Document:

FORM OF EMPLOYMENT AGREEMENT

      THIS EMPLOYMENT AGREEMENT (this "Agreement"), effective as of February
___, 2006, is by and between CAPITAL PARTNERS FOR HEALTH & FITNESS, INC., a
North Carolina corporation ("Company"), and RANDALL ROHM, an individual residing
in North Carolina ("Executive").

      WHEREAS, Company has entered into an agreement of merger ("Merger
Agreement") with Health Partnership Inc. ("HPI") and two Executive and one
additional shareholder of Company as parties, whereby HPI is paying substantial
sums of cash and amounts of its securities to Executive, and is requiring as a
condition precedent to the closing of the Merger Agreement that Executive agree
to become an executive of Company, subject to the terms and conditions set forth
below and Executive is desirous of entering into this Agreement.

      IN CONSIDERATION of the mutual covenants and agreements contained herein,
as well as for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto, intending to
be legally bound, hereby agree as follows:

      1. Employment. Company hereby employs Executive, and Executive accepts
such employment, in accordance with the terms and conditions hereinafter set
forth.

      2. Duties.

            (a) Executive shall be employed as Chief Operating Officer of
      Company, and Executive shall perform and discharge well and faithfully the
      duties which may be assigned to him from time to time by the Board of
      Directors of Company (the "Company Board") and the Chief Executive Officer
      of Company in connection with the conduct of Company's businesses,
      including subsidiaries of Company presently existing or acquired by
      Company or HPI after the date hereof (the "Business"). Executive will
      report directly to the Chief Executive Officer of Company, and the
      Executive will also work collaboratively with such other officers of
      Company or its subsidiaries as shall be designated by the Chief Executive
      Officer from time to time.

            (b) Initially, Executive's primary assignment and duty shall be to
      provide full time management of the nine (9) (soon to be ten (10)) health
      clubs owned by Company, from a location in the greater Raleigh-Durham,
      North Carolina metropolitan area.

            (c) Subject to Executive's primary assignment and duties described
      in Section 2(b) above, Executive shall also generally provide advice,
      consultation and management assistance to all of the subsidiaries of
      Company, in regard to the operation of their business and expansion
      organically plus inorganically through acquisition and in regard to such
      other duties and responsibilities as may from time to time be requested by
      the Chief Executive Officer of Company. Executive acknowledges and agrees
      that such duties and responsibilities will require some travel outside the
      Raleigh-Durham, North Carolina, metropolitan area.

      3. Extent of Services. Executive shall devote his entire time and best
efforts to the Business and shall not, during the term of this Agreement, be
engaged (whether or not during normal business hours) in any other business or
<PAGE>

professional activity; provided, however, that the provisions of this Section 3
shall not be construed as preventing Executive from engaging in a reasonable
level of charitable activities nor investing his personal assets in businesses
which do not compete with Company or the Business, in such form or manner as
will not require any services on the part of Executive in the operation or the
affairs of the companies in which such investments are made and in which his
participation is solely that of a passive investor.

      4. Compensation.

            (a) For all services rendered by Executive under this Agreement,
Company shall pay Executive for the period from and after the date of this
Agreement through and including the third anniversary of this Agreement, an
annual base salary in an amount equal to Two Hundred Thousand U.S. Dollars (U.S.
$200,000) per annum. Such annual base salary shall be subject to periodic review
by the Chief Executive Officer of Company and the Compensation Committee of the
Company Board (or if no such Committee, then by the Board itself), with the
first such review scheduled for the end of November, 2006. Any raises or bonuses
or such options or warrants paid to Executive during the term of his employment
shall be solely within the discretion of the Company Board. Executive shall be
paid in accordance with the customary payroll practices of Company, subject to
such deductions and withholdings as may be required by law or agreed to by
Executive. During the term of his employment, Executive shall be generally
entitled to participate in benefit plans or programs which are generally made
available to Vice Presidents of Company or of Company's subsidiaries, subject to
all of the rules, regulations, terms and conditions applicable thereto. A
general summary of such benefit plans or programs as currently in effect is
attached hereto as Exhibit A. Company shall have the right at any time to put
into place arrangements pursuant to which some or all of Executive's
compensation and/or benefits set forth above shall be provided to Executive by
or through HPI or by or through other subsidiaries of HPI (rather than directly
by Company), and Executive shall fully cooperate with such arrangements and
shall promptly sign such documents and take all such other actions as shall be
deemed necessary by the legal counsel for Company in order to facilitate such
arrangements.

            (b) Notwithstanding the foregoing, Executive shall be entitled to a
mandatory bonus of Fifty Thousand U.S. Dollars ($50,000) after each calendar
year during the term of this Agreement that the Company's earnings before
interest, taxes, depreciation and amortization, in each case, computed in
accordance with GAAP ("EBITDA") and as calculated in accordance with the terms
of the Merger Agreement, equals or exceeds the sum set forth in Section
9.1(a)(ii) of the Merger Agreement. Such bonus, if any, shall be paid to
Executive promptly following the calculation of the Company's EBITDA for such
year; provided, however, that Executive must remain an employee of the Company
through the end of the year in question to be eligible to receive any bonus.

      5. Term. This Agreement shall commence on the date first set forth above
and shall continue until the third anniversary of the date first set forth
above, unless earlier terminated in accordance with Section 6 of this Agreement.

      6. Termination of Employment.

            (a) Death or Disability of Executive. The employment of Executive
      under this Agreement shall terminate upon his death or, at the option of
      Company, if Executive shall be prevented from fully performing his duties
      hereunder as a result of his disability or illness for a continuous period
      of one hundred eighty (180) days, and Executive shall only be entitled to
      be paid vacation pay and base salary earned or accrued through the date of
      termination, and no severance payment shall be due or payable to Executive
      in such event. Any payments of disability insurance to Executive with
      respect to any policy maintained by Company or any of its subsidiaries
      prior to termination of his employment shall be credited dollar-for-dollar
      against base compensation payable to Executive for the corresponding
      period.

            (b) By Relocation. In the event that Executive's duties require
      relocation to a location outside the Raleigh-Durham, North Carolina,
      metropolitan area, Executive declines to accept such transfer to such
      other geographic location and an alternative position that is mutually
      acceptable to Company and Executive cannot be arranged within the
      Raleigh-Durham, North Carolina, metropolitan area, then Executive shall be

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      deemed terminated without cause effective ninety (90) days after the
      notice to Executive of the request for relocation, and Executive shall
      only be entitled to be paid vacation pay and base salary earned or accrued
      through the date of termination, and no severance payment shall be due or
      payable to Executive in such event, provided that this shall not affect
      Executive's right to receive any compensation or consideration under any
      other Agreement with Company.

            (c) Termination "For Cause." Company shall have the right to
      terminate the employment of Executive under this Agreement "For Cause," as
      such term is defined below, at any time without further liability or
      obligations to Executive, excepting only that Executive shall be entitled
      to be paid vacation pay and base salary earned or accrued through the date
      of termination, and no severance payment shall be due or payable to
      Executive in such event. For purposes of this Agreement, "For Cause" shall
      refer to any of the following events as determined in the judgment of the
      Company Board:

                  (i) Executive's repeated neglect of or negligence in the
            performance of his duties;

                  (ii) Executive's failure or refusal to follow instructions
            given to him by the Company Board or the Chief Executive Officer or
            Chairman of Company;

                  (iii) Executive's repeated violation of any provision of
            Company's or HPI's Bylaws or of Company's or HPI's other stated
            policies, standards, or regulations, including but not limited to
            policies with respect to trading in HPI's securities;

                  (iv) Executive's being investigated by a government authority,
            indicted, convicted or plea bargaining in regard to any criminal
            offense, other than minor traffic violations, based on Executive's
            conduct occurring during the term of this Agreement;

                  (v) Executive's violation or breach of any material term,
            covenant or condition contained in this Agreement or any other
            agreement between Executive and any of Company, HPI or any of its
            subsidiaries; or

                  (vi) failure of Executive to perform his assignments and
            duties hereunder at a level that is deemed to be acceptable by
            either Company's or HPI's Chief Executive Officer, which failure
            continues for more than thirty (30) days following receipt of
            written notice from Company's or HPI's Chief Executive Officer.

            (d) Accrued Salary. In the event that Company or Executive
      terminates this Agreement for any reason whatsoever, Executive shall be
      paid (less all applicable deductions) all earned and accrued base
      compensation due to Executive for services rendered up to the date of
      termination.

            (e) Severance Payment. Except in the case of termination pursuant to
      Section 6(a) (death or disability of Executive), Section 6(b)
      (relocation), or Section 6(c) (For Cause), in the event that Company
      terminates this Agreement Executive shall be paid an amount equal to all

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<PAGE>

      amounts of his annual base compensation, less all applicable deductions,
      that would have become due and owing to Executive through the third
      anniversary of the date first set forth above, as if Executive's
      employment with Company had not been terminated prior thereto, which
      payments shall be made in regular installments comparable to what would
      have been paid to Executive from time to time, had Executive continued to
      be employed through the third anniversary of this Agreement.

      7. Non-Competition and Non-Solicitation.

            (a) Executive acknowledges that the services to be performed by him
      under this Agreement are of a special, unique, unusual, extraordinary and
      intellectual character, and the provisions of this Section 7 are
      reasonable and necessary to protect the Business.

            (b) In consideration of the foregoing acknowledgments by Executive,
      and in consideration of the compensation and benefits to be paid or
      provided to Executive by Company, Executive covenants that he will not,
      during the term of this Agreement and for a period of one (1) year
      thereafter, directly or indirectly:

                  (i) except in the course of his employment hereunder, engage
            or invest in, own, manage, operate, finance, control, or participate
            in the ownership, management, operation, financing, or control of,
            be employed by, associated with, or in any manner connected with,
            any business whose products or services compete in whole or in part
            with the products or services of Company or HPI; provided, however,
            that Executive may purchase or otherwise acquire up to (but not more
            than) one percent (1%) of any class of securities of any enterprise
            (but without otherwise participating in the activities of such
            enterprise) if such securities are listed on any national or
            regional securities exchange or have been registered under Section
            12(g) of the Securities Exchange Act of 1934;

                  (ii) whether for Executive's own account or for the account of
            any other person, solicit business of the same or similar type of
            business then being carried on by Company, from any person or entity
            known by Executive to be a customer of Company or HPI, whether or
            not Executive had personal contact with such person or entity during
            and by reason of Executive's employment with Company;

                  (iii) whether for Executive's own account or the account of
            any other person (A) solicit, employ or otherwise engage as an
            Executive, independent contractor or otherwise, any person who is or
            was an employee of Company or HPI at any time during the term of
            this Agreement or in any manner induce or attempt to induce any
            employee of Company or HPI to terminate his employment with Company
            or HPI, or (B) interfere with Company's or HPI's relationship with
            any person or entity, including any person or entity who at any time
            during the term of this Agreement was an employee, contractor,
            supplier or customer of Company or HPI; or

                  (iv) at any time during or after the term of this Agreement,
            disparage Company or HPI, or any of their respective shareholders,
            directors, executives, officers, employees or agents.

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            (c) If any covenant of this Section 7 is held to be unreasonable,
      arbitrary or against public policy, such covenant will be considered to be
      divisible with respect to scope, time and geographic area, and such lesser
      scope, time or geographic area, or all of them, as a court of competent
      jurisdiction may determine to be reasonable, not arbitrary and not against
      public policy, will be effective, binding and enforceable against
      Executive.

            (d) Executive acknowledges and agrees that should Executive transfer
      between or among Company and HPI or any of its affiliated companies
      including, without limitation, any parent, subsidiary or other corporately
      related entity (a "Company Affiliate") wherever situated, or otherwise
      become employed by any Company Affiliate, or should he be promoted or
      reassigned to functions other than the duties set forth in this Agreement,
      or should Executive's compensation and benefit package change (either
      higher or lower), the terms of this Section 7 shall continue to apply with
      full force.

            (e) In the event Executive is terminated other than For Cause,
      Executive may, in his sole discretion, elect to waive any severance
      payment which may otherwise be due and owing to Executive pursuant to
      Section 6(e) above in exchange for Company's agreement that the
      restrictions of Section 7(b)(i) shall be deemed null and void and
      unenforceable against Executive and Company shall not attempt to enforce
      the same.

            (f) Executive agrees and acknowledges that Company does not have an
      adequate remedy at law for the breach or threatened breach by Executive of
      this Section 7 and agrees that Company may, in addition to the other
      remedies which may be available to it under this Agreement, file suit in
      equity to enjoin Executive from such breach or threatened breach.

            (g) All references in Section 7(b) hereof to Company shall be deemed
      to include any subsidiary or other Affiliate of Company or HPI.

      8. Certain Representations. Executive acknowledges that as a publicly
traded company functioning under the recently enacted Sarbanes-Oxley Act,
Company and its subsidiaries are subject to close scrutiny regarding their
activities, internal financial controls, and public comments and disclosures. To
appropriately protect HPI and its subsidiaries including Company, Executive
expressly acknowledges and agrees as follows:

      (a) Executive's employment by Company shall be full-time employment.
Except as expressly provided herein, during the period of such employment by
Company, Executive shall not have, provide or perform any work, advice,
assistance, consultation, analysis, input, participation, or interest whatsoever
(including but not limited to any financial interest, direct or indirect, legal
or beneficial) in or for the benefit of any corporation, partnership, joint
venture, limited liability company, sole proprietorship, or any other entity
whatsoever, whether for-profit or non-profit and regardless of whether or not
such entity competes against the Business, excepting volunteer activities for
local churches or schools and passive real estate investments or investments in
publicly traded stocks provided that such volunteer activities and investments
do not interfere with the performance of Executive's work for Company. In the
event that Company determines in its sole discretion that any of such activities
are interfering with the performance of Executive's duties for Company, it will
provide Executive with written notice of the same, and Executive shall have ten
(10) days either to cure such interference to the satisfaction of Company or to

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<PAGE>

cease the interfering activities. Executive understands and agrees that any
activities other than those expressly set forth above must be pre-approved in
writing by the Chief Executive Officer and the Chairman of Company, and that any
revenues and profit derived from such activities shall belong solely to Company.
Executive agrees to provide Company any and all requested information in order
for Company to audit and determine the net income of Executive's activities
identified herein.

            (b) During and following any termination of Executive's employment
      by Company for any reason and under any circumstances whatsoever:

                  (i) Executive shall refrain from making any public or private
            disclosures regarding Company, HPI or their respective directors,
            officers, executives, employees or shareholders, except disclosures
            of such information as may have been publicly disclosed by HPI,
            Company or their respective subsidiaries including Company from time
            to time in press releases or in filings with the U.S. Securities and
            Exchange Commission, and except as may be required by applicable law
            or court order; and

                  (ii) Executive shall refrain from making public or private
            disparaging remarks regarding the Business, Company, HPI or their
            respective directors, officers, executives, employees or
            shareholders, or Company's or HPI's common stock, provided, however,
            that this agreement shall not be deemed to be violated by isolated
            verbal remarks in a social setting which are not repeated after they
            are objected to by either the Chief Executive Officer or the
            Chairman of Company.

            (c) Executive further represents, warrants and covenants as follows:

                  (i) that Executive is not subject to any contract, non-compete
            agreement, decree or injunction which prohibits or restricts his
            performance of the duties set forth herein with Company, the
            continued operation of the Business or the expansion thereof to
            other geographical areas, customers and suppliers or lines of
            business; and

                  (ii) that no claims or lawsuits are pending at the time of
            this Agreement against Executive or any corporation or other entity
            wherein he was or is an officer or Executive, except as detailed as
            an exhibit to the Merger Agreement.

            (d) If during the period of his employment by Company, Executive
      violates this Section 8 or any of the representations, warranties and
      covenants made by Executive in this Section 8 prove to be false, then
      following discovery of the violation or falsehood, Executive shall
      immediately pay and turn over to Company any and all software, software
      programs, other work product, copyrights, domain names, contract rights,
      accounts receivable, cash, stock, options, warrants, membership interests,
      other interests, salary, bonuses, royalties, commissions, fees and any and
      all other assets, consideration and compensation of any nature whatsoever
      which has been obtained by Executive or any of his immediate family
      members or affiliates (directly or indirectly, legally or beneficially) in
      regard to such violation, and in addition Company and HPI shall have the
      unilateral right to cancel any or all stock options or warrants issued to

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      Executive after the date of this Agreement ("Future Equity Instruments")
      and outstanding as of the date of discovery by Company of such violation
      or falsehood, all as liquidated and punitive damages in regard to such
      violation or falsehood.

            (e) Executive acknowledges and agrees that in the event that there
      is a dispute regarding Executive's employment with Company brought by any
      former employer, Company will request that its legal counsel represent
      Executive, and will further advance funds for any legal fees and costs
      associated with such representation (collectively, the "Legal Defense Fees
      and Costs Paid by Company") so long as:

                  (i) Executive has not violated any of the representations and
            obligations set forth in this letter, including those set forth in
            this Agreement;

                  (ii) Company's legal counsel concludes (with Executive's
            assent) that he can represent both Company and Executive personally
            without violating any ethical obligations that such counsel may
            have; and

                  (iii) Executive remains employed by Company.

      Executive specifically acknowledges that should any of these conditions
      not be met, Executive will be obligated to retain separate legal counsel
      and that any legal fees and costs associated with such counsel shall be
      solely his responsibility. Executive also acknowledges and agrees that
      pursuant to Section 4 above any Legal Defense Fees and Costs Paid by
      Company in connection with such a dispute may, in Company's sole
      discretion, be set-off against any raise or bonus that Executive otherwise
      is or may be eligible to receive from Company.

      9. Nondisclosure of Proprietary Information. Executive shall not, either
during or after his employment with Company, disclose to anyone outside Company
nor use other than for the purpose of the Business, any Proprietary Information
or any information received in confidence by Company or any Company Affiliate
from any third party. For purposes of this Agreement, "Proprietary Information"
is information and data, whether in oral, written, graphic, or machine-readable
form relating to Company's or any Company Affiliate's past, present and future
businesses, including, but not limited to, computer programs, routines, source
code, object code, data, information, documentation, know-how, technology,
designs, procedures, formulas, discoveries, inventions, trade secrets,
improvements, concepts, ideas, product plans, development plans, research and
development, acquisition plans, pricing policies, personnel information,
financial information, customer lists and marketing programs and including,
without limitation, all documents marked as confidential or proprietary and/or
containing such information, which Company or any Company Affiliate has acquired
or developed and which has not been made publicly available by Company or any
Company Affiliate.

      10. Return of Documents. Upon the termination of Executive's employment
with Company or upon the earlier request of Company, Executive shall return to
Company all materials belonging to Company, including all materials containing
or relating to any Proprietary Information in any written or tangible form that
Executive may have in his possession or control.

      11. Ownership of Work Product. Executive hereby assigns to Company his
entire right, title and interest in all "Developments." "Developments" shall
mean any idea, invention, design of a useful article (whether the design is

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ornamental or otherwise), computer program including source code and object code
and related documentation, and any other work of authorship, or audio/visual
work, written, made or conceived solely or jointly by Executive during
Executive's employment with Company, whether or not patentable, subject to
copyright or susceptible to other forms of protection that relate to the actual
or anticipated businesses or research or development of Company, or are
suggested by or result from any task assigned to Executive or work performed by
Executive for or on behalf of Company. Executive acknowledges that the
copyrights in Developments created by him in the scope of his employment belong
to Company by operation of the law, or may belong to a customer of Company
pursuant to a contract between Company and such customer. In connection with any
of the Developments assigned above, Executive agrees to promptly disclose them
to Company, and Executive agrees, on the request of Company, to promptly execute
separate written assignments to Company and to do all things reasonably
necessary to enable Company to secure patents, register copyrights or obtain any
other forms of protection for Developments in the United States and in other
countries. In the event Company is unable, after reasonable effort, to secure
Executive's signature on any letters patent, copyright or other analogous
protection relating to a Development, whether because of Executive's physical or
mental incapacity or for any other reason whatsoever, Executive irrevocably
designates and appoints Company and its duly authorized officers and agents as
his agents and attorneys-in-fact to act for and in his behalf and stead to
execute and file any such application or applications and to do all other
lawfully permitted acts to further the prosecution and issuance of letters
patent, copyright or other analogous protection thereon, with the same legal
force and effect as if executed by Executive. Company, its subsidiaries,
licensees, successors and assigns (direct or indirect), are not required to
designate Executive as the inventor or author of any Development, when such
Development is distributed publicly or otherwise. Executive waives and releases,
to the extent permitted by law, all of his rights to such designation and any
rights concerning future modifications of such Developments.

      12. Possession of Other Materials. Executive represents that he has not
brought and will not bring with him to Company, or use in the performance of
Executive's responsibilities for Company, any materials or documents of a former
employer which are not generally available to the public or which did not belong
to Executive or Company, unless Executive has obtained written authorization
from the former employer or other owner for their possession and use and
provided Company with a copy thereof

      13. Indemnification. Executive agrees to indemnify, defend and hold
harmless Company and each Company Affiliate and each of the directors, officers,
executives, employees and shareholders of Company and each Company Affiliate
from and against all liabilities, obligations, losses, expenses, costs
(including attorneys fees), claims, deficiencies and damages incurred or
suffered by Company and each Company Affiliate and each of their respective
directors, officers, executives and shareholders, resulting from:

            (a) Executive's breach of the terms of this Agreement, including but
      not limited to any breach of Executive's representations, warranties and
      covenants;

            (b) Executive's breach of any agreement with a third party
      restricting competition, intellectual property, confidential information
      or disclosure;

            (c) Executive's grossly negligent acts; or

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            (d) Executive's improper willful acts, without any limitations or
      qualifications whatsoever, and as an express inducement to Company to
      enter into this Agreement Executive waives any and all arguments, grounds,
      facts, circumstances, reasons, basis, and defenses whatsoever, whether
      based in law or in equity, regarding the full force and effect and legally
      binding nature of this agreement of Executive to indemnify and hold
      harmless Company and each of their respective directors, officers,
      executives, employees and shareholders, as aforesaid.

This indemnification provision shall survive any termination of Executive's
employment relationship with Company. In addition to all other remedies
available, Company shall have the unilateral right to cancel any or all of the
Future Equity Instruments, if Executive defaults on such indemnification
obligations.

      14. Assignment. This Agreement may not be assigned by Executive under any
circumstances. This Agreement may be assigned by Company, or to any successor of
Company in connection with a merger, consolidation, or sale of all or
substantially all of the assets of Company, so long as such assignee assumes all
of Company's obligations hereunder.

      15. Notices. Any notice required or permitted to be given under this
Agreement shall be sufficient if in writing and sent by registered or certified
mail, return receipt requested, or if in writing and delivered in person to the
intended recipient or if in writing and delivered by bonded overnight courier,
to the following address:

     To Executive:        At the address set forth on the signature page hereof.

     To Company:          Capital Partners for Health & Fitness, Inc.
                          Attention: Chief Executive Officer
                          5 Revere Drive - Suite 510
                          Northbrook, IL 60062

or to such other address as either Executive or Company may give to the other
from time to time by written notice in the manner set forth above.

      16. Waiver of Breach. Any waiver by Company or Executive of a breach of
any provision of this Agreement by the other party shall not operate or be
construed as a waiver of any subsequent breach by the other party.

      17. Choice of Law, Jury Waiver. This Agreement shall be deemed to have
been made in the State of Illinois, and shall take effect as an instrument under
seal within Illinois. Both parties further acknowledge that the last act
necessary to render this Agreement enforceable is its execution by Company in
Illinois, and that the Agreement thereafter shall be maintained in Illinois. The
validity, interpretation and performance of this Agreement, and any and all
other matters relating to Executive's employment and separation of employment
from Company shall be governed by, and construed in accordance with the internal
law of Illinois, without giving effect to conflict of law principles. Both
parties agree that any action, demand, claim or counterclaim (jointly "Action")
relating to (i) Executive's employment and separation of his employment, and
(ii) the terms and provisions of this Agreement or to its breach, shall be
commenced in Illinois in a court of competent jurisdiction. Both parties further
acknowledge that venue shall exclusively lie in Illinois and that material
witnesses and documents would be located in Illinois. Both parties further agree
that any Action shall be tried by a Judge alone, and both parties hereby waive
and forever renounce the right to a trial before a civil jury.

      18. Entire Agreement. This Agreement contains the entire agreement of the
parties regarding the subject matter hereof and supersedes all prior or
contemporary agreements or understandings, whether written or oral with respect
thereto. This Agreement may be changed only by an agreement in writing signed by
the party against whom enforcement of any waiver, change, modification,
extension or discharge is sought. Failure to insist upon strict compliance with
any provision of this Agreement shall not be deemed a waiver of such provision
or of any other provision in the Agreement.

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      19. Counterparts. This Agreement may be executed in one or more
counterparts, whether by original, photocopy, facsimile or e-mail in PDF format,
each of which shall be deemed an original and all of which, when taken together,
shall constitute one and the same instrument.

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year first written above.

EMPLOYEE:                                  COMPANY:

                                           CAPITAL PARTNERS FOR HEALTH
                                           & FITNESS, INC

-------------------------------------
RANDALL ROHM
                                           By:
                                              ----------------------------------
Address:                                      Gerard M. Jacobs
       ------------------------------         Chief Executive Officer
                                              Chief Executive Officer
       ------------------------------

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                                    EXHIBIT A

                              SUMMARY OF COMPANY'S
                 VICE PRESIDENTS' BENEFITS AS OF FEBRUARY, 2006

1.    Medical insurance where a PPO or HMO plan is offered.((1)) 2. Dental and
      vision insurance, if plan is obtained.(1)

3.    Fifteen (15) vacation days per year.

4.    Ten (10) paid holidays per year.

5.    Company paid supplemental policies including Accident, Personal Recovery,
      Disability and Cancer insurance, if supplemental policies are obtained.(1)

6.    Company paid executive life insurance plan with a death benefit tied to
      annual salary or multiple thereof, if plan is obtained.(1)

------------
((1)) Current Capital Partners plans in this area, if any, will be maintained
      until Company elects to move to different coverage.

                                       A-1EXHIBIT 10.14

                          SECURITIES PURCHASE AGREEMENT

      SECURITIES PURCHASE AGREEMENT (this "Agreement"), dated as of November 14,
2005, by and among  Advanced  Biophotonics  Inc., a Delaware  corporation,  with
headquarters  located at 125 Wilbur  Place,  Suite 120,  Bohemia,  NY 11716 (the
"Company"),  and each of the purchasers set forth on the signature  pages hereto
(the "Buyers").

      WHEREAS:

      A. The Company and the Buyers are executing and delivering  this Agreement
in reliance  upon the exemption  from  securities  registration  afforded by the
rules and  regulations  as  promulgated  by the  United  States  Securities  and
Exchange  Commission  (the "SEC") under the  Securities  Act of 1933, as amended
(the "1933 Act");

      B. Buyers  desire to purchase  and the Company  desires to issue and sell,
upon the  terms  and  conditions  set  forth in this  Agreement  (i) 8%  secured
convertible notes of the Company, in the form attached hereto as Exhibit "A", in
the aggregate  principal amount of Four Million Dollars  ($4,000,000)  (together
with any  note(s)  issued in  replacement  thereof or as a  dividend  thereon or
otherwise  with  respect  thereto  in  accordance  with the terms  thereof,  the
"Notes"), convertible into shares of common stock, par value $.001 per share, of
the Company (the "Common Stock"),  upon the terms and subject to the limitations
and conditions  set forth in such Notes and (ii) warrants,  in the form attached
hereto as  Exhibit  "B",  to  purchase  4,000,000  shares of Common  Stock  (the
"Warrants").

      C. Each Buyer wishes to purchase,  upon the terms and conditions stated in
this Agreement,  such principal amount of Notes and number of Warrants as is set
forth immediately below its name on the signature pages hereto; and

      D. Contemporaneous with the execution and delivery of this Agreement,  the
parties hereto are executing and delivering a Registration Rights Agreement,  in
the form attached hereto as Exhibit "C" (the "Registration  Rights  Agreement"),
pursuant to which the Company has agreed to provide certain  registration rights
under the 1933 Act and the rules and  regulations  promulgated  thereunder,  and
applicable state securities laws.

      NOW  THEREFORE,  the  Company  and each of the Buyers  severally  (and not
jointly) hereby agree as follows:

            1.    PURCHASE AND SALE OF NOTES AND WARRANTS.

                  a.  Purchase of Notes and  Warrants.  On the Closing  Date (as
defined  below),  the Company  shall issue and sell to each Buyer and each Buyer
severally agrees to purchase from the Company such principal amount of Notes and
number of Warrants as is set forth  immediately  below such  Buyer's name on the
signature pages hereto.

<PAGE>

                  b. Form of Payment.  On the Closing  Date (as defined  below),
(i) each Buyer shall pay the purchase price for the Notes and the Warrants to be
issued and sold to it at the Closing (as defined below) (the  "Purchase  Price")
by wire transfer of immediately  available  funds to the Company,  in accordance
with the Company's written wiring instructions, against delivery of the Notes in
the principal  amount equal to the Purchase  Price and the number of Warrants as
is set forth  immediately below such Buyer's name on the signature pages hereto,
and (ii) the Company  shall  deliver  such Notes and Warrants  duly  executed on
behalf of the Company, to such Buyer, against delivery of such Purchase Price.

                  c.  Closing  Date.  Subject to the  satisfaction  (or  written
waiver) of the  conditions  thereto  set forth in Section 6 and Section 7 below,
the  date and  time of the  issuance  and  sale of the  Notes  and the  Warrants
pursuant to this  Agreement  (the "Closing  Date") shall be 12:00 noon,  Eastern
Standard Time on November 14, 2005, or such other mutually agreed upon time. The
closing of the transactions contemplated by this Agreement (the "Closing") shall
occur on the Closing Date at such location as may be agreed to by the parties.

            2.    BUYERS'  REPRESENTATIONS AND WARRANTIES.  Each Buyer severally
(and not jointly) represents and warrants to the Company solely as to such Buyer
that:

                  a.  Investment  Purpose.  As of the date hereof,  the Buyer is
purchasing the Notes and the shares of Common Stock issuable upon  conversion of
or  otherwise  pursuant  to  the  Notes  (including,  without  limitation,  such
additional  shares of Common  Stock,  if any, as are  issuable (i) on account of
interest on the Notes,  (ii) as a result of the events described in Sections 1.3
and 1.4(g) of the Notes and Section 2(c) of the Registration Rights Agreement or
(iii) in payment  of the  Standard  Liquidated  Damages  Amount  (as  defined in
Section  2(f) below)  pursuant to this  Agreement,  such shares of Common  Stock
being  collectively  referred  to herein  as the  "Conversion  Shares")  and the
Warrants  and the shares of Common Stock  issuable  upon  exercise  thereof (the
"Warrant  Shares" and,  collectively  with the Notes,  Warrants  and  Conversion
Shares,  the  "Securities")  for its own  account  and not with a  present  view
towards  the public  sale or  distribution  thereof,  except  pursuant  to sales
registered or exempted from registration under the 1933 Act; provided,  however,
that by making the representations  herein, the Buyer does not agree to hold any
of the  Securities for any minimum or other specific term and reserves the right
to dispose of the  Securities  at any time in  accordance  with or pursuant to a
registration statement or an exemption under the 1933 Act.

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

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

                                       2
<PAGE>

                  d. Information. The Buyer and its advisors, if any, have been,
and for so long as the Notes and Warrants  remain  outstanding  will continue to
be,  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 which have been requested by the Buyer or its advisors. The Buyer and
its  advisors,  if any,  have  been,  and for so long as the Notes and  Warrants
remain  outstanding  will  continue  to  be,  afforded  the  opportunity  to ask
questions of the Company.  Notwithstanding  the  foregoing,  the Company has not
disclosed to the Buyer any material nonpublic  information and will not disclose
such information  unless such information is disclosed to the public prior to or
promptly following such disclosure to the Buyer.  Neither such inquiries nor any
other due diligence  investigation  conducted by Buyer or any of its advisors or
representatives  shall  modify,  amend or  affect  Buyer's  right to rely on the
Company's representations and warranties contained in Section 3 below. The Buyer
understands that its investment in the Securities  involves a significant degree
of risk.  The Buyers are not aware of any facts that may  constitute a breach of
any of the Company's representations and warranties made herein.

                  e. Governmental  Review.  The Buyer understands that no United
States federal or state agency or any other  government or  governmental  agency
has passed upon or made any recommendation or endorsement of the Securities.

                  f. Transfer or Re-sale.  The Buyer understands that (i) except
as provided in the  Registration  Rights  Agreement,  the sale or re-sale of the
Securities  has not been and is not being  registered  under the 1933 Act or any
applicable  state  securities  laws,  and the  Securities may not be transferred
unless  (a) the  Securities  are  sold  pursuant  to an  effective  registration
statement  under the 1933 Act, (b) the Buyer shall have delivered to the Company
an opinion of counsel reasonably  acceptable to the Company and its counsel that
shall be in form,  substance  and scope  customary  for  opinions  of counsel in
comparable  transactions  to the  effect  that  the  Securities  to be  sold  or
transferred  may be sold or  transferred  pursuant  to an  exemption  from  such
registration, which opinion shall be accepted by the Company, (c) the Securities
are sold or transferred to an  "affiliate"  (as defined in Rule 144  promulgated
under the 1933 Act (or a successor  rule) ("Rule  144")) of the Buyer who agrees
to sell or  otherwise  transfer  the  Securities  only in  accordance  with this
Section 2(f) and who is an  Accredited  Investor,  (d) the  Securities  are sold
pursuant to Rule 144, or (e) the  Securities  are sold  pursuant to Regulation S
under the 1933 Act (or a successor rule)  ("Regulation  S"), and the Buyer shall
have delivered to the Company an opinion of counsel reasonably acceptable to the
Company and its counsel that shall be in form, substance and scope customary for
opinions of counsel in corporate  transactions,  which opinion shall be accepted
by the Company;  (ii) any sale of such  Securities  made in reliance on Rule 144
may be made only in accordance with the terms of said Rule and further,  if said
Rule is not applicable,  any re-sale of such 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 1933  Act)  may  require
compliance  with  some  other  exemption  under  the 1933 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 such Securities under the 1933 Act or
any state  securities  laws or to comply  with the terms and  conditions  of any
exemption  thereunder  (in each case,  other than  pursuant to the  Registration
Rights  Agreement).  Notwithstanding  the foregoing or anything  else  contained
herein  to  the  contrary,  the  Securities  may be  pledged  as  collateral  in
connection with a bona fide margin account or other lending arrangement.  In the
event that the Company does not accept the opinion of counsel provided by the

                                       3
<PAGE>

Buyer with respect to the transfer of Securities  pursuant to an exemption  from
registration,  such as Rule 144 or  Regulation S, within three (3) business days
of delivery of the opinion to the  Company,  the Company  shall pay to the Buyer
liquidated  damages of two percent (2%) of the  outstanding  amount of the Notes
per month plus  accrued and unpaid  interest on the Notes,  prorated for partial
months,  in cash or shares at the option of the  Company  ("Standard  Liquidated
Damages  Amount").  If the  Company  elects  to be pay the  Standard  Liquidated
Damages  Amount in shares of Common  Stock,  such shares  shall be issued at the
Conversion Price at the time of payment.  Notwithstanding anything herein to the
contrary,  in the event the Company has to pay the Standards  Liquidated Damages
Amount pursuant to any provision of this Agreement,  the Buyers shall first have
to give the Company advance written notice of such breach and in such event, the
Company  shall have 30 days from the  receipt of such notice to cure such breach
before the Standard  Liquidated  Damages  Amount shall be due and payable to the
Buyers.

                  g.  Legends.  The  Buyer  understands  that the  Notes and the
Warrants and, until such time as the  Conversion  Shares and Warrant Shares have
been registered  under the 1933 Act as contemplated by the  Registration  Rights
Agreement or otherwise  may be sold pursuant to Rule 144 or Regulation S without
any  restriction as to the number of securities as of a particular date that can
then be immediately  sold,  the Conversion  Shares and Warrant Shares may bear a
restrictive  legend in  substantially  the following  form (and a  stop-transfer
order may be placed against transfer of the certificates for such Securities):

            "The  securities  represented  by this  certificate  have  not  been
            registered  under  the  Securities  Act of  1933,  as  amended.  The
            securities  may not be sold,  transferred or assigned in the absence
            of an effective registration statement for the securities under said
            Act,  or an  opinion  of  counsel,  in  form,  substance  and  scope
            customary for opinions of counsel in comparable  transactions,  that
            registration  is not required under said Act or unless sold pursuant
            to Rule 144 or Regulation S under said Act."

      The legend set forth above shall be removed and the Company  shall issue a
certificate  without such legend to the holder of any Security  upon which it is
stamped,  if, unless otherwise required by applicable state securities laws, (a)
such Security is registered for sale under an effective  registration  statement
filed  under  the  1933 Act or  otherwise  may be sold  pursuant  to Rule 144 or
Regulation  S without any  restriction  as to the number of  securities  as of a
particular  date that can then be immediately  sold, or (b) such holder provides
the Company with an opinion of counsel,  in form,  substance and scope customary
for  opinions of counsel in  comparable  transactions,  which  opinion  shall be
reasonably acceptable to the Company's counsel, to the effect that a public sale
or transfer of such  Security  may be made without  registration  under the 1933
Act, which opinion shall be accepted by the Company so that the sale or transfer
is effected or (c) such holder provides the Company with  reasonable  assurances
that such  Security can be sold  pursuant to Rule 144 or Regulation S. The Buyer
agrees to sell all Securities,  including those  represented by a certificate(s)
from which the legend has been removed, in compliance with applicable prospectus
delivery requirements, if any.

                                       4
<PAGE>

                  h.   Authorization;   Enforcement.   This  Agreement  and  the
Registration  Rights  Agreement  have been  duly and  validly  authorized.  This
Agreement has been duly executed and delivered on behalf of the Buyer,  and this
Agreement  constitutes,  and upon  execution  and  delivery  by the Buyer of the
Registration Rights Agreement, such agreement will constitute, valid and binding
agreements of the Buyer enforceable in accordance with their terms.

                  i. Residency.  The Buyer is a resident of the jurisdiction set
forth immediately below such Buyer's name on the signature pages hereto.

            3.    REPRESENTATIONS  AND  WARRANTIES  OF THE COMPANY.  The Company
represents and warrants to each Buyer that:

                  a. Organization and Qualification. The Company and each of its
Subsidiaries  (as defined  below),  if any,  is a  corporation  duly  organized,
validly  existing and in good  standing  under the laws of the  jurisdiction  in
which it is incorporated, with full power and authority (corporate and other) to
own,  lease,  use and operate its properties and to carry on its business as and
where now owned, leased, used, operated and conducted.  Schedule 3(a) sets forth
a list of all of the  Subsidiaries of the Company and the  jurisdiction in which
each is incorporated. The Company and each of its Subsidiaries is duly qualified
as a  foreign  corporation  to do  business  and is in good  standing  in  every
jurisdiction  in which its  ownership  or use of  property  or the nature of the
business  conducted by it makes such  qualification  necessary  except where the
failure to be so qualified or in good standing would not have a Material Adverse
Effect. "Material Adverse Effect" means any of (i) a material and adverse effect
on the  legality,  validity  or  enforceability  of  any  document  executed  in
connection  with this  financing,  (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,  taken as a whole,  or (iii) an
adverse  impairment  to  the  Company's  ability  to  perform  under  any of the
documents executed in connection with this financing.  "Subsidiaries"  means any
corporation or other organization,  whether  incorporated or unincorporated,  in
which the Company owns,  directly or indirectly,  any equity or other  ownership
interest.

                  b.  Authorization;  Enforcement.  (i)  Subject to  Stockholder
Approval  (as such  term is  defined  in  Section  4(n)),  the  Company  has all
requisite  corporate  power  and  authority  to  enter  into  and  perform  this
Agreement,  the Registration Rights Agreement, the Notes and the Warrants and to
consummate  the  transactions  contemplated  hereby and thereby and to issue the
Securities,  in accordance with the terms hereof and thereof, (ii) the execution
and delivery of this Agreement, the Registration Rights Agreement, the Notes and
the  Warrants  by the  Company and the  consummation  by it of the  transactions
contemplated hereby and thereby (including without  limitation,  the issuance of
the Notes and the Warrants and the issuance and  reservation for issuance of the
Conversion  Shares and  Warrant  Shares  issuable  upon  conversion  or exercise
thereof) have been duly  authorized  by the Company's  Board of Directors and no
further consent or authorization of the Company, its Board of Directors,  or its
shareholders  is  required,  (iii) this  Agreement  has been duly  executed  and
delivered by the Company by its authorized  representative,  and such authorized
representative  is the true and official  representative  with authority to sign
this Agreement and the other documents executed in connection  herewith and bind
the Company accordingly, and (iv) this Agreement constitutes, and upon execution
and delivery by the Company of the Registration Rights Agreement,  the Notes and
the Warrants,  each of such  instruments  will  constitute,  a legal,  valid and
binding obligation of the Company  enforceable against the Company in accordance
with its terms.

                                       5
<PAGE>

                  c.  Capitalization.  As of the  date  hereof,  the  authorized
capital stock of the Company consists of (i) 50,000,000  shares of Common Stock,
of which  30,395,772  shares are issued and  outstanding,  8,738,499  shares are
reserved for issuance  pursuant to the Company's stock option plans,  22,738,304
shares are reserved for issuance  pursuant to  securities  (other than the Notes
and the Warrants)  exercisable  for, or  convertible  into or  exchangeable  for
shares of Common Stock and subject to Stockholder  Approval,  32,504,549  shares
are  reserved  for  issuance  upon  conversion  of the Notes and exercise of the
Warrants (subject to adjustment  pursuant to the Company's covenant set forth in
Section 4(h) below); and (ii) 3,000,000 shares of Series A convertible preferred
stock and 7,000,000  shares of Series B convertible  preferred  stock,  of which
1,550,000 and 1,357,867 shares are issued and outstanding,  respectively. All of
such  outstanding  shares of capital  stock are, or upon  issuance will be, duly
authorized,  validly issued, fully paid and nonassessable.  No shares of capital
stock of the  Company  are  subject to  preemptive  rights or any other  similar
rights of the  shareholders of the Company or any liens or encumbrances  imposed
through the actions or failure to act of the  Company.  Except as  disclosed  in
Schedule  3(c), as of the  effective  date of this  Agreement,  (i) there are no
outstanding  options,  warrants,  scrip,  rights to subscribe for, puts,  calls,
rights of first refusal, agreements, understandings, claims or other commitments
or rights of any  character  whatsoever  relating  to, or  securities  or rights
convertible  into or exchangeable for any shares of capital stock of the Company
or any of its  Subsidiaries,  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,  (ii) there are no  agreements  or
arrangements  under which the Company or any of its Subsidiaries is obligated to
register the sale of any of its or their  securities  under the 1933 Act (except
the Registration Rights Agreement) and (iii) there are no anti-dilution or price
adjustment provisions contained in any security issued by the Company (or in any
agreement  providing  rights to security  holders) that will be triggered by the
issuance of the Notes,  the Warrants,  the Conversion  Shares or Warrant Shares.
The Company has furnished to the Buyer true and correct  copies of the Company's
Certificate of  Incorporation  as in effect on the date hereof  ("Certificate of
Incorporation"),  the  Company's  By-laws,  as in effect on the date hereof (the
"By-laws"),  and the terms of all securities convertible into or exercisable for
Common  Stock of the Company and the material  rights of the holders  thereof in
respect  thereto.  The Company shall provide the Buyer with a written  update of
this  representation  signed by the Company's Chief Executive or Chief Financial
Officer on behalf of the Company as of the Closing Date.

                  d. Issuance of Shares.  Subject to Stockholder  Approval,  the
Conversion  Shares and  Warrant  Shares are duly  authorized  and  reserved  for
issuance  and,  upon  conversion  of the Notes and  exercise of the  Warrants in
accordance with their respective terms,  will be validly issued,  fully paid and
non-assessable,  and free from all taxes,  liens,  claims and encumbrances  with
respect to the issue  thereof and shall not be subject to  preemptive  rights or
other similar rights of shareholders of the Company and will not impose personal
liability upon the holder thereof.

                  e.  Acknowledgment  of Dilution.  The Company  understands and
acknowledges  the  potentially  dilutive  effect to the  Common  Stock  upon the
issuance of the Conversion Shares and Warrant Shares upon conversion of the Note
or exercise of the Warrants. The Company further acknowledges that its

                                       6
<PAGE>

obligation to issue Conversion  Shares and Warrant Shares upon conversion of the
Notes or exercise of the Warrants in accordance with this  Agreement,  the Notes
and the Warrants is absolute and unconditional regardless of the dilutive effect
that such issuance may have on the ownership  interests of other shareholders of
the Company.

                  f.  No  Conflicts.   Subject  to  Stockholder  Approval,   the
execution,  delivery and performance of this Agreement,  the Registration Rights
Agreement, the Notes and the Warrants by the Company and the consummation by the
Company of the transactions contemplated hereby and thereby (including,  without
limitation,  the issuance and reservation for issuance of the Conversion  Shares
and Warrant  Shares) will not (i) conflict  with or result in a violation of any
provision  of the  Certificate  of  Incorporation  or By-laws or (ii) violate or
conflict  with,  or result  in a breach of any  provision  of, or  constitute  a
default (or an event  which with notice or lapse of time or both could  become a
default)  under,  or  give to  others  any  rights  of  termination,  amendment,
acceleration  or  cancellation  of, any  agreement,  indenture,  patent,  patent
license  or  instrument  to which the  Company or any of its  Subsidiaries  is a
party,  or (iii) to the Company's  knowledge,  result in a violation of any law,
rule,  regulation,  order,  judgment  or  decree  (including  federal  and state
securities  laws  and   regulations  and  regulations  of  any   self-regulatory
organizations to which the Company or its securities are subject)  applicable to
the Company or any of its  Subsidiaries or by which any property or asset of the
Company  or any of its  Subsidiaries  is  bound  or  affected  (except  for such
conflicts, defaults, terminations, amendments, accelerations,  cancellations and
violations  as would  not,  individually  or in the  aggregate,  have a Material
Adverse Effect). Neither the Company nor any of its Subsidiaries is in violation
of its Certificate of Incorporation,  By-laws or other organizational  documents
and neither the Company nor any of its  Subsidiaries is in default (and no event
has occurred which with notice or lapse of time or both could put the Company or
any of its  Subsidiaries in default)  under,  and neither the Company nor any of
its  Subsidiaries  has taken any action or failed to take any action  that would
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 by which any  property  or assets of the
Company or any of its  Subsidiaries  is bound or  affected,  except for possible
defaults as would not, individually or in the aggregate, have a Material Adverse
Effect.  The  businesses  of the Company and its  Subsidiaries,  if any, are not
being  conducted,  and shall not be conducted so long as a Buyer owns any of the
Securities, in violation of any law, ordinance or regulation of any governmental
entity.  Except as  specifically  contemplated by this Agreement and as required
under the 1933 Act and any applicable  state securities laws, the Company is not
required to obtain any consent, authorization or order of, or make any filing or
registration  with, any court,  governmental  agency,  regulatory  agency,  self
regulatory  organization  or stock  market or any third party in order for it to
execute,  deliver or perform any of its obligations  under this  Agreement,  the
Registration Rights Agreement,  the Notes or the Warrants in accordance with the
terms  hereof  or  thereof  or to issue  and  sell the  Notes  and  Warrants  in
accordance  with the  terms  hereof  and to issue  the  Conversion  Shares  upon
conversion  of the Notes and the Warrant  Shares upon  exercise of the Warrants.
Except as disclosed in Schedule  3(f),  all  consents,  authorizations,  orders,
filings and  registrations  which the Company is required to obtain  pursuant to
the  preceding  sentence  have been obtained or effected on or prior to the date
hereof.  The Company is not in violation of the  quotation  requirements  of the
Over-the-Counter Bulletin Board (the "OTCBB") and does not reasonably anticipate
that the Common  Stock will be removed by the OTCBB in the  foreseeable  future.
The Company and its Subsidiaries are unaware of any facts or circumstances which
might give rise to any of the foregoing.

                                       7
<PAGE>

                  g. SEC Documents; Financial Statements. Except as disclosed in
Schedule 3(g), since December 31, 2004 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 Securities Exchange Act of
1934, as amended (the "1934 Act") (all of the foregoing  filed prior to the date
hereof and all exhibits included therein and financial  statements and schedules
thereto and documents  (other than exhibits to such  documents)  incorporated by
reference therein, being hereinafter referred to herein as the "SEC Documents").
As of  their  respective  dates,  the SEC  Documents  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 SEC Documents,  and none of the
SEC  Documents,  at the time they were filed with the SEC,  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.  None of the
statements  made in any such SEC  Documents  is,  or has  been,  required  to be
amended or updated under applicable law (except for such statements as have been
amended or updated in subsequent  filings  prior the date  hereof).  As of their
respective  dates,  the financial  statements of the Company included in the SEC
Documents  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
United States 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 not  include  footnotes  or may be
condensed or summary statements) and fairly present in all material respects the
consolidated financial position of the Company and its consolidated Subsidiaries
as of the dates thereof and the  consolidated  results of their  operations  and
cash  flows  for the  periods  then  ended  (subject,  in the case of  unaudited
statements,  to normal year-end audit  adjustments).  Except as set forth in the
financial  statements of the Company included in the SEC Documents,  the Company
has no liabilities, contingent or otherwise, other than (i) liabilities incurred
in the  ordinary  course of business  subsequent  to December  31, 2004 and (ii)
obligations  under contracts and commitments  incurred in the ordinary course of
business and not required under generally accepted  accounting  principles to be
reflected in such financial statements, which, individually or in the aggregate,
are not material to the financial condition or operating results of the Company.

                  h. Absence of Certain Changes. Except as set forth in Schedule
3(h),  since December 31, 2004, there has been no material adverse change and no
material adverse development in the assets, liabilities,  business,  properties,
operations,  financial  condition,  results of  operations  or  prospects of the
Company or any of its Subsidiaries.

                  i. Absence of  Litigation.  There is no action,  suit,  claim,
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 or any of its Subsidiaries, or their officers or directors
in their capacity as such, that could have a Material  Adverse Effect.  Schedule
3(i) contains a complete list and summary description of any pending or, to the

                                       8
<PAGE>

knowledge of the Company, threatened proceeding against or affecting the Company
or any of its  Subsidiaries,  without regard to whether it would have a Material
Adverse  Effect.  The Company and its  Subsidiaries  are unaware of any facts or
circumstances which might give rise to any of the foregoing.

                  j.  Patents,  Copyrights,  etc.  The  Company  and each of its
Subsidiaries  owns or  possesses  the  requisite  licenses  or rights to use all
patents,  patent  applications,   patent  rights,  inventions,  know-how,  trade
secrets, trademarks, trademark applications, service marks, service names, trade
names and copyrights ("Intellectual Property") necessary to enable it to conduct
its business as now operated (and,  except as set forth in Schedule 3(j) hereof,
to the best of the Company's knowledge, as presently contemplated to be operated
in the  future);  there is no claim or action by any  person  pertaining  to, or
proceeding pending, or to the Company's knowledge  threatened,  which challenges
the right of the Company or of a  Subsidiary  with  respect to any  Intellectual
Property  necessary to enable it to conduct its  business as now operated  (and,
except  as set  forth in  Schedule  3(j)  hereof,  to the best of the  Company's
knowledge,  as presently contemplated to be operated in the future); to the best
of the  Company's  knowledge,  the  Company's or its  Subsidiaries'  current and
intended  products,  services and processes do not infringe on any  Intellectual
Property or other  rights held by any person;  and the Company is unaware of any
facts or  circumstances  which  might  give  rise to any of the  foregoing.  The
Company and each of its Subsidiaries have taken reasonable  security measures to
protect the secrecy, confidentiality and value of their Intellectual Property.

                  k. No Materially Adverse  Contracts,  Etc. Neither the Company
nor any of its Subsidiaries is subject to any charter,  corporate or other legal
restriction,  or any judgment,  decree,  order,  rule or regulation which in the
judgment of the  Company's  officers  has or is expected in the future to have a
Material  Adverse Effect.  Neither the Company nor any of its  Subsidiaries is a
party to any  contract  or  agreement  which in the  judgment  of the  Company's
officers has or is expected to have a Material Adverse Effect.

                  l. Tax  Status.  Except as set  forth on  Schedule  3(l),  the
Company and each of its  Subsidiaries  has made or filed all federal,  state and
foreign income and all other 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  provisions  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.  The Company has not executed a waiver with respect to
the statute of  limitations  relating to the  assessment  or  collection  of any
foreign, federal, state or local tax. Except as set forth on Schedule 3(l), none
of the Company's tax returns is presently being audited by any taxing authority.

                                       9
<PAGE>

                  m. Certain Transactions.  Except as set forth on Schedule 3(m)
and except for arm's length transactions pursuant to which the Company or any of
its Subsidiaries makes payments in the ordinary course of business upon terms no
less  favorable  than the Company or any of its  Subsidiaries  could obtain from
third  parties and other than the grant of stock  options  disclosed on Schedule
3(c), 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 a substantial interest or
is an officer, director, trustee or partner.

                  n. Disclosure.  All information  relating to or concerning the
Company or any of its  Subsidiaries  set forth in this Agreement and provided to
the Buyers  pursuant to Section 2(d) hereof and otherwise in connection with the
transactions  contemplated  hereby is true and correct in all material  respects
and the Company has not omitted to state any material fact necessary in order to
make the statements made herein or therein,  in light of the circumstances under
which they were made, not misleading.  No event or circumstance  has occurred or
exists with  respect to the Company or any of its  Subsidiaries  or its or their
business,  properties,  prospects,  operations or financial  conditions,  which,
under  applicable  law,  rule  or  regulation,  requires  public  disclosure  or
announcement  by the  Company but which has not been so  publicly  announced  or
disclosed  (assuming for this purpose that the Company's reports filed under the
1934 Act are being incorporated into an effective  registration  statement filed
by the Company under the 1933 Act).

                  o.  Acknowledgment  Regarding  Buyers' Purchase of Securities.
The Company  acknowledges  and agrees  that the Buyers are acting  solely in the
capacity of arm's  length  purchasers  with  respect to this  Agreement  and the
transactions contemplated hereby. The Company further acknowledges that no Buyer
is acting as a financial  advisor or fiduciary of the Company (or in any similar
capacity)  with  respect to this  Agreement  and the  transactions  contemplated
hereby  and  any  statement  made  by  any  Buyer  or any  of  their  respective
representatives or agents in connection with this Agreement and the transactions
contemplated  hereby is not advice or a recommendation  and is merely incidental
to the Buyers'  purchase of the Securities.  The Company  further  represents to
each Buyer that the  Company's  decision to enter into this  Agreement  has been
based   solely  on  the   independent   evaluation   of  the   Company  and  its
representatives.

                  p. No Integrated Offering. Neither the Company, nor any of its
affiliates,  nor any  person  acting on its or their  behalf,  has  directly  or
indirectly  made any offers or sales in any security or solicited  any offers to
buy any security under  circumstances that would require  registration under the
1933 Act of the issuance of the  Securities  to the Buyers.  The issuance of the
Securities to the Buyers will not be integrated  with any other  issuance of the
Company's  securities (past,  current or future) for purposes of any shareholder
approval provisions applicable to the Company or its securities.

                                       10
<PAGE>

                  q. No  Brokers.  Except as set  forth in  Schedule  3(q),  the
Company has taken no action which would give rise to any claim by any person for
brokerage  commissions,  transaction fees or similar  payments  relating to this
Agreement or the transactions contemplated hereby.

                  r.   Permits;   Compliance.   The  Company  and  each  of  its
Subsidiaries  is  in  possession  of  all  franchises,  grants,  authorizations,
licenses, permits, easements,  variances,  exemptions,  consents,  certificates,
approvals and orders  necessary to own,  lease and operate its properties and to
carry on its business as it is now being conducted  (collectively,  the "Company
Permits"),  and there is no action  pending or, to the knowledge of the Company,
threatened  regarding  suspension or cancellation of any of the Company Permits.
Neither the  Company nor any of its  Subsidiaries  is in  conflict  with,  or in
default  or  violation  of,  any of the  Company  Permits,  except  for any such
conflicts, defaults or violations which, individually or in the aggregate, would
not reasonably be expected to have a Material Adverse Effect. Since December 31,
2004,  neither  the  Company  nor  any  of its  Subsidiaries  has  received  any
notification  with  respect to possible  conflicts,  defaults or  violations  of
applicable laws, except for notices relating to possible conflicts,  defaults or
violations,  which  conflicts,  defaults or violations would not have a Material
Adverse Effect.

                  s. Environmental Matters.

                        (i)   Except as set forth in Schedule  3(s),  there are,
to the best of the  Company's  knowledge,  with respect to the Company or any of
its  Subsidiaries  or any  predecessor  of  the  Company,  no  past  or  present
violations of  Environmental  Laws (as defined below),  releases of any material
into the environment,  actions, activities,  circumstances,  conditions, events,
incidents,  or  contractual  obligations  which may give rise to any  common law
environmental  liability or any liability under the Comprehensive  Environmental
Response,  Compensation  and  Liability Act of 1980 or similar  federal,  state,
local or foreign  laws and neither the Company nor any of its  Subsidiaries  has
received  any notice  with  respect to any of the  foregoing,  nor is any action
pending or, to the Company's knowledge, threatened in connection with any of the
foregoing.  The term  "Environmental  Laws" means all federal,  state,  local or
foreign  laws  relating  to  pollution  or  protection  of human  health  or the
environment  (including,   without  limitation,   ambient  air,  surface  water,
groundwater,  land surface or subsurface strata), including, without limitation,
laws  relating to  emissions,  discharges,  releases or  threatened  releases of
chemicals,  pollutants contaminants,  or toxic or hazardous substances or wastes
(collectively,   "Hazardous  Materials")  into  the  environment,  or  otherwise
relating to the manufacture,  processing, distribution, use, treatment, storage,
disposal,  transport  or  handling  of  Hazardous  Materials,  as  well  as  all
authorizations,   codes,  decrees,  demands  or  demand  letters,   injunctions,
judgments,  licenses,  notices  or notice  letters,  orders,  permits,  plans or
regulations issued, entered, promulgated or approved thereunder.

                        (ii)  Other than those that are or were stored,  used or
disposed of in  compliance  with  applicable  law, no  Hazardous  Materials  are
contained on or about any real property  currently owned,  leased or used by the
Company or any of its Subsidiaries,  and no Hazardous Materials were released on
or about any real property  previously  owned,  leased or used by the Company or
any of its Subsidiaries during the period the property was owned, leased or used
by the Company or any of its  Subsidiaries,  except in the normal  course of the
Company's or any of its Subsidiaries' business.

                                       11
<PAGE>

                        (iii) Except as set forth in Schedule  3(s), to the best
of the Company's  knowledge  there are no underground  storage tanks on or under
any  real  property  owned,  leased  or  used  by  the  Company  or  any  of its
Subsidiaries that are not in compliance with applicable law.

                  t. Title to Property.  The Company and its  Subsidiaries  have
good and  marketable  title in fee  simple  to all  real  property  and good and
marketable title to all personal property owned by them which is material to the
business of the Company and its Subsidiaries, in each case free and clear of all
liens, encumbrances and defects except such as are described in Schedule 3(t) or
such as  would  not have a  Material  Adverse  Effect.  Any  real  property  and
facilities held under lease by the Company and its Subsidiaries are held by them
under valid, subsisting and enforceable leases with such exceptions as would not
have a Material Adverse Effect.

                  u.  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 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 have a Material Adverse Effect.

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

                  w. 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  Subsidiary  has,  in the course of his
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 bribe, rebate, payoff,  influence
payment,  kickback  or  other  unlawful  payment  to  any  foreign  or  domestic
government official or employee.

                                       12
<PAGE>

                  x.   Solvency.   The  Company  (after  giving  effect  to  the
transactions contemplated by this Agreement) is solvent (i.e., its assets have a
fair  market  value  in  excess  of the  amount  required  to pay  its  probable
liabilities  on its  existing  debts as they become  absolute  and  matured) and
currently  the  Company  has no  information  that would  lead it to  reasonably
conclude  that the Company  would not,  after giving  effect to the  transaction
contemplated by this Agreement,  have the ability to, nor does it intend to take
any action  that would  impair its  ability  to, pay its debts from time to time
incurred in connection therewith as such debts mature.

                  y. No  Investment  Company.  The Company is not,  and upon the
issuance and sale of the Securities as  contemplated  by this Agreement will not
be an  "investment  company"  required  to be  registered  under the  Investment
Company Act of 1940 (an "Investment Company").  The Company is not controlled by
an Investment Company.

                  z. Certain Registration Matters.  Assuming the accuracy of the
Buyers'  representations  and warranties set forth in Section 3, no registration
under the  Securities  Act is required for the offer and sale of the  Conversion
Shares and  Warrant  Shares by the Company to the Buyers  under the  transaction
documents.  Except as specified in Schedule 3(z), the Company has not granted or
agreed to grant to any Person any rights  (including  "piggy-back"  registration
rights) to have any securities of the Company  registered with the Commission or
any other governmental authority that have not been satisfied.

                  aa. Breach of  Representations  and Warranties by the Company.
If the Company materially  breaches any of the representations or warranties set
forth in this Section 3, and in addition to any other remedies  available to the
Buyers  pursuant  to this  Agreement,  the  Company  shall  pay to the Buyer the
Standard  Liquidated  Damages Amount in cash or in shares of Common Stock at the
option of the Company,  until such breach is cured. If the Company elects to pay
the Standard  Liquidated  Damages Amounts in shares of Common Stock, such shares
shall be issued at the Conversion Price at the time of payment.

            4.    COVENANTS.

                  a. Best  Efforts.  The parties shall use their best efforts to
satisfy  timely  each of the  conditions  described  in  Section 6 and 7 of this
Agreement.

                  b. Form D; Blue Sky Laws.  The Company agrees to file a Form D
with respect to the Securities as required  under  Regulation D and to provide a
copy thereof to each Buyer promptly after such filing.  The Company shall, on or
before the  Closing  Date,  take such  action as the  Company  shall  reasonably
determine is necessary to qualify the  Securities  for sale to the Buyers at the
applicable  closing  pursuant to this Agreement under  applicable  securities or
"blue sky" laws of the states of the  United  States (or to obtain an  exemption
from such qualification), and shall provide evidence of any such action so taken
to each  Buyer on or prior to the  Closing  Date;  provided,  however,  that the
Company shall not be required in connection  therewith or as a condition thereto
to (a) qualify to do business in any  jurisdiction  where it would not otherwise
be required to qualify but for this Section 4(b),  (b) subject itself to general
taxation  in any such  jurisdiction,  (c) file a general  consent  to service of
process in any such  jurisdiction,  (d) provide any undertakings  that cause the
Company  undue  expense  or  burden,  or (e) make any  change in its  charter or
bylaws,  which in each case the Board of Directors of the Company  determines to
be contrary to the best interests of the Company and its shareholders.

                                       13
<PAGE>

                  c. Reporting Status; Eligibility to Use Form S-3, SB-2 or Form
S-1. The Company's  Common Stock is  registered  under Section 12(g) of the 1934
Act. The Company  represents and warrants that it meets the requirements for the
use of Form SB-2 (or if the Company is not  eligible for the use of Form SB-2 as
of the  Filing  Date (as  defined in the  Registration  Rights  Agreement),  the
Company may use the form of registration  for which it is eligible at that time)
for  registration  of the sale by the Buyer of the  Registrable  Securities  (as
defined in the Registration Rights Agreement). So long as the Buyer beneficially
owns any of the Securities,  the Company shall timely file all reports  required
to be filed with the SEC  pursuant to the 1934 Act,  and the  Company  shall not
terminate  its status as an issuer  required to file reports  under the 1934 Act
even if the 1934 Act or the rules and regulations  thereunder  would permit such
termination. The Company further agrees to file all reports required to be filed
by the Company  with the SEC in a timely  manner so as to become  eligible,  and
thereafter to maintain its  eligibility,  for the use of Form SB-2.  The Company
shall issue a press release  describing  the material  terms of the  transaction
contemplated hereby as soon as practicable  following the Closing Date but in no
event more than two (2) business days of the Closing  Date,  which press release
shall be subject to prior  review by the Buyers.  The  Company  agrees that such
press  release  shall  not  disclose  the name of the  Buyers  unless  expressly
consented to in writing by the Buyers or unless  required by  applicable  law or
regulation, and then only to the extent of such requirement.

                  d. Use of  Proceeds.  The Company  shall use the net  proceeds
from the sale of the Notes and the  Warrants in the manner set forth in Schedule
4(d)  attached  hereto  and  made a part  hereof  and  shall  not,  directly  or
indirectly,  use such  proceeds for (i) any loan to or  investment  in any other
corporation,  partnership, enterprise or other person (except in connection with
its currently existing direct or indirect  Subsidiaries);  (ii) the satisfaction
of any portion of the Company's  debt (other than payment of trade  payables and
accrued expenses in the ordinary course of the Company's business and consistent
with prior past practices), or (iii) the redemption of any Common Stock.

                  e.  Future  Offerings.  Subject  to the  exceptions  described
below,   the  Company  will  not,   without  the  prior  written  consent  of  a
majority-in-interest  of the Buyers,  which  consent  shall not be  unreasonably
withheld,  negotiate  or  contract  with any party to obtain  additional  equity
financing  (including debt financing with an equity component) that involves (A)
the  issuance of Common  Stock for cash at a discount to the market price of the
Common  Stock on the date of  issuance  (taking  into  account  the value of any
warrants or options to acquire  Common Stock issued in connection  therewith) or
(B)  the  issuance  of  convertible  securities  that  are  convertible  into an
indeterminate  number of shares of Common  Stock or (C) the issuance of warrants
during the period (the  "Lock-up  Period")  beginning  on the  Closing  Date and
ending on the later of (i) two hundred  seventy (270) days from the Closing Date
and (ii) one hundred eighty (180) days from the date the Registration  Statement
(as defined in the Registration  Rights  Agreement) is declared  effective (plus
any days in which sales cannot be made thereunder).  In addition, subject to the
exceptions  described  below,  the Company will not conduct any equity financing
(including debt with an equity component) ("Future Offerings") during the period
beginning  on the  Closing  Date and ending  two (2) years  after the end of the
Lock-up Period unless it shall have first delivered to each Buyer, at least

                                       14
<PAGE>

twenty (20) business days prior to the closing of such Future Offering,  written
notice  describing  the  proposed  Future  Offering,  including  the  terms  and
conditions thereof and proposed  definitive  documentation to be entered into in
connection therewith, and providing each Buyer an option during the fifteen (15)
day period  following  delivery of such  notice to  purchase  its pro rata share
(based on the ratio that the aggregate principal amount of Notes purchased by it
hereunder bears to the aggregate principal amount of Notes purchased  hereunder)
of the  securities  being  offered in the Future  Offering  on the same terms as
contemplated  by such  Future  Offering  (the  limitations  referred  to in this
sentence and the preceding sentence are collectively referred to as the "Capital
Raising  Limitations").  In the event the terms  and  conditions  of a  proposed
Future  Offering are amended in any respect after  delivery of the notice to the
Buyers concerning the proposed Future Offering,  the Company shall deliver a new
notice to each Buyer describing the amended terms and conditions of the proposed
Future  Offering  and each  Buyer  thereafter  shall  have an option  during the
fifteen  (15) day period  following  delivery of such new notice to purchase its
pro rata share of the securities being offered on the same terms as contemplated
by such proposed Future Offering, as amended. The foregoing sentence shall apply
to  successive  amendments to the terms and  conditions  of any proposed  Future
Offering.  The Capital  Raising  Limitations  shall not apply to any transaction
involving (i) issuances of securities in a firm commitment  underwritten  public
offering  (excluding a continuous  offering  pursuant to Rule 415 under the 1933
Act, an equity line of credit or similar financing arrangement) resulting in net
proceeds  to the  Company  of in  excess of  $1,500,000,  or (ii)  issuances  of
securities as consideration  for a merger,  consolidation or purchase of assets,
or in connection  with any strategic  partnership  or joint venture (the primary
purpose of which is not to raise  equity  capital),  or in  connection  with the
disposition or acquisition of a business, product or license by the Company. The
Capital Raising  Limitations  also shall not apply to the issuance of securities
upon  exercise  or  conversion  of the  Company's  options,  warrants  or  other
convertible  securities  outstanding  as of the date  hereof  or to the grant of
additional options or warrants, or the issuance of additional securities,  under
any Company stock option or restricted  stock plan approved by the  shareholders
of the Company.

                  f.  Expenses.  At the  Closing,  the Company  shall  reimburse
Buyers  for  expenses  incurred  by them in  connection  with  the  negotiation,
preparation, execution, delivery and performance of this Agreement and the other
agreements  to be  executed in  connection  herewith  ("Documents"),  including,
without  limitation,  attorneys' and  consultants'  fees and expenses,  transfer
agent fees, fees for stock quotation  services,  fees relating to any amendments
or  modifications  of the  Documents or any consents or waivers of provisions in
the Documents, fees for the preparation of opinions of counsel, escrow fees, and
costs of  restructuring  the  transactions  contemplated by the Documents.  When
possible,  the Company must pay these fees directly,  otherwise the Company must
make immediate payment for reimbursement to the Buyers for all fees and expenses
immediately  upon written notice by the Buyer or the submission of an invoice by
the  Buyer.  Notwithstanding  anything  herein to the  contrary,  the  Company's
obligation  to  reimburse  Buyers'  expenses  shall not  exceed  $50,000  in the
aggregate.

                  g.  Financial  Information.  The  Company  agrees  to send the
following  reports to each Buyer until such Buyer transfers,  assigns,  or sells
all of the Securities: (i) within ten (10) days after the filing with the SEC, a
copy of its Annual  Report on Form 10-KSB its  Quarterly  Reports on Form 10-QSB
and any Current Reports on Form 8-K; (ii) within one (1) day after release,

                                       15
<PAGE>

copies of all press releases  issued by the Company or any of its  Subsidiaries;
and  (iii)  contemporaneously  with  the  making  available  or  giving  to  the
shareholders  of the  Company,  copies of any notices or other  information  the
Company makes available or gives to such shareholders.

                  h.  Authorization  and  Reservation  of  Shares.   Subject  to
Stockholder  Approval,  the  Company  shall at all times  have  authorized,  and
reserved  for the purpose of issuance,  a sufficient  number of shares of Common
Stock to provide for the full  conversion or exercise of the  outstanding  Notes
and  Warrants  and  issuance  of the  Conversion  Shares and  Warrant  Shares in
connection  therewith  (based on the  Conversion  Price of the Notes or Exercise
Price of the Warrants in effect from time to time) and as otherwise  required by
the Notes.  The  Company  shall not reduce the number of shares of Common  Stock
reserved  for  issuance  upon  conversion  of Notes and exercise of the Warrants
without the consent of each Buyer.  The Company shall at all times  maintain the
number  of  shares  of  Common  Stock so  reserved  for  issuance  at an  amount
("Reserved  Amount") equal to no less than two (2) times the number that is then
actually  issuable upon full  conversion of the Notes and  Additional  Notes and
upon  exercise  of the  Warrants  and  the  Additional  Warrants  (based  on the
Conversion  Price of the Notes or the  Exercise  Price of the Warrants in effect
from  time to  time).  If at any time the  number  of  shares  of  Common  Stock
authorized and reserved for issuance ("Authorized and Reserved Shares") is below
the  Reserved  Amount,  the Company  will  promptly  take all  corporate  action
necessary to authorize  and reserve a  sufficient  number of shares,  including,
without  limitation,  calling a special  meeting of  shareholders  to  authorize
additional shares to meet the Company's  obligations under this Section 4(h), in
the case of an  insufficient  number of authorized  shares,  obtain  shareholder
approval  of an  increase in such  authorized  number of shares,  and voting the
management  shares of the  Company  in favor of an  increase  in the  authorized
shares  of the  Company  to  ensure  that the  number  of  authorized  shares is
sufficient  to meet the  Reserved  Amount.  If the Company  fails to obtain such
shareholder  approval  within  thirty (30) days  following the date on which the
number of Reserved  Amount  exceeds the  Authorized  and  Reserved  Shares,  the
Company shall pay to the Borrower the Standard  Liquidated  Damages  Amount,  in
cash or in shares of Common Stock at the option of the  Company.  If the Company
elects to pay the Standard  Liquidated Damages Amount in shares of Common Stock,
such shares shall be issued at the Conversion  Price at the time of payment.  In
order to ensure that the Company has authorized a sufficient amount of shares to
meet the Reserved Amount at all times,  the Company must deliver to the Buyer at
the end of  every  month a list  detailing  (1) the  current  amount  of  shares
authorized  by the Company and reserved for the Buyer;  and (2) amount of shares
issuable  upon  conversion of the Notes and upon exercise of the Warrants and as
payment of interest  accrued on the Notes for one year.  If the Company fails to
provide such list within ten (10)  business  days of the end of each month,  the
Company shall pay the Standard  Liquidated  Damages Amount, in cash or in shares
of Common Stock at the option of the Company,  until the list is  delivered.  If
the Company  elects to pay the Standard  Liquidated  Damages Amount in shares of
Common Stock, such shares shall be issued at the Conversion Price at the time of
payment.

                  i. Listing.  The Company shall promptly  secure the listing of
the Conversion Shares and Warrant Shares upon each national  securities exchange
or automated  quotation  system,  if any,  upon which shares of Common Stock are
then listed  (subject to official  notice of issuance) and, so long as any Buyer
owns any of the Securities, shall maintain, so long as any other shares of

                                       16
<PAGE>

Common  Stock  shall be so listed,  such  listing of all  Conversion  Shares and
Warrant  Shares  from  time to time  issuable  upon  conversion  of the Notes or
exercise of the Warrants. The Company will obtain and, so long as any Buyer owns
any of the  Securities,  maintain the listing and trading of its Common Stock on
the OTCBB or any equivalent  replacement  exchange,  the Nasdaq  National Market
("Nasdaq"),  the Nasdaq SmallCap Market ("Nasdaq SmallCap"),  the New York Stock
Exchange  ("NYSE"),  or the American Stock Exchange  ("AMEX") and will comply in
all respects with the Company's  reporting,  filing and other  obligations under
the bylaws or rules of the National  Association of Securities  Dealers ("NASD")
and such exchanges,  as applicable.  The Company shall promptly  provide to each
Buyer copies of any notices it receives  from the OTCBB and any other  exchanges
or  quotation  systems on which the Common  Stock is then listed  regarding  the
continued  eligibility  of the Common  Stock for listing on such  exchanges  and
quotation systems.

                  j. Corporate  Existence.  So long as a Buyer beneficially owns
any Notes or Warrants,  the Company shall  maintain its corporate  existence and
shall not sell all or substantially all of the Company's  assets,  except in the
event of a merger or consolidation  or sale of all or  substantially  all of the
Company's  assets,  where the surviving or successor  entity in such transaction
(i) assumes the Company's  obligations  hereunder and under the  agreements  and
instruments  entered into in connection  herewith and (ii) is a publicly  traded
corporation  whose  Common  Stock is listed for  trading  on the OTCBB,  Nasdaq,
Nasdaq SmallCap, NYSE or AMEX.

                  k. No  Integration.  The Company  shall not make any offers or
sales of any security (other than the Securities) under circumstances that would
require registration of the Securities being offered or sold hereunder under the
1933 Act or cause the offering of the Securities to be integrated with any other
offering  of  securities  by the  Company  for the  purpose  of any  stockholder
approval provision applicable to the Company or its securities.

                  l.  Subsequent  Investment.  The Company and the Buyers  agree
that, upon the filing by the Company of the  Registration  Statement to be filed
pursuant to the Registration  Rights  Agreement (the "Filing Date"),  the Buyers
shall purchase  additional Notes (the "Filing Notes") in the aggregate principal
amount of One Million Dollars  ($1,000,000) and additional warrants (the "Filing
Warrants") to purchase an aggregate of 1,000,000  shares of Common Stock, for an
aggregate purchase price of One Million Dollars  ($1,000,000),  with the closing
of such  purchase  to occur  within two (2) days of the Filing  Date;  provided,
however,  that the obligation of each Buyer to purchase the Filing Notes and the
Filing Warrants is subject to the satisfaction, at or before the closing of such
purchase and sale, of the conditions set forth in Section 7. The Company and the
Buyers  further  agree  that,  upon  the  declaration  of  effectiveness  of the
Registration Statement to be filed pursuant to the Registration Rights Agreement
(the  "Effective  Date"),  the  Buyers  shall  purchase  additional  notes  (the
"Effectiveness  Notes" and,  collectively with the Filing Notes, the "Additional
Notes") in the aggregate  principal  amount of Two Million Dollars  ($2,000,000)
and additional warrants (the "Effectiveness Warrants" and, collectively with the
Filing  Warrants,  the  "Additional  Warrants")  to  purchase  an  aggregate  of
2,000,000 shares of Common Stock, for an aggregate purchase price of Two Million
Dollars ($2,000,000),  with the closing of such purchase to occur within two (2)
days of the Effective Date; provided, however, that the obligation of each Buyer
to purchase the Additional  Notes and the Additional  Warrants is subject to the
satisfaction, at or before the closing of such purchase and sale, of the

                                       17
<PAGE>

conditions set forth in Section 7; and, provided,  further, that there shall not
have been a Material  Adverse Effect as of such effective date. The terms of the
Additional Notes and the Additional  Warrants shall be identical to the terms of
the Notes and  Warrants,  as the case may be, to be issued on the Closing  Date.
The Common Stock  underlying  the Additional  Notes and the Additional  Warrants
shall  be  Registrable   Securities  (as  defined  in  the  Registration  Rights
Agreement)  and shall be  included  in the  Registration  Statement  to be filed
pursuant to the Registration Rights Agreement.

                  m.  Restriction on Short Sales. The Buyers agree that, so long
as any of the Notes remain outstanding,  but in no event less than two (2) years
from the date hereof, the Buyers will not enter into or effect any "short sales"
(as such term is defined  in Rule 3b-3 of the 1934 Act) of the  Common  Stock or
hedging  transaction  which establishes a net short position with respect to the
Common Stock.

                  n.  Stockholder  Approval.  The Company  shall file a proxy or
information  statement  with the SEC no later than December 31, 2005 and use its
best efforts to obtain,  on or before  February 28, 2006,  such approvals of the
Company's  stockholders  as may be required to issue all of the shares of Common
Stock issuable upon conversion or exercise of, or otherwise with respect to, the
Notes and the Warrants in accordance with Delaware law and any applicable  rules
or regulations of the OTCBB and Nasdaq,  either through a reverse stock split of
the  Common  Stock  or an  increase  in  authorized  capital  (the  "Stockholder
Approval").  The  Company  shall  furnish  to each  Buyer and its legal  counsel
promptly  (but in no event less than two (2)  business  days) before the same is
filed  with the SEC,  one copy of the  proxy or  information  statement  and any
amendment thereto,  and shall deliver to each Buyer promptly each letter written
by or on behalf of the Company to the SEC or the staff of the SEC, and each item
of correspondence from the SEC or the staff of the SEC, in each case relating to
such proxy or  information  statement  (other  than any  portion  thereof  which
contains  information for which the Company has sought confidential  treatment).
The Company will  promptly  (but in no event more than five (5)  business  days)
respond to any and all  comments  received  from the SEC (which  comments  shall
promptly be made  available  to each Buyer).  The Company  shall comply with the
filing  and  disclosure  requirements  of  Section  14  under  the  1934  Act in
connection with the Stockholder  Approval.  The Company  represents and warrants
that its Board of  Directors  has approved  the  proposal  contemplated  by this
Section  4(l) and shall  indicate  such  approval  in the  proxy or  information
statement used in connection with the Stockholder Approval.

                  o. Breach of  Covenants.  If the Company  breaches  any of the
covenants  set forth in this  Section 4, and in addition  to any other  remedies
available to the Buyers pursuant to this Agreement, the Company shall pay to the
Buyers the Standard  Liquidated  Damages Amount,  in cash or in shares of Common
Stock at the option of the Company,  until such breach is cured.  If the Company
elects to pay the  Standard  Liquidated  Damages  Amount in shares,  such shares
shall be issued at the Conversion Price at the time of payment.

            5.    TRANSFER   AGENT   INSTRUCTIONS.   The  Company   shall  issue
irrevocable instructions to its transfer agent to issue certificates, registered
in the name of each Buyer or its nominee,  for the Conversion Shares and Warrant
Shares in such  amounts  as  specified  from  time to time by each  Buyer to the
Company upon conversion of the Notes or exercise of the Warrants in accordance

                                       18
<PAGE>

with the terms thereof (the "Irrevocable Transfer Agent Instructions"). Prior to
registration  of the Conversion  Shares and Warrant Shares under the 1933 Act or
the date on which the Conversion  Shares and Warrant Shares may be sold pursuant
to Rule 144  without  any  restriction  as to the number of  Securities  as of a
particular date that can then be immediately sold, all such  certificates  shall
bear the restrictive  legend  specified in Section 2(g) of this  Agreement.  The
Company warrants that no instruction  other than the Irrevocable  Transfer Agent
Instructions  referred to in this Section 5, and stop transfer  instructions  to
give  effect to Section  2(f) hereof (in the case of the  Conversion  Shares and
Warrant  Shares,  prior to  registration  of the  Conversion  Shares and Warrant
Shares under the 1933 Act or the date on which the Conversion Shares and Warrant
Shares may be sold pursuant to Rule 144 without any restriction as to the number
of Securities as of a particular date that can then be immediately  sold),  will
be given by the  Company to its  transfer  agent and that the  Securities  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.
Nothing in this  Section  shall  affect in any way the Buyer's  obligations  and
agreement  set  forth in  Section  2(g)  hereof to  comply  with all  applicable
prospectus delivery requirements,  if any, upon re-sale of the Securities.  If a
Buyer provides the Company with (i) an opinion of counsel reasonably  acceptable
to the  Company  and its  counsel in form,  substance  and scope  customary  for
opinions  in  comparable  transactions,  to the  effect  that a  public  sale or
transfer of such Securities may be made without  registration under the 1933 Act
and such sale or  transfer is  effected  or (ii) the Buyer  provides  reasonable
assurances  that the  Securities  can be sold  pursuant to Rule 144, the Company
shall permit the transfer, and, in the case of the Conversion Shares and Warrant
Shares,  promptly instruct its transfer agent to issue one or more certificates,
free  from  restrictive  legend,  in  such  name  and in such  denominations  as
specified  by such Buyer.  The Company  acknowledges  that a breach by it of its
obligations  hereunder will cause  irreparable harm to the Buyers,  by vitiating
the intent and purpose of the transactions contemplated hereby. Accordingly, the
Company  acknowledges  that the  remedy at law for a breach  of its  obligations
under this Section 5 may be inadequate  and agrees,  in the event of a breach or
threatened  breach by the Company of the  provisions of this  Section,  that the
Buyers shall be entitled,  in addition to all other  available  remedies,  to an
injunction restraining any breach and requiring immediate transfer,  without the
necessity of showing  economic loss and without any bond or other security being
required.

            6.    CONDITIONS TO THE COMPANY'S OBLIGATION TO SELL. The obligation
of the Company  hereunder to issue and sell the Notes and Warrants to a Buyer at
the Closing is subject to the  satisfaction,  at or before the  Closing  Date of
each of the following conditions thereto, provided that these conditions are for
the  Company's  sole benefit and may be waived by the Company at any time in its
sole discretion:

                  a. The applicable Buyer shall have executed this Agreement and
the Registration Rights Agreement, and delivered the same to the Company.

                  b. The  applicable  Buyer shall have  delivered  the  Purchase
Price in accordance with Section 1(b) above.

                  c. The  representations and warranties of the applicable Buyer
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

                                       19
<PAGE>

and warranties that speak as of a specific date), and the applicable Buyer 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  applicable  Buyer at or prior to the Closing
Date.

                  d. No litigation, statute, rule, regulation,  executive order,
decree,  ruling or injunction shall have been enacted,  entered,  promulgated or
endorsed by or in any court or governmental  authority of competent jurisdiction
or  any   self-regulatory   organization   having  authority  over  the  matters
contemplated  hereby which prohibits the consummation of any of the transactions
contemplated by this Agreement.

            7.    CONDITIONS  TO  EACH  BUYER'S  OBLIGATION  TO  PURCHASE.   The
obligation  of each Buyer  hereunder  to purchase  the Notes and Warrants at the
Closing is subject to the satisfaction, at or before the Closing Date of each of
the following  conditions,  provided that these  conditions are for such Buyer's
sole benefit and may be waived by such Buyer at any time in its sole discretion:

                  a. The Company  shall have  executed  this  Agreement  and the
Registration Rights Agreement, and delivered the same to the Buyer.

                  b.  The  Company  shall  have  delivered  to such  Buyer  duly
executed Notes (in such  denominations  as the Buyer shall request) and Warrants
in accordance with Section 1(b) above.

                  c. The Irrevocable  Transfer Agent  Instructions,  in form and
substance satisfactory to a majority-in-interest  of the Buyers, shall have been
delivered to and acknowledged in writing by the Company's Transfer Agent.

                  d. The  representations and warranties of the Company 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 such  time  (except  for  representations  and
warranties  that  speak  as of a  specific  date)  and the  Company  shall  have
performed,  satisfied and complied in all material  respects with the covenants,
agreements and conditions required by this Agreement to be performed,  satisfied
or complied with by the Company at or prior to the Closing Date. The Buyer shall
have received a certificate  or  certificates,  executed by the chief  executive
officer of the Company,  dated as of the Closing Date,  to the foregoing  effect
and as to such  other  matters  as may be  reasonably  requested  by such  Buyer
including,  but not  limited  to  certificates  with  respect  to the  Company's
Certificate  of  Incorporation,  By-laws  and  Board of  Directors'  resolutions
relating to the transactions contemplated hereby.

                  e. No litigation, statute, rule, regulation,  executive order,
decree,  ruling or injunction shall have been enacted,  entered,  promulgated or
endorsed by or in any court or governmental  authority of competent jurisdiction
or  any   self-regulatory   organization   having  authority  over  the  matters
contemplated  hereby which prohibits the consummation of any of the transactions
contemplated by this Agreement.

                  f. No event  shall have  occurred  which could  reasonably  be
expected to have a Material Adverse Effect on the Company.

                                       20
<PAGE>

                  g. The  Conversion  Shares and Warrant  Shares shall have been
authorized  for  quotation  on the OTCBB and trading in the Common  Stock on the
OTCBB shall not have been suspended by the SEC or the OTCBB.

                  h. The Buyer shall have  received an opinion of the  Company's
counsel,  dated as of the Closing Date, in form, scope and substance  reasonably
satisfactory  to the Buyer and in  substantially  the same form as  Exhibit  "D"
attached hereto.

                  i. The Buyer  shall have  received  an  officer's  certificate
described in Section 3(c) above, dated as of the Closing Date.

            8.    GOVERNING LAW; MISCELLANEOUS.

                  a. Governing Law. THIS AGREEMENT  SHALL BE ENFORCED,  GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE
TO  AGREEMENTS  MADE AND TO BE  PERFORMED  ENTIRELY  WITHIN SUCH STATE,  WITHOUT
REGARD TO THE  PRINCIPLES OF CONFLICT OF LAWS.  THE PARTIES HERETO HEREBY SUBMIT
TO THE EXCLUSIVE JURISDICTION OF THE UNITED STATES FEDERAL COURTS LOCATED IN NEW
YORK,  NEW YORK WITH RESPECT TO ANY DISPUTE  ARISING UNDER THIS  AGREEMENT,  THE
AGREEMENTS ENTERED INTO IN CONNECTION HEREWITH OR THE TRANSACTIONS  CONTEMPLATED
HEREBY OR THEREBY. BOTH PARTIES IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT
FORUM TO THE MAINTENANCE OF SUCH SUIT OR PROCEEDING.  BOTH PARTIES FURTHER AGREE
THAT SERVICE OF PROCESS UPON A PARTY MAILED BY REGISTERED FIRST CLASS MAIL SHALL
BE DEEMED IN EVERY  RESPECT  EFFECTIVE  SERVICE OF PROCESS UPON THE PARTY IN ANY
SUCH SUIT OR  PROCEEDING.  NOTHING  HEREIN SHALL AFFECT EITHER  PARTY'S RIGHT TO
SERVE  PROCESS IN ANY OTHER MANNER  PERMITTED BY LAW.  BOTH PARTIES AGREE THAT A
FINAL NON-APPEALABLE JUDGMENT IN ANY SUCH SUIT OR PROCEEDING SHALL BE CONCLUSIVE
AND MAY BE ENFORCED IN OTHER  JURISDICTIONS  BY SUIT ON SUCH  JUDGMENT OR IN ANY
OTHER  LAWFUL  MANNER.  THE PARTY WHICH DOES NOT PREVAIL IN ANY DISPUTE  ARISING
UNDER THIS AGREEMENT SHALL BE RESPONSIBLE  FOR ALL FEES AND EXPENSES,  INCLUDING
REASONABLE  ATTORNEYS' FEES, INCURRED BY THE PREVAILING PARTY IN CONNECTION WITH
SUCH DISPUTE.

                  b. Counterparts;  Signatures by Facsimile.  This Agreement may
be  executed  in one or more  counterparts,  each of which  shall be  deemed  an
original but all of which shall  constitute one and the same agreement and shall
become effective when  counterparts have been signed by each party and delivered
to the other party.  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.

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

                                       21
<PAGE>

                  d.  Severability.  In the  event  that any  provision  of this
Agreement is invalid or  unenforceable  under any applicable  statute or rule of
law, then such provision  shall be deemed  inoperative to the extent that it may
conflict  therewith and shall be deemed modified to conform with such statute or
rule of law. Any provision hereof which may prove invalid or unenforceable under
any law shall not affect the validity or  enforceability  of any other provision
hereof.

                  e.  Entire  Agreement;  Amendments.  This  Agreement  and  the
instruments  referenced  herein contain the entire  understanding of the parties
with  respect  to  the  matters  covered  herein  and  therein  and,  except  as
specifically  set forth  herein or  therein,  neither  the Company nor the Buyer
makes any representation, warranty, covenant or undertaking with respect to such
matters.  No provision of this  Agreement may be waived or amended other than by
an instrument in writing signed by the party to be charged with enforcement.

                  f.  Notices.  Any notices  required or  permitted  to be given
under the terms of this Agreement  shall be sent by certified or registered mail
(return receipt  requested) or delivered  personally or by courier  (including a
recognized  overnight  delivery  service) or by facsimile and shall be effective
five days after being  placed in the mail,  if mailed by regular  United  States
mail,  or upon  receipt,  if  delivered  personally  or by courier  (including a
recognized  overnight delivery service) or by facsimile,  in each case addressed
to a party. The addresses for such communications shall be:

                  If to the Company:

                  Advanced Biophotonics Inc.
                  125 Wilbur Place, Suite 120
                  Bohemia, NY 11716
                  Attention: Chief Executive Officer
                  Telephone:  (631) 543-3655
                  Facsimile: (631) 244-7960

                  With a copy to:

                  Sichenzia Ross Friedman Ference LLP
                  1065 Avenue of the Americas
                  New York, NY  10018
                  Attention:   Gregory Sichenzia, Esq.
                  Telephone:  (212) 930-9700
                  Facsimile:   (212) 930-9725

      If to a Buyer:  To the address set forth  immediately  below such  Buyer's
name on the signature pages hereto.

                  With copy to:

                                       22
<PAGE>

                  Ballard Spahr Andrews & Ingersoll, LLP
                  1735 Market Street
                  51st Floor
                  Philadelphia, Pennsylvania  19103
                  Attention:  Gerald J. Guarcini, Esq.
                  Telephone:  215-864-8625
                  Facsimile:  215-864-8999

      Each  party  shall  provide  notice  to the other  party of any  change in
address.

                  g. (INTENTIONALLY OMITTED)

                  h. (INTENTIONALLY OMITTED)

                  i. Survival. The representations and warranties of the Company
and the  agreements  and  covenants  set forth in  Sections  3, 4, 5 and 8 shall
survive the closing hereunder  notwithstanding  any due diligence  investigation
conducted by or on behalf of the Buyers.  The Company  agrees to  indemnify  and
hold harmless each of the Buyers and all their  officers,  directors,  employees
and agents for loss or damage arising as a result of or related to any breach or
alleged  breach by the  Company of any of its  representations,  warranties  and
covenants  set  forth in  Sections  3 and 4 hereof or any of its  covenants  and
obligations under this Agreement or the Registration Rights Agreement, including
advancement of expenses as they are incurred.

                  j.  Publicity.  The Company and each of the Buyers  shall have
the right to review a  reasonable  period of time  before  issuance of any press
releases,  SEC,  OTCBB or NASD  filings,  or any other  public  statements  with
respect to the transactions  contemplated hereby;  provided,  however,  that the
Company shall be entitled,  without the prior approval of each of the Buyers, to
make any press release or SEC,  OTCBB (or other  applicable  trading  market) or
NASD filings with respect to such  transactions as is required by applicable law
and  regulations  (although each of the Buyers shall be consulted by the Company
in  connection  with any such press  release  prior to its  release and shall be
provided with a copy thereof and be given an opportunity to comment thereon).

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

                  l. 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.

                  m. Remedies.  The Company  acknowledges that a breach by it of
its obligations hereunder will cause irreparable harm to the Buyers by vitiating
the intent and purpose of the transaction contemplated hereby. Accordingly,  the
Company acknowledges that the remedy at law for a breach of its obligations

                                       23
<PAGE>

under this Agreement will be inadequate and agrees,  in the event of a breach or
threatened  breach by the Company of the provisions of this Agreement,  that the
Buyers shall be entitled,  in addition to all other available remedies at law or
in equity, and in addition to the penalties  assessable herein, to an injunction
or  injunctions  restraining,  preventing or curing any breach of this Agreement
and to  enforce  specifically  the  terms and  provisions  hereof,  without  the
necessity of showing  economic loss and without any bond or other security being
required.

                                       24
<PAGE>

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

ADVANCED BIOPHOTONICS INC.

/s/ Denis A. O'Connor
-----------------------------------
Denis A. O'Connor
Chief Executive Officer

AJW PARTNERS, LLC
By:  SMS Group, LLC

/s/ Corey S. Ribotsky
-----------------------------------
Corey S. Ribotsky
Manager

RESIDENCE:        Delaware

ADDRESS:          1044 Northern Boulevard
                  Suite 302
                  Roslyn, New York  11576
                  Facsimile:  (516) 739-7115
                  Telephone:  (516) 739-7110

AGGREGATE SUBSCRIPTION AMOUNT:

         Aggregate Principal Amount of Notes:       $________
         Number of Warrants:                         ________
         Aggregate Purchase Price:                  $________

                                       25
<PAGE>

AJW OFFSHORE, LTD.
By:  First Street Manager II, LLC

/s/ Corey S. Ribotsky
-----------------------------------
Corey S. Ribotsky
Manager

RESIDENCE:        Cayman Islands

ADDRESS:          AJW Offshore, Ltd.
                  P.O. Box 32021 SMB
                  Grand Cayman, Cayman Island, B.W.I.

AGGREGATE SUBSCRIPTION AMOUNT:

         Aggregate Principal Amount of Notes:       $_______
         Number of Warrants:                         _______
         Aggregate Purchase Price:                  $_______

                                       26
<PAGE>

AJW QUALIFIED PARTNERS, LLC
By:  AJW Manager, LLC

/s/ Corey S. Ribotsky
-----------------------------------
Corey S. Ribotsky
Manager

RESIDENCE:        New York

ADDRESS:          1044 Northern Boulevard
                  Suite 302
                  Roslyn, New York  11576
                  Facsimile: (516) 739-7115
                  Telephone: (516) 739-7110

AGGREGATE SUBSCRIPTION AMOUNT:

         Aggregate Principal Amount of Notes:       $________
         Number of Warrants:                         ________
         Aggregate Purchase Price:                  $________

                                       27
<PAGE>

NEW MILLENNIUM CAPITAL PARTNERS II, LLC
By:  First Street Manager II, LLP

/s/ Corey S. Ribotsky
-----------------------------------
Corey S. Ribotsky
Manager

RESIDENCE:        New York

ADDRESS:          1044 Northern Boulevard
                  Suite 302
                  Roslyn, New York  11576
                  Facsimile: (516) 739-7115
                  Telephone: (516) 739-7110

AGGREGATE SUBSCRIPTION AMOUNT:

         Aggregate Principal Amount of Notes:       $______
         Number of Warrants:                         ______
         Aggregate Purchase Price:                  $______

                                       28

<PAGE>

                                  SCHEDULE 3(c)

Anti Dilution as of November 7, 2005 - without the NIR transaction

Extracted from the 10QSB - 9/30/05

On December 14,  2004,  the Company  completed a private  placement of 1,550,000
shares of its series A convertible  preferred stock (initially  convertible into
1,409,091 shares of common stock) and warrants to purchase 465,000 shares of its
common stock at an exercise price of $1.10 per share (which expire  December 14,
2009).  As a  result  of  anti-dilution  provisions  relating  to the  series  A
convertible  preferred  stock  and  the  warrants  that  were  triggered  by the
subscription  rights  offering  described  below,  the  shares  of the  series A
convertible  preferred stock are now convertible into 3,100,000 shares of common
stock,  and the exercise price for these warrants have been reduced to $0.50 per
share. On October 28, 2005, as anti-dilution  protection to each investor in the
December  2004  Private  Placement,  the  Company  issued  additional  five year
warrants to purchase 1,550,000 shares of its common stock with an exercise price
of $0.75 per share which will  expire  August 9, 2010.  The  Company  expects to
record a charge of  approximately  $980,000 for the fair value of those warrants
during the fourth  quarter of 2005.  The  Company  received  gross  proceeds  of
$1,550,000  in the  private  placement.  Holders  of the  series  A  convertible
preferred  stock are entitled to receive a cumulative  dividend of 4% per annum,
payable either in cash or, at the Company's option,  additional shares of series
A convertible preferred stock.

On August 10, 2005 the Company  consummated a  subscription  rights  offering to
existing  stockholders of the Company. The Company distributed to holders of its
common  stock  transferable  subscription  rights  to  purchase  shares  of  its
newly-created  series B  convertible  preferred  stock.  The Company  issued the
subscription  rights at the  current  rate of one right for  approximately  4.33
shares of its  common  stock  held on the  record  date of July 1,  2005,  which
represents the ratio of subscription  rights to total common shares  outstanding
of 30,281,107 on the record date. Each subscription  right represented the right
to purchase one share of  newly-created  series B preferred stock. The shares of
series B convertible preferred stock are convertible into shares of common stock
on a  one-for-one  basis (i) at any time at the option of the  holder,  and (ii)
automatically,  as of the close of business on the 20th consecutive  trading day
on which the  closing  bid price for the  common  stock on the  principal  stock
exchange or market on which it is listed, or if not traded on such exchange,  on
the OTC Bulletin Board, is at least $2.20 per share. Stockholders that purchased
shares of our series B preferred  stock in the rights  offering  will be issued,
for no additional  consideration,  five-year warrants to purchase that number of
shares of the  Company's  common  stock  equal to 50% of the number of shares of
series B  preferred  stock  acquired by the  stockholder  in the  offering.  The
warrants  have an  exercise  price  of $.75 per  share.  At the  closing  of the
subscription  rights  offering on August 10, 2005,  the Company  received  gross
proceeds of $703,933,  issued 1,407,867 shares of series B convertible preferred
stock and  703,934  five-year  warrants  to  purchase  703,934  shares of common
shares.  Holders of the series B  convertible  preferred  stock are  entitled to
receive a cumulative dividend of 7% per annum, payable either in cash or, at the
Company's option, additional shares of series B convertible preferred stock. In

<PAGE>

the three months ended September 30, 2005, 50,000 shares of series B convertible
stock were  converted  into 50,000  shares of the Company's  common  stock.  The
Company  could  receive  an  additional  $527,950  if all of  the  warrants  are
exercised.  There can be no assurance as to how many warrants will be exercised.
The Company has incurred legal and accounting fees in connection with the rights
offering totaling approximately $312,000, as of September 30, 2005.

Anti Dilution as of November 10, 2005 - with the NIR transaction

Based on 40% discount to stock price of  $0.34

Series A convertible preferred stock

On December 14,  2004,  the Company  completed a private  placement of 1,550,000
shares of its series A convertible  preferred stock (initially  convertible into
1,409,091 shares of common stock) and warrants to purchase 465,000 shares of its
common stock at an exercise price of $1.10 per share (which expire  December 14,
2009).  As a  result  of  anti-dilution  provisions  relating  to the  series  A
convertible  preferred  stock and the  warrants  that were  triggered by the NIR
transaction,  the shares of the  series A  convertible  preferred  stock are now
convertible  into 7,598,039  shares of common stock,  and the exercise price for
these  warrants  have been reduced to $0.204 per share.  On October 28, 2005, as
anti-dilution   protection  to  each  investor  in  the  December  2004  Private
Placement,  the  Company  issued  additional  five  year  warrants  to  purchase
1,550,000  shares of its common stock with an exercise  price of $0.75 per share
which  will  expire  August  9,  2010.  On  November  10,  2005 as a  result  of
anti-dilution  provisions  triggered by the NIR transaction,  the exercise price
was reduced to $0.65 per share.

Series B convertible preferred stock

Stockholders that purchased shares of our series B preferred stock in the rights
offering will be issued, for no additional consideration,  five-year warrants to
purchase that number of shares of the Company's common stock equal to 50% of the
number of shares of series B preferred  stock acquired by the stockholder in the
offering.  The warrants have an exercise price of $.75 per share. At the closing
of the  subscription  rights  offering on August 10, 2005, the Company  received
gross  proceeds of $703,933,  issued  1,407,867  shares of series B  convertible
preferred  stock and 703,934  five-year  warrants to purchase  703,934 shares of
common  shares.  On November  10, 2005 as a result of  anti-dilution  provisions
triggered by the NIR  transaction,  series B preferred stock will be convertible
into 3,450,652 shares of common stock.

<PAGE>

                                  SCHEDULE 3(i)

Litigations

In September 1998, the Company  entered into a license  agreement with Lockheed,
pursuant to which the  Company was  initially  granted an  exclusive  license to
exploit   biomedical   applications  of  certain  enhanced   infrared   detector
technologies known as Enhanced Quantum Well Infrared  Photodetectors,  or EQWIP.
The Company  believed that these  technologies  would enhance the sensitivity of
the technology it licensed from CalTech.  The Company has not utilized the EQWIP
technology licensed from Lockheed.

In a letter dated  October 12, 2004 and in subsequent  correspondence,  Lockheed
advised the Company that it believes  that minimum  royalties  and other amounts
aggregating  approximately  $2,500,000  were owed to  Lockheed  pursuant  to the
license  agreement and demanded  payment of such sum. In a letter dated November
1, 2004,  Lockheed  notified  management of the Company  that, in its view,  the
Company was in default under certain of the provisions of the license  agreement
and, unless such conditions  were remedied within 60 days  thereafter,  Lockheed
would  regard the license  agreement as cancelled  and  terminated.  The Company
responded to Lockheed that, among other reasons,  no sums are due to Lockheed by
the  Company,  the  license  agreement  by its terms has become a  non-exclusive
license requiring no minimum or other royalties be paid and that Lockheed failed
to  perform  certain  of its  obligations  provided  by the  license  agreement.
Although the Company  believes that it has no current  monetary  obligations  to
Lockheed pursuant to the license agreement or otherwise,  Lockheed may determine
to pursue its claims  through  litigation,  creating  the  possibility  that the
Company may incur  substantial  costs and  expenses,  including  legal and other
professional fees, in connection with such litigation.

On March 8, 2003, the Company's  former Chief Financial  Officer ("CFO") filed a
declaratory judgment action against the Company in the US District Court for the
District of New  Jersey.  The  complaint  alleges  that while  serving as both a
director and CFO, he was awarded stock options to purchase  2,538,324  shares of
common stock. He is seeking specific  determination that he is entitled to these
options, as well as approximately $462,000 in deferred salary.

On July 23, 2004, the District Court granted,  in part, the Company's  motion to
dismiss.  The Court dismissed claims relating to 2,501,328 stock options,  which
were to expire in April 2005, as unripe for adjudication. The Court found that a
justiciable  dispute  existed with respect to 36,966  options  which  expired on
April 1, 2004.  The Company moved to dismiss the deferred  salary claim based on
an arbitration provision in Plaintiff's employment agreement. The Court declined
to dismiss the deferred salary claim, but ordered the parties to conduct limited
discovery on the validity of the  employment  agreement and revisit the issue on
summary judgment.

On  February  15,  2005,  the  Company  moved for  partial  summary  judgment on
Plaintiff's  deferred  salary  claim.  By Order dated March 23, 2005,  the Court
denied the Company's motion,  but allowed the Company to renew its motion at the
close of discovery.  The Court did find that it is unlikely that Plaintiff could
recover  any  deferred  compensation  prior to April 1, 1999.  The  parties  are
currently conducting discovery and a final pre-trial conference is scheduled for
August 17, 2005.(UPDATE)

<PAGE>

While the ultimate  outcome of this matter cannot  presently be determined  with
certainty,  according to the  Company's  counsel,  Greenberg  Traurig,  LLP, the
remaining claims are without merit, and the Company intends to vigorously defend
the claims in this lawsuit.  The Company believes that its provision for such in
the accompanying financial statements is adequate at September 30, 2005.

<PAGE>

                                  SCHEDULE 3(m)

Related Party Transactions

The Company  purchases all of its  insurance  policies from a company in which a
member  of its Board of  Directors  is the  Chairman.  Policy  premiums  for the
2004/2005 policy years approximated $299,000. Effective May 1, 2005, the Company
has signed with an unrelated party for the Company's health insurance plans.

The Company's  Chairman of the Board, Hon. Joseph F. Lisa, who beneficially owns
94,284  shares  of  our  common  stock  currently   serves  as  counsel  in  the
intellectual  property  department of the New York office of Greenberg  Traurig,
LLP,  an  international  law firm.  Greenberg  Traurig,  LLP billed the  Company
approximately  $645,000 and $442,000  during the nine months ended September 30,
2005 and 2004, respectively for legal services rendered.

<PAGE>

                                  SCHEDULE 3(q)

Finders' Fees and Commissions related to this Transaction

The Company  entered  into an  Agreement  with Axiom  Capital  Management,  Inc.
("Axiom") on September 23, 2005, which was amended on November 8, 2005,  whereby
the  Company  shall  pay to Axiom:  (i) an  amount in cash  equal to 6.5% of the
dollar value of any securities issued by the Company which are purchased by NIR;
and (ii)  warrants to purchase a number of shares of common stock of the Company
as shall equal 8% of the number of shares sold in that  Transaction.  The number
of shares sold in that  Transaction  shall be  computed  by  dividing  the total
dollar  investment  by the Initial  Market  Price as defined by NIR (100% of the
volume  weighed  average price of the  Company's  common stock for the five days
immediately prior to closing). Warrants shall have a five year term from date of
issuance,  exercise  price equal to $0.65 per share,  cashless  exercise will be
permitted in the event there is not an effective registration statement. The fee
due to  Axiom  shall  be  payable  to Axiom by the  Company  at  closing  of the
Transaction and dispersed from the closing escrow.

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