermediaries, controls or is controlled by or is under common control with
        a
        Person, as such terms are used in and construed under Rule 144.

      

                 
        (c)           “Bankruptcy
        Law” means Title 11, U.S. Code, or any similar federal or state law for the
        relief of debtors.

      

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

      

      (e)           “Common
        Stock” means the common stock of the Company, par value $0.001 per share, and
        any securities into which such common stock may hereafter be
        reclassified.

      

      (f)           “Company
        Counsel” means Baker, Donelson, Bearman, Caldwell & Berkowitz,
        PC.

       

       

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (g)           “Closing”
        means the closing of the purchase and sale of the Securities pursuant to
        this
        Agreement.

      

      (h)           “Closing
        Date” means the date of the Closing.

      

                
         (i)           “Custodian”
means any receiver, trustee, assignee, liquidator or similar official under
        any
        Bankruptcy Law.

      

      (j)           “Effective
        Date” means the date that the Registration Statement is declared effective by
        the SEC.

      

      (k)           “Exchange
        Act” means the Securities Exchange Act of 1934, as amended.

      

      (l)           “Filing
        Date” means a day on or before November 21, 2007 on which date the Company shall
        have filed the Registration Statement with the SEC.

      

      (m)           “Losses”
        means any and all losses, claims, damages, liabilities, settlement costs
        and
        expenses, including without limitation costs of preparation and reasonable
        attorneys' fees.

      

      (n)           “Material
        Adverse Effect” means any of (i) a material and adverse effect on the legality,
        validity or enforceability of any Transaction Document, (ii) a material and
        adverse effect on the results of operations, assets, prospects, business
        or
        condition (financial or otherwise) of the Company and the Subsidiaries, if
        any,
        taken as a whole, or (iii) an adverse impairment to the Company’s ability to
        perform on a timely basis its obligations under any Transaction
        Document.

      

      (o)           “Person”
        means an individual or entity including any limited liability company, a
        partnership, a joint venture, a corporation, a trust, an unincorporated
        organization and a government or any department or agency thereof.

      

      (p)           “Principal
        Market” means The Nasdaq OTC/ Bulletin Board market, provided, however, that in
        the event the Company’s Common Stock is ever listed for trading on the Nasdaq
        Global Market, Nasdaq SmallCap Market or the American Stock Exchange, than
        the
“Principal Market” shall mean such other market on which the Company’s Common
        Stock is then listed, and (ii) for purposes of Section 10(c) hereof only,
        “Principal Market” shall mean The Nasdaq SmallCap Market in respect of the
        requirements for continued listing on the Principal Market.

      

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

      

      (r)           “Registrable
        Securities” means any Common Stock (including Warrant Shares and Penalty Shares,
        upon an Event of Default) issued or issuable pursuant to the Transaction
        Documents, together with any securities issued or issuable upon any stock
        split,
        dividend or other distribution, recapitalization or similar event with respect
        to the foregoing.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (s)           “Registration
        Statement” means each registration statement required to be filed under Section
        5, including (in each case) the Prospectus, amendments and supplements to
        such
        registration statement or Prospectus, including pre- and post-effective
        amendments, all exhibits thereto, and all material incorporated by reference
        or
        deemed to be incorporated by reference in such registration
        statement.

      

      (t)           “Required
        Effectiveness Date” means the 60th day following the Filing Date of the
        Registration Statement.

      

      (u)           “Rule
        144” means Rule 144 promulgated by the SEC pursuant to the Securities Act, as
        such Rule may be amended from time to time, or any similar rule or regulation
        hereafter adopted by the Commission having substantially the same effect
        as such
        Rule.

      

      (v)           “SEC”
        means the United States Securities and Exchange Commission.

      

      (w)           “Securities”
        means the Shares, the Warrants and the Warrant Shares.

      

      (x)           “Securities
        Act” means the Securities Act of 1933, as amended.

      

      (y)           “Shares”
        means an aggregate of 8,000,000 shares of Common Stock to be purchased by
        the
        Buyers pursuant to this Agreement (the “Commitment Shares”), and 1,400,000
        additional shares of Common Stock that are issued to the Agent (the “Fee
        Shares”) upon Closing.

      

      (z)           “Short
        Sales” include, without limitation, all “short sales” as defined in Rule 200
        promulgated under Regulation SHO under the Exchange Act and all types of
        direct
        and indirect stock pledges, forward sale contracts, options, puts, calls,
        swaps
        and similar arrangements (including on a total return basis), and sales and
        other transactions through non-US broker dealers or foreign regulated
        brokers.

      

      (aa)           “Subsidiary”
        means any Person in which the Company directly or indirectly owns capital
        stock
        or holds an equity or similar interest.

      

      (bb)           
        “Trading Day” means any day on which the Principal Market is open for
        customary

      "Securities"
        means the Shares, the Warrants and the Warrant Shares.

      

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

      

      (dd)           “Warrants”
        means a Common Stock purchase warrant, in the form of Exhibit
        F.

      

      (ee)           “Warrant
        Shares” means the shares of Common Stock issuable upon exercise of the Warrants
        as per Section 2 hereof.

      

      2.           PURCHASE
        OF COMMON STOCK.

      

      Subject
        to the terms and conditions set
        forth hereunder, the Company hereby agrees to sell to the Buyers, and the
        Buyers
        hereby agree to purchase from the Company, shares of Common Stock as
        follows:

      

      (a)           Purchase
        of Securities.  The Buyers shall purchase, severally and not
        jointly, and the Company shall issue and sell to the Buyers for the sum of
        Two
        Million Dollars ($2,000,000.00) (the “Purchase Price”): (i) an aggregate of
        Eight Million (8,000,000) shares of the Company’s Common Stock (the “Commitment
        Shares”) at a price of $0.25 per share, together with the issuance by the
        Company of (ii) an aggregate of Eight Million (8,000,000) Warrants, exercisable
        only within two (2) years of the Effective Date of the Registration Statement,
        to purchase additional shares of the Company's Common Stock (“Warrant Shares”)
        at an exercise price of $0.30 per share.  The Purchase Price shall be
        payable to the Company in traunches by, or on behalf of, the Buyers as
        follows: the first payment of $200,000.00 shall be due upon the filing of
        the
        Registration Statement, a payment of $600,000.00 shall be due sixty (60)
        days
        after the Effective Date of the Registration Statement, a further payment
        of
        $600,000.00 shall be due ninety (90) days after the Effective Date of the
        Registration Statement,
        and a final payment of $600,000.00 shall be due one hundred twenty (120)
        days
        after the Effective Date of the Registration Statement. All payments made
        under
        this Agreement shall be made in lawful money of the United States of America
        by
        check or wire transfer of immediately available funds to such account as
        the
        Company may from time to time designate by written notice in accordance with
        the
        provisions of this Agreement.

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      (b)           Certain
        Fees.  At the Closing, the Agent shall be granted by the Company,
        and the Company shall issue to the Agent in connection with the purchase
        of
        Securities in (a) above: (i) One Million Four Hundred Thousand (1,400,000)
        shares of the Company’s Common Stock (the “Fee Shares”), together with (ii) an
        aggregate of One Million Four Hundred Thousand (1,400,000) Warrants,
        exercisable only within two (2) years of the Effective Date of the Registration
        Statement, to purchase Warrant Shares at an exercise price of $0.30 per
        share.

      

      (c)           Company
        Deliverables upon Closing.

      

      To
        Buyers:  The Company shall deliver or cause to be delivered to
        each Buyer the following: (i) one or more stock certificates, free and clear
        of
        all restrictive and other legends (except as expressly provided in Section
        5(f)
        hereof), evidencing the number of Shares, registered in the name of the
        respective Buyer; (ii) Warrants, registered in the name of the Buyer, pursuant
        to which the Buyer shall have the right to acquire the number of shares of
        Common Stock, on the terms set forth therein; (iii) a legal opinion of Company
        Counsel, in the form of Exhibit B, executed by such
        counsel and delivered to the Agent on behalf of the Buyers.

      

      To
        Agent:  The Company shall deliver or cause to be delivered to the
        Agent the following: (i) one or more stock certificates, free and clear of
        all
        restrictive and other legends (except as expressly provided in Section 5(f)
        hereof), evidencing Eight Hundred Thousand (800,000) shares of Common Stock
        registered in the name of the Agent; (ii) Warrants, registered in the name
        of
        the Agent, pursuant to which the Agent shall have the right to acquire up
        to
        Eight Hundred Thousand (800,000) Warrant Shares, on the terms set forth therein;
        (iii) a legal opinion of Company Counsel, in the form of Exhibit
        B, executed by such counsel and delivered to the
        Agent.

      

      (d)           Buyers’
        Deliverables upon
        Closing.                                                                           The
        Buyers shall deliver or cause to be delivered to the Company by the Agent
        payment of the Purchase Price of Two Million Dollars ($2,000,000.00), in
        accordance with Section 2(a) hereof.

      

      (e)           Limitation
        on Beneficial Ownership.  The Company shall not effect any
        purchase under this Agreement and a Buyer shall not have the right to purchase
        shares of Common Stock under this Agreement to the extent that after giving
        effect to such purchase the Buyer together with its affiliates would
        beneficially own in excess of 4.99% of the outstanding shares of the Common
        Stock following such purchase.  For purposes hereof, the number of
        shares of Common Stock beneficially owned by a Buyer and its Affiliates or
        acquired by the Buyer and its Affiliates, as the case may be, shall include
        the
        number of shares of Common Stock issuable in connection with a purchase under
        this Agreement with respect to which the determination is being made and
        the
        number of shares of Common Stock which would be issuable upon exercise or
        conversion of the unexercised or unconverted portion of any other Securities
        of
        the Company (including, without limitation, any Warrants).  For
        purposes of this Section, in determining the number of outstanding shares
        of
        Common Stock the Buyers may rely on the number of outstanding shares of Common
        Stock as reflected in (1) the Company's most recent Form 10-Q or Form 10-K,
        as
        the case may be, (2) a more recent public announcement by the Company or
        (3) any
        other written communication by the Company or its transfer agent setting
        forth
        the number of shares of Common Stock outstanding.  Upon the reasonable
        written or oral request of a Buyer, the Company shall promptly confirm orally
        and in writing to the Buyers the number of shares of Common Stock then
        outstanding.  In any case, the number of outstanding shares of Common
        Stock shall be determined after giving effect to any purchases under this
        Agreement by the Buyers since the date as of which such number of outstanding
        shares of Common Stock was reported.  Except as otherwise set forth
        herein, beneficial ownership shall be determined in accordance with Section
        13(d) of the Securities Exchange Act of 1934, as amended.

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      (f)           Taxes.  The
        Company shall pay any and all taxes (not including income taxes or taxes
        measured by the income of revenue of Buyer or the Agent) that may be payable
        with respect to the issuance and delivery of any shares of Common Stock to
        the
        Buyers and Agent made under of this Agreement.

      

      3.           REPRESENTATIONS
        AND WARRANTIES OF THE BUYERS.

      

      The
        Buyers represent and warrant to the Company that:

      

      (a)           Investment
        Purpose.  Each Buyers is entering into this Agreement and
        acquiring the Commitment Shares and the Warrants, 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; provided however, by making the
        representations herein, the Buyers do not agree to hold any of the Securities
        for any minimum or other specific term.

      

      (b)           Accredited
        Investor Status.  Each Buyer is an "accredited investor" as that
        term is defined in Rule 501(a)(3) of Regulation D.

      

      (c)           Reliance
        on Exemptions.  Each Buyer understands that the Securities 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 each
        Buyer's compliance with, the representations, warranties, agreements,
        acknowledgments and understandings of the Buyers set forth herein in order
        to
        determine the availability of such exemptions and the eligibility of the
        Buyers
        to acquire the Securities.

      

      (d)           Information.  Each
        Buyer has been furnished with all materials relating to the business, finances
        and operations of the Company and materials relating to the offer and sale
        of
        the Securities that have been requested by the Buyers, including, without
        limitation, the documents filed with the SEC.  Each Buyer understands
        that its investment in the Securities involves a high degree of
        risk.  Each Buyer (i) is able to bear the economic risk of an
        investment in the Securities including a total loss, (ii) has such knowledge
        and
        experience in financial and business matters that it is capable of evaluating
        the merits and risks of the proposed investment in the Securities and (iii)
        has
        had an opportunity to ask questions of and receive answers from the officers
        of
        the Company concerning the financial condition and business of the Company
        and
        others matters related to an investment in the Securities.  Neither
        such inquiries nor any other due diligence investigations conducted by the
        Buyers or their representatives shall modify, amend or affect the Buyers’ right
        to rely on the Company's representations and warranties contained in Section
        4
        below.  Each 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 Securities.

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      (e)           No
        Governmental Review.  Each 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 Securities or
        the
        fairness or suitability of the investment in the Securities nor have such
        authorities passed upon or endorsed the merits of the offering of the
        Securities.

      

      (f)           Transfer
        or Resale.  Each Buyer understands that except as provided in the
        Registration Rights Agreement: (i) the Securities 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) an exemption exists permitting such Securities
        to
        be sold, assigned or transferred without such registration; (ii) any sale
        of the
        Securities made in reliance on Rule 144 may be made only in accordance with
        the
        terms of Rule 144 and further, if Rule 144 is not available to a Buyer, any
        resale of the  Securities under circumstances in which the seller (or
        the person through whom the sale is made) may be deemed to be an underwriter
        (as
        that term is defined in the Securities Act) may require compliance with some
        other exemption under the Securities Act or the rules and regulations of
        the SEC
        thereunder; and (iii) neither the Company nor any other person is under any
        obligation to register the Securities under the Securities Act or any state
        securities laws or to comply with the terms and conditions of any exemption
        thereunder.

      

      (g)           Validity;
        Enforcement.  This Agreement has been duly and validly authorized,
        executed and delivered on behalf of each Buyer and is a valid and binding
        agreement of the Buyers enforceable against each Buyer in accordance with
        its
        terms, subject as to enforceability to general principles of equity and to
        applicable bankruptcy, insolvency, reorganization, moratorium, liquidation
        and
        other similar laws relating to, or affecting generally, the enforcement of
        applicable creditors' rights and remedies.

      

      (h)           No
        Prior Short Selling.  Each Buyer represents and warrants to the
        Company that at no time prior to the date of this Agreement has any Buyer,
        or
        its respective agents, associates, representatives or affiliates engaged
        in or
        effected, in any manner whatsoever, directly or indirectly, any (i) Short
        Sales
        of the Common Stock or (ii) hedging transaction, which establishes a net
        short
        position with respect to the Common Stock.

      

      (i)           Non-U.S.
        Person.  Each Buyer represents and warrants to the Company that it
        is not a U.S. Person as defined in Rule 402 of Regulation S.

      

      4.           REPRESENTATIONS
        AND WARRANTIES OF THE COMPANY.

      

      The
        Company represents and warrants to the Buyers that:

      

      (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 and authority 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 its ownership of property or
        the
        nature of the business conducted by it makes such qualification necessary,
        except to the extent that the failure to be so qualified or be in good standing
        could not reasonably be expected to have a Material Adverse
        Effect.  Except for KMA Global Solutions, Inc., an Ontario
        corporation, and KMA Global Solutions LLC., a Nevada limited liability company,
        the Company has no Subsidiaries.

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      (b)           Authorization;
        Enforcement; Validity.  (i) The Company has the requisite
        corporate power and authority to enter into and perform its obligations under
        this Agreement, the Registration Rights Agreement, the Warrants and each
        of the
        other agreements entered into by the parties on the Closing Date and attached
        hereto as exhibits to this Agreement, and to issue the Securities 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 Commitment Shares and the reservation for issuance and the
        issuance of the Fee Shares issuable under this Agreement, 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
        shareholders, (iii) this Agreement has been, and each other Transaction Document
        shall be on the Closing Date, duly executed and delivered by the Company
        and
        (iv) this Agreement constitutes, and each other Transaction Document upon
        its
        execution on behalf of the Company, shall 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.

      

      (c)           Capitalization.  As
        of the date hereof, the authorized capital stock of the Company consists
        of (i)
        175,000,000 shares of Common Stock, of which as of the date hereof, 65,933,319
        shares are issued and outstanding, 109,066,681 are held as authorized but
        unissued, 0 shares are issuable and reserved for issuance pursuant to securities
        exercisable or exchangeable for, or convertible into, shares of Common Stock
        and
        (ii) 25,000,000 shares of Preferred Stock, $0.001 par value, of which as
        of the
        date hereof  no shares are issued and outstanding.  All of
        such outstanding shares have been, or upon issuance will be, validly issued
        and
        are fully paid and nonassessable.  Except as disclosed in the
        documents filed with the SEC, (i) no shares of the Company's capital stock
        are
        subject to preemptive rights or any other similar rights or any liens or
        encumbrances suffered or permitted by the Company, (ii) there are no outstanding
        debt securities, (iii) 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, (iv) 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 the Registration Rights
        Agreement), (v) there are no outstanding securities or instruments of the
        Company or any of its Subsidiaries which contain any redemption or similar
        provisions, and there are no contracts, commitments, understandings or
        arrangements by which the Company or any of its Subsidiaries is or may become
        bound to redeem a security of the Company or any of its Subsidiaries, (vi)
        there
        are no securities or instruments containing anti-dilution or similar provisions
        that will be triggered by the issuance of the Securities as described in
        this
        Agreement and (vii) the Company does not have any stock appreciation rights
        or
        "phantom stock" plans or agreements or any similar plan or
        agreement.  The Company has furnished to the Buyers true and correct
        copies of the Company's Certificate of Incorporation, as amended and as in
        effect on the date hereof (the "Certificate of Incorporation"), and the
        Company's By-laws, as amended and as in effect on the date hereof (the
        "By-laws"), and summaries of the terms of all securities convertible into
        or
        exercisable for Common Stock, if any, and copies of any documents containing
        the
        material rights of the holders thereof in respect thereto.

      

      (d)           Issuance
        of Securities.  The Commitment Shares, Fee Shares and Warrants
        have been duly authorized and, upon issuance in accordance with the terms
        hereof, the Shares and Warrant Shares, respectively, shall be (i) validly
        issued, fully paid and non-assessable and (ii) free from all taxes, liens
        and
        charges with respect to the issue thereof. Upon issuance in accordance with
        the
        terms and conditions of this Agreement, the Shares shall be validly issued,
        fully paid and nonassessable and free from all taxes, liens and charges with
        respect to the issue thereof, with the holders being entitled to all rights
        accorded to a holder of Common Stock.

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      (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 and thereby (including, without limitation,
        the
        reservation for issuance and issuance of the Shares) will not (i) result
        in a
        violation of the Certificate of Incorporation, any Certificate of Designations,
        Preferences and Rights 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 Principal Market
        applicable to the Company or any of its Subsidiaries, assuming the
        representations and warranties of the Buyers contained in Section 3 of this
        Agreement are true and correct) or by which any property or asset of the
        Company
        or any of its Subsidiaries is bound or affected, except in the case of
        conflicts, defaults and violations under clause (ii), which could not reasonably
        be expected to result in a Material Adverse Effect.  Neither the
        Company nor its Subsidiaries is in violation of any term of or in default
        under
        its Certificate of Incorporation, any Certificate of Designation, Preferences
        and Rights of any outstanding series of preferred stock of the Company or
        By-laws or their organizational charter or by-laws,
        respectively.  Neither the Company nor any of its Subsidiaries is in
        violation of any term of or is in default under 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, except for possible conflicts, defaults, terminations or
        amendments which could not reasonably be expected to have a Material Adverse
        Effect.  The business of the Company and its Subsidiaries is not being
        conducted, and shall not be conducted, in violation of any law, ordinance,
        and
        regulation of any governmental entity, except for possible violations, the
        sanctions for which either individually or in the aggregate could not reasonably
        be expected to have a Material Adverse Effect.  Except as specifically
        contemplated by this Agreement and as required under the Securities Act,
        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 or
        any
        regulatory or self-regulatory agency in order for it to execute, deliver
        or
        perform any of its obligations under or contemplated by the Transaction
        Documents 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 shall be obtained or
        effected on or prior to the Closing Date.  The Company is not and has
        not been in violation of the listing requirements of the Principal
        Market.

      

      (f)           SEC
        Documents; Financial Statements.  Since October 31, 2006, the
        Company has timely filed all reports, schedules, forms, statements and other
        documents required to be filed by it with the SEC pursuant to the reporting
        requirements of the Exchange Act (all of the foregoing filed prior to 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").  As of their respective dates
        (except as they have been correctly amended), the documents filed with the
        SEC
        complied in all material respects with the requirements of the 1934 Act and
        the
        rules and regulations of the SEC promulgated thereunder applicable to the
        documents filed with the SEC, and none of the documents filed with the SEC,
        at
        the time they were filed with the SEC (except as they may have been properly
        amended), contained any untrue statement of a material fact or omitted to
        state
        a material fact required to be stated therein or necessary in order to make
        the
        statements therein, in light of the circumstances under which they were made,
        not misleading.  As of their respective dates (except as they have
        been properly amended), the financial statements of the Company included
        in the
        documents filed with the SEC 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).

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      (g)           Absence
        of Certain Changes.  Since the 8-K filed by the Company with SEC
        on July 2, 2007, there has been no material adverse change in the business,
        properties, operations, financial condition or results of operations of the
        Company or its Subsidiaries.  The Company has not taken any steps, and
        does not currently expect to take any steps, to seek protection pursuant
        to any
        bankruptcy law nor does the Company or any of its Subsidiaries have any
        knowledge or reason to believe that its creditors intend to initiate involuntary
        bankruptcy proceedings.

      

      (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 or, to the knowledge of the
        Company
        or any of its Subsidiaries, threatened against or affecting the Company,
        the
        Common Stock or any of the Company's Subsidiaries or any of the Company's
        or the
        Company's Subsidiaries' officers or directors in their capacities as such,
        which
        could reasonably be expected to have a Material Adverse Effect.

      

      (i)           Acknowledgment
        Regarding Buyers’ Status.  The Company acknowledges and agrees
        that the Buyers are acting solely in the capacity of arm's length purchaser
        with
        respect to the Transaction Documents and the transactions contemplated hereby
        and thereby.  The Company further acknowledges that the Buyers are not
        acting as a financial advisor or fiduciary of the Company (or in any similar
        capacity) with respect to the Transaction Documents and the transactions
        contemplated hereby and thereby and any advice given by the Buyers or any
        of
        their representatives or agents in connection with the Transaction Documents
        and
        the transactions contemplated hereby and thereby is merely incidental to
        the
        Buyers’ purchase of the Securities.  The Company further represents to
        the Buyers that the Company's decision to enter into the Transaction Documents
        has been based solely on the independent evaluation by the Company and its
        representatives and advisors.

      

      (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 Securities.

      

      (k)           Dilutive
        Effect.  The Company understands and acknowledges that the number
        of Shares to be issued under this Agreement will increase in certain
        circumstances.  The Company further acknowledges that its obligation
        to issue the Securities under this Agreement in accordance with the terms
        and
        conditions hereof is absolute and unconditional regardless of the dilutive
        effect that such issuance may have on the ownership interests of other
        shareholders of the Company.

      

      (l)           Intellectual
        Property Rights.  The Company and/or its Subsidiaries own or
        possess adequate rights or licenses to use all material 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.  None of the Company's material
        trademarks, trade names, service marks, service mark registrations, service
        names, patents, patent rights, copyrights, inventions, licenses, approvals,
        government authorizations, trade secrets or other intellectual property rights
        have expired or terminated, or, by the terms and conditions thereof, could
        expire or terminate within two years from the date of this
        Agreement.  The Company and its Subsidiaries do not have any knowledge
        of any infringement by the Company or its Subsidiaries of any material
        trademark, trade name rights, patents, patent rights, copyrights, inventions,
        licenses, service names, service marks, service mark registrations, trade
        secret
        or other similar rights of others, or of any such development of similar
        or
        identical trade secrets or technical information by others and 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 could reasonably be expected to have a Material Adverse
        Effect.

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      (m)           Environmental
        Laws.  The Company and its Subsidiaries (i) are 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 terms and conditions
        of any such permit, license or approval, except where, in each of the three
        foregoing clauses, the failure to so comply could not reasonably be expected
        to
        have, individually or in the aggregate, a Material Adverse Effect.

      

      (n)           Intentionally
        Omitted.

      

      (o)           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.

      

      (p)           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.

      

      (q)           Tax
        Status.  The Company and each of its Subsidiaries has made or
        filed all federal and state income and all other material tax returns, reports
        and declarations required by any jurisdiction to which it is subject (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) and 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 basis for any such claim.

       

       

       

       

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      (r)           Transactions
        With Affiliates.  Except as disclosed in the Company's reports
        filed with the SEC, none of the officers, directors, or employees of the
        Company
        is presently a party to any transaction with the Company or any of its
        Subsidiaries (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 an interest or is an officer, director, trustee or
        partner.

      

      (s)           Application
        of Takeover Protections.  The Company and its board of directors
        have taken or will take prior to the Closing Date all necessary action, if
        any,
        in order to render inapplicable any control share acquisition, business
        combination, poison pill (including any distribution under a rights agreement)
        or other similar anti-takeover provision under the Certificate of Incorporation
        or the laws of the state of its incorporation which is or could become
        applicable to the Buyers as a result of the transactions contemplated by
        this
        Agreement, including, without limitation, the Company's issuance of the
        Securities and the Buyers’ ownership of the Securities.

      

      (t)           Foreign
        Corrupt Practices.  Neither the Company, nor any of its
        Subsidiaries, nor any director, officer, agent, employee or other person
        acting
        on behalf of the Company or any of its Subsidiaries has, in the course of
        its
        actions for, or on behalf of, the Company, used any corporate funds for any
        unlawful contribution, gift, entertainment or other unlawful expenses relating
        to political activity; made any direct or indirect unlawful payment to any
        foreign or domestic government official or employee from corporate funds;
        violated or is in violation of any provision of the U.S. Foreign Corrupt
        Practices Act of 1977, as amended; or made any unlawful bribe, rebate, payoff,
        influence payment, kickback or other unlawful payment to any foreign or domestic
        government official or employee.

      

      5.           COVENANTS.

      

      (a)           Filing
        of Registration Statement.  On or before November 21, 2007, the
        Company shall file a Registration Statement in respect of the Registrable
        Securities and the transactions contemplated herein.  The Buyers and
        their respective counsel shall have a reasonable opportunity to review and
        comment upon such Registration Statement or amendment to such Registration
        Statement and any related Prospectus prior to its filing with the
        SEC.  The Company shall use its best efforts to have such Registration
        Statement or amendment declared effective by the SEC at the earliest possible
        date, but no later than the Required Effectiveness Date.

      

      (b)           Blue
        Sky. The Company shall take such action, if any, as the Company shall
        reasonably determine is necessary in order to obtain an exemption for or
        to
        qualify the Shares for sale to the Buyers pursuant to this Agreement under
        applicable securities or "Blue Sky" laws of the states of the United States,
        and
        shall provide evidence of any such action so taken to the Buyers.  The
        Company shall make all filings and reports relating to the offer and sale
        of the
        Securities required under applicable securities or "Blue Sky" laws of the
        states
        of the United States following the Closing Date.

      

      (c)         
        No Equity Financing.  (c)  For two years from the
        Closing Date, the Company will not, directly or indirectly, offer, sell,
        grant
        any option to purchase, or otherwise dispose of (or announce any offer, sale,
        grant or any option to purchase or other disposition of) any of its equity
        or
        equity equivalent securities, including without limitation any debt, preferred
        stock or other instrument or security that is, at any time during its life
        and
        under any circumstances, convertible into or exchangeable or exercisable
        for
        Common Stock or common stock equivalents (any such offer, sale, grant,
        disposition or announcement being referred to as a “Subsequent Placement”)
        unless the Company shall have first complied with the following:

       

       

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (i)  The
        Company shall deliver to each Buyer a written notice (the “Offer”) of any
        proposed or intended issuance or sale or exchange of the securities being
        offered (the “Offered Securities”) in a Subsequent Placement, which Offer shall
        (w) identify and describe the Offered Securities, (x) describe the price
        and
        other terms upon which they are to be issued, sold or exchanged, and the
        number
        or amount of the Offered Securities to be issued, sold or exchanged, (y)
        identify the Persons or entities to which or with which the Offered Securities
        are to be offered, issued, sold or exchanged and (z) offer to issue and sell
        to
        or exchange with each Buyer the Offered Securities based on such Buyer’s pro
        rata portion of the Buyer’s Shares purchased hereunder (the “Basic Amount”), and
        (B) with respect to each Buyer that elects to purchase its Basic Amount,
        any
        additional portion of the Offered Securities attributable to the Basic Amounts
        of other Buyers as such Buyer shall indicate it will purchase or acquire
        should
        the other Buyers subscribe for less than their Basic Amounts (the
“Undersubscription Amount”).

       

      (ii)  To
        accept
        an Offer, in whole or in part, a Buyer must deliver a written notice to the
        Company prior to the end of the five (5) Trading Day period of the Offer,
        setting forth the portion of the Buyer’s Basic Amount that such Buyer elects to
        purchase and, if such Buyer shall elect to purchase all of its Basic Amount,
        the
        Undersubscription Amount, if any, that such Buyer elects to purchase (in
        either
        case, the “Notice of Acceptance”).  If the Basic Amounts subscribed
        for by all Buyers are less than the total of all of the Basic Amounts, then
        each
        Buyer who has set forth an Undersubscription Amount in its Notice of Acceptance
        shall be entitled to purchase, in addition to the Basic Amounts subscribed
        for,
        the Undersubscription Amount it has subscribed for; provided,
however, that if the Undersubscription Amounts subscribed for exceed
        the
        difference between the total of all the Basic Amounts and the Basic Amounts
        subscribed for (the “Available Undersubscription Amount”), each Buyer who has
        subscribed for any Undersubscription Amount shall be entitled to purchase
        on
        that portion of the Available Undersubscription Amount as the Basic Amount
        of
        such Buyer bears to the total Basic Amounts of all Buyers that have subscribed
        for Undersubscription Amounts, subject to rounding by the Board of Directors
        to
        the extent its deems reasonably necessary.

       

      (iii)  The
        Company shall have three (3) Trading Days from the expiration of the period
        set
        forth in Section 5(c)(ii) above to issue, sell or exchange all or any part
        of
        such Offered Securities as to which a Notice of Acceptance has not been given
        by
        the Buyers (the “Refused Securities”), but only to the offerees described in the
        Offer  and only upon terms and conditions (including, without
        limitation, unit prices and interest rates) that are not more favorable to
        the
        acquiring Person or Persons or less favorable to the Company than those set
        forth in the Offer.

       

      (iv)  In
        the
        event the Company shall propose to sell less than all the Refused Securities
        (any such sale to be in the manner and on the terms specified in Section
        5(c)(iii) above), then each Buyer may, at its sole option and in its sole
        discretion, reduce the number or amount of the Offered Securities specified
        in
        its Notice of Acceptance to an amount that shall be not less than the number
        or
        amount of the Offered Securities that the Buyer elected to purchase pursuant
        to
        Section 5(c)(ii) above multiplied by a fraction, (i) the numerator of which
        shall be the number or amount of Offered Securities the Company actually
        proposes to issue, sell or exchange (including Offered Securities to be issued
        or sold to Buyers pursuant to Section 5(c)(ii) above prior to such reduction)
        and (ii) the denominator of which shall be the original amount of the Offered
        Securities.  In the event that any Buyer so elects to reduce the
        number or amount of Offered Securities specified in its Notice of Acceptance,
        the Company may not issue, sell or exchange more than the reduced number
        or
        amount of the Offered Securities unless and until such securities have again
        been offered to the Buyers in accordance with Section 5(c)(i)
        above.

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (v)  Upon
        the
        closing of the issuance, sale or exchange of all or less than all of the
        Refused
        Securities, the Buyers shall acquire from the Company, and the Company shall
        issue to the Buyers, the number or amount of Offered Securities specified
        in the
        Notices of Acceptance, as reduced pursuant to Section 5(c)(iv) above if the
        Buyers have so elected, upon the terms and conditions specified in the
        Offer.  The purchase by the Buyers of any Offered Securities is
        subject in all cases to the preparation, execution and delivery by the Company
        and the Buyers of a purchase agreement relating to such Offered Securities
        reasonably satisfactory in form and substance to the Buyers and their respective
        counsel.

       

      (vi)  Any
        Offered Securities not acquired by the Buyers or other Persons in accordance
        with Section 5(c)(iii) above may not be issued, sold or exchanged until they
        are
        again offered to the Buyers under the procedures specified in this
        Agreement.

       

      (d)           Listing.  The
        Company shall promptly secure the listing of all of the Shares upon each
        national securities exchange and automated quotation system, if any, upon
        which
        shares of Common Stock are then listed (subject to official notice of issuance)
        and shall maintain, so long as any other shares of Common Stock shall be
        so
        listed, such listing of all such securities from time to time issuable under
        the
        terms of the Transaction Documents.  The Company shall maintain the
        Common Stock's authorization for quotation on the Principal
        Market.  Neither the Company nor any of its Subsidiaries shall take
        any action that would be reasonably expected to result in the delisting or
        suspension of the Common Stock on the Principal Market.  The Company
        shall promptly, and in no event later than the following Trading Day, provide
        to
        the Buyers copies of any notices it receives from the Principal Market regarding
        the continued eligibility of the Common Stock for listing on such automated
        quotation system or securities exchange.  The Company shall pay all
        fees and expenses in connection with satisfying its obligations under this
        Section.

      

      (e)           Limitation
        on Short Sales and Hedging Transactions.  The Buyers agree that
        beginning on the date of this Agreement and ending on the date of termination
        of
        this Agreement, the Buyers and their agents, representatives and affiliates
        shall not in any manner whatsoever enter into or effect, directly or indirectly,
        any (i) Short Sales of the Common Stock or (ii) hedging transaction, which
        establishes a net short position with respect to the Common Stock; provided,
        however, that such restrictions shall not apply if an Event of Default has
        occurred, including any failure by the Company to timely issue any Fee Shares
        required to be issued pursuant to the terms of this Agreement.

      

      (f)           Issuance
        of the Shares.  Immediately upon the execution of this Agreement,
        the Company shall issue to the Buyers an aggregate of 8,000,000 shares of
        Common
        Stock (the "Commitment Shares"), and issue to the Agent 1,400,000 shares
        of
        Common Stock (the “Fee Shares”).

      

      The
        Shares shall be issued in certificated form and shall bear the following
        restrictive legend:

      

      THE
        SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES
        SECURITIES ACT OF 1933, AS AMENDED (THE “U.S. SECURITIES ACT”) OR ANY STATE
        SECURITIES LAWS. THE HOLDER HEREOF, BY PURCHASING SUCH SECURITIES, AGREES
        FOR
        THE BENEFIT OF THE COMPANY THAT SUCH SECURITIES MAY BE OFFERED, SOLD, PLEDGED,
        OR OTHERWISE TRANSFERRED ONLY (A) OUTSIDE THE UNITED STATES IN ACCORDANCE
        WITH
        RULE 904 OF REGULATION S UNDER THE U.S. SECURITIES ACT AND IN COMPLIANCE
        WITH
        APPLICABLE LOCAL LAWS AND REGULATIONS, (B) WITHIN THE UNITED STATES, EITHER
        (1)
        IF REGISTERED PURSUANT TO THE REGISTRATION REQUIREMENTS OF THE U.S. SECURITIES
        ACT OR (2) THE TRANSACTION IS EXEMPT OR NOT SUBJECT TO REGISTRATION AFTER
        PROVIDING A SATISFACTORY LEGAL OPINION TO THE COMPANY.  THE HOLDER
        ALSO AGREES THAT HEDGING TRANSACTIONS INVOLVING THESE SECURITIES MAY NOT
        BE
        CONDUCTED UNLESS IN COMPLIANCE WITH THE U.S. SECURITIES ACT.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (g)           Due
        Diligence.  Each Buyer shall have the right, from time to time as
        the Buyer may reasonably deem appropriate, to perform reasonable due diligence
        on the Company during normal business hours.  The Company and its
        officers and employees shall reasonably cooperate with the Buyers in connection
        with any reasonable request by the Buyers related to the Buyers’ due diligence
        of the Company.

      

      (h)           Registration
        Statement. Two days prior to the Filing Date, the Company shall have
        prepared and delivered to the Buyers a final form of the Registration Statement
        to be used by the Buyers in connection with any sales of any Commitment Shares,
        Fee Shares or Warrant Shares. The Company shall have made all filings under
        all
        applicable federal and state securities laws necessary to consummate the
        issuance of the Commitment Shares, Fee Shares and the Warrant Shares pursuant
        to
        this Agreement in compliance with such laws.

      

      6.           TRANSFER
        AGENT INSTRUCTIONS.

      

      On
        the
        Effective Date of the Registration Statement, the Company shall cause any
        restrictive legend on the Commitment Shares and Fee Shares to be removed
        and all
        of the Shares, including the Warrant Shares to be issued under this Agreement
        shall be issued without any restrictive legend.  The Company shall
        issue irrevocable instructions to the Transfer Agent, and any subsequent
        transfer agent, to issue the Shares in the name of the Buyer, or the Agent
        as
        the case may be (the "Irrevocable Transfer Agent Instructions").  The
        Company warrants that no instruction other than the Irrevocable Transfer
        Agent
        Instructions referred to in this Section 6, will be given by the Company
        to the
        Transfer Agent with respect to the Shares and that the Commitment Shares,
        Warrant Shares and the Fee 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 Registration Rights Agreement.

       

      7.           COMPANY'S
        CLOSING CONDITIONS.

       

      The
        obligation of the Company hereunder to commence sale of the Securities is
        subject to the satisfaction of each of the following conditions on or before
        the
        Closing Date and may be waived by the Company at any time in its sole discretion
        by providing the Buyers with prior written notice thereof:

      

      (a)           The
        Buyers shall have executed each of the Transaction Documents to which it
        is a
        party and delivered the same to the Company including the Registration Rights
        Agreement substantially in the form of Exhibit A hereto
        (the “Registration Rights Agreement”).

      

      (b)           The
        representations and warranties of the Buyers shall be true and correct in
        all
        material respects as of the date when made and as of the Closing Date as
        though
        made at that time (except for representations and warranties that speak as
        of a
        specific date), and the Buyers 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 Buyers
        at or
        prior to the Closing Date.  The Seller shall have received a
        certificate, executed by the Agent on behalf of the Buyers, dated as of the
        Closing Date, to the foregoing effect.

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      8.           BUYERS'
        CLOSING CONDITIONS.

      

      The
        obligation of the Buyers to commence purchase of the Securities under this
        Agreement is subject to the satisfaction of each of the following conditions
        on
        or before the Closing Date and may be waived by the Buyers at any time in
        its
        sole discretion by providing the Company with prior written notice
        thereof:

      

      (a)           The
        Company shall have executed each of the Transaction Documents and delivered
        the
        same to the Buyers including the Registration Rights Agreement substantially
        in
        the form of Exhibit A hereto.

      

      (b)           The
        Common Stock shall be authorized for quotation on the Principal Market, trading
        in the Common Stock shall not have been within the last nine (9) months
        suspended by the SEC or the Principal Market and the Shares shall be approved
        for listing upon the Principal Market.

      

      (c)           The
        Company shall provide to the Agent on behalf of the Buyers the form of opinion
        of the Company Counsel in the form of Exhibit
        B.

      

      (d)           The
        representations and warranties of the Company shall be true and correct in
        all
        material respects as of the Closing Date (except for representations and
        warranties that speak as of a specific date) and the Company shall have
        performed, satisfied and complied with the covenants, agreements and conditions
        required by the Transaction Documents to be performed, satisfied or complied
        with by the Company at or prior to the Closing Date.  The Buyers shall
        have received a certificate, executed by the CEO, President or CFO of the
        Company, dated as of the Closing Date, to the foregoing effect in the form
        attached hereto as Exhibit C.

      

      (e)           The
        Board of Directors of the Company shall have adopted resolutions in the form
        attached hereto as Exhibit D which shall be in full
        force and effect without any amendment or supplement thereto as of the Closing
        Date.

      

      (f)           As
        of the Closing Date, the Company shall have reserved out of its authorized
        and
        unissued Common Stock at least 20,680,000 shares of Common Stock, solely
        for the
        purpose of effecting (i) purchase of the Shares, (ii) the Warrant Shares
        issuable under the Warrants and (iii) the Penalty Shares.

      

      (g)           The
        Irrevocable Transfer Agent Instructions, in form acceptable to the Buyers
        shall
        have been delivered to and acknowledged in writing by the Company and the
        Company's Transfer Agent.

      

      (h)           The
        Company shall have delivered to the Buyers a Secretary's Certificate executed
        by
        the Secretary of the Company, dated as of the Closing Date, in the form attached
        hereto as Exhibit E.

      

      (i)           Intentionally
        Omitted.

      

      (j)           Intentionally
        Omitted.

      

      (k)           No
        Event of Default has occurred, or any event which, after notice and/or lapse
        of
        time, would become an Event of Default has occurred.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (l)           On
        or prior to the Closing Date, the Company shall take all necessary action,
        if
        any, and such actions as reasonably requested by the Buyers, in order to
        render
        inapplicable any control share acquisition, business combination, shareholder
        rights plan or poison pill (including any distribution under a rights agreement)
        or other similar anti-takeover provision under the Certificate of Incorporation
        or the laws of the state of its incorporation which is or could become
        applicable to the Buyers as a result of the transactions contemplated by
        this
        Agreement, including, without limitation, the Company's issuance of the
        Securities and the Buyers’ ownership of the Securities.

       

      9.           INDEMNIFICATION.

       

      In
        consideration of the Buyers’ execution and delivery of the Transaction Documents
        and acquiring the Securities hereunder and in addition to all of the Company's
        other obligations under the Transaction Documents, the Company shall defend,
        protect, indemnify and hold harmless the Buyers and all of their affiliates,
        shareholders, officers, directors, employees and direct or indirect investors
        and any of the foregoing person's agents or other representatives (including,
        without limitation, those retained in connection with the transactions
        contemplated by this Agreement) (collectively, the "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 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 any Indemnitee
        as
        a result of, or arising out of, or relating to (a) any misrepresentation
        or
        breach of any representation or warranty made by the Company in the Transaction
        Documents or any other certificate, instrument or document contemplated hereby
        or thereby, (b) any breach of any covenant, agreement or obligation of the
        Company contained in the Transaction Documents or any other certificate,
        instrument or document contemplated hereby or thereby, or (c) 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
        the
        Transaction Documents or any other certificate, instrument
        or  document contemplated hereby or thereby, other than with respect
        to Indemnified Liabilities which directly and primarily result from the gross
        negligence or willful misconduct of the Indemnitee.  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.

      

      10.           EVENTS
        OF DEFAULT.

      

      An
        "Event
        of Default" shall be deemed to have occurred at any time as any of the following
        events occurs:

      

      (a)           a
        Registration Statement covering the sale of all of the Shares and Warrants
        was
        not filed on or before the Filing Date.

      

      (b)           the
        Registration Statement filed with the SEC is not declared effective under
        the
        Securities Act by the SEC on or before the Required Effectiveness Date, and/or
        a
        stop order with respect to the Registration Statement shall be pending or
        threatened by the SEC.

      

      (c)           during
        the period that any registration statement is required to be maintained
        effective pursuant to the terms of the Registration Rights Agreement, the
        effectiveness of such registration statement lapses for any reason (including,
        without limitation, the issuance of a stop order) or is unavailable to the
        Buyers (other than as a result of acts or omissions of the Buyers) for sale
        of
        all of the Registrable Securities (as defined in the Registration Rights
        Agreement) in accordance with the terms of the Registration Rights Agreement,
        and such lapse or unavailability continues for a period of ten (10) consecutive
        Trading Days or for more than an aggregate of thirty (30) Trading Days in
        any
        365-day period;

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      (d)           the
        suspension from trading or failure of the Common Stock to be listed on the
        Principal Market for a period of ten (10) consecutive Trading Days or for
        more
        than an aggregate of thirty (30) Trading Days in any 365-day
        period;

      

      (e)           the
        failure of the Company or the Common Stock to fully meet the requirements
        for
        continued listing on the Principal Market for a period of ten (10) consecutive
        Trading Days or for more than an aggregate of thirty (30) Trading Days in
        any
        365-day period; and

      

      (f)           the
        Company breaches any representation, warranty, covenant or other term or
        condition under any Transaction Document if such breach could have a Material
        Adverse Effect and except, in the case of a breach of a covenant which is
        reasonably curable, only if such breach continues for a period of at least
        ten
        (10) Trading Days.

      

      11.           EVENT
        OF DEFAULT PENALTY

      

      Within
        Five Trading Days of an Event of Default, the Company shall issue and the
        Buyers
        and Agent shall receive 1,880,000 additional shares of the Company’s Common
        Stock (the “Penalty Shares”).  Each Buyer and the Agent shall receive
        Penalty Shares in pro ration to their respective purchases under the
        Agreement.  The parties to this Agreement acknowledge and agree that
        the Penalty Shares are the sole remedy for an Event of Default.

      

      12.           MISCELLANEOUS.

      

      (a)           Governing
        Law; Jurisdiction; Jury Trial.  The corporate laws of the State of
        Nevada shall govern all issues concerning the relative rights of the Company
        and
        its shareholders. All other questions concerning the construction, validity,
        enforcement and interpretation of this Agreement and the other Transaction
        Documents shall be governed by the internal laws of the State of Nevada,
        without
        giving effect to any choice of law or conflict of law provision or rule (whether
        of the State of Nevada or any other jurisdictions) that would cause the
        application of the laws of any jurisdictions other than the State of
        Nevada.  Each party hereby irrevocably submits to the exclusive
        jurisdiction of the state and federal courts sitting in the City of Las Vegas,
        for the adjudication of any dispute hereunder or under the other Transaction
        Documents or in connection herewith or therewith, or with any transaction
        contemplated hereby or discussed herein, and hereby irrevocably waives, and
        agrees not to assert in any suit, action or proceeding, any claim that it
        is not
        personally subject to the jurisdiction of any such court, that such suit,
        action
        or proceeding is brought in an inconvenient forum or that the venue of such
        suit, action or proceeding is improper.  Each party hereby irrevocably
        waives personal service of process and consents to process being served in
        any
        such suit, action or proceeding by mailing a copy thereof to such party at
        the
        address for such notices to it under this Agreement and agrees that such
        service
        shall constitute good and sufficient service of process and notice
        thereof.  Nothing contained herein shall be deemed to limit in any way
        any right to serve process in any manner permitted by
        law.  EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY
        HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY
        DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT
        OR
        ANY TRANSACTION CONTEMPLATED HEREBY.

      

      (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;
        provided that a facsimile (or scanned and e-mailed) signature shall be
        considered due execution and shall be binding upon the signatory thereto
        with
        the same force and effect as if the signature were an original, not a facsimile
        )or scanned and e-mailed) signature.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (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 Buyers, the Company, their affiliates
        and
        persons acting on their behalf with respect to the matters discussed herein,
        and
        this Agreement, the other Transaction Documents 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 the Buyers make any representation,
        warranty, covenant or undertaking with respect to such matters.  No
        provision of this Agreement may be amended other than by an instrument in
        writing signed by the Company and the Buyers, and no provision hereof may
        be
        waived other than by an instrument in writing signed by the party against
        whom
        enforcement is sought.

      

      (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
        receipt, when sent by facsimile (provided confirmation of transmission is
        mechanically or electronically generated and kept on file by the sending
        party);
        or (iii) one Trading 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:

      KMA
        Global Solutions International, Inc.

      5570A
        Kennedy Road

      Mississauga,
        Ontario L4Z 2A9

      Telephone:        905-568-5220

      Facsimile:           905-568-4446

      Attention:          Jeffrey
        D. Reid

      

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

      Baker,
        Donelson, Bearman, Caldwell & Berkowitz, P.C.

      211
        Commerce Street, Suite 1000

      Nashville,
        TN  37201

      Telephone:         (615)
        726-5763

      Facsimile:            (615)
        722-5763

      Attention:           Gary
        M. Brown

      

      If
        to the
        Buyers:

      Incendia
        Management Group Inc.

      111
        Grangeway Avenue, Suite 404

      Toronto,
        Ontario  M1H 3E9

      Telephone:          416-289-0440

      Facsimile:             416-289-7440

      Attention:            Angelo
        Boujos

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      If
        to the
        Transfer Agent:

      American
        Registrar & Transfer Co.

      342
        East
        900 South

      Salt
        Lake
        City, UT 84111

      Telephone:           801-363-9065

      Facsimile:              801-363-9066

      Attention:             Patrick
        Day or Linda Nonu

      

      or
        at
        such other address and/or facsimile number and/or to the attention of such
        other
        person as the recipient party has specified by written notice given to each
        other party three (3) Trading Days prior to the effectiveness of such
        change.  Written confirmation of receipt (A) given by the recipient of
        such notice, consent, waiver or other communication, (B) mechanically or
        electronically generated by the sender's facsimile machine containing the
        time,
        date, and recipient facsimile number or (C) provided by a nationally recognized
        overnight delivery service, shall be rebuttable evidence of personal service,
        receipt by facsimile or receipt from a nationally recognized overnight delivery
        service in accordance with clause (i), (ii) or (iii) above,
        respectively.

      

      (g)           Successors
        and Assigns.  This Agreement shall be binding upon and inure to
        the benefit of the parties and their respective successors and
        assigns.  The Company shall not assign this Agreement or any rights or
        obligations hereunder without the prior written consent of the Buyers, including
        by merger or consolidation.  No Buyer may assign its rights or
        obligations under this Agreement without the prior written consent of the
        Company.

      

      (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)           Publicity.  The
        Buyers shall have the right to approve before issuance any press releases
        or any
        other public disclosure (including any filings with the SEC) with respect
        to the
        transactions contemplated hereby; provided, however, that the Company shall
        be
        entitled, without the prior approval of the Buyers, to make any press release
        or
        other public disclosure (including any filings with the SEC) with respect
        to
        such transactions as is required by applicable law and regulations (although
        the
        Buyers shall be consulted by the Company in connection with any such press
        release or other public disclosure prior to its release and shall be provided
        with a copy thereof).

      

      (j)           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.

      

      (k)           Reserved.

      

      (l)           Financial
        Advisor, Placement Agent, Broker or Finder.  The Company shall be
        responsible for the payment of any fees or commissions to the Agent as per
        Section 2(b) hereof and, if any, a financial advisor, placement agent, broker
        or
        finder relating to or arising out of the transactions contemplated
        hereby.  The Company shall pay, and hold the Buyers and the Agent
        harmless against, any liability, loss or expense (including, without limitation,
        attorneys' fees and out of pocket expenses) arising in connection with any
        such
        claim.

       

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      (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.

      

      (n)           Remedies,
        Other Obligations, Breaches and Injunctive Relief.  The Buyers
        remedies provided in this Agreement shall be cumulative and in addition to
        all
        other remedies available to the Buyers under this Agreement, at law or in
        equity
        (including a decree of specific performance and/or other injunctive relief),
        no
        remedy of the Buyers contained herein shall be deemed a waiver of compliance
        with the provisions giving rise to such remedy and nothing herein shall limit
        the Buyers’ rights to pursue actual damages for any failure by the Company to
        comply with the terms of this Agreement.  The Company acknowledges
        that a breach by it of its obligations hereunder will cause irreparable harm
        to
        the Buyers and that the remedy at law for any such breach may be
        inadequate.  The Company therefore agrees that, in the event of any
        such breach or threatened breach, the Buyers shall be entitled, in addition
        to
        all other available remedies, to an injunction restraining any breach, without
        the necessity of showing economic loss and without any bond or other security
        being required.

      

                 (o)           Changes
        to the Terms of this Agreement.  This Agreement and any provision
        hereof may only be amended by an instrument in writing signed by the Company
        and
        the Buyers.  The term "Agreement" and all reference thereto, as used
        throughout this instrument, shall mean this instrument as originally executed,
        or if later amended or supplemented, then as so amended or
        supplemented.

      

                 (p)           Enforcement
        Costs.  If: (i) this Agreement is placed by the Buyers in the
        hands of an attorney for enforcement or is enforced by the Buyers through
        any
        legal proceeding; or (ii) an attorney is retained to represent the Buyers
        in any
        bankruptcy, reorganization, receivership or other proceedings affecting
        creditors' rights and involving a claim under this Agreement; or (iii) an
        attorney is retained to represent the Buyers in any other proceedings whatsoever
        in connection with this Agreement, then the Company shall pay to the Buyers,
        as
        incurred by the Buyers, all reasonable costs and expenses including attorneys'
        fees incurred in connection therewith, in addition to all other amounts due
        hereunder.

      

                 (q)           Failure
        or Indulgence Not Waiver.  No failure or delay in the exercise of
        any power, right or privilege hereunder shall operate as a waiver thereof,
        nor
        shall any single or partial exercise of any such power, right or privilege
        preclude other or further exercise thereof or of any other right, power or
        privilege.

       

      

      *     *     *     *     *

       

       

       

       

       

       

       

       

       

       

      
 

      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      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.

      

                                      THE
        COMPANY:

      KMA
        GLOBAL SOLUTIONS

      INTERNATIONAL,
        INC.

       

      By:                /s/
        Jeffrey D. Reid

                            Jeffrey
        D. Reid

                           Chief
        Executive
        Officer                                                

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      [signature
        page of the Buyers and the Agent is on the following page]

      
 

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

      

      

                                      BUYERS:

      BRANT
        FELLOWSHIP HOLDINGS INC.

      GREENOCK
        EXPORT HOLDING AG INC.

      ADVANCED
        VENDING TECHNOLOGIES INC.

      V&P
        TECHNOLOGIES INC.

      NVD
        INTERNATIONAL INC.

      

      

      By:          /s/
        Angelo
        Boujos                                                    

      Incendia
        Management Group Inc., as authorized

      Agent
        for
        the Buyers

      Per:
        Angelo Boujos, A.S.O. of Incendia

      Management
        Group Inc.

      

      

      

      

      AGENT:

      INCENDIA
        MANAGEMENT GROUP INC.

      

      

      By:             /s/
        Angelo
        Boujos                                                    

      Angelo
        Boujos, A.S.O.

      

      

       

       

      
 

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

       

       

          EXHIBITS

       

      

      
        	
                Exhibit
                  A

              	
                Form
                  of Registration Rights Agreement

              

      

      
        	
                Exhibit
                  B

              	
                Form
                  of Opinion of Company Counsel

              

      

      
        	
                Exhibit
                  C

              	
                Form
                  of Officer’s Certificate

              

      

      
        	
                Exhibit
                  D

              	
                Form
                  of Resolutions of Board of Directors of the
                  Company

              

      

      
        	
                Exhibit
                  E

              	
                Form
                  of Secretary’s Certificate

              

      

      
        	
                Exhibit
                  F

              	
                Form
                  of Warrantkmaglobal8k091307ex102.htm

    
       

      Exhibit
        10.2

      

      REGISTRATION
        RIGHTS AGREEMENT

       

      

      REGISTRATION
        RIGHTS AGREEMENT (this "Agreement"), dated as of
        September 21, 2007, by and between KMA GLOBAL SOLUTIONS INTERNATIONAL,
        INC. a Nevada corporation, (the "Company"), and the
        purchasers identified on the signature page hereto (each a
“Buyer” and collectively, the “Buyers”), and
        Incendia Management Group Inc., a Canadian corporation (the
“Agent”).  Capitalized terms used herein and not
        otherwise defined herein shall have the respective meanings set forth in
        the
        Securities Purchase Agreement by and between the parties hereto dated as
        of
        September 21, 2007 (as amended, restated, supplemented or otherwise modified
        from time to time, the "Purchase Agreement").

       

      WHEREAS:

      

      A.           The
        Company has agreed, upon the terms and subject to the conditions of the Purchase
        Agreement, to issue and sell to the Buyers Securities of the Company and
        additionally issue Securities of the Company to the Agent in consideration
        for
        services rendered in connection with the sale and purchase of Securities;
        and

       

      B.           In
        connection with the Purchase Agreement, the Company has issued to the Buyers
        (i)
        Eight Million (8,000,000) shares of its Common Stock (the “Commitment Shares”),
        and (ii) common stock purchase warrants (the “Warrants”) granting the Buyers the
        right to purchase from the Company an aggregate of Eight Million (8,000,000)
        shares of Common Stock (the “Warrant Shares”) at an exercise price of $0.30,
        exercisable only within (2) years of the Effective Date of the Registration
        Statement ; and

      

                 C.           Additionally,
        in connection with the Purchase Agreement, the Company has issued to the
        Buyers’
Agent (i) One Million Four Hundred Thousand (1,400,000) shares of its Common
        Stock, together with (ii) Warrants to purchase One Million Four Hundred Thousand
        (1,400,000) Warrant Shares at an exercise price of $0.30, exercisable only
        within (2) years of the Effective Date of the Registration Statement;
        and

      

      D.           In
        connection with the Purchase Agreement, the Company has provided for the
        issuance of 1,880,000 shares of Common Stock upon an Event of Default (the
        “Default Shares”);

      

      E.           To
        induce the Buyers to enter into the Purchase Agreement, the Company has agreed
        to provide certain registration rights to the Buyers and the Agent under
        the
        Securities Act of 1933, as amended, and the rules and regulations thereunder,
        or
        any similar successor statute (collectively, the "Securities
        Act"), and applicable state securities laws.

      

      NOW,
        THEREFORE, in consideration of the premises and the mutual covenants
        contained herein and other good and valuable consideration, the receipt and
        sufficiency of which are hereby acknowledged, the Company and
        the Buyers hereby agree as follows:

      

      1.           DEFINITIONS.

      

      As
        used
        in this Agreement, the following terms shall have the following
        meanings:

      

      a.           "Investors"
        means the Buyers and shall also include the Agent, and any transferee or
        assignee thereof to whom a Buyer or the Agent assigns its rights under this
        Agreement and who agrees to become bound by the provisions of this Agreement
        in
        accordance with Section 9 and any transferee or assignee thereof to whom
        a
        transferee or assignee assigns its rights under this Agreement and who agrees
        to
        become bound by the provisions of this Agreement in accordance with Section
        9.

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      b.           "Person"
        means any person or entity including any corporation, a limited liability
        company, an association, a partnership, an organization, a business, an
        individual, a governmental or political subdivision thereof or a governmental
        agency.

      

      c.           "Register,"
        "registered," and "registration" refer to a
        registration effected by preparing and filing one or more registration
        statements of the Company in compliance with the Securities Act and pursuant
        to
        Rule 415 under the Securities Act or any successor rule providing for offering
        securities on a continuous basis ("Rule 415"), and the
        declaration or ordering of effectiveness of such registration statement(s)
        by
        the United States Securities and Exchange Commission (the
        "SEC").

      

      d.           "Registrable
        Securities" means (1) the Fee Shares which have been, or which may from
        time to time be, issued or issuable to the Agent under the Purchase Agreement,
        and any shares of capital stock issued or issuable with respect to the Fee
        Shares or the Purchase Agreement as a result of any stock split, stock dividend,
        recapitalization, exchange or similar event or otherwise, (2) the Warrant
        Shares
        which have been, or which may, from time to time, be issued or issuable upon
        exercise of the Warrant, (3) the Commitment Shares issued to the Investors
        (4)
        upon an Event of Default, as defined in the Purchase Agreement, the Default
        Shares and any shares of capital stock issued or issuable with respect to
        the
        Commitment Shares or the Purchase Agreement as a result of any stock split,
        stock dividend, recapitalization, exchange or similar event or
        otherwise.

      

      e.           "Registration
        Statement" means the registration statement of the Company which the
        Company has agreed to file pursuant to Section 5(a) of the Purchase Agreement
        with respect to the sale of the Registrable Securities.

      

      2.           REGISTRATION.

      

      a.           Mandatory
        Registration.  The Company shall use best efforts to keep the
        Registration Statement effective pursuant to Rule 415 promulgated under the
        Securities Act and available for sales of all of the Registrable Securities
        at
        all times until the earlier of (i) the date as of which the Investors may
        sell
        all of the Registrable Securities without restriction pursuant to Rule 144(k)
        promulgated under the Securities Act (or successor thereto) or (ii) the date
        on
        which the Investors shall have sold all the Registrable Securities under
        the
        Purchase Agreement (the "Registration Period").  The
        Registration Statement (including any amendments or supplements thereto and
        prospectuses contained therein) shall not contain any untrue statement of
        a
        material fact or omit to state a material fact required to be stated therein,
        or
        necessary to make the statements therein, in light of the circumstances in
        which
        they were made, not misleading.

      

      b.           Rule
        424 Prospectus.  The Company shall, as required by applicable
        securities regulations, from time to time file with the SEC, pursuant to
        Rule
        424 promulgated under the Securities Act, the prospectus and prospectus
        supplements, if any, to be used in connection with sales of the Registrable
        Securities under the Registration Statement.  The Investors and their
        counsel shall have a reasonable opportunity to review and comment upon such
        prospectus prior to its filing with the SEC. The Investors shall use their
        reasonable best efforts to comment upon such prospectus within one (1) Trading
        Day from the date the Investors receive the final version of such
        prospectus.

      

      c.           Sufficient
        Number of Shares Registered.  In the event the number of shares
        available under the Registration Statement is insufficient to cover all of
        the
        Registrable Securities, the Company shall amend the Registration Statement
        or
        file a new registration statement (a “New Registration
        Statement”), so as to cover all of such Registrable Securities as soon
        as practicable, but in any event not later than ten (10) Trading Days after
        the
        necessity therefor arises.  The Company shall use it best efforts to
        cause such amendment and/or New Registration Statement to become effective
        as
        soon as practicable following the filing thereof.   The Investors
        and their counsel shall have a reasonable opportunity to review and comment
        upon
        any such amendment and/or New Registration Statement prior to its filing
        with
        the SEC.  The Investors shall use their reasonable best efforts to
        comment upon any such amendment and/or New Registration Statement within
        two (2)
        Trading Days from the date the Investors receive the final version of any
        such
        amendment and/or New Registration Statement.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

         

      

      3.           RELATED
        OBLIGATIONS.

      

      With
        respect to the Registration Statement and whenever any Registrable Securities
        are to be registered pursuant to Section 2 including on any New Registration
        Statement, the Company shall use its reasonable best efforts to effect the
        registration of the Registrable Securities in accordance with the intended
        method of disposition thereof and, pursuant thereto, the Company shall have
        the
        following obligations:

      

      a.           The
        Company shall prepare and file with the SEC such amendments (including
        post-effective amendments) and supplements to any registration statement
        and the
        prospectus used in connection with such registration statement, which prospectus
        is to be filed pursuant to Rule 424 promulgated under the Securities Act,
        as may
        be necessary to keep the Registration Statement or any New Registration
        Statement effective at all times during the Registration Period, and, during
        such period, comply with the provisions of the Securities Act with respect
        to
        the disposition of all Registrable Securities of the Company covered by the
        Registration Statement or any New Registration Statement until such time
        as all
        of such Registrable Securities shall have been disposed of in accordance
        with
        the intended methods of disposition by the seller or sellers thereof as set
        forth in such registration statement.

      

      b.           The
        Company shall permit the Investors to review and comment upon the Registration
        Statement or any New Registration Statement and all amendments and supplements
        thereto at least two (2) Trading Days prior to their filing with the SEC,
        and
        not file any document in a form to which Investors reasonably
        object.  The Investors shall use their reasonable best efforts to
        comment upon the Registration Statement or any New Registration Statement
        and
        any amendments or supplements thereto within two (2) Trading Days from the
        date
        all the Investors receive the final version thereof.  The Company
        shall furnish to the Investors, without charge any correspondence from the
        SEC
        or the staff of the SEC to the Company or its representatives relating to
        the
        Registration Statement or any New Registration Statement.

      

      c.           The
        Company shall furnish to the Investors, (i) promptly after the same is prepared
        and filed with the SEC, at least one copy of such registration statement
        and any
        amendment(s) thereto, including financial statements and schedules, all
        documents incorporated therein by reference and all exhibits, (ii) upon the
        effectiveness of any registration statement, at least one copy of the prospectus
        included in such registration statement and all amendments and supplements
        thereto (or such other number of copies as the Investors may reasonably request)
        and (iii) such other documents, including copies of any preliminary or final
        prospectus, as the Investors may reasonably request from time to time in
        order
        to facilitate the disposition of the Registrable Securities owned by the
        Investors.

      

      d.           The
        Company shall use reasonable best efforts to (i) register and qualify the
        Registrable Securities covered by a registration statement under such other
        securities or "blue sky" laws of such jurisdictions in the United States
        as the
        Investors reasonably request, (ii) prepare and file in those jurisdictions,
        such
        amendments (including post-effective amendments) and supplements to such
        registrations and qualifications as may be necessary to maintain the
        effectiveness thereof during the Registration Period, (iii) take such other
        actions as may be necessary to maintain such registrations and qualifications
        in
        effect at all times during the Registration Period, and (iv) take all other
        actions reasonably necessary or advisable to qualify the Registrable Securities
        for sale in such jurisdictions; provided, however, that the Company shall
        not be
        required in connection therewith or as a condition thereto to (x) qualify
        to do
        business in any jurisdiction where it would not otherwise be required to
        qualify
        but for this Section 3(d), (y) subject itself to general taxation in any
        such
        jurisdiction, or (z) file a general consent to service of process in any
        such
        jurisdiction.  The Company shall promptly notify the Investors who
        holds Registrable Securities of the receipt by the Company of any notification
        with respect to the suspension of the registration or qualification of any
        of
        the Registrable Securities for sale under the securities or "blue sky" laws
        of
        any jurisdiction in the United States or its receipt of actual notice of
        the
        initiation or threatening of any proceeding for such purpose.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      e.           As
        promptly as practicable after becoming aware of such event or facts, the
        Company
        shall notify the Investors in writing of the happening of any event or existence
        of such facts as a result of which the prospectus included in any registration
        statement, as then in effect, includes an untrue statement of a material
        fact or
        omits to state a material fact required to be stated therein or necessary
        to
        make the statements therein, in light of the circumstances under which they
        were
        made, not misleading, and promptly prepare a supplement or amendment to such
        registration statement to correct such untrue statement or omission, and
        deliver
        at least one copy of such supplement or amendment to the Investors (or such
        other number of copies as the Investors may reasonably request).  The
        Company shall also promptly notify the Investors in writing (i) when a
        prospectus or any prospectus supplement or post-effective amendment has been
        filed, and when a registration statement or any post-effective amendment
        has
        become effective (notification of such effectiveness shall be delivered to
        the
        Investors by facsimile on the same day of such effectiveness and by overnight
        mail), (ii) of any request by the SEC for amendments or supplements to any
        registration statement or related prospectus or related information, and
        (iii)
        of the Company's reasonable determination that a post-effective amendment
        to a
        registration statement would be appropriate.

      

      f.           The
        Company shall use its reasonable best efforts to prevent the issuance of
        any
        stop order or other suspension of effectiveness of any registration statement,
        or the suspension of the qualification of any Registrable Securities for
        sale in
        any jurisdiction and, if such an order or suspension is issued, to obtain
        the
        withdrawal of such order or suspension at the earliest possible moment and
        to
        notify the Investors of the issuance of such order and the resolution thereof
        or
        its receipt of actual notice of the initiation or threat of any proceeding
        for
        such purpose.

      

      g.           The
        Company shall (i) cause all the Registrable Securities to be listed on each
        securities exchange or trading system on which securities of the same class
        or
        series issued by the Company are then listed, if any, if the listing of such
        Registrable Securities is then permitted under the rules of such exchange,
        or
        (ii) secure designation and quotation of all the Registrable Securities on
        the
        Principal Market. The Company shall pay all fees and expenses in connection
        with
        satisfying its obligation under this Section.

      

      h.           The
        Company shall cooperate with the Investors to facilitate the timely preparation
        and delivery of certificates representing the Registrable Securities to be
        offered pursuant to any registration statement and enable such certificates
        to
        be in such denominations or amounts as the Investors may reasonably request
        and
        registered in such names as the Investors may request.

      

      i.           The
        Company shall at all times provide a transfer agent and registrar with respect
        to its Common Stock.

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      j.           If
        reasonably requested by the Investors, the Company shall (i) immediately
        incorporate in a prospectus supplement or post-effective amendment such
        information as the Investors believe should be included therein relating
        to the
        sale and distribution of Registrable Securities, including, without limitation,
        information with respect to the number of Registrable Securities being sold,
        the
        purchase price being paid therefor and any other terms of the offering of
        the
        Registrable Securities; (ii) make all required filings of such prospectus
        supplement or post-effective amendment as soon as notified of the matters
        to be
        incorporated in such prospectus supplement or post-effective amendment; and
        (iii) supplement or make amendments to any registration statement.

      

      k.           The
        Company shall use its reasonable best efforts to cause the Registrable
        Securities covered by any registration statement to be registered with or
        approved by such other governmental agencies or authorities as may be necessary
        to consummate the disposition of such Registrable Securities.

      

      l.           Within
        one (1) Trading Day after any registration statement which includes the
        Registrable Securities is ordered effective by the SEC, the Company shall
        deliver, and shall cause legal counsel for the Company to deliver, to the
        transfer agent for such Registrable Securities (with copies to the Investors)
        confirmation that such registration statement has been declared effective
        by the
        SEC substantially in the form attached hereto as Exhibit A.

      

      m.           The
        Company shall take all other reasonable actions reasonably requested by the
        Investors to expedite and facilitate disposition by the Investors of Registrable
        Securities pursuant to any registration statement.

      

      4.           OBLIGATIONS
        OF THE INVESTORS.

      

      a.             The
        Company shall notify the Investors in writing of the information the Company
        reasonably requires from the Investors in connection with any registration
        statement hereunder. The Investors shall furnish to the Company such information
        regarding themselves, the Registrable Securities held by the Investors and
        the
        intended method of disposition of the Registrable Securities held by it as
        shall
        be reasonably required to effect the registration of such Registrable Securities
        and shall execute such documents in connection with such registration as
        the
        Company may reasonably request.

       

      b.           The
        Investors agree to cooperate with the Company as reasonably requested by
        the
        Company in connection with the preparation and filing of any registration
        statement hereunder.

      

      c.           The
        Investors agree that, upon receipt of any notice from the Company of the
        happening of any event or existence of facts of the kind described in Section
        3(f) or the first sentence of 3(e), the Investors will immediately discontinue
        disposition of Registrable Securities pursuant to any registration statement(s)
        covering such Registrable Securities until receipt of the copies of the
        supplemented or amended prospectus contemplated by Section 3(f) or the first
        sentence of 3(e). Notwithstanding anything to the contrary, the Company shall
        cause its transfer agent to promptly deliver shares of Common Stock without
        any
        restrictive legend in accordance with the terms of the Purchase Agreement
        in
        connection with any sale of Registrable Securities with respect to which
        the
        Investors have entered into a contract for sale prior to the Investors’ receipt
        of a notice from the Company of the happening of any event of the kind described
        in Section 3(f) or the first sentence of 3(e) and for which the Investors
        have
        not yet settled.

       

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      5.           EXPENSES
        OF REGISTRATION.

      

      All
        reasonable expenses, other than sales or brokerage commissions and legal
        fees
        and disbursements of counsel to the Investors, incurred in connection with
        registrations, filings or qualifications pursuant to Sections 2 and 3,
        including, without limitation, all registration, listing and qualifications
        fees, printers and accounting fees, and fees and disbursements of counsel
        for
        the Company, shall be paid by the Company.

       

      6.           INDEMNIFICATION

      

      a.           To
        the fullest extent permitted by law, the Company shall, and hereby does,
        indemnify, hold harmless and defend the Investors, each Person, if any, who
        controls an Investor, the respective members, directors, officers, partners,
        employees, agents, representatives of the Investors and each Person, if any,
        who
        controls an Investor within the meaning of the Securities Act or the Securities
        Exchange Act of 1934, as amended (the "Exchange Act") (each, an
        "Indemnified Person"), against any losses, claims, damages,
        liabilities, judgments, fines, penalties, charges, costs, attorneys' fees,
        amounts paid in settlement or expenses, joint or several, (collectively,
        "Claims") incurred in investigating, preparing or defending any
        action, claim, suit, inquiry, proceeding, investigation or appeal taken from
        the
        foregoing by or before any court or governmental, administrative or other
        regulatory agency, body or the SEC, whether pending or threatened, whether
        or
        not an indemnified party is or may be a party thereto ("Indemnified
        Damages"), to which any of them may become subject insofar as such
        Claims (or actions or proceedings, whether commenced or threatened, in respect
        thereof) arise out of or are based upon: (i) any untrue statement or alleged
        untrue statement of a material fact in the Registration Statement, any New
        Registration Statement or any post-effective amendment thereto or in any
        filing
        made in connection with the qualification of the offering under the securities
        or other "blue sky" laws of any jurisdiction in which Registrable Securities
        are
        offered ("Blue Sky Filing"), or the omission or alleged
        omission to state a material fact required to be stated therein or necessary
        to
        make the statements therein not misleading, (ii) any untrue statement or
        alleged
        untrue statement of a material fact contained in any preliminary prospectus
        if
        used prior to the effective date of such registration statement, or contained
        in
        the final prospectus (as amended or supplemented, if the Company files any
        amendment thereof or supplement thereto with the SEC) or the omission or
        alleged
        omission to state therein any material fact necessary to make the statements
        made therein, in light of the circumstances under which the statements therein
        were made, not misleading, (iii) any violation or alleged violation by the
        Company of the Securities Act, the Exchange Act, any other law, including,
        without limitation, any state securities law, or any rule or regulation
        thereunder relating to the offer or sale of the Registrable Securities pursuant
        to the Registration Statement or any New Registration Statement  or
        (iv) any material violation of this Agreement (the matters in the foregoing
        clauses (i) through (iv) being, collectively,
        "Violations").  The Company shall, subject to Section
        6(d) reimburse each Indemnified Person for any legal fees or other expenses
        reasonably incurred by them in connection with investigating or defending
        any
        such Claim.  Notwithstanding anything to the contrary contained
        herein, the indemnification agreement contained in this Section 6(a): (i)
        shall
        not apply to a Claim by an Indemnified Person arising out of or based upon
        a
        Violation which occurs in reliance upon and in conformity with information
        furnished in writing to the Company by such Indemnified Person expressly
        for use
        in connection with the preparation of the Registration Statement, any New
        Registration Statement or any such amendment thereof or supplement thereto,
        if
        such prospectus was timely made available by the Company pursuant to Section
        3(c) or Section 3(e); (ii) with respect to any preliminary prospectus, shall
        not
        inure to the benefit of any Indemnified Person from whom the person asserting
        a
        Claim purchased the Registrable Securities that are offered for sale by the
        preliminary prospectus (or to the benefit of any person controlling such
        person)
        if the untrue statement or omission of material fact contained in the
        preliminary prospectus was corrected in the prospectus, as then amended or
        supplemented, if such prospectus was timely made available by the Company
        pursuant to Section 3(c) or Section 3(e), and the Indemnified Person was
        promptly advised in writing not to use the incorrect prospectus prior to
        the use
        giving rise to a violation and such Indemnified Person, notwithstanding such
        advice, used it; (iii) shall not be available to the extent such Claim is
        based
        on a failure of the Investors to deliver or to cause to be delivered the
        prospectus made available by the Company, if such prospectus was timely made
        available by the Company pursuant to Section 3(c) or Section 3(e); and (iv)
        shall not apply to amounts paid in settlement of any Claim if such settlement
        is
        effected without the prior written consent of the Company, which consent
        shall
        not be unreasonably withheld.  Such indemnity shall remain in full
        force and effect regardless of any investigation made by or on behalf of
        the
        Indemnified Person and shall survive the transfer of the Registrable Securities
        by the Investors pursuant to Section 9.

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      b.           In
        connection with the Registration Statement or any New Registration Statement,
        the Investors shall, and hereby do, indemnify, hold harmless and defend,
        to the
        same extent and in the same manner as is set forth in Section 6(a), the Company,
        each of its directors, each of its officers who signs the Registration Statement
        or any New Registration Statement, each Person, if any, who controls the
        Company
        within the meaning of the Securities Act or the Exchange Act (collectively
        and
        together with an Indemnified Person, an "Indemnified Party"),
        against any Claim or Indemnified Damages to which any of them may become
        subject, under the Securities Act, the Exchange Act or otherwise, insofar
        as
        such Claim or Indemnified Damages arise out of or are based upon any Violation,
        in each case to the extent, and only to the extent, that such Violation occurs
        in reliance upon and in conformity with written information furnished to
        the
        Company by the Investors expressly for use in connection with such registration
        statement; and, subject to Section 6(d), the Investors will reimburse any
        legal
        or other expenses reasonably incurred by them in connection with investigating
        or defending any such Claim; provided, however, that the indemnity agreement
        contained in this Section 6(b) and the agreement with respect to contribution
        contained in Section 7 shall not apply to amounts paid in settlement of any
        Claim if such settlement is effected without the prior written consent of
        the
        Investors, which consent shall not be unreasonably withheld.  Such
        indemnity shall remain in full force and effect regardless of any investigation
        made by or on behalf of such Indemnified Party and shall survive the transfer
        of
        the Registrable Securities by the Investors pursuant to Section 9.

      

      c.           Promptly
        after receipt by an Indemnified Person or Indemnified Party under this Section
        6
        of notice of the commencement of any action or proceeding (including any
        governmental action or proceeding) involving a Claim, such Indemnified Person
        or
        Indemnified Party shall, if a Claim in respect thereof is to be made against
        any
        indemnifying party under this Section 6, deliver to the indemnifying party
        a
        written notice of the commencement thereof, and the indemnifying party shall
        have the right to participate in, and, to the extent the indemnifying party
        so
        desires, jointly with any other indemnifying party similarly noticed, to
        assume
        control of the defense thereof with counsel mutually satisfactory to the
        indemnifying party and the Indemnified Person or the Indemnified Party, as
        the
        case may be; provided, however, that an Indemnified Person or Indemnified
        Party
        shall have the right to retain its own counsel with the fees and expenses
        to be
        paid by the indemnifying party, if, in the reasonable opinion of counsel
        retained by the indemnifying party, the representation by such counsel of
        the
        Indemnified Person or Indemnified Party and the indemnifying party would
        be
        inappropriate due to actual or potential differing interests between such
        Indemnified Person or Indemnified Party and any other party represented by
        such
        counsel in such proceeding. The Indemnified Party or Indemnified Person shall
        cooperate fully with the indemnifying party in connection with any negotiation
        or defense of any such action or claim by the indemnifying party and shall
        furnish to the indemnifying party all information reasonably available to
        the
        Indemnified Party or Indemnified Person which relates to such action or
        claim.  The indemnifying party shall keep the Indemnified Party or
        Indemnified Person fully apprised at all times as to the status of the defense
        or any settlement negotiations with respect thereto.  No indemnifying
        party shall be liable for any settlement of any action, claim or proceeding
        effected without its written consent, provided, however, that the indemnifying
        party shall not unreasonably withhold, delay or condition its
        consent.  No indemnifying party shall, without the consent of the
        Indemnified Party or Indemnified Person, consent to entry of any judgment
        or
        enter into any settlement or other compromise which does not include as an
        unconditional term thereof the giving by the claimant or plaintiff to such
        Indemnified Party or Indemnified Person of a release from all liability in
        respect to such claim or litigation.  Following indemnification as
        provided for hereunder, the indemnifying party shall be subrogated to all
        rights
        of the Indemnified Party or Indemnified Person with respect to all third
        parties, firms or corporations relating to the matter for which indemnification
        has been made.  The failure to deliver written notice to the
        indemnifying party within a reasonable time of the commencement of any such
        action shall not relieve such indemnifying party of any liability to the
        Indemnified Person or Indemnified Party under this Section 6, except to the
        extent that the indemnifying party is prejudiced in its ability to defend
        such
        action.

       

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      d.           The
        indemnification required by this Section 6 shall be made by periodic payments
        of
        the amount thereof during the course of the investigation or defense, as
        and
        when bills are received or Indemnified Damages are incurred.

      

      e.           The
        indemnity agreements contained herein shall be in addition to (i) any cause
        of
        action or similar right of the Indemnified Party or Indemnified Person against
        the indemnifying party or others, and (ii) any liabilities the indemnifying
        party may be subject to pursuant to the law.

      

      7.           CONTRIBUTION.

      

      To
        the
        extent any indemnification by an indemnifying party is prohibited or limited
        by
        law, the indemnifying party agrees to make the maximum contribution with
        respect
        to any amounts for which it would otherwise be liable under Section 6 to
        the
        fullest extent permitted by law; provided, however, that: (i) no seller of
        Registrable Securities guilty of fraudulent misrepresentation (within the
        meaning of Section 11(f) of the Securities Act) shall be entitled to
        contribution from any seller of Registrable Securities who was not guilty
        of
        fraudulent misrepresentation; and (ii) contribution by any seller of Registrable
        Securities shall be limited in amount to the net amount of proceeds received
        by
        such seller from the sale of such Registrable Securities.

      

      8.           REPORTS
        AND DISCLOSURE UNDER THE SECURITIES ACT.

      

      With
        a
        view to making available to the Investors the benefits of Rule 144 promulgated
        under the Securities Act or any other similar rule or regulation of the SEC
        that
        may at any time permit the Investors to sell the Registrable Securities to
        the
        public without registration ("Rule 144"), the Company agrees
        to:

      

      a.           make
        and keep public information available, as those terms are understood and
        defined
        in Rule 144;

      

      b.           file
        with the SEC in a timely manner all reports and other documents required
        of the
        Company under the Securities Act and the Exchange Act so long as the Company
        remains subject to such requirements and the filing of such reports;
        and

      

      c.           furnish
        to the Investors so long as the Investors own Registrable Securities, promptly
        upon request, (i) a written statement by the Company that it has complied
        with
        any applicable reporting and or disclosure provisions of Rule 144, the
        Securities Act and the Exchange Act, (ii) a copy of the most recent annual
        or
        quarterly report of the Company and such other reports and documents so filed
        by
        the Company, and (iii) such other information as may be reasonably requested
        to
        permit the Investors to sell such securities pursuant to Rule 144 without
        registration.

       

       

      
 

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

         

      

      9.         ASSIGNMENT
        OF REGISTRATION RIGHTS.

      

      The
        Company shall not assign this Agreement or any rights or obligations hereunder
        without the prior written consent of the Investors, including by merger or
        consolidation.  The Investors may not assign their rights under this
        Agreement without the written consent of the Company, other than to an
        affiliate.

      

      10.       AMENDMENT
        OF REGISTRATION RIGHTS.

      

      Provisions
        of this Agreement may be amended and the observance thereof may be waived
        (either generally or in a particular instance and either retroactively or
        prospectively), only with the written consent of the Company and the
        Investors.

      

      11.       MISCELLANEOUS.

      

      a.           A
        Person is deemed to be a holder of Registrable Securities whenever such Person
        owns or is deemed to own of record such Registrable Securities.  If
        the Company receives conflicting instructions, notices or elections from
        two or
        more Persons with respect to the same Registrable Securities, the Company
        shall
        act upon the basis of instructions, notice or election received from the
        registered owner of such Registrable Securities.

      

      b.           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 receipt, when sent by facsimile (provided confirmation of transmission
        is mechanically or electronically generated and kept on file by the sending
        party); or (iii) one (1) Trading 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:

      KMA
        Global Solutions International, Inc.

      5570A
        Kennedy Road

      Mississauga,
        Ontario L4Z 2A9

      Telephone:         905-568-5220

      Facsimile:            905-568-4446

      Attention:           Jeffrey
        D. Reid

      

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

      Gary
        M.
        Brown

      Baker,
        Donelson, Bearman, Caldwell & Berkowitz, P.C.

      Commerce
        Center, Suite 1000

      211
        Commerce Street

      Nashville,
        TN 37201

      Telephone:          (615)
        726-5763

      Facsimile:            (615)
        744-5763

      Email:                   gbrown@bakerdonelson.com

       

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
 

      If
        to the
        Investors:

      Incendia
        Management Group Inc.

      111
        Grangeway Avenue, Suite 404

      Toronto,
        Ontario  M1H 3E9

      Telephone:          416-289-0440

      Facsimile:             416-289-7440

      Attention:            Angelo
        Boujos

      

      or
        at
        such other address and/or facsimile number and/or to the attention of such
        other
        person as the recipient party has specified by written notice given to each
        other party three (3) Trading Days prior to the effectiveness of such
        change.  Written confirmation of receipt (A) given by the recipient of
        such notice, consent, waiver or other communication, (B) mechanically or
        electronically generated by the sender's facsimile machine containing the
        time,
        date, recipient facsimile number and an image of the first page of such
        transmission or (C) provided by a nationally recognized overnight delivery
        service, shall be rebuttable evidence of personal service, receipt by facsimile
        or receipt from a nationally recognized overnight delivery service in accordance
        with clause (i), (ii) or (iii) above, respectively.

      

      c.           Failure
        of any party to exercise any right or remedy under this Agreement or otherwise,
        or delay by a party in exercising such right or remedy, shall not operate
        as a
        waiver thereof.

      

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

      

      e.           This
        Agreement and the Purchase Agreement constitute the entire agreement among
        the
        parties hereto with respect to the subject matter hereof and
        thereof.  There are no restrictions, promises, warranties or
        undertakings, other than those set forth or referred to herein and
        therein.  This Agreement and the Purchase Agreement supersede all
        prior agreements and understandings among the parties hereto with respect
        to the
        subject matter hereof and thereof.

      

      f.           Subject
        to the requirements of Section 9, this Agreement shall inure to the benefit
        of
        and be binding upon the permitted successors and assigns of each of the parties
        hereto.

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      g.           The
        headings in this Agreement are for convenience of reference only and shall
        not
        limit or otherwise affect the meaning hereof.

      

      h.           This
        Agreement may be executed in identical counterparts, each of which shall
        be
        deemed an original but all of which shall constitute one and the same
        agreement.  This Agreement, once executed by a party, may be delivered
        to the other party hereto by facsimile transmission of a copy of this Agreement
        bearing the signature of the party so delivering this Agreement.

      

      i.           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.

      

      j.           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.

      

      k.           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.

      

      

      *
        * * * * *

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      
 

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

       

      

      IN
        WITNESS WHEREOF, the parties have caused this Registration Rights
        Agreement to be duly executed as of day and year first above
        written.

      

      

      THE
        COMPANY:

      

      KMA
        GLOBAL SOLUTIONS

      INTERNATIONAL,
        INC.

       

       

      By:                /s/
        Jeffrey D. Reid

                            Jeffrey
        D. Reid

             
                     Chief
        Executive
        Officer                                                

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      

      
 

      

      

      

      

      

      

      

      [signature
        of Buyers and Agent on the following page]

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

                               

       

             BUYERS:

      BRANT
        FELLOWSHIP HOLDINGS INC.

      GREENOCK
        EXPORT HOLDING AG INC.

      ADVANCED
        VENDING TECHNOLOGIES INC.

      V&P
        TECHNOLOGIES INC.

      NVD
        INTERNATIONAL INC.

      

      

      By:          /s/
        Angelo
        Boujos                                                    

      Incendia
        Management Group Inc., as

      authorized
        Agent for the Buyers

      Per:
        Angelo Boujos, A.S.O. of Incendia

      Management
        Group Inc.

      

      

      

      

      AGENT:

      INCENDIA
        MANAGEMENT GROUP INC.

      

      

      By:             /s/
        Angelo Boujos

        
                       Angelo
        Boujos, A.S.O.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]