Document:

THIS WARRANT AND THE SHARES ISSUABLE UPON THE EXERCISE OF THIS WARRANT
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
EXCEPT AS OTHERWISE SET FORTH HEREIN OR IN A SECURITIES PURCHASE
AGREEMENT DATED AS OF DECEMBER 27, 2006, NEITHER THIS WARRANT NOR ANY
OF SUCH SHARES MAY BE SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF
AN EFFECTIVE REGISTRATION STATEMENT FOR SUCH 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 SUCH ACT OR UNLESS SOLD PURSUANT TO RULE 144 OR
REGULATION S UNDER SUCH ACT.

Right to Purchase
8,970,000 Shares
of Common Stock,
par value $.001
per share

STOCK PURCHASE WARRANT

        THIS CERTIFIES THAT, for value received, AJW Offshore, LTD., or
its registered assigns, is entitled to purchase from Cross Atlantic
Commodities, Inc., a Nevada Corporation (the "Company"), at any time or
from time to time during the period specified in Paragraph 2 hereof,
8,970,000 fully paid and nonassessable shares of the Company's Common
Stock, par value $.001 per share (the "Common Stock"), at an exercise
price per share equal to $.30 (the "Exercise Price").  The term
"Warrant Shares," as used herein, refers to the shares of Common Stock
purchasable hereunder.  The Warrant Shares and the Exercise Price are
subject to adjustment as provided in Paragraph 4 hereof.  The term
"Warrants" means this Warrant and the other warrants issued pursuant to
that certain Securities Purchase Agreement, dated December 27, 2006, by
and among the Company and the Buyers listed on the execution page
thereof (the "Securities Purchase Agreement").

        This Warrant is subject to the following terms, provisions, and
conditions:

        1.   Manner of Exercise; Issuance of Certificates; Payment for
Shares.  Subject to the provisions hereof, this Warrant may be
exercised by the holder hereof, in whole or in part, by the surrender
of this Warrant, together with a completed exercise agreement in the
form attached hereto (the "Exercise Agreement"), to the Company during
normal business hours on any business day at the Company's principal
executive offices (or such other office or agency of the Company as it
may designate by notice to the holder hereof), and upon (i) payment to
the Company in cash, by certified or official bank check or by wire
transfer for the account of the Company of the Exercise Price for the
Warrant Shares specified in the Exercise Agreement or (ii) delivery to
the Company of a written notice of an election to effect a "Cashless
Exercise" (as defined in Section 10(c) below) for the Warrant Shares
specified in the Exercise Agreement.  The Warrant Shares so purchased
shall be deemed to be issued to the holder hereof or such holder's
designee, as the record owner of such shares, as of the close of
business on the date on which this Warrant shall have been surrendered,
the completed Exercise Agreement shall have been delivered, and payment
shall have been made for such shares as set forth above.  Certificates
for the Warrant Shares so purchased, representing the aggregate number
of shares specified in the Exercise Agreement, shall be delivered to
the holder hereof within a reasonable time, not exceeding five (5)

<PAGE>2

business days, after this Warrant shall have been so exercised.  The
certificates so delivered shall be in such denominations as may be
requested by the holder hereof and shall be registered in the name of
such holder or such other name as shall be designated by such holder.
If this Warrant shall have been exercised only in part, then, unless
this Warrant has expired, the Company shall, at its expense, at the
time of delivery of such certificates, deliver to the holder a new
Warrant representing the number of shares with respect to which this
Warrant shall not then have been exercised.  In addition to all other
available remedies at law or in equity, if the Company fails to deliver
certificates for the Warrant Shares within five (5) business days after
this Warrant is exercised, then the Company shall pay to the holder in
cash a penalty (the "Penalty") equal to 2% of the number of Warrant
Shares that the holder is entitled to multiplied by the Market Price
(as hereinafter defined) for each day that the Company fails to deliver
certificates for the Warrant Shares.  For example, if the holder is
entitled to 100,000 Warrant Shares and the Market Price is $2.00, then
the Company shall pay to the holder $4,000 for each day that the
Company fails to deliver certificates for the Warrant Shares.  The
Penalty shall be paid to the holder by the fifth day of the month
following the month in which it has accrued.

        Notwithstanding anything in this Warrant to the contrary, in no
event shall the holder of this Warrant be entitled to exercise a number
of Warrants (or portions thereof) in excess of the number of Warrants
(or portions thereof) upon exercise of which the sum of (i) the number
of shares of Common Stock beneficially owned by the holder and its
affiliates (other than shares of Common Stock which may be deemed
beneficially owned through the ownership of the unexercised Warrants
and the unexercised or unconverted portion of any other securities of
the Company (including the Notes (as defined in the Securities Purchase
Agreement)) subject to a limitation on conversion or exercise analogous
to the limitation contained herein) and (ii) the number of shares of
Common Stock issuable upon exercise of the Warrants (or portions
thereof) with respect to which the determination described herein is
being made, would result in beneficial ownership by the holder and its
affiliates of more than 4.9% of the outstanding shares of Common Stock.
For purposes of the immediately preceding sentence, beneficial
ownership shall be determined in accordance with Section 13(d) of the
Securities Exchange Act of 1934, as amended, and Regulation 13D-G
thereunder, except as otherwise provided in clause (i) of the preceding
sentence.  Notwithstanding anything to the contrary contained herein,
the limitation on exercise of this Warrant set forth herein may not be
amended without (i) the written consent of the holder hereof and the
Company and (ii) the approval of a majority of shareholders of the
Company.

        2.   Period of Exercise.  This Warrant is exercisable at any time
or from time to time on or after the date on which this Warrant is
issued and delivered pursuant to the terms of the Securities Purchase
Agreement and before 6:00 p.m., New York, New York time on the seventh
(7th) anniversary of the date of issuance (the "Exercise Period").

<PAGE>3

        3.   Certain Agreements of the Company.  The Company hereby
covenants and agrees as follows:

                 (a)   Shares to be Fully Paid.  All Warrant Shares will,
upon issuance in accordance with the terms of this Warrant, be validly
issued, fully paid, and nonassessable and free from all taxes, liens,
and charges with respect to the issue thereof.

                 (b)   Reservation of Shares.  During the Exercise Period,
the Company shall at all times have authorized, and reserved for the
purpose of issuance upon exercise of this Warrant, a sufficient number
of shares of Common Stock to provide for the exercise of this Warrant.

                 (c)   Listing.  The Company shall promptly secure the
listing of the shares of Common Stock issuable upon exercise of the
Warrant 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 upon exercise of this Warrant)
and shall maintain, so long as any other shares of Common Stock shall
be so listed, such listing of all shares of Common Stock from time to
time issuable upon the exercise of this Warrant; and the Company shall
so list on each national securities exchange or automated quotation
system, as the case may be, and shall maintain such listing of, any
other shares of capital stock of the Company issuable upon the exercise
of this Warrant if and so long as any shares of the same class shall be
listed on such national securities exchange or automated quotation
system.

                 (d)   Certain Actions Prohibited.  The Company will not, by
amendment of its charter or through any reorganization, transfer of
assets, consolidation, merger, dissolution, issue or sale of
securities, or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms to be observed or
performed by it hereunder, but will at all times in good faith assist
in the carrying out of all the provisions of this Warrant and in the
taking of all such action as may reasonably be requested by the holder
of this Warrant in order to protect the exercise privilege of the
holder of this Warrant against dilution or other impairment, consistent
with the tenor and purpose of this Warrant.  Without limiting the
generality of the foregoing, the Company (i) will not increase the par
value of any shares of Common Stock receivable upon the exercise of
this Warrant above the Exercise Price then in effect, and (ii) will
take all such actions as may be necessary or appropriate in order that
the Company may validly and legally issue fully paid and nonassessable
shares of Common Stock upon the exercise of this Warrant.

                 (e)   Successors and Assigns.  This Warrant will be binding
upon any entity succeeding to the Company by merger, consolidation, or
acquisition of all or substantially all the Company's assets.

        4.   Antidilution Provisions.  During the Exercise Period, the
Exercise Price and the number of Warrant Shares shall be subject to
adjustment from time to time as provided in this Paragraph 4.

        In the event that any adjustment of the Exercise Price as
required herein results in a fraction of a cent, such Exercise Price
shall be rounded up to the nearest cent.

                 (a)   Adjustment of Exercise Price and Number of Shares
upon Issuance of Common Stock.  Except as otherwise provided in
Paragraphs 4(c) and 4(e) hereof, if and whenever on or after the date
of issuance of this Warrant, the Company issues or sells, or in
accordance with Paragraph 4(b) hereof is deemed to have issued or sold,
any shares of Common Stock for no consideration or for a consideration
per share (before deduction of reasonable expenses or commissions or
underwriting discounts or allowances in connection therewith) less than
the Market Price on the date of issuance (a "Dilutive Issuance"), then
immediately upon the Dilutive Issuance, the Exercise Price will be
reduced to a price determined by multiplying the Exercise Price in
effect immediately prior to the Dilutive Issuance by a fraction, (i)
the numerator of which is an amount equal to the sum of (x) the number
of shares of Common Stock actually outstanding immediately prior to the
Dilutive Issuance, plus (y) the quotient of the aggregate
consideration, calculated as set forth in Paragraph 4(b) hereof,
received by the Company upon such Dilutive Issuance divided by the
Market Price in effect immediately prior to the Dilutive Issuance, and
(ii) the denominator of which is the total number of shares of Common
Stock Deemed Outstanding (as defined below) immediately after the
Dilutive Issuance.

                 (b)   Effect on Exercise Price of Certain Events.  For
purposes of determining the adjusted Exercise Price under Paragraph
4(a) hereof, the following will be applicable:

                         (i)   Issuance of Rights or Options.  If the Company
in any manner issues or grants any warrants, rights or options, whether
or not immediately exercisable, to subscribe for or to purchase Common
Stock or other securities convertible into or exchangeable for Common
Stock ("Convertible Securities") (such warrants, rights and options to
purchase Common Stock or Convertible Securities are hereinafter
referred to as "Options") and the price per share for which Common
Stock is issuable upon the exercise of such Options is less than the
Market Price on the date of issuance or grant of such Options, then the
maximum total number of shares of Common Stock issuable upon the
exercise of all such Options will, as of the date of the issuance or
grant of such Options, be deemed to be outstanding and to have been
issued and sold by the Company for such price per share.  For purposes
of the preceding sentence, the "price per share for which Common Stock
is issuable upon the exercise of such Options" is determined by
dividing (i) the total amount, if any, received or receivable by the
Company as consideration for the issuance or granting of all such
Options, plus the minimum aggregate amount of additional consideration,
if any, payable to the Company upon the exercise of all such Options,
plus, in the case of Convertible Securities issuable upon the exercise
of such Options, the minimum aggregate amount of additional
consideration payable upon the conversion or exchange thereof at the
time such Convertible Securities first become convertible or
exchangeable, by (ii) the maximum total number of shares of Common
Stock issuable upon the exercise of all such Options (assuming full
conversion of Convertible Securities, if applicable).  No further
adjustment to the Exercise Price will be made upon the actual issuance

<PAGE>5

of such Common Stock upon the exercise of such Options or upon the
conversion or exchange of Convertible Securities issuable upon exercise
of such Options.

                         (ii)   Issuance of Convertible Securities.  If the
Company in any manner issues or sells any Convertible Securities,
whether or not immediately convertible (other than where the same are
issuable upon the exercise of Options) and the price per share for
which Common Stock is issuable upon such conversion or exchange is less
than the Market Price on the date of issuance, then the maximum total
number of shares of Common Stock issuable upon the conversion or
exchange of all such Convertible Securities will, as of the date of the
issuance of such Convertible Securities, be deemed to be outstanding
and to have been issued and sold by the Company for such price per
share.  For the purposes of the preceding sentence, the "price per
share for which Common Stock is issuable upon such conversion or
exchange" is determined by dividing (i) the total amount, if any,
received or receivable by the Company as consideration for the issuance
or sale of all such Convertible Securities, plus the minimum aggregate
amount of additional consideration, if any, payable to the Company upon
the conversion or exchange thereof at the time such Convertible
Securities first become convertible or exchangeable, by (ii) the
maximum total number of shares of Common Stock issuable upon the
conversion or exchange of all such Convertible Securities.  No further
adjustment to the Exercise Price will be made upon the actual issuance
of such Common Stock upon conversion or exchange of such Convertible
Securities.

                         (iii)   Change in Option Price or Conversion Rate.
If there is a change at any time in (i) the amount of additional
consideration payable to the Company upon the exercise of any Options;
(ii) the amount of additional consideration, if any, payable to the
Company upon the conversion or exchange of any Convertible Securities;
or (iii) the rate at which any Convertible Securities are convertible
into or exchangeable for Common Stock (other than under or by reason of
provisions designed to protect against dilution), the Exercise Price in
effect at the time of such change will be readjusted to the Exercise
Price which would have been in effect at such time had such Options or
Convertible Securities still outstanding provided for such changed
additional consideration or changed conversion rate, as the case may
be, at the time initially granted, issued or sold.

                         (iv)   Treatment of Expired Options and Unexercised
Convertible Securities.  If, in any case, the total number of shares of
Common Stock issuable upon exercise of any Option or upon conversion or
exchange of any Convertible Securities is not, in fact, issued and the
rights to exercise such Option or to convert or exchange such
Convertible Securities shall have expired or terminated, the Exercise
Price then in effect will be readjusted to the Exercise Price which
would have been in effect at the time of such expiration or termination
had such Option or Convertible Securities, to the extent outstanding
immediately prior to such expiration or termination (other than in
respect of the actual number of shares of Common Stock issued upon
exercise or conversion thereof), never been issued.

<PAGE>6

                         (v)   Calculation of Consideration Received.  If any
Common Stock, Options or Convertible Securities are issued, granted or
sold for cash, the consideration received therefor for purposes of this
Warrant will be the amount received by the Company therefor, before
deduction of reasonable commissions, underwriting discounts or
allowances or other reasonable expenses paid or incurred by the Company
in connection with such issuance, grant or sale.  In case any Common
Stock, Options or Convertible Securities are issued or sold for a
consideration part or all of which shall be other than cash, the amount
of the consideration other than cash received by the Company will be
the fair value of such consideration, except where such consideration
consists of securities, in which case the amount of consideration
received by the Company will be the Market Price thereof as of the date
of receipt.  In case any Common Stock, Options or Convertible
Securities are issued in connection with any acquisition, merger or
consolidation in which the Company is the surviving corporation, the
amount of consideration therefor will be deemed to be the fair value of
such portion of the net assets and business of the non-surviving
corporation as is attributable to such Common Stock, Options or
Convertible Securities, as the case may be.  The fair value of any
consideration other than cash or securities will be determined in good
faith by the Board of Directors of the Company.

                         (vi)   Exceptions to Adjustment of Exercise Price.
No adjustment to the Exercise Price will be made (i) upon the exercise
of any warrants, options or convertible securities granted, issued and
outstanding on the date of issuance of this Warrant; (ii) upon the
grant or exercise of any stock or options which may hereafter be
granted or exercised under any employee benefit plan, stock option plan
or restricted stock plan of the Company now existing or to be
implemented in the future, so long as the issuance of such stock or
options is approved by a majority of the independent members of the
Board of Directors of the Company or a majority of the members of a
committee of independent directors established for such purpose; or
(iii) upon the exercise of the Warrants.

                 (c)   Subdivision or Combination of Common Stock.  If the
Company at any time subdivides (by any stock split, stock dividend,
recapitalization, reorganization, reclassification or otherwise) the
shares of Common Stock acquirable hereunder into a greater number of
shares, then, after the date of record for effecting such subdivision,
the Exercise Price in effect immediately prior to such subdivision will
be proportionately reduced.  If the Company at any time combines (by
reverse stock split, recapitalization, reorganization, reclassification
or otherwise) the shares of Common Stock acquirable hereunder into a
smaller number of shares, then, after the date of record for effecting
such combination, the Exercise Price in effect immediately prior to
such combination will be proportionately increased.

                 (d)   Adjustment in Number of Shares.  Upon each adjustment
of the Exercise Price pursuant to the provisions of this Paragraph 4,
the number of shares of Common Stock issuable upon exercise of this
Warrant shall be adjusted by multiplying a number equal to the Exercise
Price in effect immediately prior to such adjustment by the number of
shares of Common Stock issuable upon exercise of this Warrant

<PAGE>7

immediately prior to such adjustment and dividing the product so
obtained by the adjusted Exercise Price.

                 (e)   Consolidation, Merger or Sale.  In case of any
consolidation of the Company with, or merger of the Company into any
other corporation, or in case of any sale or conveyance of all or
substantially all of the assets of the Company other than in connection
with a plan of complete liquidation of the Company, then as a condition
of such consolidation, merger or sale or conveyance, adequate provision
will be made whereby the holder of this Warrant will have the right to
acquire and receive upon exercise of this Warrant in lieu of the shares
of Common Stock immediately theretofore acquirable upon the exercise of
this Warrant, such shares of stock, securities or assets as may be
issued or payable with respect to or in exchange for the number of
shares of Common Stock immediately theretofore acquirable and
receivable upon exercise of this Warrant had such consolidation, merger
or sale or conveyance not taken place.  In any such case, the Company
will make appropriate provision to insure that the provisions of this
Paragraph 4 hereof will thereafter be applicable as nearly as may be in
relation to any shares of stock or securities thereafter deliverable
upon the exercise of this Warrant.  The Company will not effect any
consolidation, merger or sale or conveyance unless prior to the
consummation thereof, the successor corporation (if other than the
Company) assumes by written instrument the obligations under this
Paragraph 4 and the obligations to deliver to the holder of this
Warrant such shares of stock, securities or assets as, in accordance
with the foregoing provisions, the holder may be entitled to acquire.

                 (f)   Distribution of Assets.  In case the Company shall
declare or make any distribution of its assets (including cash) to
holders of Common Stock as a partial liquidating dividend, by way of
return of capital or otherwise, then, after the date of record for
determining shareholders entitled to such distribution, but prior to
the date of distribution, the holder of this Warrant shall be entitled
upon exercise of this Warrant for the purchase of any or all of the
shares of Common Stock subject hereto, to receive the amount of such
assets which would have been payable to the holder had such holder been
the holder of such shares of Common Stock on the record date for the
determination of shareholders entitled to such distribution.

                 (g)   Notice of Adjustment.  Upon the occurrence of any
event which requires any adjustment of the Exercise Price, then, and in
each such case, the Company shall give notice thereof to the holder of
this Warrant, which notice shall state the Exercise Price resulting
from such adjustment and the increase or decrease in the number of
Warrant Shares purchasable at such price upon exercise, setting forth
in reasonable detail the method of calculation and the facts upon which
such calculation is based.  Such calculation shall be certified by the
Chief Financial Officer of the Company.

                 (h)   Minimum Adjustment of Exercise Price.  No adjustment
of the Exercise Price shall be made in an amount of less than 1% of the
Exercise Price in effect at the time such adjustment is otherwise
required to be made, but any such lesser adjustment shall be carried

<PAGE>8

forward and shall be made at the time and together with the next
subsequent adjustment which, together with any adjustments so carried
forward, shall amount to not less than 1% of such Exercise Price.

                 (i)   No Fractional Shares.  No fractional shares of Common
Stock are to be issued upon the exercise of this Warrant, but the
Company shall pay a cash adjustment in respect of any fractional share
which would otherwise be issuable in an amount equal to the same
fraction of the Market Price of a share of Common Stock on the date of
such exercise.

                 (j)   Other Notices.  In case at any time:

                         (i)   the Company shall declare any dividend upon the
Common Stock payable in shares of stock of any class or make any other
distribution (including dividends or distributions payable in cash out
of retained earnings) to the holders of the Common Stock;

                         (ii)   the Company shall offer for subscription pro
rata to the holders of the Common Stock any additional shares of stock
of any class or other rights;

                         (iii)   there shall be any capital reorganization of
the Company, or reclassification of the Common Stock, or consolidation
or merger of the Company with or into, or sale of all or substantially
all its assets to, another corporation or entity; or

                         (iv)   there shall be a voluntary or involuntary
dissolution, liquidation or winding up of the Company; then, in each
such case, the Company shall give to the holder of this Warrant (a)
notice of the date on which the books of the Company shall close or a
record shall be taken for determining the holders of Common Stock
entitled to receive any such dividend, distribution, or subscription
rights or for determining the holders of Common Stock entitled to vote
in respect of any such reorganization, reclassification, consolidation,
merger, sale, dissolution, liquidation or winding-up and (b) in the
case of any such reorganization, reclassification, consolidation,
merger, sale, dissolution, liquidation or winding-up, notice of the
date (or, if not then known, a reasonable approximation thereof by the
Company) when the same shall take place.  Such notice shall also
specify the date on which the holders of Common Stock shall be entitled
to receive such dividend, distribution, or subscription rights or to
exchange their Common Stock for stock or other securities or property
deliverable upon such reorganization, reclassification, consolidation,
merger, sale, dissolution, liquidation, or winding-up, as the case may
be.  Such notice shall be given at least 30 days prior to the record
date or the date on which the Company's books are closed in respect
thereto.  Failure to give any such notice or any defect therein shall
not affect the validity of the proceedings referred to in clauses (i),
(ii), (iii) and (iv) above.

                 (k)   Certain Events.  If any event occurs of the type
contemplated by the adjustment provisions of this Paragraph 4 but not
expressly provided for by such provisions, the Company will give notice
of such event as provided in Paragraph 4(g) hereof, and the Company's

<PAGE>9

Board of Directors will make an appropriate adjustment in the Exercise
Price and the number of shares of Common Stock acquirable upon exercise
of this Warrant so that the rights of the holder shall be neither
enhanced nor diminished by such event.

                 (l)   Certain Definitions.

                         (i)   "Common Stock Deemed Outstanding" shall mean
the number of shares of Common Stock actually outstanding (not
including shares of Common Stock held in the treasury of the Company),
plus (x) pursuant to Paragraph 4(b)(i) hereof, the maximum total number
of shares of Common Stock issuable upon the exercise of Options, as of
the date of such issuance or grant of such Options, if any, and (y)
pursuant to Paragraph 4(b)(ii) hereof, the maximum total number of
shares of Common Stock issuable upon conversion or exchange of
Convertible Securities, as of the date of issuance of such Convertible
Securities, if any.

                         (ii)   "Market Price," as of any date, (i) means the
average of the last reported sale prices for the shares of Common Stock
on the OTCBB for the five (5) Trading Days immediately preceding such
date as reported by Bloomberg, or (ii) if the OTCBB is not the
principal trading market for the shares of Common Stock, the average of
the last reported sale prices on the principal trading market for the
Common Stock during the same period as reported by Bloomberg, or (iii)
if market value cannot be calculated as of such date on any of the
foregoing bases, the Market Price shall be the fair market value as
reasonably determined in good faith by (a) the Board of Directors of
the Company or, at the option of a majority-in-interest of the holders
of the outstanding Warrants by (b) an independent investment bank of
nationally recognized standing in the valuation of businesses similar
to the business of the corporation. The manner of determining the
Market Price of the Common Stock set forth in the foregoing definition
shall apply with respect to any other security in respect of which a
determination as to market value must be made hereunder.

                         (iii)   "Common Stock," for purposes of this
Paragraph 4, includes the Common Stock, par value $.001 per share, and
any additional class of stock of the Company having no preference as to
dividends or distributions on liquidation, provided that the shares
purchasable pursuant to this Warrant shall include only shares of
Common Stock, par value $.001 per share, in respect of which this
Warrant is exercisable, or shares resulting from any subdivision or
combination of such Common Stock, or in the case of any reorganization,
reclassification, consolidation, merger, or sale of the character
referred to in Paragraph 4(e) hereof, the stock or other securities or
property provided for in such Paragraph.

        5.   Issue Tax.  The issuance of certificates for Warrant Shares
upon the exercise of this Warrant shall be made without charge to the
holder of this Warrant or such shares for any issuance tax or other
costs in respect thereof, provided that the Company shall not be
required to pay any tax which may be payable in respect of any transfer
involved in the issuance and delivery of any certificate in a name
other than the holder of this Warrant.

<PAGE>10

        6.   No Rights or Liabilities as a Shareholder.  This Warrant
shall not entitle the holder hereof to any voting rights or other
rights as a shareholder of the Company.  No provision of this Warrant,
in the absence of affirmative action by the holder hereof to purchase
Warrant Shares, and no mere enumeration herein of the rights or
privileges of the holder hereof, shall give rise to any liability of
such holder for the Exercise Price or as a shareholder of the Company,
whether such liability is asserted by the Company or by creditors of
the Company.

        7.   Transfer, Exchange, and Replacement of Warrant.

                 (a)   Restriction on Transfer.  This Warrant and the rights
granted to the holder hereof are transferable, in whole or in part,
upon surrender of this Warrant, together with a properly executed
assignment in the form attached hereto, at the office or agency of the
Company referred to in Paragraph 7(e) below, provided, however, that
any transfer or assignment shall be subject to the conditions set forth
in Paragraph 7(f) hereof and to the applicable provisions of the
Securities Purchase Agreement.  Until due presentment for registration
of transfer on the books of the Company, the Company may treat the
registered holder hereof as the owner and holder hereof for all
purposes, and the Company shall not be affected by any notice to the
contrary.

                 (b)   Warrant Exchangeable for Different Denominations.
This Warrant is exchangeable, upon the surrender hereof by the holder
hereof at the office or agency of the Company referred to in Paragraph
7(e) below, for new Warrants of like tenor representing in the
aggregate the right to purchase the number of shares of Common Stock
which may be purchased hereunder, each of such new Warrants to
represent the right to purchase such number of shares as shall be
designated by the holder hereof at the time of such surrender.

                 (c)   Replacement of Warrant.  Upon receipt of evidence
reasonably satisfactory to the Company of the loss, theft, destruction,
or mutilation of this Warrant and, in the case of any such loss, theft,
or destruction, upon delivery of an indemnity agreement reasonably
satisfactory in form and amount to the Company, or, in the case of any
such mutilation, upon surrender and cancellation of this Warrant, the
Company, at its expense, will execute and deliver, in lieu thereof, a
new Warrant of like tenor.

                 (d)   Cancellation; Payment of Expenses.  Upon the
surrender of this Warrant in connection with any transfer, exchange, or
replacement as provided in this Paragraph 7, this Warrant shall be
promptly canceled by the Company.  The Company shall pay all taxes
(other than securities transfer taxes) and all other expenses (other
than legal expenses, if any, incurred by the holder or transferees) and
charges payable in connection with the preparation, execution, and
delivery of Warrants pursuant to this Paragraph 7.

                 (e)   Register.  The Company shall maintain, at its
principal executive offices (or such other office or agency of the
Company as it may designate by notice to the holder hereof), a register

<PAGE>11

for this Warrant, in which the Company shall record the name and
address of the person in whose name this Warrant has been issued, as
well as the name and address of each transferee and each prior owner of
this Warrant.

                 (f)   Exercise or Transfer Without Registration.  If, at
the time of the surrender of this Warrant in connection with any
exercise, transfer, or exchange of this Warrant, this Warrant (or, in
the case of any exercise, the Warrant Shares issuable hereunder), shall
not be registered under the Securities Act of 1933, as amended (the
"Securities Act") and under applicable state securities or blue sky
laws, the Company may require, as a condition of allowing such
exercise, transfer, or exchange, (i) that the holder or transferee of
this Warrant, as the case may be, furnish to the Company a written
opinion of counsel, which opinion and counsel are acceptable to the
Company, to the effect that such exercise, transfer, or exchange may be
made without registration under said Securities Act and under
applicable state securities or blue sky laws, (ii) that the holder or
transferee execute and deliver to the Company an investment letter in
form and substance acceptable to the Company and (iii) that the
transferee be an "accredited investor" as defined in Rule 501(a)
promulgated under the Securities Act; provided that no such opinion,
letter or status as an "accredited investor" shall be required in
connection with a transfer pursuant to Rule 144 under the Securities
Act.  The first holder of this Warrant, by taking and holding the same,
represents to the Company that such holder is acquiring this Warrant
for investment and not with a view to the distribution thereof.

        8.   Notices.  All notices, requests, and other communications
required or permitted to be given or delivered hereunder to the holder
of this Warrant shall be in writing, and shall be personally delivered,
or shall be sent by certified or registered mail or by recognized
overnight mail courier, postage prepaid and addressed, to such holder
at the address shown for such holder on the books of the Company, or at
such other address as shall have been furnished to the Company by
notice from such holder.  All notices, requests, and other
communications required or permitted to be given or delivered hereunder
to the Company shall be in writing, and shall be personally delivered,
or shall be sent by certified or registered mail or by recognized
overnight mail courier, postage prepaid and addressed, to the office of
the Company at 1282 Camellia Circle, Weston, Florida 33326, Attention:
Chief Executive Officer, or at such other address as shall have been
furnished to the holder of this Warrant by notice from the Company.
Any such notice, request, or other communication may be sent by
facsimile, but shall in such case be subsequently confirmed by a
writing personally delivered or sent by certified or registered mail or
by recognized overnight mail courier as provided above.  All notices,
requests, and other communications shall be deemed to have been given
either at the time of the receipt thereof by the person entitled to re-
ceive such notice at the address of such person for purposes of this
Paragraph 9, or, if mailed by registered or certified mail or with a
recognized overnight mail courier upon deposit with the United States
Post Office or such overnight mail courier, if postage is prepaid and
the mailing is properly addressed, as the case may be.

<PAGE>12

        9.   Governing Law.  THIS WARRANT 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 WARRANT, 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 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 WARRANT SHALL BE RESPONSIBLE FOR ALL FEES AND
EXPENSES, INCLUDING ATTORNEYS' FEES, INCURRED BY THE PREVAILING PARTY
IN CONNECTION WITH SUCH DISPUTE.

        10.   Miscellaneous.

                 (a)   Amendments.  This Warrant and any provision hereof
may only be amended by an instrument in writing signed by the Company
and the holder hereof.

                 (b)   Descriptive Headings.  The descriptive headings of
the several paragraphs of this Warrant are inserted for purposes of
reference only, and shall not affect the meaning or construction of any
of the provisions hereof.

                 (c)   Cashless Exercise.  Notwithstanding anything to the
contrary contained in this Warrant, this Warrant may be exercised by
presentation and surrender of this Warrant to the Company at its
principal executive offices with a written notice of the holder's
intention to effect a cashless exercise, including a calculation of the
number of shares of Common Stock to be issued upon such exercise in
accordance with the terms hereof (a "Cashless Exercise").  In the event
of a Cashless Exercise, in lieu of paying the Exercise Price in cash,
the holder shall surrender this Warrant for that number of shares of
Common Stock determined by multiplying the number of Warrant Shares to
which it would otherwise be entitled by a fraction, the numerator of
which shall be the difference between the then current Market Price per
share of the Common Stock and the Exercise Price,  and the denominator
of which shall be the then current Market Price per share of Common
Stock.  For example, if the holder is exercising 100,000 Warrants with
a per Warrant exercise price of $0.75 per share through a cashless
exercise when the Common Stock's current Market Price per share is
$2.00 per share, then upon such Cashless Exercise the holder will
receive 62,500 shares of Common Stock.

                 (d)   Remedies.  The Company acknowledges that a breach by
it of its obligations hereunder will cause irreparable harm to the
holder, by vitiating the intent and purpose of the transaction

<PAGE>13

contemplated hereby.  Accordingly, the Company acknowledges that the
remedy at law for a breach of its obligations under this Warrant will
be inadequate and agrees, in the event of a breach or threatened breach
by the Company of the provisions of this Warrant, that the holder 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 Warrant and to enforce specifically the terms and provisions
thereof, without the necessity of showing economic loss and without any
bond or other security being required.

        IN WITNESS WHEREOF, the Company has caused this Warrant to be
signed by its duly authorized officer.

CROSS ATLANTIC COMMODITIES, INC.

By: ____________________________
    Michael Enemaerke
    Chief Executive Officer and President

Dated as of December 27, 2006

<PAGE>14

FORM OF EXERCISE AGREEMENT

                                                Dated:  ________ __, 200_

To:   ______________________

The undersigned, pursuant to the provisions set forth in the within
Warrant, hereby agrees to purchase ________ shares of Common Stock
covered by such Warrant, and makes payment herewith in full therefor at
the price per share provided by such Warrant in cash or by certified or
official bank check in the amount of, or by surrender of securities
issued by the Company (including a portion of the Warrant) having a
market value (in the case of a portion of this Warrant, determined in
accordance with Section 10(c) of the Warrant) equal to $_________.
Please issue a certificate or certificates for such shares of Common
Stock in the name of and pay any cash for any fractional share to:

Name:_____________________

Signature:
Address:__________________
        ______________________

Note:The above signature should
correspond exactly with the name on
the face of the within Warrant, if
applicable.

and, if said number of shares of Common Stock shall not be all the
shares purchasable under the within Warrant, a new Warrant is to be
issued in the name of said undersigned covering the balance of the
shares purchasable thereunder less any fraction of a share paid in
cash.

<PAGE>17
FORM OF ASSIGNMENT

        FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and
transfers all the rights of the undersigned under the within Warrant,
with respect to the number of shares of Common Stock covered thereby
set forth hereinbelow, to:

Name of Assignee                 Address                 No of Shares
----------------                 -------                 ------------

, and hereby irrevocably constitutes and appoints _____________________
as agent and attorney-in-fact to transfer said Warrant on the books of
the within-named corporation, with full power of substitution in the
premises.

Dated:   ________ __, 200_

In the presence of:                   ______________________________
Name:______________________________

Signature:_________________________
Title of Signing Officer or Agent
(if any):
         __________________________
Address: __________________________
         __________________________

Note:  The above signature should
correspond exactly with the name on
the face of the within Warrant, if
applicable.
PHL_A #1956552 v1	7REGISTRATION RIGHTS AGREEMENT

        REGISTRATION RIGHTS AGREEMENT (this "Agreement"), dated as of
December 27, 2006, by and among Cross Atlantic Commodities, Inc., a
Nevada corporation with its headquarters located at 1282 Camellia
Circle, Weston, Florida 33326 (the "Company"), and each of the
undersigned (together with their respective affiliates and any assignee
or transferee of all of their respective rights hereunder, the "Initial
Investors").

        WHEREAS:

        A.   In connection with the Securities Purchase Agreement by and
among the parties hereto of even date herewith (the "Securities
Purchase Agreement"), the Company has agreed, upon the terms and
subject to the conditions contained therein, to issue and sell to the
Initial Investors (i) secured convertible notes in the aggregate
principal amount of up to One Million Dollars ($1,000,000) (the
"Notes") that are convertible into shares of the Company's common stock
(the "Common Stock"), upon the terms and subject to the limitations and
conditions set forth in such Notes and (ii) warrants (the "Warrants")
to acquire an aggregate of 10,000,000 shares of Common Stock, upon the
terms and conditions and subject to the limitations and conditions set
forth in the Warrants; and

        B.   To induce the Initial Investors to execute and deliver the
Securities Purchase Agreement, the Company has agreed to provide
certain registration rights under the Securities Act of 1933, as
amended, and the rules and regulations thereunder, or any similar
successor statute (collectively, the "1933 Act"), and applicable state
securities laws;

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

                 1.   DEFINITIONS.

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

                                (i)   "Investors" means the Initial Investors
and any transferee or assignee who agrees to become bound by the
provisions of this Agreement in accordance with Section 9 hereof.

                                (ii)   "register," "registered," and
"registration" refer to a registration effected by preparing and filing
a Registration Statement or Statements in compliance with the 1933 Act
and pursuant to Rule 415 under the 1933 Act or any successor rule
providing for offering securities on a continuous basis ("Rule 415"),
and the declaration or ordering of effectiveness of such Registration
Statement by the United States Securities and Exchange Commission (the
"SEC").

<PAGE>2
                                (iii)   "Registrable Securities" means the
Conversion Shares issued or issuable upon conversion or otherwise
pursuant to the Notes and Additional Notes (as defined in the
Securities Purchase Agreement) pursuant to a price equal to the lesser
of: (i) the Initial Market Price (as defined in the Notes) and (ii) the
average of the lowest three (3) Trading Prices (as defined in the
Notes) for the Common Stock during the twenty (20) Trading Day period
discounted by 40%.

                                (iv)   "Registration Statement" means a
registration statement of the Company under the 1933 Act.

                        b.   Capitalized terms used herein and not otherwise
defined herein shall have the respective meanings set forth in the
Securities Purchase Agreement or the Convertible Note.

                 2.   REGISTRATION.

                         a.   Mandatory Registration.  The Company shall
prepare, and, on or prior to thirty (30) days from the date of Closing
(as defined in the Securities Purchase Agreement) (the "Filing Date"),
file with the SEC a Registration Statement on Form S-3 (or, if Form S-3
is not then available, on such form of Registration Statement as is
then available to effect a registration of the Registrable Securities,
subject to the consent of the Initial Investors, which consent will not
be unreasonably withheld) covering the resale of the Registrable
Securities underlying the Notes issued or issuable pursuant to the
Securities Purchase Agreement, which Registration Statement, to the
extent allowable under the 1933 Act and the rules and regulations
promulgated thereunder (including Rule 416), shall state that such
Registration Statement also covers such indeterminate number of
additional shares of Common Stock as may become issuable upon
conversion of or otherwise pursuant to the Notes to prevent dilution
resulting from stock splits, stock dividends or similar transactions.
The number of shares of Common Stock initially included in such
Registration Statement shall be no less than an amount equal the sum of
the number of Conversion Shares that are then issuable upon conversion
of the Notes and Additional Notes (based on the Variable Conversion
Price as would then be in effect and assuming the Variable Conversion
Price is the Conversion Price at such time) without regard to any
limitation on the Investor's ability to convert the Notes.  The Company
acknowledges that the number of shares initially included in the
Registration Statement represents a good faith estimate of the maximum
number of shares issuable upon conversion of the Notes.

                         b.   Underwritten Offering.  If any offering pursuant
to a Registration Statement pursuant to Section 2(a) hereof involves an
underwritten offering, the Investors who hold a majority in interest of
the Registrable Securities subject to such underwritten offering, with
the consent of a majority-in-interest of the Initial Investors, shall
have the right to select one legal counsel and an investment banker or
bankers and manager or managers to administer the offering, which
investment banker or bankers or manager or managers shall be reasonably
satisfactory to the Company.

<PAGE>3

                         c.   Payments by the Company.  The Company shall use
its best efforts to obtain effectiveness of the Registration Statement
as soon as practicable.  If (i) the Registration Statement(s) covering
the Registrable Securities required to be filed by the Company pursuant
to Section 2(a) hereof is not filed by the Filing Date or declared
effective by the SEC on or prior to one hundred twenty (120) days from
the date of Closing (as defined in the Securities Purchase Agreement),
or (ii) after the Registration Statement has been declared effective by
the SEC, sales of all of the Registrable Securities cannot be made
pursuant to the Registration Statement, or (iii) the Common Stock is
not listed or included for quotation on the Nasdaq National Market
("Nasdaq"), the Nasdaq SmallCap Market ("Nasdaq SmallCap"), the New
York Stock Exchange (the "NYSE") or the American Stock Exchange (the
"AMEX") after being so listed or included for quotation after the date
hereof, or (iv) the Common Stock ceases to be traded on the Over-the-
Counter Bulletin Board (the "OTCBB") or any equivalent replacement
exchange prior to being listed or included for quotation on one of the
aforementioned markets, then the Company will make payments to the
Investors in such amounts and at such times as shall be determined
pursuant to this Section 2(c) as partial relief for the damages to the
Investors by reason of any such delay in or reduction of their ability
to sell the Registrable Securities (which remedy shall not be exclusive
of any other remedies available at law or in equity).  The Company
shall pay to each holder of the Notes or Registrable Securities an
amount equal to the then outstanding principal amount of the Notes
(and, in the case of holders of Registrable Securities, the principal
amount of Notes from which such Registrable Securities were converted)
("Outstanding Principal Amount"), multiplied by the Applicable
Percentage (as defined below) times the sum of:  (i) the number of
months (prorated for partial months) after the Filing Date or the end
of the aforementioned one hundred twenty (120) day period and prior to
the date the Registration Statement is declared effective by the SEC,
provided, however, that there shall be excluded from such period any
delays which are solely attributable to changes required by the
Investors in the Registration Statement with respect to information
relating to the Investors, including, without limitation, changes to
the plan of distribution, or to the failure of the Investors to conduct
their review of the Registration Statement pursuant to Section 3(h)
below in a reasonably prompt manner; (ii) the number of months
(prorated for partial months) that sales of all of the Registrable
Securities cannot be made pursuant to the Registration Statement after
the Registration Statement has been declared effective (including,
without limitation, when sales cannot be made by reason of the
Company's failure to properly supplement or amend the prospectus
included therein in accordance with the terms of this Agreement, but
excluding any days during an Allowed Delay (as defined in Section
3(f)); and (iii) the number of months (prorated for partial months)
that the Common Stock is not listed or included for quotation on the
OTCBB, Nasdaq, Nasdaq SmallCap, NYSE or AMEX or that trading thereon is
halted after the Registration Statement has been declared effective.
The term "Applicable Percentage" means two hundredths (.02).  (For
example, if the Registration Statement becomes effective one (1) month
after the end of such one hundred twenty (120) day period, the Company
would pay $5,000 for each $250,000 of Outstanding Principal Amount.  If
thereafter, sales could not be made pursuant to the Registration

<PAGE>4

Statement for an additional period of one (1) month, the Company would
pay an additional $5,000 for each $250,000 of Outstanding Principal
Amount.)  Such amounts shall be paid in cash or, at the Company's
option, in shares of Common Stock priced at the Conversion Price (as
defined in the Notes) on such payment date.

                         d.   Piggy-Back Registrations.  Subject to the last
sentence of this Section 2(d), if at any time prior to the expiration
of the Registration Period (as hereinafter defined) the Company shall
determine to file with the SEC a Registration Statement relating to an
offering for its own account or the account of others under the 1933
Act of any of its equity securities (other than on Form S-4 or Form S-8
or their then equivalents relating to equity securities to be issued
solely in connection with any acquisition of any entity or business or
equity securities issuable in connection with stock option or other
bona fide, employee benefit plans), the Company shall send to each
Investor who is entitled to registration rights under this Section 2(d)
written notice of such determination and, if within fifteen (15) days
after the effective date of such notice, such Investor shall so request
in writing, the Company shall include in such Registration Statement
all or any part of the Registrable Securities such Investor requests to
be registered, except that if, in connection with any underwritten
public offering for the account of the Company the managing
underwriter(s) thereof shall impose a limitation on the number of
shares of Common Stock which may be included in the Registration
Statement because, in such underwriter(s)' judgment, marketing or other
factors dictate such limitation is necessary to facilitate public
distribution, then the Company shall be obligated to include in such
Registration Statement only such limited portion of the Registrable
Securities with respect to which such Investor has requested inclusion
hereunder as the underwriter shall permit. Any exclusion of Registrable
Securities shall be made pro rata among the Investors seeking to
include Registrable Securities in proportion to the number of
Registrable Securities sought to be included by such Investors;
provided, however, that the Company shall not exclude any Registrable
Securities unless the Company has first excluded all outstanding
securities, the holders of which are not entitled to inclusion of such
securities in such Registration Statement or are not entitled to pro
rata inclusion with the Registrable Securities; and provided, further,
however, that, after giving effect to the immediately preceding
proviso, any exclusion of Registrable Securities shall be made pro rata
with holders of other securities having the right to include such
securities in the Registration Statement other than holders of
securities entitled to inclusion of their securities in such
Registration Statement by reason of demand registration rights.  No
right to registration of Registrable Securities under this Section 2(d)
shall be construed to limit any registration required under Section
2(a) hereof.  If an offering in connection with which an Investor is
entitled to registration under this Section 2(d) is an underwritten
offering, then each Investor whose Registrable Securities are included
in such Registration Statement shall, unless otherwise agreed by the
Company, offer and sell such Registrable Securities in an underwritten
offering using the same underwriter or underwriters and, subject to the
provisions of this Agreement, on the same terms and conditions as other

<PAGE>5

shares of Common Stock included in such underwritten offering.
Notwithstanding anything to the contrary set forth herein, the
registration rights of the Investors pursuant to this Section 2(d)
shall only be available in the event the Company fails to timely file,
obtain effectiveness or maintain effectiveness of any Registration
Statement to be filed pursuant to Section 2(a) in accordance with the
terms of this Agreement.

                         e.   Demand Registrations.  The Company shall
prepare, and, on or prior to thirty (30) days from the date of receipt
of written demand (the "Investor Demand") of the Investors (the "Filing
Date"), to file with the SEC a Registration Statement on Form S-3 (or,
if Form S-3 is not then available, on such form of Registration
Statement as is then available to effect a registration of any shares
issued or issuable in respect of interest on the Notes in accordance
with the terms thereof, which Registration Statement, to the extent
allowable under the 1933 Act and the rules and regulations promulgated
thereunder (including Rule 416), shall state that such Registration
Statement also covers such indeterminate number of additional shares of
Common Stock as may become issuable upon conversion of or otherwise
pursuant to the Notes to prevent dilution resulting from stock splits,
stock dividends or similar transactions.  The number of shares of
Common Stock initially included in such Registration Statement shall be
no less than an amount equal to the sum of the number of Conversion
Shares that are then issuable upon conversion of the interest on the
Notes (based on the Variable Conversion Price as would then be in
effect and assuming the Variable Conversion Price is the Conversion
Price at such time), without regard to any limitation on the Investor's
ability to convert the interest on the Notes.  The Company acknowledges
that the number of shares initially included in the Registration
Statement represents a good faith estimate of the maximum number of
shares issuable upon conversion of the interest on the Notes.

                         f.   Eligibility for Form S-3, SB-2 or S-1;
Conversion to Form S-3.  The Company represents and warrants that it
meets the requirements for the use of Form S-3, SB-2 or S-1 for
registration of the sale by the Initial Investors and any other
Investors of the Registrable Securities.   The Company agrees to file
all reports required to be filed by the Company with the SEC in a
timely manner so as to remain eligible or become eligible, as the case
may be, and thereafter to maintain its eligibility, for the use of Form
S-3.  If the Company is not currently eligible to use Form S-3, not
later than five (5) business days after the Company first meets the
registration eligibility and transaction requirements for the use of
Form S-3 (or any successor form) for registration of the offer and sale
by the Initial Investors and any other Investors of Registrable
Securities, the Company shall file a Registration Statement on Form S-3
(or such successor form) with respect to the Registrable Securities
covered by the Registration Statement on Form SB-2 or Form S-1,
whichever is applicable, filed pursuant to Section 2(a) (and include in
such Registration Statement on Form S-3 the information required by
Rule 429 under the 1933 Act) or convert the Registration Statement on
Form SB-2 or Form S-1, whichever is applicable, filed pursuant to
Section 2(a) to a Form S-3 pursuant to Rule 429 under the 1933 Act and
cause such Registration Statement (or such amendment) to be declared
effective no later than thirty (30) days after filing.  In the event of
a breach by the Company of the provisions of this Section 2(f), the
Company will be required to make payments pursuant to Section 2(c)
hereof.

                 3.   OBLIGATIONS OF THE COMPANY.

        In connection with the registration of the Registrable
Securities, the Company shall have the following obligations:

                        a.   The Company shall prepare promptly, and file
with the SEC not later than the Filing Date, a Registration Statement
with respect to the number of Registrable Securities provided in
Section 2(a), and thereafter use its best efforts to cause such
Registration Statement relating to Registrable Securities to become
effective as soon as possible after such filing but in no event later
than one hundred twenty (120) days from the date of Closing), and keep
the Registration Statement effective pursuant to Rule 415 at all times
until such date as is the earlier of (i) the date on which all of the
Registrable Securities have been sold and (ii) the date on which the
Registrable Securities (in the opinion of counsel to the Initial
Investors) may be immediately sold to the public without registration
or restriction (including, without limitation, as to volume by each
holder thereof) under the 1933 Act (the "Registration Period"), which
Registration Statement (including any amendments or supplements thereto
and prospectuses contained therein) shall not contain any untrue
statement of a material fact or omit to state a material fact required
to be stated therein, or necessary to make the statements therein not
misleading.

                        b.   The Company shall prepare and file with the SEC
such amendments (including post-effective amendments) and supplements
to the Registration Statements and the prospectus used in connection
with the Registration Statements as may be necessary to keep the
Registration Statements effective at all times during the Registration
Period, and, during such period, comply with the provisions of the 1933
Act with respect to the disposition of all Registrable Securities of
the Company covered by the Registration Statements until such time as
all of such Registrable Securities have been disposed of in accordance
with the intended methods of disposition by the seller or sellers
thereof as set forth in the Registration Statements.  In the event the
number of shares available under a Registration Statement filed
pursuant to this Agreement is insufficient to cover all of the
Registrable Securities issued or issuable upon conversion of the Notes,
the Company shall amend the Registration Statement, or file a new
Registration Statement (on the short form available therefor, if
applicable), or both, so as to cover all of the Registrable Securities,
in each case, as soon as practicable, but in any event within fifteen
(15) days after the necessity therefor arises (based on the market
price of the Common Stock and other relevant factors on which the
Company reasonably elects to rely).  The Company shall use its best
efforts to cause such amendment and/or new Registration Statement to
become effective as soon as practicable following the filing thereof,
but in any event within thirty (30) days after the date on which the
Company reasonably first determines (or reasonably should have
determined) the need therefor.  The provisions of Section 2(c) above

<PAGE>7

shall be applicable with respect to such obligation, with the ninety
(90) days running from the day the Company reasonably first determines
(or reasonably should have determined) the need therefor.

                        c.   The Company shall furnish to each Investor whose
Registrable Securities are included in a Registration Statement and its
legal counsel (i) promptly (but in no event more than two (2) business
days) after the same is prepared and publicly distributed, filed with
the SEC, or received by the Company, one copy of each Registration
Statement and any amendment thereto, each preliminary prospectus and
prospectus and each amendment or supplement thereto, and, in the case
of the Registration Statement referred to in Section 2(a), 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 Registration Statement (other than
any portion of any thereof which contains information for which the
Company has sought confidential treatment), and (ii) promptly (but in
no event more than two (2) business days) after the Registration
Statement is declared effective by the SEC, such number of copies of a
prospectus, including a preliminary prospectus, and all amendments and
supplements thereto and such other documents as such Investor may
reasonably request in order to facilitate the disposition of the
Registrable Securities owned by such Investor.  The Company will
immediately notify each Investor by facsimile of the effectiveness of
each Registration Statement or any post-effective amendment.  The
Company will promptly respond to any and all comments received from the
SEC (which comments shall promptly be made available to the Investors
upon request), with a view towards causing each Registration Statement
or any amendment thereto to be declared effective by the SEC as soon as
practicable, shall promptly file an acceleration request as soon as
practicable (but in no event more than two (2) business days) following
the resolution or clearance of all SEC comments or, if applicable,
following notification by the SEC that any such Registration Statement
or any amendment thereto will not be subject to review and shall, if
required by SEC Rules, promptly file with the SEC a final prospectus as
soon as practicable (but in no event more than two (2) business days)
following receipt by the Company from the SEC of an order declaring the
Registration Statement effective.  In the event of a breach by the
Company of the provisions of this Section 3(c), the Company will be
required to make payments pursuant to Section 2(c) hereof.

                        d.   The Company shall use reasonable efforts to (i)
 register and qualify the Registrable Securities covered by the
Registration Statements under such other securities or "blue sky" laws
of such jurisdictions in the United States as the Investors who hold a
majority in interest of the Registrable Securities being offered
reasonably request, (ii) prepare and file in those jurisdictions such
amendments (including post-effective amendments) and supplements to
such registrations and qualifications as may be necessary to maintain
the effectiveness thereof during the Registration Period, (iii) take
such other actions as may be necessary to maintain such registrations
and qualifications in effect at all times during the Registration
Period, and (iv) take all other actions reasonably necessary or
advisable to qualify the Registrable Securities for sale in such

<PAGE>8

jurisdictions; 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 3(d), (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.

                        e.   In the event Investors who hold a majority-in-
interest of the Registrable Securities being offered in the offering
(with the approval of a majority-in-interest of the Initial Investors)
select underwriters for the offering, the Company shall enter into and
perform its obligations under an underwriting agreement, in usual and
customary form, including, without limitation, customary
indemnification and contribution obligations, with the underwriters of
such offering.

                        f.   As promptly as practicable after becoming aware
of such event, the Company shall notify each Investor of the happening
of any event, of which the Company has knowledge, as a result of which
the prospectus included in any Registration Statement, as then in
effect, includes an untrue statement of a material fact or omission to
state a material fact required to be stated therein or necessary to
make the statements therein not misleading, and use its best efforts
promptly to prepare a supplement or amendment to any Registration
Statement to correct such untrue statement or omission, and deliver
such number of copies of such supplement or amendment to each Investor
as such Investor may reasonably request; provided that, for not more
than ten (10) consecutive trading days (or a total of not more than
twenty (20) trading days in any twelve (12) month period), the Company
may delay the disclosure of material non-public information concerning
the Company (as well as prospectus or Registration Statement updating)
the disclosure of which at the time is not, in the good faith opinion
of the Company, in the best interests of the Company (an "Allowed
Delay"); provided, further, that the Company shall promptly (i) notify
the Investors in writing of the existence of (but in no event, without
the prior written consent of an Investor, shall the Company disclose to
such investor any of the facts or circumstances regarding) material
non-public information giving rise to an Allowed Delay and (ii) advise
the Investors in writing to cease all sales under such Registration
Statement until the end of the Allowed Delay. Upon expiration of the
Allowed Delay, the Company shall again be bound by the first sentence
of this Section 3(f) with respect to the information giving rise
thereto.

                        g.   The Company shall use its best efforts to
prevent the issuance of any stop order or other suspension of
effectiveness of any Registration Statement, and, if such an order is
issued, to obtain the withdrawal of such order at the earliest possible
moment and to notify each Investor who holds Registrable Securities

<PAGE>9

being sold (or, in the event of an underwritten offering, the managing
underwriters) of the issuance of such order and the resolution thereof.

                        h.   The Company shall permit a single firm of
counsel designated by the Initial Investors to review such Registration
Statement and all amendments and supplements thereto (as well as all
requests for acceleration or effectiveness thereof) a reasonable period
of time prior to their filing with the SEC, and not file any document
in a form to which such counsel reasonably objects and will not request
acceleration of such Registration Statement without prior notice to
such counsel.  The sections of such Registration Statement covering
information with respect to the Investors, the Investor's beneficial
ownership of securities of the Company or the Investors intended method
of disposition of Registrable Securities shall conform to the
information provided to the Company by each of the Investors.

                        i.   The Company shall make generally available to
its security holders as soon as practicable, but not later than ninety
(90) days after the close of the period covered thereby, an earnings
statement (in form complying with the provisions of Rule 158 under the
1933 Act) covering a twelve-month period beginning not later than the
first day of the Company's fiscal quarter next following the effective
date of the Registration Statement.

                        j.   At the request of any Investor, the Company
shall furnish, on the date that Registrable Securities are delivered to
an underwriter, if any, for sale in connection with any Registration
Statement or, if such securities are not being sold by an underwriter,
on the date of effectiveness thereof (i) an opinion, dated as of such
date, from counsel representing the Company for purposes of such
Registration Statement, in form, scope and substance as is customarily
given in an underwritten public offering, addressed to the
underwriters, if any, and the Investors and (ii) a letter, dated such
date, from the Company's independent certified public accountants in
form and substance as is customarily given by independent certified
public accountants to underwriters in an underwritten public offering,
addressed to the underwriters, if any, and the Investors.

                        k.   The Company shall make available for inspection
by (i) any Investor, (ii) any underwriter participating in any
disposition pursuant to a Registration Statement, (iii) one firm of
attorneys and one firm of accountants or other agents retained by the
Initial Investors, (iv) one firm of attorneys and one firm of
accountants or other agents retained by all other Investors, and (v)
 one firm of attorneys retained by all such underwriters (collectively,
the "Inspectors") all pertinent financial and other records, and
pertinent corporate documents and properties of the Company, including
without limitation, records of conversions by other holders of
convertible securities issued by the Company and the issuance of stock
to such holders pursuant to the conversions (collectively, the
"Records"), as shall be reasonably deemed necessary by each Inspector
to enable each Inspector to exercise its due diligence responsibility,
and cause the Company's officers, directors and employees to supply all
information which any Inspector may reasonably request for purposes of
such due diligence; provided, however, that each Inspector shall hold

<PAGE>10

in confidence and shall not make any disclosure (except to an Investor)
of any Record or other information which the Company determines in good
faith to be confidential, and of which determination the Inspectors are
so notified, unless (a) the disclosure of such Records is necessary to
avoid or correct a misstatement or omission in any Registration
Statement, (b) the release of such Records is ordered pursuant to a
subpoena or other order from a court or government body of competent
jurisdiction, or (c) the information in such Records has been made
generally available to the public other than by disclosure in violation
of this or any other agreement.  The Company shall not be required to
disclose any confidential information in such Records to any Inspector
until and unless such Inspector shall have entered into confidentiality
agreements (in form and substance satisfactory to the Company) with the
Company with respect thereto, substantially in the form of this Section
3(k).  Each Investor agrees that it shall, upon learning that
disclosure of such Records is sought in or by a court or governmental
body of competent jurisdiction or through other means, give prompt
notice to the Company and allow the Company, at its expense, to
undertake appropriate action to prevent disclosure of, or to obtain a
protective order for, the Records deemed confidential.  Nothing herein
(or in any other confidentiality agreement between the Company and any
Investor) shall be deemed to limit the Investor's ability to sell
Registrable Securities in a manner which is otherwise consistent with
applicable laws and regulations.

                        l.   The Company shall hold in confidence and not
make any disclosure of information concerning an Investor provided to
the Company unless (i)disclosure of such information is necessary to
comply with federal or state securities laws, (ii) the disclosure of
such information is necessary to avoid or correct a misstatement or
omission in any Registration Statement, (iii) the release of such
information is ordered pursuant to a subpoena or other order from a
court or governmental body of competent jurisdiction, or (iv) such
information has been made generally available to the public other than
by disclosure in violation of this or any other agreement.  The Company
agrees that it shall, upon learning that disclosure of such information
concerning an Investor is sought in or by a court or governmental body
of competent jurisdiction or through other means, give prompt notice to
such Investor prior to making such disclosure, and allow the Investor,
at its expense, to undertake appropriate action to prevent disclosure
of, or to obtain a protective order for, such information.

                        m.   The Company shall (i)cause all the Registrable
Securities covered by the Registration Statement to be listed on each
national securities exchange on which securities of the same class or
series issued by the Company are then listed, if any, if the listing of
such Registrable Securities is then permitted under the rules of such
exchange, or (ii) to the extent the securities of the same class or
series are not then listed on a national securities exchange, secure
the designation and quotation, of all the Registrable Securities
covered by the Registration Statement on Nasdaq or, if not eligible for
Nasdaq, on Nasdaq SmallCap or, if not eligible for Nasdaq or Nasdaq
SmallCap, on the OTCBB and, without limiting the generality of the
foregoing, to arrange for at least two market makers to register with
the National Association of Securities Dealers, Inc. ("NASD") as such
with respect to such Registrable Securities.

                        n.   The Company shall provide a transfer agent and
registrar, which may be a single entity, for the Registrable Securities
not later than the effective date of the Registration Statement.

                        o.   The Company shall cooperate with the Investors
who hold Registrable Securities being offered and the managing
underwriter or underwriters, if any, to facilitate the timely
preparation and delivery of certificates (not bearing any restrictive
legends) representing Registrable Securities to be offered pursuant to
a Registration Statement and enable such certificates to be in such
denominations or amounts, as the case may be, as the managing
underwriter or underwriters, if any, or the Investors may reasonably
request and registered in such names as the managing underwriter or
underwriters, if any, or the Investors may request, and, within three
(3) business days after a Registration Statement which includes
Registrable Securities is ordered effective by the SEC, the Company
shall deliver, and shall cause legal counsel selected by the Company to
deliver, to the transfer agent for the Registrable Securities (with
copies to the Investors whose Registrable Securities are included in
such Registration Statement) an instruction in the form attached hereto
as Exhibit 1 and an opinion of such counsel in the form attached hereto
as Exhibit 2.

                        p.   At the request of the holders of a majority-in-
interest of the Registrable Securities, the Company shall prepare and
file with the SEC such amendments (including post-effective amendments)
and supplements to a Registration Statement and any prospectus used in
connection with the Registration Statement as may be necessary in order
to change the plan of distribution set forth in such Registration
Statement.

                        q.   From and after the date of this Agreement, the
Company shall not, and shall not agree to, allow the holders of any
securities of the Company to include any of their securities, in excess
of 250,000 shares of Common Stock, in any Registration Statement under
Section 2(a) hereof or any amendment or supplement thereto under
Section 3(b) hereof without the consent of the holders of a majority-
in-interest of the Registrable Securities.

                        r.   The Company shall take all other reasonable
actions necessary to expedite and facilitate disposition by the
Investors of Registrable Securities pursuant to a Registration
Statement.

                 4.   OBLIGATIONS OF THE INVESTORS.

        In connection with the registration of the Registrable
Securities, the Investors shall have the following obligations:

                        a.   It shall be a condition precedent to the
obligations of the Company to complete the registration pursuant to
this Agreement with respect to the Registrable Securities of a
particular Investor that such Investor shall furnish to the Company
such information regarding itself, the Registrable Securities held by
it and the intended method of disposition of the Registrable Securities
held by it as shall be reasonably required to effect the registration
of such Registrable Securities and shall execute such documents in
connection with such registration as the Company may reasonably
request.  At least three (3) business days prior to the first
anticipated filing date of the Registration Statement, the Company
shall notify each Investor of the information the Company requires from
each such Investor.

                        b.   Each Investor, by such Investor's acceptance of
the Registrable Securities, agrees to cooperate with the Company as
reasonably requested by the Company in connection with the preparation
and filing of the Registration Statements hereunder, unless such
Investor has notified the Company in writing of such Investor's
election to exclude all of such Investor's Registrable Securities from
the Registration Statements.

                        c.   In the event Investors holding a majority-in-
interest of the Registrable Securities being registered (with the
approval of the Initial Investors) determine to engage the services of
an underwriter, each Investor agrees to enter into and perform such
Investor's obligations under an underwriting agreement, in usual and
customary form, including, without limitation, customary
indemnification and contribution obligations, with the managing
underwriter of such offering and take such other actions as are
reasonably required in order to expedite or facilitate the disposition
of the Registrable Securities, unless such Investor has notified the
Company in writing of such Investor's election to exclude all of such
Investor's Registrable Securities from such Registration Statement.

                        d.   Each Investor agrees that, upon receipt of any
notice from the Company of the happening of any event of the kind
described in Section 3(f) or 3(g), such Investor will immediately
discontinue disposition of Registrable Securities pursuant to the
Registration Statement covering such Registrable Securities until such
Investor's receipt of the copies of the supplemented or amended
prospectus contemplated by Section 3(f) or 3(g) and, if so directed by
the Company, such Investor shall deliver to the Company (at the expense
of the Company) or destroy (and deliver to the Company a certificate of
destruction) all copies in such Investor's possession, of the
prospectus covering such Registrable Securities current at the time of
receipt of such notice.

                        e.   No Investor may participate in any underwritten
registration hereunder unless such Investor (i) agrees to sell such
Investor's Registrable Securities on the basis provided in any
underwriting arrangements in usual and customary form entered into by
the Company, (ii) completes and executes all questionnaires, powers of
attorney, indemnities, underwriting agreements and other documents
reasonably required under the terms of such underwriting arrangements,
and (iii) agrees to pay its pro rata share of all underwriting
discounts and commissions and any expenses in excess of those payable
by the Company pursuant to Section 5 below.

<PAGE>13

                 5.   EXPENSES OF REGISTRATION.

        All reasonable expenses, other than underwriting discounts and
commissions, incurred in connection with registrations, filings or
qualifications pursuant to Sections 2 and 3, including, without
limitation, all registration, listing and qualification fees, printers
and accounting fees, the fees and disbursements of counsel for the
Company, and the reasonable fees and disbursements of one counsel
selected by the Initial Investors pursuant to Sections 2(b) and 3(h)
hereof shall be borne by the Company and shall be included in the fees
paid to counsel under the Securities Purchase Agreement for purposes of
counsel selected by the Initial Investors.

                 6.   INDEMNIFICATION.

        In the event any Registrable Securities are included in a
Registration Statement under this Agreement:

                        a.   To the extent permitted by law, the Company will
indemnify, hold harmless and defend (i) each Investor who holds such
Registrable Securities, (ii) the directors, officers, partners,
employees, agents and each person who controls any Investor within the
meaning of the 1933 Act or the Securities Exchange Act of 1934, as
amended (the "1934 Act"), if any, (iii) any underwriter (as defined in
the 1933 Act) for the Investors, and (iv) the directors, officers,
partners, employees and each person who controls any such underwriter
within the meaning of the 1933 Act or the 1934 Act, if any (each, an
"Indemnified Person"), against any joint or several losses, claims,
damages, liabilities or expenses (collectively, together with actions,
proceedings or inquiries by any regulatory or self-regulatory
organization, whether commenced or threatened, in respect thereof,
"Claims") to which any of them may become subject insofar as such
Claims arise out of or are based upon: (i) any untrue statement or
alleged untrue statement of a material fact in a Registration Statement
or the omission or alleged omission to state therein a material fact
required to be stated or necessary to make the statements therein not
misleading; (ii) any untrue statement or alleged untrue statement of a
material fact contained in any preliminary prospectus if used prior to
the effective date of such Registration Statement, or contained in the
final prospectus (as amended or supplemented, if the Company files any
amendment thereof or supplement thereto with the SEC) or the omission
or alleged omission to state therein any material fact necessary to
make the statements made therein, in light of the circumstances under
which the statements therein were made, not misleading; or (iii) any
violation or alleged violation by the Company of the 1933 Act, the 1934
Act, any other law, including, without limitation, any state securities
law, or any rule or regulation thereunder relating to the offer or sale
of the Registrable Securities (the matters in the foregoing clauses (i)
through (iii) being, collectively, "Violations").  Subject to the
restrictions set forth in Section 6(c) with respect to the number of
legal counsel, the Company shall reimburse the Indemnified Person,
promptly as such expenses are incurred and are due and payable, for any
reasonable legal fees or other reasonable expenses incurred by them in
connection with investigating or defending any such Claim.
Notwithstanding anything to the contrary contained herein, the

<PAGE>14

indemnification agreement contained in this Section 6(a): (i) shall not
apply to a Claim arising out of or based upon a Violation which occurs
in reliance upon and in conformity with information furnished in
writing to the Company by any Indemnified Person or underwriter for
such Indemnified Person expressly for use in connection with the
preparation of such Registration Statement or any such amendment
thereof or supplement thereto, if such prospectus was timely made
available by the Company pursuant to Section 3(c) hereof; (ii) shall
not apply to amounts paid in settlement of any Claim if such settlement
is effected without the prior written consent of the Company, which
consent shall not be unreasonably withheld; and (iii) with respect to
any preliminary prospectus, shall not inure to the benefit of any
Indemnified Person if the untrue statement or omission of material fact
contained in the preliminary prospectus was corrected on a timely basis
in the prospectus, as then amended or supplemented, such corrected
prospectus was timely made available by the Company pursuant to Section
3(c) hereof, and the Indemnified Person was promptly advised in writing
not to use the incorrect prospectus prior to the use giving rise to a
Violation and such Indemnified Person, notwithstanding such advice,
used it.  Such indemnity shall remain in full force and effect
regardless of any investigation made by or on behalf of the Indemnified
Person and shall survive the transfer of the Registrable Securities by
the Investors pursuant to Section 9.

                        b.   In connection with any Registration Statement in
which an Investor is participating, each such Investor agrees severally
and not jointly to indemnify, hold harmless and defend, to the same
extent and in the same manner set forth in Section 6(a), the Company,
each of its directors, each of its officers who signs the Registration
Statement, each person, if any, who controls the Company within the
meaning of the 1933 Act or the 1934 Act, any underwriter and any other
shareholder selling securities pursuant to the Registration Statement
or any of its directors or officers or any person who controls such
shareholder or underwriter within the meaning of the 1933 Act or the
1934 Act (collectively and together with an Indemnified Person, an
"Indemnified Party"), against any Claim to which any of them may become
subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such
Claim arises out of or is based upon any Violation by such Investor, in
each case to the extent (and only to the extent) that such Violation
occurs in reliance upon and in conformity with written information
furnished to the Company by such Investor expressly for use in
connection with such Registration Statement; and subject to Section
6(c) such Investor will reimburse any legal or other expenses (promptly
as such expenses are incurred and are due and payable) reasonably
incurred by them in connection with investigating or defending any such
Claim; provided, however, that the indemnity agreement contained in
this Section 6(b) shall not apply to amounts paid in settlement of any
Claim if such settlement is effected without the prior written consent
of such Investor, which consent shall not be unreasonably withheld;
provided, further, however, that the Investor shall be liable under
this Agreement (including this Section 6(b) and Section 7) for only
that amount as does not exceed the net proceeds to such Investor as a
result of the sale of Registrable Securities pursuant to such
Registration Statement.  Such indemnity shall remain in full force and

<PAGE>15

effect regardless of any investigation made by or on behalf of such
Indemnified Party and shall survive the transfer of the Registrable
Securities by the Investors pursuant to Section 9. Notwithstanding
anything to the contrary contained herein, the indemnification
agreement contained in this Section 6(b) with respect to any
preliminary prospectus shall not inure to the benefit of any
Indemnified Party if the untrue statement or omission of material fact
contained in the preliminary prospectus was corrected on a timely basis
in the prospectus, as then amended or supplemented.

                        c.   Promptly after receipt by an Indemnified Person
or Indemnified Party under this Section 6 of notice of the commencement
of any action (including any governmental action), such Indemnified
Person or Indemnified Party shall, if a Claim in respect thereof is to
be made against any indemnifying party under this Section 6, deliver to
the indemnifying party a written notice of the commencement thereof,
and the indemnifying party shall have the right to participate in, and,
to the extent the indemnifying party so desires, jointly with any other
indemnifying party similarly noticed, to assume control of the defense
thereof with counsel mutually satisfactory to the indemnifying party
and the Indemnified Person or the Indemnified Party, as the case may
be; provided, however, that an Indemnified Person or Indemnified Party
shall have the right to retain its own counsel with the fees and
expenses to be paid by the indemnifying party, if, in the reasonable
opinion of counsel retained by the indemnifying party, the
representation by such counsel of the Indemnified Person or Indemnified
Party and the indemnifying party would be inappropriate due to actual
or potential differing interests between such Indemnified Person or
Indemnified Party and any other party represented by such counsel in
such proceeding.  The indemnifying party shall pay for only one
separate legal counsel for  the Indemnified Persons or the Indemnified
Parties, as applicable, and such legal counsel shall be selected by
Investors holding a majority-in-interest of the  Registrable Securities
included in the Registration Statement to which the Claim relates (with
the approval of a majority-in-interest of the Initial Investors), if
the Investors are entitled to indemnification hereunder, or the
Company, if the Company is entitled to indemnification hereunder, as
applicable.  The failure to deliver written notice to the indemnifying
party within a reasonable time of the commencement of any such action
shall not relieve such indemnifying party of any liability to the
Indemnified Person or Indemnified Party under this Section 6, except to
the extent that the indemnifying party is actually prejudiced in its
ability to defend such action.  The indemnification required by this
Section 6 shall be made by periodic payments of the amount thereof
during the course of the investigation or defense, as such expense,
loss, damage or liability is incurred and is due and payable.

                 7.   CONTRIBUTION.

        To the extent any indemnification by an indemnifying party is
prohibited or limited by law, the indemnifying party agrees to make the
maximum contribution with respect to any amounts for which it would
otherwise be liable under Section 6 to the fullest extent permitted by
law; provided, however, that (i) no contribution shall be made under

<PAGE>16

circumstances where the maker would not have been liable for
indemnification under the fault standards set forth in Section 6, (ii)
 no seller of Registrable Securities guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the 1933 Act)
shall be entitled to contribution from any seller of Registrable
Securities who was not guilty of such fraudulent misrepresentation, and
(iii)contribution (together with any indemnification or other
obligations under this Agreement) by any seller of Registrable
Securities shall be limited in amount to the net amount of proceeds
received by such seller from the sale of such Registrable Securities.

                 8.   REPORTS UNDER THE 1934 ACT.

        With a view to making available to the Investors the benefits of
Rule 144 promulgated under the 1933 Act or any other similar rule or
regulation of the SEC that may at any time permit the investors to sell
securities of the Company to the public without registration ("Rule
144"), the Company agrees to:

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

                        b.   file with the SEC in a timely manner all reports
and other documents required of the Company under the 1933 Act and the
1934 Act so long as the Company remains subject to such requirements
(it being understood that nothing herein shall limit the Company's
obligations under Section 4(c) of the Securities Purchase Agreement)
and the filing of such reports and other documents is required for the
applicable provisions of Rule 144; and

                        c.   furnish to each Investor so long as such
Investor owns Registrable Securities, promptly upon request, (i) a
written statement by the Company that it has complied with the
reporting requirements of Rule 144, the 1933 Act and the 1934 Act, (ii)
 a copy of the most recent annual or quarterly report of the Company
and such other reports and documents so filed by the Company, and (iii)
 such other information as may be reasonably requested to permit the
Investors to sell such securities pursuant to Rule 144 without
registration.

                 9.   ASSIGNMENT OF REGISTRATION RIGHTS.

        The rights under this Agreement shall be automatically assignable
by the Investors to any transferee of all or any portion of Registrable
Securities if: (i) the Investor agrees in writing with the transferee
or assignee to assign such rights, and a copy of such agreement is
furnished to the Company within a reasonable time after such
assignment, (ii) the Company is, within a reasonable time after such
transfer or assignment, furnished with written notice of (a) the name
and address of such transferee or assignee, and (b) the securities with
respect to which such registration rights are being transferred or
assigned, (iii) following such transfer or assignment, the further
disposition of such securities by the transferee or assignee is
restricted under the 1933 Act and applicable state securities laws,

<PAGE>17

(iv) at or before the time the Company receives the written notice
contemplated by clause (ii) of this sentence, the transferee or
assignee agrees in writing with the Company to be bound by all of the
provisions contained herein, (v) such transfer shall have been made in
accordance with the applicable requirements of the Securities Purchase
Agreement, and (vi) such transferee shall be an "accredited investor"
as that term defined in Rule 501 of Regulation D promulgated under the
1933 Act.

                 10.   AMENDMENT OF REGISTRATION RIGHTS.

        Provisions of this Agreement may be amended and the observance
thereof may be waived (either generally or in a particular instance and
either retroactively or prospectively), only with written consent of
the Company, each of the Initial Investors (to the extent such Initial
Investor still owns Registrable Securities) and Investors who hold a
majority interest of the Registrable Securities.  Any amendment or
waiver effected in accordance with this Section 10 shall be binding
upon each Investor and the Company.

                 11.   MISCELLANEOUS.

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

                        b.   Any notices required or permitted to be given
under the terms hereof 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:

Cross Atlantic Commodities, Inc.
1282 Camellia Circle
Weston, Florida 33326
Attention: Chief Executive Officer
Telephone: (754) 245-6453
Facsimile: [                 ]

With a copy to:

Anslow & Jaclin, LLP
195 Route 9, Suite 204
Manalapan, NJ 07726
Attention:   Richard I. Anslow, Esq.
<PAGE>18

Telephone:  (732) 409-1212
Facsimile:   (732) 577-1188

If to an Investor: to the address set forth immediately below such
Investor's name on the signature pages to the Securities Purchase
Agreement.

With a copy to:
Ballard Spahr Andrews & Ingersoll, LLP
1735 Market Street
51st Floor
Philadelphia, Pennsylvania  19103
Attention:  Gerald J. Guarcini, Esq.
Telephone:  215-865-8625
Facsimile:  215-864-8999

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

                        d.    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 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 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 ATTORNEYS' FEES, INCURRED BY THE PREVAILING PARTY
IN CONNECTION WITH SUCH DISPUTE.

                        e.   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.

                        f.   This Agreement, the Notes and the Securities
Purchase Agreement (including all schedules and exhibits thereto)
constitute the entire agreement among the parties hereto with respect
to the subject matter hereof and thereof.  There are no restrictions,
promises, warranties or undertakings, other than those set forth or

<PAGE>19

referred to herein and therein.  This Agreement and the Securities
Purchase Agreement supersede all prior agreements and understandings
among the parties hereto with respect to the subject matter hereof and
thereof.

                        g.   Subject to the requirements of Section 9 hereof,
this Agreement shall be binding upon and inure to the benefit of the
parties and their successors and assigns.

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

                        i.   This Agreement may be executed in two 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.

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

                        k.   Except as otherwise provided herein, all
consents and other determinations to be made by the Investors pursuant
to this Agreement shall be made by Investors holding a majority of the
Registrable Securities, determined as if the all of the Notes then
outstanding have been converted into for Registrable Securities.

                        l.   The Company acknowledges that a breach by it of
its obligations hereunder will cause irreparable harm to each Investor
by vitiating the intent and purpose of the transactions contemplated
hereby.  Accordingly, the Company acknowledges that the remedy at law
for breach of its obligations under this Agreement will be inadequate
and agrees, in the event of a breach or threatened breach by the
Company of any of the provisions under this Agreement, that each
Investor shall be entitled, in addition to all other available remedies
in 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.

                        m.   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.

<PAGE>20

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

CROSS ATLANTIC COMMODITIES, INC.

/s/ Michael Enemaerke
---------------------
Michael Enemaerke
Chief Executive Officer and President

AJW PARTNERS, LLC
By:  SMS Group, LLC
/s/ Corey S. Ribotsky
----------------------
Corey S. Ribotsky
Manager

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

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

AJW QUALIFIED PARTNERS, LLC
By:  AJW Manager, LLC
/s/ Corey S. Ribotsky
-----------------------
Corey S. Ribotsky
Manager

NEW MILLENNIUM CAPITAL PARTNERS, II, LLC
By:  First Street Manager II, LLC
/s/ Corey S. Ribotsky
------------------------
Corey S. Ribotsky
Manager

PHL_A #1956684 v1
	20

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