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Unassociated Document

    EXHIBIT
      10.1

    EMPLOYMENT
      AGREEMENT

    

    THIS
      EMPLOYMENT AGREEMENT
      (this "Agreement") is made and entered into effective as of February 16, 2007
      (the "Effective Date"), by and between Innovative Software Technologies, Inc.,
      a
      California corporation (the "Employer" or “Company”), and Philip D. Ellett, an
      individual resident in Texas (the "Executive").

    

    BACKGROUND:

    

    The
      Employer desires to employ the Executive as President and Chief Executive
      Officer of the Company, and the Executive desires to accept such employment,
      on
      the terms and subject to the conditions set forth in this
      Agreement.

    

    AGREEMENT

    

    The
      parties, intending to be legally bound, agree as follows:

    

    

    	1.  	
            EMPLOYMENT
              TERMS AND DUTIES

          

    

    1.1  Employment.
      The
      Employer hereby employs the Executive, and the Executive hereby accepts
      employment by the Employer, upon the terms and conditions set forth in this
      Agreement.

    

    1.2  Term.
      Employment is subject to the consent of the Board of Directors of the company
      and shall continue until terminated by the Board of Directors or Employee.
      

    

    1.3  Duties.
      The
      Executive will have such duties as are assigned or delegated to the Executive
      by
      the Board of Directors and will initially serve as Chief Executive Officer
      of
      the Employer. The Executive will devote his time, attention, skill, and energy
      to the business of the Employer on a full-time basis, will use his reasonable
      best efforts to promote the success of the Employer's business, and will
      cooperate fully with the Board of Directors in the advancement of the best
      interests of the Employer. Nothing in this Section 1.3 will prevent the
      Executive from engaging in additional business activities, personal investments
      and community affairs that are not inconsistent with the Executive's duties
      under this Agreement; however, Executive must obtain permission of the Board
      of
      Directors before serving on the board of directors of another company. If the
      Executive is elected as a director of the Employer or as a director or officer
      of any of its affiliates, the Executive will fulfill his duties as such director
      or officer without additional compensation.

    

    	2.  	
            COMPENSATION

          

    

    	2.1  	
            Basic
              Compensation.

          

    

    	(a)  	
            Salary.
              The Executive will be paid an annual salary of $84,000, subject to
              adjustment as provided below (the "Salary"), which will be payable
              in
              equal periodic installments according to the Employer's customary payroll
              practices, but no less frequently than monthly. The Salary will be
              reviewed by the Board of Directors not less frequently than annually,
              and
              may be adjusted upward or downward in the sole discretion of the Board
              of
              Directors, but in no event will the Salary be less than $84,000 per
              year.

          

    	(b)  	
            Initial
              Incentive Compensation.
              The Executive will be paid a bonus of $10,000 per quarter upon the
              Company
              meeting or exceeding the sales goal, such bonus to be paid in the
              following month. If the sales goal is not met that quarter, no bonus
              shall
              be paid. The Executive will be paid a bonus of $25,000 upon raising
              $3,000,000 or more between the date of execution of this agreement
              and
              June 30, 2007, said bonus to be paid within 30 days of closing the
              financing. The Executive will be paid a bonus of $25,000 upon operations
              hitting breakeven, such bonus to be paid in the month following the
              month
              of breakeven. In addition, when the company hits breakeven, Executive’s
              base salary will be raised to $100,000. 

          

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    	(c)  	
            Equity
              Grant.
              In consideration of Executive entering into this Agreement, the Company
              shall issue to Employee 6,000,000 options (the “Employment Options”) to
              purchase its common stock, with a strike price equal to the closing
              price
              on the Effective Date, to vest as follows: 1,000,000 vested on the
              Effective Date, and 138,889 to vest on January 31, 2008, and a like
              amount
              to vest on the last day of the month for each of the following 34 months,
              and the remaining options (138,885) vesting on the last day of the
              35th
              month. All unvested options will vest immediately upon a Change in
              Control
              of Employer, as defined in Exhibit A attached hereto. Shares issued
              upon
              exercise of said options will be issued in a transaction that is exempt
              from the registration requirements of the Securities Act of 1933, as
              amended, and such shares shall be, upon issuance, validly issued, fully
              paid, and non-assessable. The certificates representing said shares
              shall
              bear the Company’s standard restrictive
              legend.

          

    

    	(d)  	
            Benefits.
              The Executive will, during the Employment Period, be permitted to
              participate in such pension, profit sharing, bonus, life insurance,
              hospitalization, major medical or health plan, and other employee benefit
              plans of the Employer that may be in effect from time to time, to the
              extent the Executive is eligible under the terms of those plans
              (collectively, the "Benefits"). Employer will pay 100% of the health
              plan
              costs for Executive and his or her immediate
              family.

          

    

    2.2  Other
      Incentive Compensation.
      As
      additional compensation (the "Incentive Compensation") for the services to
      be
      rendered by the Executive pursuant to this Agreement, the Employer will pay
      the
      Executive with respect to each Fiscal Year during the Employment Period
      according to any performance-based incentive compensation plan (if any) that
      may
      be adopted by the Board of Directors from time to time for similar-level
      employees. However, the Company and/or its Board of Directors shall be under
      no
      obligation to implement any such plan, in which case Executive shall not be
      entitled to any Incentive Compensation hereunder.

    

    2.3  Withholding.
      All
      compensation and amounts payable to Executive pursuant to this Agreement other
      than the Signing Bonus shall be subject to all applicable taxes and payroll
      deductions.

    

    	3.  	
            FACILITIES
              AND EXPENSES

          

    

    The
      Employer will furnish the Executive office space, equipment, supplies, and
      such
      other facilities and personnel as the Employer deems necessary or appropriate
      for the performance of the Executive's duties under this Agreement. The Employer
      will pay on behalf of the Executive (or reimburse the Executive for) reasonable
      expenses incurred by the Executive at the request of, or on behalf of, the
      Employer in the performance of the Executive's duties pursuant to this
      Agreement, and in accordance with the Employer's expense reimbursement policies.
      The Executive must file expense reports with respect to such expenses in
      accordance with the Employer's policies.

    

    	4.  	
            VACATIONS
              AND HOLIDAYS

          

    

    The
      Executive will be entitled to four weeks of paid vacation each Fiscal Year
      in
      accordance with the vacation policies of the Employer in effect for its
      executive officers as modified from time to time. The Executive will also be
      entitled to the paid holidays and other paid leave set forth in the Employer's
      policies. 

    

    	5.  	
            TERMINATION

          

    

    Events
      of Termination.
      The
      Employment Period, the Executive's Basic Compensation and Incentive
      Compensation, and any and all other rights of the Executive under this Agreement
      or otherwise as an employee of the Employer will terminate (except as otherwise
      provided in this Section 5):

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    	(a)  	
            upon
              the death of the Executive;

          

    

    	(b)  	
            upon
              resignation by Executive; or

          

    

    	(c)  	
            upon
              the passing of a resolution by the Board of Directors to terminate
              employment of the Executive. If Executive is a member of the Board
              of
              Directors, Executive shall abstain from voting on said resolution.
              Following passage of such a resolution, the Chairman of the Board of
              Directors shall give notice of termination in writing to Executive.
              Upon
              termination, the Executive shall be paid his or her salary for the
              remainder of the month in which termination occurs, and (2) shall be
              paid
              any earned bonuses or other compensation
              due.

          

    

    

    	6.  	
            NON-DISCLOSURE
              COVENANT; EMPLOYEE INVENTIONS

          

    

    6.1  Acknowledgments
      by the Executive.
      The
      Executive acknowledges that (a) during the Employment Period and as a part
      of
      his employment, the Executive will be afforded access to Confidential
      Information; (b) public disclosure of such Confidential Information could have
      an adverse effect on the Employer and its business; (c) because the Executive
      possesses substantial technical expertise and skill with respect to the
      Employer's business, the Employer desires to obtain exclusive ownership of
      each
      Employee Invention, and the Employer will be at a substantial competitive
      disadvantage if it fails to acquire exclusive ownership of each Employee
      Invention; (d) the Employer has required that the Executive make the covenants
      in this Section 6 as a condition to employment; and (e) the provisions of this
      Section 6 are reasonable and necessary to prevent the improper use or disclosure
      of Confidential Information and to provide the Employer with exclusive ownership
      of all Employee Inventions.

    

    6.2  Agreements
      of the Executive.
      In
      consideration of the compensation and benefits to be paid or provided to the
      Executive by the Employer under this Agreement, the Executive covenants as
      follows:

    

    	(a)  	
            Confidentiality.

          

    

    	(i)  	
            During
              and at all times following the Employment Period, the Executive will
              hold
              in confidence the Confidential Information and will not disclose it
              to any
              person except with the specific prior written consent of the Employer
              or
              except as otherwise expressly permitted by the terms of this
              Agreement.

          

    

    	(ii)  	
            Any
              trade secrets of the Employer will be entitled to all of the protections
              and benefits under applicable state or federal law including trade
              secret
              law. If any information that the Employer deems to be a trade secret
              is
              found by a court of competent jurisdiction not to be a trade secret
              for
              purposes of this Agreement, such information will, nevertheless, be
              considered Confidential Information for purposes of this Agreement.
              The
              Executive hereby waives any requirement that the Employer submit proof
              of
              the economic value of any trade secret or post a bond or other
              security.

          

    

    	(iii)  	
            None
              of the foregoing obligations and restrictions applies to any part of
              the
              Confidential Information that the Executive demonstrates was or became
              generally available to the public other than as a result of a disclosure
              by the Executive.

          

    

    	(iv)  	
            The
              Executive will not remove from the Employer's premises (except to the
              extent such removal is for purposes of the performance of the Executive's
              duties at home or while traveling, or except as otherwise specifically
              authorized by the Employer) any document, record, notebook, plan, model,
              component, device, data, or computer software or code, whether embodied
              in
              a disk or in any other form (collectively, the "Proprietary Items").
              The
              Executive recognizes that, as between the Employer and the Executive,
              all
              of the Proprietary Items, whether or not developed by the Executive,
              are
              the exclusive property of the Employer. Upon termination of this Agreement
              by either party, or upon the request of the Employer during the Employment
              Period, the Executive will return to the Employer all of the Proprietary
              Items in the Executive's possession or subject to the Executive's control,
              and the Executive shall not retain any copies, abstracts, sketches,
              or
              other physical or electronic embodiment of any of the Proprietary
              Items.

          

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

     

    	(b)  	
            Employee
              Inventions.
              Each Employee Invention will belong exclusively to the Employer. The
              Executive acknowledges that all of the Executive's writing, works of
              authorship, and other Employee Inventions are works made for hire and
              the
              property of the Employer, including any copyrights, patents, semiconductor
              mask protection, or other intellectual property rights pertaining thereto.
              If it is determined that any such works are not works made for hire,
              the
              Executive hereby assigns to the Employer all of the Executive's right,
              title, and interest, including all rights of copyright, patent,
              semiconductor mask protection, and other intellectual property rights,
              to
              or in such Employee Inventions. The Executive covenants that he will
              promptly:

          

    

    	(i)  	
            disclose
              to the Employer in writing any Employee
              Invention;

          

    

    	(ii)  	
            assign
              to the Employer or to a party designated by the Employer, at the
              Employer's request and without additional compensation, all of the
              Executive's right to the Employee Invention for the United States and
              all
              foreign jurisdictions;

          

     

    	(iii)  	
            execute
              and deliver to the Employer such applications, assignments, and other
              documents as the Employer may request in order to apply for and obtain
              patents or other registrations with respect to any Employee Invention
              in
              the United States and any foreign
              jurisdictions;

          

    

    	(iv)  	
            sign
              all other papers necessary to carry out the above obligations;
              and

          

    

    	(v)  	
            give
              testimony and render any other assistance but without expense to the
              Executive in support of the Employer's rights to any Employee
              Invention.

          

    

    6.3  Disputes
      or Controversies.
      The
      Executive recognizes that should a dispute or controversy arising from or
      relating to this Agreement be submitted for adjudication to any court,
      arbitration panel, or other third party, the preservation of the secrecy of
      Confidential Information may be jeopardized. All pleadings, documents,
      testimony, and records relating to any such adjudication will be maintained
      in
      secrecy and will be available for inspection by the Employer, the Executive,
      and
      their respective attorneys and experts, who will agree, in advance and in
      writing, to receive and maintain all such information in secrecy, except as
      may
      be limited by them in writing.

    

    	7.  	
            NON-COMPETITION
              AND NON-INTERFERENCE

          

    

    7.1  Acknowledgments
      by the Executive.
      The
      Executive acknowledges that: (a) the services to be performed by him under
      this
      Agreement are of a special, unique, unusual, extraordinary, and intellectual
      character; (b) the Employer's business is national in scope and its products
      are
      marketed throughout the United States and Canada; (c) the Employer competes
      with
      other businesses that are or could be located in any part of the United States
      or Canada; (d) the Employer has required that the Executive make the covenants
      set forth in this Section 7 as a condition to employment by Employer; and (e)
      the provisions of this Section 7 are reasonable and necessary to protect the
      Employer's business.

    

    7.2  Covenants
      of the Executive.
      In
      consideration of the acknowledgments by the Executive, and in consideration
      of
      the compensation and benefits to be paid or provided to the Executive by the
      Employer, the Executive covenants that he will not, directly or
      indirectly:

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    	(a)  	
            during
              the Employment Period, except in the course of his employment hereunder,
              and during the Post-Employment Period, engage or invest in, own, manage,
              operate, finance, control, or participate in the ownership, management,
              operation, financing, or control of, be employed by, associated with,
              or
              in any manner connected with, lend the Executive's name or any similar
              name to, lend Executive's credit to or render services or advice to,
              any
              business whose products or activities compete in whole or in part with
              the
              products or activities of the Employer

          

    

    	(b)  	
            whether
              for the Executive's own account or for the account of any other person,
              at
              any time during the Employment Period and the Post-Employment Period,
              solicit business of the same or similar type being carried on by the
              Employer, from any person known by the Executive to be a customer of
              the
              Employer, whether or not the Executive had personal contact with such
              person during and by reason of the Executive's employment with the
              Employer;

          

    

    	(c)  	
            whether
              for the Executive's own account or the account of any other person
              (i) at
              any time during the Employment Period and the Post-Employment Period,
              solicit, employ, or otherwise engage as an employee, independent
              contractor, or otherwise, any person who is or was an employee of the
              Employer at any time during the Employment Period or in any manner
              induce
              or attempt to induce any employee of the Employer to terminate his
              employment with the Employer; or (ii) at any time during the Employment
              Period and for three years thereafter, interfere with the Employer's
              relationship with any person, including any person who at any time
              during
              the Employment Period was an employee, contractor, supplier, or customer
              of the Employer; or

          

    

    	(d)  	
            at
              any time during or after the Employment Period, disparage the Employer
              or
              any of its shareholders, directors, officers, employees, or
              agents.

          

    

    For
      purposes of this Section 7.2, the term "Post-Employment Period" means the one
      year period beginning on the date of termination of the Executive's employment
      with the Employer.

    

    If
      any
      covenant in this Section 7.2 is held to be unreasonable, arbitrary, or against
      public policy, such covenant will be considered to be divisible with respect
      to
      scope, time, and geographic area, and such lesser scope, time, or geographic
      area, or all of them, as a court of competent jurisdiction may determine to
      be
      reasonable, not arbitrary, and not against public policy, will be effective,
      binding, and enforceable against the Executive.

    

    The
      period of time applicable to any covenant in this Section 7.2 will be extended
      by the duration of any violation by the Executive of such covenant.

    

    The
      Executive will, while the covenant under this Section 7.2 is in effect, give
      notice to the Employer, within ten days after accepting any other employment,
      of
      the identity of the Executive's employer. The Employer may notify such employer
      that the Executive is bound by this Agreement and, at the Employer's election,
      furnish such employer with a copy of this Agreement or relevant portions
      thereof.

    

    	8.  	
            GENERAL
              PROVISIONS

          

    

    8.1  Injunctive
      Relief and Additional Remedy.
      The
      Executive acknowledges that the injury that would be suffered by the Employer
      as
      a result of a breach of the provisions of this Agreement (including any
      provision of Sections 6 and 7) would be irreparable and that an award of
      monetary damages to the Employer for such a breach would be an inadequate
      remedy. Consequently, the Employer will have the right, in addition to any
      other
      rights it may have, to obtain injunctive relief to restrain any breach or
      threatened breach or otherwise to specifically enforce any provision of this
      Agreement, and the Employer will not be obligated to post bond or other security
      in seeking such relief. Without limiting the Employer's rights under this
      Section 8 or any other remedies of the Employer, if the Executive breaches
      any
      of the provisions of Section 6 or 7, the Employer will have the right to cease
      making any payments otherwise due to the Executive under this
      Agreement.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    8.2  Covenants
      of Sections 6 and 7 are Essential and Independent
      Covenants.
      The
      covenants by the Executive in Sections 6 and 7 are essential elements of this
      Agreement, and without the Executive's agreement to comply with such covenants,
      Employer would not have entered into this Agreement or employed or continued
      the
      employment of the Executive. The Employer and the Executive have independently
      consulted their respective counsel and have been advised in all respects
      concerning the reasonableness and propriety of such covenants, with specific
      regard to the nature of the business conducted by the Employer.

    

    The
      Executive's covenants in Sections 6 and 7 are independent covenants and the
      existence of any claim by the Executive against the Employer under this
      Agreement or otherwise will not excuse the Executive's breach of any covenant
      in
      Section 6 or 7.

    

    If
      the
      Executive's employment hereunder expires or is terminated, this Agreement will
      continue in full force and effect as is necessary or appropriate to enforce
      the
      covenants and agreements of the Executive in Sections 6 and 7.

    

    8.3  Representations
      and Warranties by the Executive.
      The
      Executive represents and warrants to the Employer that the execution and
      delivery by the Executive of this Agreement does not, and the performance by
      the
      Executive of the Executive's obligations hereunder will not, with or without
      the
      giving of notice or the passage of time, or both: (a) violate any judgment,
      writ, injunction, or order of any court, arbitrator, or governmental agency
      applicable to the Executive; or (b) conflict with, result in the breach of
      any
      provisions of or the termination of, or constitute a default under, any
      agreement to which the Executive is a party or by which the Executive is or
      may
      be bound.

    

    8.4  Waiver.
      The
      rights and remedies of the parties to this Agreement are cumulative and not
      alternative. Neither the failure nor any delay by either party in exercising
      any
      right, power, or privilege under this Agreement will operate as a waiver of
      such
      right, power, or privilege, and no single or partial exercise of any such right,
      power, or privilege will preclude any other or further exercise of such right,
      power, or privilege or the exercise of any other right, power, or privilege.
      To
      the maximum extent permitted by applicable law, (a) no claim or right arising
      out of this Agreement can be discharged by one party, in whole or in part,
      by a
      waiver or renunciation of the claim or right unless in writing signed by the
      other party; (b) no waiver that may be given by a party will be applicable
      except in the specific instance for which it is given; and (c) no notice to
      or
      demand on one party will be deemed to be a waiver of any obligation of such
      party or of the right of the party giving such notice or demand to take further
      action without notice or demand as provided in this Agreement.

    

    8.5  Binding
      Effect; Delegation of Duties Prohibited.
      This
      Agreement shall inure to the benefit of, and shall be binding upon, the parties
      hereto and their respective successors, assigns, heirs, and legal
      representatives, including any entity with which the Employer may merge or
      consolidate or to which all or substantially all of its assets may be
      transferred. The duties and covenants of the Executive under this Agreement,
      being personal, may not be delegated.

    

    8.6  Notices.
      All
      notices, consents, waivers, and other communications under this Agreement must
      be in writing and will be deemed to have been duly given when (a) delivered
      by
      hand (with written confirmation of receipt), (b) sent by facsimile (with written
      confirmation of receipt), provided that a copy is mailed by registered mail,
      return receipt requested, or (c) when received by the addressee, if sent by
      a
      nationally recognized overnight delivery service (receipt requested), in each
      case to the appropriate addresses and facsimile numbers set forth below (or
      to
      such other addresses and facsimile numbers as a party may designate by notice
      to
      the other parties):

    

    If
      to
      Employer:                            
Innovative
      Software Technologies, Inc.

    3998
      FAU
      Blvd., Bldg 1-210

    Boca
      Raton, FL 33431

    Facsimile
      No.:(561) 417-7253

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

     

    

    If
      to the
      Executive:                       Philip
      D.
      Ellett

    15900
      Soleil Court

    Austin,
      TX 78734 

    Facsimile
      No.: (512) 266-1055

    

    8.7  Entire
      Agreement; Amendments.
      This
      Agreement contains the entire agreement between the parties with respect to
      the
      subject matter hereof and supersedes all prior agreements and understandings,
      oral or written, between the parties hereto with respect to the subject matter
      hereof. This Agreement may not be amended orally, but only by an agreement
      in
      writing signed by the parties hereto.

    

    8.8  Governing
      Law.
      This
      Agreement will be governed by the laws of the State of Texas without regard
      to
      conflicts of laws principles.

    

    8.9  Jurisdiction.
      Any
      action or proceeding seeking to enforce any provision of, or based on any right
      arising out of, this Agreement may be brought against either of the parties
      in
      the courts of the State of Florida County of Palm Beach, or, if it has or can
      acquire jurisdiction, in the United States District Court for the Southeast
      District of Florida, and each of the parties consents to the jurisdiction of
      such courts (and of the appropriate appellate courts) in any such action or
      proceeding and waives any objection to venue laid therein. Process in any action
      or proceeding referred to in the preceding sentence may be served on either
      party anywhere in the world.

    

    8.10  Section
      Headings, Construction.
      The
      headings of Sections in this Agreement are provided for convenience only and
      will not affect its construction or interpretation. All references to "Section"
      or "Sections" refer to the corresponding Section or Sections of this Agreement
      unless otherwise specified. All words used in this Agreement will be construed
      to be of such gender or number as the circumstances require. Unless otherwise
      expressly provided, the word "including" does not limit the preceding words
      or
      terms.

    

    8.11  Severability.
      If any
      provision of this Agreement is held invalid or unenforceable by any court of
      competent jurisdiction, the other provisions of this Agreement will remain
      in
      full force and effect. Any provision of this Agreement held invalid or
      unenforceable only in part or degree will remain in full force and effect to
      the
      extent not held invalid or unenforceable.

    

    8.12  Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which will be
      deemed to be an original copy of this Agreement and all of which, when taken
      together, will be deemed to constitute one and the same agreement.

    

    8.13  Waiver
      of Jury Trial.
      THE
      PARTIES HERETO HEREBY WAIVE A JURY TRIAL IN ANY LITIGATION WITH RESPECT TO
      THIS
      AGREEMENT.

    

    IN
      WITNESS WHEREOF, the parties have executed and delivered this Agreement as
      of
      the date above first written above.

    

    
      	EMPLOYER: 	 	EXECUTIVE: 
	 	 	 
	By:
              ____________________________________ 	 	_________________________________
	Traver Gruen-Kennedy, Chairman of the
              Board 	 	Philip D.
              Ellett 

    

          

      

    
      
         

      

      
        7

        
          

        

      

      
         

      

       

    

    EXHIBIT
      A

    Definitions

    

    "Agreement"--this
      Employment Agreement, including this Exhibit A hereto, as amended from time
      to
      time.

    

    "Basic
      Compensation"--Salary
      and Benefits.

    

    "Benefits"--as
      defined in Section 2.1(d).

    

    "Board
      of Directors"--the
      board of directors of the Employer.

    

    “Change
      in Control"
      --shall be deemed to have occurred upon the happening of any one of the
      following events:

    	a.  	
            any
              person, entity, or group thereof acting in concert (a "Person") (other
              than (A) the Employee, or any “affiliate” (as defined in Rule 12b-2 of the
              Securities Exchange Act of 1934) of any of the foregoing, (B) the Company
              or any of its subsidiaries, (C) a trustee or other fiduciary holding
              securities under any employee benefit plan of the Company or any of
              its
              subsidiaries, (D) an underwriter temporarily holding securities pursuant
              to an offering of such securities or (E) a corporation owned, directly
              or
              indirectly, by the stockholders of the Company in substantially the
              same
              proportions as their ownership of stock in the Company) being or becoming
              the "beneficial owner" (as such term is defined in Rule 13d-3 under
              the
              Securities Exchange Act of 1934) of securities of the Company which,
              together with securities previously owned, confer upon such Person
              the
              combined voting power, on any matters brought to a vote of shareholders,
              of 50% or more of the then outstanding shares of voting securities
              of the
              Company; or

          

     

    	b.  	
            the
              sale, assignment or transfer of assets of the Company or any subsidiary
              or
              subsidiaries, in a transaction or series of transactions, if the aggregate
              consideration received or to be received by the Company or any such
              subsidiary in connection with such sale, assignment or transfer is
              greater
              than fifty percent (50%) of the book value, determined by the Company
              in
              accordance with generally accepted accounting principles, of the Company's
              assets determined on a consolidated basis immediately before such
              transaction or the first of such transactions;
              or

          

    

    	c.  	
            the
              merger, consolidation, share exchange or reorganization of the Company
              (or
              one or more direct or indirect subsidiaries of the Company) as a result
              of
              which the holders of all of the shares of capital stock of the Company
              as
              a group would receive fifty percent (50%) or less of the combined voting
              power of the voting securities of the Company or such surviving or
              resulting entity or any parent thereof immediately after such merger,
              consolidation, share exchange or reorganization;
              or

          

    

    	d.  	
            the
              adoption of a plan of complete liquidation or the approval of the
              dissolution of the Company; or 

          

    

    	e.  	
            the
              commencement (within the meaning of Rule 13e-4 under the Securities
              Exchange Act of 1934) of a tender or exchange offer which, if successful,
              would result in a Change of Control of the Company; or
              

          

    

    	f.  	
            a
              determination by the Board of Directors of the Company, in view of the
              then current circumstances or impending events, that a Change of Control
              of the Company has occurred or is imminent, which determination shall
              be
              made for the specific purpose of triggering the operative provisions
              of
              this Agreement.

          

    

    "Confidential
      Information"--any
      and
      all:

    

    	a.  	
            trade
              secrets concerning the business and affairs of the Employer, product
              specifications, data, know-how, formulae, compositions, processes,
              designs, sketches, photographs, graphs, drawings, samples, inventions
              and
              ideas, past, current, and planned research and development, current
              and
              planned manufacturing or distribution methods and processes, customer
              lists, current and anticipated customer requirements, price lists,
              market
              studies, business plans, computer software and programs (including
              object
              code and source code), computer software and database technologies,
              databases, systems, structures, and architectures (and related formulae,
              compositions, processes, improvements, devices, know-how, inventions,
              discoveries, concepts, ideas, designs, methods and information), and
              any
              other information, however documented, that is a trade secret within
              the
              meaning of the Florida Uniform Trade Secrets Act;
              and

          

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

     

    	b.  	
            information
              concerning the business and affairs of the Employer (which includes
              historical financial statements, financial projections and budgets,
              historical and projected sales, capital spending budgets and plans,
              the
              names and backgrounds of key personnel, personnel training and techniques
              and materials), however documented except as disclosed by Employer
              to the
              public; and

          

    

    	c.  	
            notes,
              analysis, compilations, studies, summaries, and other material prepared
              by
              or for the Employer containing or based, in whole or in part, on any
              information included in the foregoing.

          

    

    "disability"--as
      defined in Section 5.2.

    

    "Effective
      Date"--the
      date stated in the first paragraph of the Agreement.

    

    "Employee
      Invention"--any
      idea, invention, technique, modification, process, or improvement (whether
      patentable or not), any industrial design (whether registerable or not), any
      mask work, however fixed or encoded, that is suitable to be fixed, embedded
      or
      programmed in a semiconductor product (whether recordable or not), and any
      work
      of authorship (whether or not copyright protection may be obtained for it)
      created, conceived, or developed by the Executive, either solely or in
      conjunction with others, during the Employment Period, or a period that includes
      a portion of the Employment Period, that relates directly to the business then
      being conducted or proposed to be conducted by the Employer, and any such item
      created by the Executive, either solely or in conjunction with others, following
      termination of the Executive's employment with the Employer, that is based
      upon
      or uses Confidential Information. 

    

    "Employment
      Period"--the
      term of the Executive's employment under this Agreement.

    

    "Fiscal
      Year"--the
      Employer's fiscal year, as it exists on the Effective Date or as changed from
      time to time.

    

    "for
      cause"--as
      defined in Section 5.3.

    

    "for
      good reason"--as
      defined in Section 5.4.

    

    "Incentive
      Compensation"--as
      defined in Section 2.2.

    

    "Noncompetition
      Agreement"--as
      defined in Section 7.

    

    "person"--any
      individual, corporation (including any non-profit corporation), general or
      limited partnership, limited liability company, joint venture, estate, trust,
      association, organization, or governmental body.

    

    "Post-Employment
      Period"--as
      defined in Section 7.2.

    

    "Proprietary
      Items"--as
      defined in Section 6.2(a)(iv).

    

    "Salary"--as
      defined in Section 2.1(a).

     

    
      
         

      

      
        9Execution
      Copy

     

    Exhibit
      10.1      

     

     

    Proposed
      Financing

     

    of

     

    ParkerVision,
      Inc.

     

    

     

    

     

    

     

    By
      reading the information contained within this document, the recipient agrees
      with ParkerVision, Inc. to maintain in confidence such information, together
      with any other non-public information regarding ParkerVision, Inc. obtained
      from
      ParkerVision, Inc. and its agents during the course of the proposed financing.
      ParkerVision, Inc. has caused these materials to be delivered to you in reliance
      upon such agreement and upon Rule 100(b)(2)(ii) of Regulation FD as promulgated
      by the Securities and Exchange Commission.

    

     

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    CONFIDENTIAL

    SUMMARY
      OF TERMS AND CONDITIONS

     

    This
      Confidential Summary of Terms and Conditions is not intended to be contractually
      binding, other than the section entitled “Confidential Information,” and is
      subject in all respects (other than with respect to such section) to the
      execution of the Stock Purchase Agreement.

     

    
      	
              Issuer:

            	 	
              ParkerVision,
                Inc., a Florida corporation (the “Company”).

            
	 	 	 
	
              Securities
                Offered:

            	 	
              1,075,000
                shares (the “Shares”) of common stock, par value $.01 per share
                

              (the
                “Common Stock”), subject to adjustment by the Company (the “Offering”).
                

            
	 	 	 
	
              Pre-
                and Post-Offering Capitalization of the Company:

            	 	
              Type

            	
              Pre-Financing
                

              Shares(1)

            	
              Post-Financing
                

              Shares(2)

            
	 	 	
              Common
                Stock

            	
              23,387,566

            	
              24,462,566

            
	 	 	
              Stock
                Options and Warrants(3)

            	
              7,998,370

            	
              7,998,370

            
	 	 	
              Total

            	
              31,385,936

            	
              32,460,936

            
	 	 	 	 	 
	 	 	
              (1) As
                of February 15, 2007.

            
	 	 	
              (2) 
                Assumes 1,075,000 Shares sold by the Company in the
                Offering.

            
	 	 	
              
                (3) 
                  Includes outstanding options that were exercisable as of February
                  14, 2007
                  

                    
                  but excludes unvested options covering 969,148
                  shares.

              

            

    

    

    
      	
              Purchase
                Price: 

            	 	
              The
                purchase price of the Common Stock sold in the Offering will be
                $8.50.

            
	 	 	 
	
              Use
                of Proceeds to Company:

            	 	
              For
                continued research and development, manufacturing and marketing,
                working
                capital and general corporate purposes.

            
	 	 	 
	
              Subscription
                Date and Closing Date: 

            	 	
              The
                Company and each investor participating in this Offering (individually
                an
                “Investor” and collectively, the “Investors”) shall execute a Stock
                Purchase Agreement in substantially the form set forth herein and
                each
                Investor shall execute an Investor Questionnaire in substantially
                the form
                set forth herein. The date as of which the Company has executed Stock
                Purchase Agreements with Investors for the purchase of at least 950,000
                Shares is sometimes referred to herein as the “Subscription Date.” The
                closing of the Offering shall occur, and certificates representing
                the
                Shares shall be issued to the Investors and funds paid to the Company
                therefor, on February 23, 2007 (the “Closing Date”).

            
	 	 	 
	
              Investor
                Qualifications: 

            	 	
              Each
                Investor must be an “accredited investor” as defined in Regulation D of
                the Securities Act of 1933, as amended (the “Securities Act”), and must
                represent and warrant to the Company that it is acquiring the Shares
                for
                investment with no present intention of distributing any of the Shares.
                The Stock Purchase Agreement contains other appropriate representations
                and warranties of the Investor to the Company. As part of the Stock
                Purchase Agreement signature page, the Company has included certain
                questions for each Investor to complete regarding such Investor.
                In
                addition, the Investor Questionnaire set forth herein contains questions
                for each Investor regarding its status as an “accredited investor.” The
                Company will use the answers from each Investor as part of its own
                procedures to confirm the accuracy of the statements as to such Investor
                in the Registration Statement, including the information in the sections
                to be entitled “Selling Stockholders” and “Plan of Distribution.” The
                Investors might be deemed “underwriters” as that term is defined in the
                Securities Act. Underwriters have statutory responsibilities as to
                the
                accuracy of any Registration Statement used by
                them.

            

    

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

     

    
      	 	 	 
	
              Registration
                of Common Stock:

            	 	
              The
                Company will use its reasonable commercial efforts, subject to receipt
                of
                necessary information from the Investors, to cause a Registration
                Statement on Form S-3 relating to the resale of the Common Stock
                by the
                Investors to be filed with the Securities and Exchange Commission
                (the
                “SEC”) within 45 days following the Closing Date and to cause such
                Registration Statement to become effective on or prior to the earlier
                of
                (i) the fifth trading day following the date the Company is notified
                by
                the SEC that the Registration Statement will not be reviewed or is
                no
                longer subject to review, and (ii) 120 days after the Closing Date.
                Subject to certain blackout periods, the Company is obligated to
                use
                reasonable commercial efforts, with respect to each Investor’s Shares
                purchased in the Offering, to maintain the Registration Statement’s
                effectiveness until the earlier of (i) two years after the closing
                of the
                Offering or (ii) such time as all Shares purchased by such Investor
                in the
                Offering have been sold pursuant to a registration
                statement.

            
	 	 	 
	
              Liquidated
                Damages:

            	 	
              In
                the event that the Registration Statement: (i) is not filed by the
                Company
                within 45 days after the Closing Date; (ii) is not declared effective
                by
                the SEC 90 days after the Closing Date, or the earlier of (i) the
                fifth
                trading day following the date the Company is notified by the SEC
                that the
                Registration Statement will not be reviewed or is no longer subject
                to
                review, and (ii) 120 days after the Closing Date (the “Effective Date”);
                or (iii) once effective, ceases to be effective and available to
                Investors
                for any continuous period that exceeds 30 days or for one or more
                periods
                that exceed in the aggregate 60 days in any 12-month period (each,
                a
                “Registration Default”), the Company shall pay the Investors, for each
                30-day period of a Registration Default, an amount in cash equal
                to 1% of
                the aggregate purchase price paid by Investors. The maximum penalty
                shall
                be 10% of the aggregate purchase price. The foregoing payments shall
                apply
                on a pro rata basis for any portion of a 30-day period of a Registration
                Default. Notwithstanding the foregoing, the penalty shall be allocated
                to
                the Investor based on a ratio of the Shares owned by the Investor
                at the
                time of the Registration Default to the Shares purchased by the Investor
                under the Stock Purchase Agreement.

            
	 	 	 
	
              Limitations
                on Sales Pursuant to Registration Statement:

            	 	
              To
                resell Shares pursuant to the Registration Statement, the Investor
                will be
                required to:

            
	 	 	 
	 	 	
              (a)  Deliver,
                prior to selling any Shares, a current prospectus of the Company
                

                    
                to the transferee (or arrange for delivery to the transferee’s broker).
                Upon 

                    
                receipt of a written request therefor, the Company has agreed to
                provide
                an

                    
                adequate number of current prospectuses to each Investor and to supply
                

                    
                copies to any other parties requiring such prospectuses. In certain
                circumstances,

                    
                the Company may suspend the effectiveness of the Registration Statement
                for

                    
                certain periods of time during which the Investors will not be able
                to
                resell their

                     Shares.
                In the event of such a suspension, the Company will notify each
                Investor

                    
                in writing and, subject to certain conditions, will use reasonable
                commercial efforts

                    
                to cause the use of the prospectus so suspended to be resumed as
                soon
                as

                    
                reasonably practicable within 20 business days after such suspension
                begins,

                    
                and will promptly deliver a revised prospectus, if applicable, for
                each
                Investor’s

                    
                use.

            

    

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

     

     

    
      	 	 	
              (b) 
                Deliver
                the stock certificate along with the Certificate of Subsequent Sale
                in
                

                    
                the form attached to the Stock Purchase Agreement to the Company
                and its
                

                    
                transfer agent so that the Shares may be properly
                transferred.

            
	 	 	 
	
              Share
                Certificates:

            	 	
              Certificates
                evidencing the Shares which are delivered to each Investor on the
                Closing
                Date will bear a restrictive legend stating that such Shares have
                been
                sold pursuant to the Stock Purchase Agreement and that they may not
                be
                resold except as permitted under the Securities Act pursuant to a
                Registration Statement that has been declared effective or an exemption
                therefrom, and may be resold subject to certain limitations and procedures
                agreed to in the Stock Purchase Agreement.

            
	 	 	 
	
              Indemnification:

            	 	
              By
                executing the Stock Purchase Agreement, each Investor will agree
                to
                indemnify the Company against certain liabilities.

            
	 	 	 
	
              Risk
                Factors:

            	 	
              The
                Shares offered hereby involve a high degree of risk. See the disclosure
                relating to the risks affecting the Company set forth in the documents
                filed by the Company with the SEC under the Securities Exchange Act
                of
                1934, as amended and the rules and regulations promulgated thereunder
                (the
                “Exchange Act”).

            
	 	 	 
	
              Nasdaq
                National Market (“Nasdaq”) Symbol:

            	 	
              PRKR

            
	 	 	 
	
              Confidential
                Information:

            	 	
              The
                recipient of this Confidential Summary of Terms and Conditions and
                the
                materials attached hereto agrees with the Company to maintain in
                confidence this disclosed information, together with any other non-public
                information regarding the Company obtained from the Company or its
                agents
                during the course of the proposed Offering. The Company has caused
                these
                materials to be delivered to you in reliance upon such agreement
                and upon
                Rule 100(b)(2)(ii) of Regulation FD as promulgated by the
                SEC.

            
	 	 	 
	
              Company’s
                Counsel: 

            	 	
              Graubard
                Miller, 405 Lexington Avenue, 19th
                Floor, New York, NY 10174

            
	 	 	 
	
              Transfer
                Agent:

            	 	
              American
                Stock Transfer & Trust Company

            

    

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    INSTRUCTION
      SHEET FOR INVESTOR

    

    (to
      be
      read in conjunction with the entire Stock Purchase Agreement and Investor
      Questionnaire)

    

    A. Complete
      the following items in the Stock Purchase Agreement and in the Investor
      Questionnaire:

     

    1. Provide
      the information regarding the Investor requested on the signature pages. Please
      submit a separate Stock Purchase Agreement and Investor Questionnaire for each
      individual fund/entity that will hold the Shares. The Stock Purchase Agreement
      and the Investor Questionnaire must be executed by an individual authorized
      to
      bind the Investor.

    

    2. Return
      the signed Stock Purchase Agreement and Investor Questionnaire to: 

    

    
      	
                      ParkerVision,
                Inc. 

                      7915
                Baymeadows Way

                      Jacksonville,
                FL 32256

                      Attn:
                Cindy Poehlman

                      Phone:
                (904) 737-1367 ext.1116

                      Fax:
                (904) 448-6301 

            	 
	
               

                      And
                fax
                copies to:

               

                      Graubard
                Miller

                      405
                Lexington Avenue, 19th
                Floor

                      New
                York, NY 10174

                      Attn:
                David Alan Miller 

                      Phone:
                (212) 818-8661

                      Fax:
                (212) 818-8881

            	 

    

    

    An
      executed original Stock Purchase Agreement and Investor Questionnaire or a
      fax
      thereof must be received by 2:00 p.m., New York City time, on a date to be
      determined and distributed to the Investor at a later date.

    

    
      	
              B.

            	
              Instructions
                regarding the transfer of funds for the purchase of Shares will be
                faxed
                to the Investor by the Company at a later
                date.

            

      	 	 

      	C.	
              To
                resell the Shares after the Registration Statement covering the Shares
                is
                effective:

            

    

    

    1. Provided
      that a Suspension of the Registration Statement pursuant to Section 7.2(c)
      of the Stock Purchase Agreement is not then in effect pursuant to the terms
      of
      the Stock Purchase Agreement, the Investor may sell Shares under the
      Registration Statement, subject to the notification provisions in the Stock
      Purchase Agreement, provided that it arranges for delivery of a current
      Prospectus to the transferee. The Company has agreed to furnish to the Investor
      such number of copies of the Registration Statement, Prospectuses and
      Preliminary Prospectuses as the Investor may reasonably request.

    

    2. The
      Investor must also deliver to the Company’s transfer agent, with a copy to the
      Company, a Certificate of Subsequent Sale in the form attached as Exhibit
      A
      to the
      Stock Purchase Agreement, so that the Shares may be properly transferred.

    

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    STOCK
      PURCHASE AGREEMENT

    

    ParkerVision,
      Inc.

    7915
      Baymeadows Way

    Jacksonville,
      FL 32256

    

    Ladies
      & Gentlemen: 

    

    The
      undersigned, _____________________________ (the “Investor”), hereby confirms its
      agreement with you as follows:

    

    1. This
      Stock Purchase Agreement (the “Agreement”) is made as of February 21, 2007
      between ParkerVision, Inc., a Florida corporation (the “Company”), and the
      Investor.

    

    2. The
      Company has authorized the sale and issuance of up to 1,075 ,000 shares (the
      “Shares”) of common stock of the Company, $.01 par value per share (the “Common
      Stock”), to certain investors in a private placement (the
“Offering”).

    

    3. The
      Company and the Investor agree that the Investor will purchase from the Company
      and the Company will issue and sell to the Investor ___________ Shares, for
      a
      purchase price of $8.50 per share, or an aggregate purchase price of
      $_______________, pursuant to the Terms and Conditions for Purchase of Shares
      attached hereto as Annex I and incorporated herein by reference as if fully
      set forth herein (the “Terms and Conditions”). This Stock Purchase Agreement,
      together with the Terms and Conditions which are incorporated herein by
      reference as if fully set forth herein, may hereinafter be referred to as the
      “Agreement.” Unless otherwise requested by the Investor, certificates
      representing the Shares purchased by the Investor will be registered in the
      Investor’s name and address as set forth below.

    

    4. The
      Investor represents that, except as set forth below, (a) it has had no position,
      office or other material relationship within the past three years with the
      Company or persons known to it to be affiliates of the Company, (b) neither
      it,
      nor any group of which it is a member or to which it is related, beneficially
      owns (including the right to acquire or vote) any securities of the Company
      and
      (c) it has no direct or indirect affiliation or association with any NASD member
      as of the date hereof. Exceptions:

     

      
        

      

    

    
      
        

      

    

    (If
      no
      exceptions, write “none.” If left blank, response will be deemed to be
“none.”)

    

    Please
      confirm that the foregoing correctly sets forth the agreement between us by
      signing in the space provided below for that purpose. By executing this
      Agreement, the Investor acknowledges that the Company may use the information
      in
      paragraph 4 above and the name and address information below in preparation
      of
      the Registration Statement (as defined in Annex 1).

    

    
      	
              AGREED
                AND ACCEPTED:

            	 
	
              ParkerVision,
                Inc.

            	
              Investor:
                ___________________________________

            
	 	 
	 	
              By:
                _______________________________________ 

            
	___________________________________ 	 
	
              By:
                Cynthia Poehlman

            	
              Print
                Name: _________________________________ 

            
	
              Title:
                Chief Financial Officer

            	 
	
            	
              Title:
                _____________________________________ 

            
	 	 
	
            	
              Address:
                __________________________________ 

            
	 	 
	 	 
	
            	
              Tax
                ID No.: _________________________________ 

            
	 	 
	
            	
              Contact
                name: _______________________________ 

            
	 	 
	
            	
              Telephone:
                _________________________________ 

            
	 	 
	
            	
              Name
                in which shares should be registered (if different):

            
	 	_________________________________________  

    

    

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    ANNEX
      I

    

    TERMS
      AND CONDITIONS FOR PURCHASE OF SHARES

    

    1. Authorization
      and Sale of the Shares.
      Subject
      to these Terms and Conditions, the Company has authorized the sale of up to
      1,075,000 Shares. The Company reserves the right to increase or decrease this
      number.

    

    2. Agreement
      to Sell and Purchase the Shares; Subscription Date.

    

    2.1 At
      the
      Closing (as defined in Section 3), the Company will sell to the Investor,
      and the Investor will purchase from the Company, upon the terms and conditions
      hereinafter set forth, the number of Shares set forth in Section 3 of the Stock
      Purchase Agreement to which these Terms and Conditions are attached at the
      purchase price set forth thereon.

    

    2.2 The
      Company may enter into the same form of Stock Purchase Agreement, including
      these Terms and Conditions, with other investors (the “Other Investors”) and
      expects to complete sales of Shares to them. (The Investor and the Other
      Investors are hereinafter sometimes collectively referred to as the “Investors,”
and the Stock Purchase Agreement to which these Terms and Conditions are
      attached and the Stock Purchase Agreements (including attached Terms and
      Conditions) executed by the Other Investors are hereinafter sometimes
      collectively referred to as the “Agreements.”) The Company may accept executed
      Agreements from Investors for the purchase of Shares commencing upon the date
      on
      which the Company provides the Investors with the proposed purchase price per
      Share and concluding upon the date (the “Subscription Date”) on which the
      Company has executed Agreements with Investors for the purchase of at least
      950,000 Shares. The Company may not enter into any Agreements after the
      Subscription Date.

    

    2.3 The
      obligations of each Investor under any Agreement are several and not joint
      with
      the obligations of any Other Investor, and no Investor shall be responsible
      in
      any way for the performance of the obligations of any other Investor under
      any
      Agreement. Nothing contained herein, and no action taken by any Investor hereto,
      shall be deemed to constitute the Investors as a partnership, an association,
      a
      joint venture or any other kind of entity, or create a presumption that the
      Investors are in any way acting in concert or as a group with respect to such
      obligations or the transactions contemplated hereby, provided that such
      obligations or the transactions contemplated hereby may be modified, amended
      or
      waived in accordance with Section 9 below. Each Investor shall be entitled
      to
      independently protect and enforce its rights, including without limitation
      the
      rights arising out of this Agreement (provided, that such rights may be
      modified, amended or waived in accordance with Section 9 below), and it shall
      not be necessary for any Other Investor to be joined as an additional party
      in
      any proceeding for such purpose.

    

    3. Delivery
      of the Shares at Closing.
      The
      completion of the purchase and sale of the Shares (the “Closing”) shall occur
      (the “Closing Date”) on February 23, 2007, at the offices of the Company’s
      counsel, or at such other time as the Investor and the Company may mutually
      agree. At the Closing, the Company shall deliver to the Investor one or more
      stock certificates representing the number of Shares set forth in Section 3
      of
      the Stock Purchase Agreement, each such certificate to be registered in the
      name
      of the Investor or, if so indicated on the signature page of the Stock Purchase
      Agreement, in the name of a nominee designated by the Investor.

    

    The
      Company’s obligation to issue the Shares to the Investor shall be subject to the
      following conditions, any one or more of which may be waived by the Company:
      (a)
      completion of the purchases and sales under the Agreements with the Other
      Investors; and (b) the representations and warranties made by the Investors
      shall be true and correct in all material respects and the fulfillment of those
      undertakings of the Investors to be fulfilled in all material respects prior
      to
      the Closing.

    

    The
      Investor’s obligation to purchase the Shares shall be subject to the following
      conditions, any one or more of which may be waived by the Investor: (a) receipt
      by the Investor of certificates evidencing the Shares, (b) Investors shall
      have
      executed Agreements for the purchase of at least 950,000 Shares, (c) the
      representations and warranties of the Company set forth herein shall be true
      and
      correct as of the Closing Date in all material respects

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

     (except
      for representations and warranties that speak as of a specific date, which
      representations and warranties shall be true and correct as of such date),
      (d)
      the Investor shall have received such documents as the Investor shall reasonably
      have requested, including, a standard opinion of the Company’s counsel as to the
      matters set forth in Section 4.2 and as to exemption from the registration
      requirements of the Securities Act of 1933, as amended (the “Securities Act”),
      of the sale of the Shares, (e) there shall not have occurred a suspension or
      material limitation in trading in the Common Stock on the Nasdaq Market, (f)
      all
      consents, approvals or authorizations of any person required for the valid
      authorization, execution and delivery by the Company of this Agreement or for
      the consummation of the transactions contemplated by this Agreement shall have
      been obtained and (g) no action or proceeding by or before any court,
      administrative body or governmental agency shall have been instituted or
      threatened by a third party which seeks to enjoin, restrain or prohibit this
      Agreement or consummation of the transactions contemplated by this
      Agreement.

    

    4. Representations,
      Warranties and Covenants of the Company.
      The
      Company hereby represents and warrants to, and covenants with, the Investor,
      as
      follows:

    

    4.1 Organization.
      The
      Company is duly organized and validly existing in good standing under the laws
      of the jurisdiction of its organization. Each of the Company and its
      Subsidiaries (as defined in Rule 405 under the Securities Act) has full
      power and authority to own, operate and occupy its properties and to conduct
      its
      business as presently conducted and as described in the documents filed by
      the
      Company under the Securities Exchange Act of 1934, as amended and the rules
      and
      regulations promulgated thereunder (the “Exchange Act”), since the end of its
      most recently completed fiscal year through the date hereof, including, without
      limitation, its most recent report on Form 10-K (the “Exchange Act Documents”)
      and is registered or qualified to do business and in good standing in each
      jurisdiction in which the nature of the business conducted by it or the location
      of the properties owned or leased by it requires such qualification and where
      the failure to be so qualified would have a material adverse effect upon the
      condition (financial or otherwise), earnings, business, properties or operations
      of the Company and its Subsidiaries, considered as one enterprise (a “Material
      Adverse Effect”), and no proceeding has been instituted in any such
      jurisdiction, revoking, limiting or curtailing, or seeking to revoke, limit
      or
      curtail, such power and authority or qualification. The Company has only such
      direct and indirect Subsidiaries as specified in the Exchange Act Documents.
      Except as disclosed in the Exchange Act Documents, the Company owns, directly
      or
      indirectly, all of the capital stock of each Subsidiary free and clear of any
      lien, charge, encumbrance, security interest, right of first refusal or other
      restrictions of any kind, and all the issued and outstanding shares of capital
      stock of each Subsidiary are validly issued and fully paid,
      non-assessable.

    

    4.2 Due
      Authorization and Valid Issuance.
      The
      Company has all requisite power and authority to execute, deliver and perform
      its obligations under the Agreements, and the Agreements have been duly
      authorized and validly executed and delivered by the Company and constitute
      legal, valid and binding agreements of the Company enforceable against the
      Company in accordance with their terms, except as rights to indemnity and
      contribution may be limited by state or federal securities laws or the public
      policy underlying such laws, except as enforceability may be limited by
      applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
      affecting creditors’ and contracting parties’ rights generally and except as
      enforceability may be subject to general principles of equity (regardless of
      whether such enforceability is considered in a proceeding in equity or at law).
      The Shares being purchased by the Investor hereunder will, upon issuance and
      payment therefor pursuant to the terms hereof, be duly authorized, validly
      issued, fully-paid and nonassessable, free and clear of any lien, charge, or
      encumbrance. 

    

    4.3 Non-Contravention.
      The
      execution and delivery of the Agreements, the issuance and sale of the Shares
      under the Agreements, the fulfillment of the terms of the Agreements and the
      consummation of the transactions contemplated thereby will not (A) conflict
      with or constitute a violation of, or default (with the passage of time or
      otherwise) under, (i) any material bond, debenture, note or other evidence
      of indebtedness, lease, contract, indenture, mortgage, deed of trust, loan
      agreement, joint venture or other agreement or instrument to which the Company
      or any Subsidiary is a party or by which it or any of its Subsidiaries or their
      respective properties are bound, (ii) the charter, by-laws or other
      organizational documents of the Company or any Subsidiary, or (iii) any
      law, administrative regulation, ordinance or order of any court or governmental
      agency, arbitration panel or authority applicable to the Company or any
      Subsidiary or their respective properties, except in the case of
      clauses (i) and (iii) for any such conflicts, violations or defaults which
      are not reasonably likely to have a Material Adverse Effect or 

     

    
      
        
        

      

      
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    (B) result
      in the creation or imposition of any lien, encumbrance, claim, security interest
      or restriction whatsoever upon any of the material properties or assets of
      the
      Company or any Subsidiary or an acceleration of indebtedness pursuant to any
      obligation, agreement or condition contained in any material bond, debenture,
      note or any other evidence of indebtedness or any material indenture, mortgage,
      deed of trust or any other agreement or instrument to which the Company or
      any
      Subsidiary is a party or by which any of them is bound or to which any of the
      material property or assets of the Company or any Subsidiary is subject. No
      consent, approval, authorization or other order of, or registration,
      qualification or filing with, any regulatory body, administrative agency, or
      other governmental body in the United States or any other person is required
      for
      the execution and delivery of the Agreements and the valid issuance and sale
      of
      the Shares to be sold pursuant to the Agreements, other than such as have been
      made or obtained, and except for any post-closing securities filings or
      notifications required to be made under federal or state securities
      laws.

    

    4.4 Capitalization.
      The
      capitalization of the Company as of September 30, 2006 is as set forth in the
      most recent applicable Exchange Act Documents. The Company has not issued any
      capital stock since that date other than pursuant to (i) employee benefit plans
      disclosed in the Exchange Act Documents, or (ii) outstanding warrants, options
      or other securities disclosed in the Exchange Act Documents. The Shares to
      be
      sold pursuant to the Agreements have been duly authorized, and when issued
      and
      paid for in accordance with the terms of the Agreements will be duly and validly
      issued, fully paid and nonassessable, subject to no lien, claim or encumbrance.
      The outstanding shares of capital stock of the Company have been duly and
      validly issued and are fully paid and nonassessable, have been issued in
      compliance with all federal and state securities laws, and were not issued
      in
      violation of any preemptive rights or similar rights to subscribe for or
      purchase securities. Except as set forth in or contemplated by the Exchange
      Act
      Documents, there are no outstanding rights (including, without limitation,
      preemptive rights), warrants or options to acquire, or instruments convertible
      into or exchangeable for, any unissued shares of capital stock or other equity
      interest in the Company or any Subsidiary, or any contract, commitment,
      agreement, understanding or arrangement of any kind to which the Company is
      a
      party or of which the Company has knowledge and relating to the issuance or
      sale
      of any capital stock of the Company or any Subsidiary, any such convertible
      or
      exchangeable securities or any such rights, warrants or options. Without
      limiting the foregoing, except for the pre-emptive rights issued to Leucadia
      National Corporation and David Cumming on March 26, 2003, no preemptive rights,
      co-sale rights, rights of first refusal, registration rights or other similar
      rights exists with respect to the Shares or the issuance and sale thereof.
      Leucadia National Corporation and David Cumming have waived notice of and/or
      exercised their pre-emptive rights in their March 26, 2003 agreements. No
      further approval or authorization of any stockholder, the Board of Directors
      of
      the Company or others is required for the issuance and sale of the Shares.
      The
      Company owns the entire equity interest in each of its Subsidiaries, free and
      clear of any pledge, lien, security interest, encumbrance, claim or equitable
      interest, other than as described in the Exchange Act Documents. Except as
      disclosed in the Exchange Act Documents, there are no stockholders agreements,
      voting agreements or other similar agreements with respect to the Common Stock
      to which the Company is a party or, to the knowledge of the Company, between
      or
      among any of the Company’s stockholders.

    

    4.5 Legal
      Proceedings.
      There
      is no material legal or governmental proceeding pending or, to the knowledge
      of
      the Company, threatened to which the Company or any Subsidiary is or may be
      a
      party or of which the business or property of the Company or any Subsidiary
      is
      subject that is not disclosed in the Exchange Act Documents, including any
      proceeding which adversely affects or challenges the legality, validity or
      enforceability of the Agreements or the Shares or could, if there were an
      unfavorable decision, individually or in the aggregate, have or reasonably
      be
      expected to result in a Material Adverse Effect. There are no disagreements
      of
      any kind presently existing, or reasonably anticipated by the Company to arise,
      between the accountants and lawyers formerly or presently employed by the
      Company and the Company is current with respect to any fees owed to its
      accountants and lawyers. There
      has
      not been, and to the knowledge of the Company, there is not pending any
      investigation by the SEC (as defined below) involving the Company or any current
      or former director or officer of the Company (in his or her capacity as such).
      The SEC has not issued any stop order or other order suspending the
      effectiveness of any registration statement filed by the Company or any
      Subsidiary under the Exchange Act or the Securities Act.

    

    4.6 No
      Violations.
      Neither
      the Company nor any Subsidiary is in violation of its charter, bylaws, or other
      organizational document. Neither the Company nor any Subsidiary is in violation
      of any law, administrative regulation, ordinance or order of any court or
      governmental agency, arbitration panel or authority applicable to the Company
      or
      any Subsidiary, which violation, individually or in the aggregate, would be
      reasonably likely to have a Material Adverse Effect, or is in default (and
      there
      exists no condition which, with the passage of time or otherwise, would
      constitute a default) in any material respect in the performance of any bond,
      debenture, note or any other evidence of indebtedness in any indenture,
      mortgage, deed of trust or any other material agreement or instrument to which
      the Company or any Subsidiary is a party or by which the Company or any
      Subsidiary is bound or by which the properties of the Company or any Subsidiary
      are bound, which would be reasonably likely to have a Material Adverse
      Effect.

    

    
      
        
        

      

      
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    4.7 Governmental
      Permits, Etc.
      With
      the exception of the matters which are dealt with separately in
      Sections 4.1, 4.12, 4.13 and 4.14, each of the Company and its Subsidiaries
      has all necessary franchises, licenses, certificates and other authorizations
      from any foreign, federal, state or local government or governmental agency,
      department, or body that are currently necessary for the operation of the
      business of the Company and its Subsidiaries as currently conducted and as
      described in the Exchange Act Documents except where the failure to currently
      possess could not reasonably be expected to have a Material Adverse
      Effect.

    

    4.8 Intellectual
      Property.
      Except
      as specifically disclosed in the Exchange Act Documents (i) to the knowledge
      of
      the Company, each of the Company and its Subsidiaries owns or possesses
      sufficient rights to conduct its business in the ordinary course, including,
      without limitation, rights to use all material patents, patent rights, industry
      standards, trademarks, copyrights, licenses, inventions, trade secrets, trade
      names and know-how (collectively, “Intellectual Property”) described or referred
      to in the Exchange Act Documents as owned or possessed by it or that are
      necessary for the conduct of its business as now conducted or as proposed to
      be
      conducted except where the failure to currently own or possess would not have
      a
      Material Adverse Effect (“Company Intellectual Property”), (ii) to the knowledge
      of the Company, neither the Company nor any of its Subsidiaries is infringing
      any rights of a third party with respect to any Intellectual Property that,
      individually or in the aggregate, would have a Material Adverse Effect, and
      neither the Company nor any of its Subsidiaries has received any notice of,
      or
      has any knowledge of, any asserted infringement by the Company or any of its
      Subsidiaries of, any rights of a third party with respect to any Intellectual
      Property that, individually or in the aggregate, would have a Material Adverse
      Effect and (iii) neither the Company nor any of its Subsidiaries has
      received any notice of, or has any knowledge of, infringement by a third party
      with respect to any Intellectual Property rights of the Company or of any
      Subsidiary that, individually or in the aggregate, would have a Material Adverse
      Effect. Company Intellectual Property does not include any Publicly Available
      Software and the Company has not used Publicly Available Software in whole
      or in
      part in the development of any part of Company Intellectual Property in a manner
      that may subject the Company or Company Intellectual Property in whole or in
      part, to all or part of the license obligations of any Publicly Available
      Software. “Publicly Available Software” means each of (i) any software that
      contains, or is derived in any manner (in whole or in part) from, any software
      that is distributed as free software, open source software (e.g. Linux), or
      similar licensing and distribution models; and (ii) any software that requires
      as a condition of use, modification, and/or distribution of such software that
      such software or other software incorporated into, derived from, or distributed
      with such software (a) be disclosed or distributed in source code form; (b)
      be
      licensed for the purpose of making derivative works; or (c) be redistributable
      at no or minimal charge. Publicly Available Software includes, without
      limitation, software licensed or distributed under any of the following licenses
      or distribution models similar to any of the following: (a) GNU General Public
      License (GPL) or Lesser/Library GPL (LGPL), (b) the Artistic License (e.g.
      PERL), (c) the Mozilla Public License, (d) the Netscape Public License, (e)
      the
      Sun Community Source License (SCSL), the Sun Industry Source License (SISL),
      and
      the Apache Server License. 

    

    4.9 Financial
      Statements.
      (a) The
      financial statements of the Company and the related notes contained in the
      Exchange Act Documents comply as to form in all material respects with
      applicable rules and regulations of the SEC and present fairly, in accordance
      with United States generally accepted accounting principles, the financial
      position of the Company and its Subsidiaries as of the dates indicated, and
      the
      results of its operations and cash flows for the periods therein specified
      consistent with the books and records of the Company and its Subsidiaries except
      that the unaudited interim financial statements were or are subject to normal
      and recurring year-end adjustments which are not expected to be material in
      amount. Such financial statements (including the related notes) have been
      prepared in accordance with United States generally accepted accounting
      principles applied on a consistent basis throughout the periods therein
      specified, except as may be disclosed in
      the
      notes to such financial statements, or in the case of unaudited statements,
      as
      may be permitted by the Securities and Exchange Commission (the “SEC”) on
      Form 10-Q under the Exchange Act and except as disclosed in the Exchange
      Act Documents. The other financial information contained in the Exchange Act
      Documents has been prepared on a basis consistent with the financial statements
      of the Company.

    

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    (b) After
      giving effect to the transactions contemplated by this Agreement and the other
      agreements contemplated by the Offering, the Company believes that it will
      have
      adequate working capital to sustain its operations as currently conducted and
      pursuant to the current business plan for at least the twelve months after
      the
      Closing Date.

    

    (c) Except
      as
      set forth in any Exchange Act Documents, there are no obligations of the Company
      to officers, directors, stockholders or employees of the Company other than
      (i)
      for payment of salary for services rendered and for bonus payments; (ii)
      reimbursements for reasonable expenses incurred on behalf of the Company; (iii)
      for other standard employee benefits made generally available to all employees
      (including stock option agreements outstanding under any stock option plan
      approved by the Board of Directors of the Company); and (iv) obligations listed
      in the Company’s financial statements. Except as described above or in any
      Exchange Act Filings, none of the officers, directors or, to the best of the
      Company’s knowledge, key employees or stockholders of the Company or any members
      of their immediate families, are indebted to the Company, individually or in
      the
      aggregate, in excess of $60,000 or have any direct or indirect ownership
      interest in any firm or corporation with which the Company is affiliated or
      with
      which the Company has a business relationship, or any firm or corporation which
      competes with the Company, other than passive investments in publicly traded
      companies (representing less than one percent (1%) of such company) which may
      compete with the Company. Except as described above, no officer, director or
      stockholder, or any member of their immediate families, is, directly or
      indirectly, interested in any material contract with the Company and no
      agreements, understandings or proposed transactions are contemplated between
      the
      Company and any such person. Except as set forth in any Exchange Act Documents,
      the Company is not a guarantor or indemnitor of any indebtedness of any other
      person, firm or corporation.

    

    4.10 No
      Material Adverse Change.
      Except
      as disclosed in the Exchange Act Documents, since September 30, 2006, there
      has
      not been (i) any material adverse change in the financial condition or
      earnings of the Company and its Subsidiaries considered as one enterprise,
      (ii) any material adverse event affecting the Company or its Subsidiaries,
      (iii) any obligation, direct or contingent, that is material to the Company
      and its Subsidiaries considered as one enterprise, incurred by the Company,
      except obligations incurred in the ordinary course of business, (iv) any
      dividend or distribution of any kind declared, paid or made on the capital
      stock
      of the Company or any of its Subsidiaries, or (v) any loss or damage
      (whether or not insured) to the physical property of the Company or any of
      its
      Subsidiaries which has been sustained which has a Material Adverse
      Effect.

    

    4.11 Disclosure.
      The representations
      and warranties of the Company contained in this Section 4 as of the date
      hereof and as of the Closing Date, do not contain any untrue statement of a
      material fact or omit to state a material fact required to be stated therein
      or
      necessary to make the statements therein, in light of the circumstances under
      which they were made, not misleading. Except with respect to the material terms
      and conditions of the transaction contemplated by the Agreements, which shall
      be
      publicly disclosed by the Company pursuant to Section 16 hereof, the Company
      confirms that neither it nor any person acting on its behalf has provided
      Investor with any information that the Company believes constitutes material,
      non-public information. The Company understands and confirms that Investor
      will
      rely on the foregoing representations in effecting transactions in securities
      of
      the Company.

    

    4.12 NASDAQ
      Compliance.
      The
      Company’s Common Stock is registered pursuant to Section 12(b) of the
      Exchange Act and is listed on The Nasdaq Stock Market, Inc. (the “Nasdaq
      Market”), and the Company has taken no action or failed to take any action
      designed to, or likely to have the effect of, terminating the registration
      of
      the Common Stock under the Exchange Act or de-listing the Common Stock from
      the
      Nasdaq Market, nor has the Company received any notification that the SEC or
      the
      National Association of Securities Dealers, Inc. (“NASD”) is contemplating
      terminating such registration or listing. The Company is currently in compliance
      with all NASD and Nasdaq Marketplace rules necessary for the continued quotation
      of the Company’s Common Stock on the Nasdaq Market. The issuance of the Shares
      does not require shareholder approval, including, without limitation, under
      Nasdaq Marketplace Rule 4350(i).

    

    
      
        
        

      

      
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    4.13 Reporting
      Status.
      The
      Company has filed in a timely manner all documents that the Company was required
      to file under the Exchange Act during the 12 months preceding the date of this
      Agreement. The Company is eligible to use Form S-3 to register the Shares to
      be
      offered for the account of the Investors. The following documents complied
      in
      all material respects with the SEC’s requirements as of their respective filing
      dates, and did not contain an untrue statement of a material fact or omit to
      state a material fact required to be stated therein or necessary to make the
      statements therein in light of the circumstances under which they were made
      not
      misleading:

    

    (a) Annual
      Report on Form 10-K for the year ended December 31, 2005, Quarterly Reports
      on
      Form 10-Q for the quarters ended September 30, 2006, June 30, 2006 and March
      31,
      2006, Proxy Statement on Schedule 14A filed on August 7, 2006 and Current
      Reports on Form 8-K filed on February 7, 2006, March 3, 2006 and May 5, 2006;
      and 

    

    (b) all
      other
      documents, if any, filed by the Company with the SEC during
      the one-year period preceding the date of this Agreement pursuant to the
      reporting requirements of the Exchange Act.

    

    4.14 Listing.
      The
      Company shall comply with all requirements of the NASD and the SEC with respect
      to the issuance of the Shares and the listing thereof on the Nasdaq
      Market.

    

    4.15 No
      Manipulation of Stock.
      The
      Company has not taken and will not, in violation of applicable law, take, any
      action designed to or that might reasonably be expected to cause or result
      in
      stabilization or manipulation of the price of the Common Stock to facilitate
      the
      sale or resale of the Shares.

    

    4.16 Company
      not an “Investment Company”.
      The
      Company has been advised of the rules and requirements under the Investment
      Company Act of 1940, as amended (the “Investment Company Act”). The Company is
      not, and immediately after receipt of payment for the Shares will not be, an
      “investment company”, an “affiliated person” of, “promoter” for or “principal
      underwriter” for an entity “controlled” by an “investment company” within the
      meaning of the Investment Company Act and shall conduct its business in a manner
      so that it will not become subject to the Investment Company Act.

    

    4.17 Foreign
      Corrupt Practices.
      Neither
      the Company, nor to the best knowledge of the Company, any agent or other person
      acting on behalf of the Company, has (i) directly or indirectly, used any
      corrupt funds for unlawful contributions, gifts, entertainment or other unlawful
      expenses related to foreign or domestic political activity, (ii) made any
      unlawful payment to foreign or domestic government officials or employees or
      to
      any foreign or domestic political parties or campaigns from corporate funds,
      (iii) failed to disclose fully any contribution made by the Company (or made
      by
      any person acting on its behalf of which the Company is aware) which is in
      violation of law, or (iv) violated in any material respect any provision of
      the
      Foreign Corrupt Practices Act of 1977, as amended.

    

    4.18 Accountants.
      To the
      Company’s knowledge, PricewaterhouseCoopers, LLP, who the Company expects will
      consent to the incorporation by reference of its report with respect to the
      consolidated financial statements of the Company included in the Company's
      Annual Report on Form 10-K for the year ended December 31, 2006 into the
      Registration Statement (as defined below) and the prospectus which forms a
      part
      thereof, are independent accountants as required by the Securities Act and
      the
      rules and regulations promulgated thereunder.

     

    4.19 Contracts.
      The
      contracts described in the Exchange Act Documents that are material to the
      Company are in full force and effect on the date hereof, and neither the Company
      nor, to the Company's knowledge, any other party to such contracts is in breach
      of or default under any of such contracts which would have a Material Adverse
      Effect.

     

    4.20 Taxes.
      The
      Company has filed all necessary federal, state and foreign income and franchise
      tax returns when due (or obtained appropriate extensions for filing) and has
      paid or accrued all taxes shown as due thereon, and the Company has no knowledge
      of a tax deficiency which has been or might be asserted or threatened against
      it
      which would have a Material Adverse Effect.

    

    
      
        
        

      

      
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    4.21 Transfer
      Taxes.
      On the
      Closing Date, all stock transfer or other taxes (other than income taxes) which
      are required to be paid in connection with the sale and transfer of the Shares
      to be sold to the Investor hereunder will be, or will have been, fully paid
      or
      provided for by the Company and all laws imposing such taxes will be or will
      have been fully complied with.

     

    4.22 Private
      Offering.
      Assuming the correctness of the representations and warranties of the Investors
      set forth in Section 5 hereof, the offer and sale of Shares hereunder is
      exempt from registration under the Securities Act. The Company has not
      distributed and will not distribute prior to the Closing Date any offering
      material in connection with this Offering and sale of the Shares other than
      the
      documents of which this Agreement is a part or the Exchange Act Documents.
      The
      Company has not in the past nor will it hereafter take any action to sell,
      offer
      for sale or solicit offers to buy any securities of the Company which would
      bring the offer, issuance or sale of the Shares as contemplated by this
      Agreement, within the provisions of Section 5 of the Securities Act, unless
      such
      offer, issuance or sale was or shall be within the exemptions of Section 4
      of
      the Securities Act. Neither
      the Company nor any person acting on behalf of the Company has offered or sold
      any of the Shares by any form of general solicitation or general advertising.
      The Company has offered the Shares for sale only to the Investors and certain
      other “accredited investors” within the meaning of Rule 501 under the Securities
      Act.

    

    4.23 Disclosure
      Controls and Procedures; Internal Controls.
      At all
      times since first required by all applicable Exchange Act rules, the Company
      has
      established disclosure controls and procedures (as defined in Exchange Act
      Rules
      13a-15(e) and 15d-15(e)) for the Company and designed such disclosure controls
      and procedures to ensure that material information relating to the Company,
      including its Subsidiaries, is made known to the certifying officers by others
      within those entities, particularly during the period in which the Form 10-K
      or
      Form 10-Q, as the case may be, is being prepared. The Company’s certifying
      officers have evaluated the effectiveness of the Company’s disclosure controls
      and procedures as of the end of the period covered by each Form 10-K or Form
      10-Q for which such evaluation was required by applicable Exchange Act rules,
      as
      the case may be (each such date, the “Evaluation Date”). The Company presented
      in each such Form 10-K or Form 10-Q, as the case may be, the conclusions of
      the
      certifying officers about the effectiveness of the disclosure controls and
      procedures based on their evaluations as of the Evaluation Date. Since the
      most
      recent Evaluation Date, there have been no significant changes in the Company’s
      internal controls (as such term is used in Item 308(c) of Regulation S-K under
      the Exchange Act) or, to the Company’s knowledge, in other factors that could
      significantly affect the Company’s internal controls.

    

    4.24 Transactions
      With Affiliates.
      Except
      as disclosed in the Exchange Act Documents, none of the officers or directors
      of
      the Company is presently a party to any transaction with the Company or any
      Subsidiary (other than for services as employees, officers and directors),
      including any contract, agreement or other arrangement providing for the
      furnishing of services to or by, providing for rental of real or personal
      property to or from, or otherwise requiring payments to or from any officer
      or
      director or, to the knowledge of the Company, any entity in which any officer
      or
      director has a substantial interest or is an officer, director, trustee or
      partner.

    

    4.25 Non-Public
      Information.
      The
      Company has not disclosed to the Investor information that would constitute
      material non-public information as of the Closing Date other than the existence
      of the transaction contemplated hereby.

    

    4.26 Insurance.
      The
      Company maintains insurance of the types and in the amounts that the Company
      reasonably believes is adequate for its businesses, including, but not limited
      to, insurance covering real and personal property owned or leased by the Company
      against theft, damage, destruction, acts of vandalism and all other risks
      customarily insured against by similarly situated companies, all of which
      insurance is in full force and effect.

    

    4.27 Placement
      Agent.
      The
      Company shall be responsible for the payment of any placement agent’s fees,
      financial advisory fees, or brokers’ commissions (other than for persons engaged
      by an Investor or its investment advisor) relating to or arising out of the
      transactions contemplated by the Agreements. The Company shall pay, and hold
      the
      Investor harmless against, any liability, loss or expense (including, without
      limitation, attorney’s fees and out-of-pocket expenses) arising in connection
      with any claims relating to placement agent fees, financial advisory fees or
      brokers’ commissions.

    

    
      
        
        

      

      
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    5. Representations,
      Warranties and Covenants of the Investor.

    

    5.1 The
      Investor represents and warrants to, and covenants with, the Company that:
      (i) the Investor is an “accredited investor” as defined in Regulation D
      under the Securities Act and the Investor is also knowledgeable, sophisticated
      and experienced in making, and is qualified to make decisions with respect
      to
      investments in shares presenting an investment decision like that involved
      in
      the purchase of the Shares, including investments in securities issued by the
      Company and investments in comparable companies, and has requested, received,
      reviewed and considered all information it deemed relevant in making an informed
      decision to purchase the Shares; (ii) the Investor is acquiring the number
      of Shares set forth in Section 3 of the Stock Purchase Agreement in the ordinary
      course of its business and for its own account for investment only and with
      no
      present intention of distributing any of such Shares or any arrangement or
      understanding with any other persons regarding the distribution of such Shares;
      (iii) the Investor will not, directly or indirectly, offer, sell, pledge,
      transfer or otherwise dispose of (or solicit any offers to buy, purchase or
      otherwise acquire or take a pledge of) any of the Shares except in compliance
      with the Securities Act, applicable state securities laws and the respective
      rules and regulations promulgated thereunder; (iv) the Investor has
      answered all questions on the Investor Questionnaire for use in preparation
      of
      the Registration Statement and the answers thereto are true, correct and
      complete as of the date hereof and will be true, correct and complete as of
      the
      Closing Date; and (vi) the Investor has, in connection with its decision to
      purchase the number of Shares set forth in Section 3 of the Stock Purchase
      Agreement, relied only upon the Exchange Act Documents and the representations
      and warranties of the Company contained herein. The Investor understands that
      its acquisition of the Shares has not been registered under the Securities
      Act
      or registered or qualified under any state securities law in reliance on
      specific exemptions therefrom, which exemptions may depend upon, among other
      things, the bona fide nature of the Investor’s investment intent as expressed
      herein. Subject to compliance with the Securities Act, applicable securities
      laws and the respective rules and regulations promulgated thereunder, nothing
      contained herein shall be deemed a representation or warranty by such Investor
      to hold the Shares for any period of time. Investor has completed or caused
      to
      be completed and delivered to the Company the Investor Questionnaire, which
      questionnaire is true, correct and complete in all material
      respects.

    

    5.2 The
      Investor acknowledges, represents and agrees that no action has been or will
      be
      taken in any jurisdiction outside the United States by the Company that would
      permit an offering of the Shares, or possession or distribution of offering
      materials in connection with the issue of the Shares, in any jurisdiction
      outside the United States where legal action by the Company for that purpose
      is
      required. Each Investor outside the United States will comply with all
      applicable laws and regulations in each foreign jurisdiction in which it
      purchases, offers, sells or delivers Shares or has in its possession or
      distributes any offering material, in all cases at its own expense.

    

    5.3 The
      Investor hereby covenants with the Company not to make any sale of the Shares
      without complying with the provisions of this Agreement and without causing
      the
      prospectus delivery requirement under the Securities Act to be satisfied
      (whether by delivery of the Prospectus or pursuant to and in compliance with
      an
      exemption from such requirement), and the Investor acknowledges that the
      certificates evidencing the Shares will be imprinted with a legend that
      prohibits their transfer except in accordance therewith. The Investor
      acknowledges that there may occasionally be times when the Company determines
      that it must suspend the use of the Prospectus forming a part of the
      Registration Statement, as set forth in Section 7.2(c).

    

    5.4 The
      Investor agrees to promptly upon receipt review the plan of distribution for
      the
      Registration Statement sent to it by the Company pursuant to
      7.1(h).

    

    5.5 The
      Investor further represents and warrants to, and covenants with, the Company
      that (i) the Investor has full right, power, authority and capacity to
      enter into this Agreement and to consummate the transactions contemplated hereby
      and has taken all necessary action to authorize the execution and delivery
      of
      this Agreement, and (ii) when executed, this Agreement will constitute a
      valid and binding obligation of the Investor enforceable against the Investor
      in
      accordance with its terms, except as enforceability may be limited by applicable
      bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
      creditors’ and contracting parties’ rights generally and except as
      enforceability may be subject to general principles of equity (regardless of
      whether such enforceability is considered in a proceeding in equity or at law)
      and except as the indemnification agreements of the Investors herein may be
      legally unenforceable.

    

    
      
        
        

      

      
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    5.6 Neither
      the Investor nor any person acting on its behalf or at its direction has engaged
      in any purchase or sale of Common Stock (including without limitation any short
      sale, pledge, transfer, establish an open “put equivalent position” within the
      meaning of Rule 16a-1(h) under the Exchange Act) during the eight trading
      days immediately preceding the date of this Agreement. Investor agrees with
      the
      Company that the Company will be irreparably harmed if the Investor engages
      in
      short sales and similar hedging transactions, therefore Investor agrees that
      it
      will not directly or indirectly make or participate in any sale of the shares
      of
      common stock of the Company, including “short sales” as defined in Rule 200
      under Regulation SHO, whether or not exempt, until the effective date of the
      Registration Statement. The Investor will not use any of the restricted Shares
      acquired pursuant to this Agreement to cover any short position in the Common
      Stock of the Company if doing so would be in violation of applicable securities
      laws and otherwise will comply with federal securities laws in the holding
      and
      sale of the Shares.

    

    5.7 The
      Investor understands that nothing in the Exchange Act Documents, this Agreement
      or any other materials presented to the Investor in connection with the purchase
      and sale of the Shares constitutes legal, tax or investment advice. The Investor
      has consulted such legal, tax and investment advisors as it, in its sole
      discretion, has deemed necessary or appropriate in connection with its purchase
      of Shares.

    

    5.8 The
      Company acknowledges and agrees that Investor does not make or has not made
      any
      representations or warranties with respect to the transactions contemplated
      hereby other than those specifically set forth in Sections 5 and 16(a) of this
      Agreement, or in the Investor Questionnaire.

    

    6. Survival
      of Representations, Warranties and Agreements.
      Notwithstanding any investigation made by any party to this Agreement, all
      covenants, agreements, representations and warranties made by the Company and
      the Investor herein shall survive the execution of this Agreement, the delivery
      to the Investor of the Shares being purchased and the payment
      therefor.

    

    7. Registration
      of the Shares; Compliance with the Securities Act.

    

    7.1 Registration
      Procedures and Other Matters.
      The
      Company shall:

    

    (a) subject
      to receipt of necessary information from the Investors after prompt request
      from
      the Company to the Investors to provide such information, prepare and file
      with
      the SEC, within 45 days after the Closing Date, a registration statement on
      Form
      S-3 (the “Registration Statement”) to enable the resale of the Shares by the
      Investors from time to time through the Nasdaq Global Market or in
      privately-negotiated transactions;

    

    (b) subject
      to receipt of necessary information from the Investors after prompt request
      from
      the Company to the Investors to provide such information, use its reasonable
      commercial efforts to cause the Registration Statement to become effective
      on or
      prior to the earlier of (i) the fifth trading day following the date the Company
      is notified by the SEC that the Registration Statement will not be reviewed
      or
      is no longer subject to review, and (ii) 120 days after the Closing Date (the
      “Effective Date”), such efforts to include, without limiting the generality of
      the foregoing, preparing and filing with the SEC any financial statements that
      are required to be filed prior to the effectiveness of such Registration
      Statement, and file with the SEC the final prospectus in accordance with Rule
      424 within 24 hours of the Effective Date (regardless of its being technically
      required);

    

    (c) use
      its
      reasonable commercial efforts to prepare and file with the SEC such amendments
      and supplements to the Registration Statement and the Prospectus used in
      connection therewith as may be necessary to keep the Registration Statement
      current, effective and free from any material misstatement or omission to state
      a material fact for a period not exceeding, with respect to each Investor’s
      Shares purchased hereunder, the earlier of (i) the second anniversary of
      the Closing Date or (ii) such time as all Shares purchased by such Investor
      in
      this Offering have been sold pursuant to a registration statement;

    

    
      
        
        

      

      
        -15-

        
          

        

      

      
        
        

      

    

    

    

    (d) furnish
      to the Investor with respect to the Shares registered under the Registration
      Statement such number of copies of the Registration Statement, Prospectuses
      and
      Preliminary Prospectuses in conformity with the requirements of the Securities
      Act and such other documents as the Investor may reasonably request, in order
      to
      facilitate the public sale or other disposition of all or any of the Shares
      by
      the Investor; 

    

    (e) file
      documents required of the Company for normal blue sky clearance in states
      specified in writing by the Investor and use its reasonable commercial efforts
      to maintain such blue sky qualifications during the period the Company is
      required to maintain the effectiveness of the Registration Statement pursuant
      to
      Section 7.1(c); provided, however, that the Company shall not be required
      to qualify to do business or consent to service of process in any jurisdiction
      in which it is not now so qualified or has not so consented;

    

    (f) bear
      all
      expenses in connection with the procedures in paragraph (a) through (e) of
      this
      Section 7.1 (other than underwriting discounts or commissions, brokers’
fees and similar selling expenses, and any other fees or expenses incurred
      by
      the Investor, including attorney fees of the Investor) and the registration
      of
      the Shares pursuant to the Registration Statement;

    

    (g) advise
      the Investor, not later than the next day after receipt of notice or knowledge
      of the issuance of any stop order by the SEC delaying or suspending the
      effectiveness of the Registration Statement or of the initiation or threat
      of
      any proceeding for that purpose; and it will promptly use its reasonable
      commercial efforts to prevent the issuance of any stop order or to obtain its
      withdrawal at the earliest possible moment if such stop order should be issued;
      and advise the Investor, not later than the next day of the Company having
      notice or knowledge of the effectiveness of any Registration Statement;
      and

    

    (h) provide
      a
“Plan of Distribution” section of the Registration Statement that is reasonably
      acceptable to all Investors and which, at a minimum, states that the selling
      stockholders may transfer the Shares in various circumstances as permitted
      to
      the fullest extent of the law and SEC practice, in which case the transferees,
      pledgees or other successors in interest will be the selling beneficial owners
      for purposes of the Prospectus, and shall otherwise be in all material respects
      in the form attached hereto as Exhibit
      B,
      subject
      to any revisions required by the SEC; and not less than four trading days prior
      to the filing of a Registration Statement or any amendment or supplement
      thereto, the Company shall furnish to each Investor copies of the “Selling
      Stockholders” section of such document and any risk factor contained in such
      document that addresses specifically this transaction or the Selling
      Stockholders, as proposed to be filed, which documents will be subject to the
      review of such Investor, and the Company shall not file a Registration Statement
      or any amendments or supplements thereto in which the “Selling Stockholder”
section thereof differs from the disclosure received from an Investor.

    

    Notwithstanding
      anything to the contrary herein, the Registration Statement shall cover the
      Shares and any shares sold to the other investors participating in this Offering
      and persons exercising their preemptive rights. In no event at any time before
      the Registration Statement becomes effective with respect to the Shares shall
      the Company publicly announce or file any other registration statement, other
      than registrations on Form S-8, without the prior written consent of a
      majority in interest of the Investors.

    

    The
      Company understands that the Investor disclaims being an underwriter, but if
      the
      SEC deems the Investor to be an underwriter the Company shall not be relieved
      of
      any obligations it has hereunder; provided,
      however
      that if
      the Company receives notification from the SEC that the Investor is deemed
      an
      underwriter, then the period by which the Company is obligated to submit an
      acceleration request to the SEC shall be extended to the earlier of (i) the
      90th
      day
      after such SEC notification or (ii) 120 days after the initial filing of the
      Registration Statement with the SEC.

    

    
      
        
        

      

      
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    7.2 Transfer
      of Shares After Registration; Suspension.

    

    (a) The
      Investor agrees that it will not effect any disposition of the Shares or its
      right to purchase the Shares that would constitute a sale within the meaning
      of
      the Securities Act except as contemplated in the Registration Statement referred
      to in Section 7.1 and as described below or as otherwise permitted by law,
      and that it will promptly notify the Company of any changes in the information
      set forth in the Registration Statement regarding the Investor or its plan
      of
      distribution.

    

    (b) Except
      in
      the event that paragraph (c) below applies, the Company shall (i) if deemed
      necessary by the Company, prepare and file from time to time with the SEC a
      post-effective amendment to the Registration Statement or a supplement to the
      related Prospectus or a supplement or amendment to any document incorporated
      therein by reference or file any other required document so that such
      Registration Statement will not contain an 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, and so that, as thereafter delivered
      to purchasers of the Shares being sold thereunder, such Prospectus will not
      contain an untrue statement of a material fact or omit to state a material
      fact
      required to be stated therein or necessary to make the statements therein,
      in
      light of the circumstances under which they were made, not misleading;
      (ii) provide the Investor copies of any documents filed pursuant to
      Section 7.2(b)(i) as the Investor may reasonably request; and
      (iii) inform each Investor that the Company has complied with its
      obligations in Section 7.2(b)(i) (or that, if the Company has filed a
      post-effective amendment to the Registration Statement which has not yet been
      declared effective, the Company will notify the Investor to that effect, will
      use its reasonable commercial efforts to secure the effectiveness of such
      post-effective amendment as promptly as possible and will promptly notify the
      Investor pursuant to Section 7.2(b)(i) hereof when the amendment has
      become effective).

    

    (c) Subject
      to paragraph (d) below, in the event (i) of any request by the SEC or any
      other federal or state governmental authority during the period of effectiveness
      of the Registration Statement for amendments or supplements to a Registration
      Statement or related Prospectus or for additional information; (ii) of the
      issuance by the SEC or any other federal or state governmental authority of
      any
      stop order suspending the effectiveness of a Registration Statement or the
      initiation of any proceedings for that purpose; (iii) of the receipt by the
      Company of any notification with respect to the suspension of the qualification
      or exemption from qualification of any of the Shares for sale in any
      jurisdiction or the initiation or threatening of any proceeding for such
      purpose; or (iv) of any event or circumstance which, upon the advice of its
      counsel, necessitates the making of any changes in the Registration Statement
      or
      Prospectus, or any document incorporated or deemed to be incorporated therein
      by
      reference, so that, in the case of the Registration Statement, it will not
      contain any untrue statement of a material fact or any omission to state a
      material fact required to be stated therein or necessary to make the statements
      therein not misleading, and that in the case of the Prospectus, it will not
      contain any untrue statement of a material fact or any omission to state a
      material fact required to be stated therein or necessary to make the statements
      therein, in the light of the circumstances under which they were made, not
      misleading; then the Company shall promptly deliver a certificate in writing
      to
      the Investor (the “Suspension Notice”) to the effect of the foregoing and, upon
      receipt of such Suspension Notice, the Investor will refrain from selling any
      Shares pursuant to the Registration Statement (a “Suspension”) until the
      Investor’s receipt of copies of a supplemented or amended Prospectus prepared
      and filed by the Company, or until it is advised in writing by the Company
      that
      the current Prospectus may be used, and has received copies of any additional
      or
      supplemental filings that are incorporated or deemed incorporated by reference
      in any such Prospectus. In the event of any Suspension, the Company will use
      its
      reasonable commercial efforts to cause the use of the Prospectus so suspended
      to
      be resumed as soon as reasonably practicable within 20 business days after
      the
      delivery of a Suspension Notice to the Investor. In addition to and without
      limiting any other remedies (including, without limitation, at law or at equity)
      available to the Investor, the Investor shall be entitled to specific
      performance in the event that the Company fails to comply with the provisions
      of
      this Section 7.2(c).

    

    (d) Notwithstanding
      the foregoing paragraphs of this Section 7.2, the Investor shall not be
      prohibited from selling Shares under the Registration Statement as a result
      of
      Suspensions on more than two occasions of not more than 30 days each in any
      twelve month period, unless, in the good faith judgment of the Company’s Board
      of Directors, upon the written opinion of counsel of the Company, the sale
      of
      Shares under the Registration Statement in reliance on this Section 7.2(d)
      would
      be reasonably likely to cause a violation of the Securities Act or the Exchange
      Act and result in liability to the Company.

    

    
      
        
        

      

      
        -17-

        
          

        

      

      
        
        

      

    

    (e) Provided
      that a Suspension is not then in effect, the Investor may sell Shares under
      the
      Registration Statement, provided that it arranges for delivery of a current
      Prospectus to the transferee of such Shares. Upon receipt of a request therefor,
      the Company has agreed to provide an adequate number of current Prospectuses
      to
      the Investor and to supply copies to any other parties requiring such
      Prospectuses.

    

    (f) In
      the
      event of a sale of Shares by the Investor pursuant to the Registration
      Statement, the Investor must also deliver to the Company’s transfer agent, with
      a copy to the Company, a Certificate of Subsequent Sale substantially in the
      form attached hereto as Exhibit A,
      so that
      the Shares may be properly transferred.

    

    7.3 Indemnification.
      For the
      purpose of this Section 7.3:

    

    (i) the
      term
“Selling Stockholder” means the Investor and any affiliate of such
      Investor;

    

    (ii) the
      term
“Registration Statement” shall include the Prospectus in the form first filed
      with the SEC pursuant to Rule 424(b) of the Securities Act or filed as part
      of the Registration Statement at the time of effectiveness if no
      Rule 424(b) filing is required, and any exhibit, supplement or amendment
      included in or relating to the Registration Statement referred to in
      Section 7.1; and

    

    (iii) the
      term
“Untrue Statement” means any untrue statement or alleged untrue statement, or
      any omission or alleged omission to state in the Registration Statement or
      Prospectus a material fact required to be stated therein or necessary to make
      the statements therein, in the light of the circumstances under which they
      were
      made, not misleading.

    

    (a) The
      Company agrees to indemnify and hold harmless each Selling Stockholder, the
      officers, directors, agents, investment advisors, partners, members and
      employees of each of them, each individual or corporation, partnership, trust,
      incorporated or unincorporated association, joint venture, limited liability
      company, joint stock company, government (or an agency or subdivision thereof)
      or other entity of any kind (“Person”) who controls any such Investor (within
      the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
      Act) and the officers, directors, agents and employees of each such controlling
      Person, from and against any losses, claims, damages or liabilities to which
      such Selling Stockholder may become subject (under the Securities Act or
      otherwise) insofar as such losses, claims, costs (including without limitation
      reasonable attorneys fees), damages or liabilities (or actions or proceedings
      in
      respect thereof) arise out of, or are based upon (i) any breach of the
      representations or warranties of the Company contained herein or failure to
      comply with the covenants and agreements of the Company contained herein,
      (ii) any Untrue Statement, or (iii) any failure by the Company to
      fulfill any undertaking included in the Registration Statement as amended or
      supplemented from time to time, and the Company will reimburse such Selling
      Stockholder for any reasonable legal or other expenses reasonably incurred
      in
      investigating, defending or preparing to defend any such action, proceeding
      or
      claim, or preparing to defend any such action, proceeding or claim, provided,
      however,
      that
      the Company shall not be liable in any such case to the extent that such loss,
      claim, damage or liability arises out of, or is based upon, an Untrue Statement
      made in reliance upon and in conformity with written information furnished
      to
      the Company by or on behalf of such Selling Stockholder specifically for use
      in
      preparation of the Registration Statement, as amended or supplemented from
      time
      to time (including, without limitation, information set forth in the Investor
      Questionnaire), or the failure of such Selling Stockholder to comply with its
      covenants and agreements contained in Section 7.2 hereof respecting sale of
      the
      Shares or any statement or omission in any Prospectus that is corrected in
      any
      subsequent Prospectus that was delivered to the Selling Stockholder prior to
      the
      pertinent sale or sales by the Selling Stockholder. The Company shall reimburse
      each Selling Stockholder for the indemnifiable amounts provided for herein
      on
      demand as such expenses are incurred.

    

    (b) The
      Selling Stockholders, severally, and not jointly with any other Selling
      Stockholder, agrees to indemnify and hold harmless the Company (and each person,
      if any, who controls the Company within the meaning of Section 15 of the
      Securities Act, each officer of the Company who signs the Registration Statement
      and each director of the Company) from and against any losses, claims, damages
      or liabilities to which the Company (or any such officer, director or
      controlling person) may become subject (under the Securities Act or otherwise),
      insofar as such losses, claims, damages or liabilities (or actions or
      proceedings in respect thereof) 

     

    
      
        
        

      

      
        -18-

        
          

        

      

      
        
        

      

    

    arise
      out
      of, or are based upon, (i) any failure to comply with the covenants and
      agreements contained in Section 7.2 hereof respecting sale of the Shares,
      or (ii) any Untrue Statement if such Untrue Statement was made in reliance
      upon and in conformity with written information furnished by or on behalf of
      the
      Selling Stockholder specifically for use in preparation of the Registration
      Statement, as amended or supplemented from time to time (including, without
      limitation, information set forth in the Investor Questionnaire), and the
      Selling Stockholder will reimburse the Company (or such officer, director or
      controlling person), as the case may be, for any legal or other expenses
      reasonably incurred in investigating, defending or preparing to defend any
      such
      action, proceeding or claim. The Selling Stockholder shall reimburse the Company
      or such officer, director or controlling person, as the case may be, for the
      indemnifiable amounts provided
      for
      herein on demand as such expenses are incurred. Notwithstanding the foregoing,
      the Selling Stockholder’s aggregate obligation to indemnify the Company and such
      officers, directors and controlling persons shall be limited to the net amount
      received by the Selling Stockholder from the sale of the Shares pursuant to
      the
      Registration Statement less the amount of any other claims, damages or
      liabilities paid by the Selling Stockholder in connection with such Selling
      Stockholder’s sale of the Shares.

    

    (c) Promptly
      after receipt by any indemnified person of a notice of a claim or the beginning
      of any action in respect of which indemnity is to be sought against an
      indemnifying person pursuant to this Section 7.3, such indemnified person
      shall notify the indemnifying person in writing of such claim or of the
      commencement of such action, but the omission to so notify the indemnifying
      person will not relieve it from any liability which it may have to any
      indemnified person under this Section 7.3 (except to the extent that such
      omission materially and adversely affects the indemnifying person’s ability to
      defend such action) or from any liability otherwise than under this
      Section 7.3. Subject to the provisions hereinafter stated, in case any such
      action shall be brought against an indemnified person, the indemnifying person
      shall be entitled to participate therein, and, to the extent that it shall
      elect
      by written notice delivered to the indemnified person promptly after receiving
      the aforesaid notice from such indemnified person, shall be entitled to assume
      the defense thereof, with counsel reasonably satisfactory to such indemnified
      person. After notice from the indemnifying person to such indemnified person
      of
      its election to assume the defense thereof, such indemnifying person shall
      not
      be liable to such indemnified person for any legal expenses subsequently
      incurred by such indemnified person in connection with the defense thereof,
      provided,
      however,
      that if
      there exists or shall exist a conflict of interest that would make it
      inappropriate, in the opinion of counsel to the indemnified person, for the
      same
      counsel to represent both the indemnified person and such indemnifying person
      or
      any affiliate or associate thereof, the indemnified person shall be entitled
      to
      retain its own counsel at the expense of such indemnifying person; provided,
      however, that no indemnifying person shall be responsible for the fees and
      expenses of more than one separate counsel (together with appropriate local
      counsel) for all indemnified parties. In no event shall any indemnifying person
      be liable in respect of any amounts paid in settlement of any action unless
      the
      indemnifying person shall have approved the terms of such settlement;
provided
      that
      such consent shall not be unreasonably withheld or delayed. No indemnifying
      person shall, without the prior written consent of the indemnified person,
      effect any settlement of any pending or threatened proceeding in respect of
      which any indemnified person is or could have been a party and indemnification
      could have been sought hereunder by such indemnified person, unless such
      settlement includes an unconditional release of such indemnified person from
      all
      liability on claims that are the subject matter of such proceeding.

    

    (d) If
      the
      indemnification provided for in this Section 7.3 is unavailable to or
      insufficient to hold harmless an indemnified person under subsection (a) or
      (b)
      above in respect of any losses, claims, damages or liabilities (or actions
      or
      proceedings in respect thereof) referred to therein, then each indemnifying
      person shall contribute to the amount paid or payable by such indemnified person
      as a result of such losses, claims, damages or liabilities (or actions in
      respect thereof) in such proportion as is appropriate to reflect the relative
      fault of the Company on the one hand and the Selling Stockholder, as well as
      any
      other Selling Shareholders under such Registration Statement on the other in
      connection with the statements or omissions or other matters which resulted
      in
      such losses, claims, damages or liabilities (or actions in respect thereof),
      as
      well as any other relevant equitable considerations. The relative fault shall
      be
      determined by reference to, among other things, in the case of an Untrue
      Statement, whether the Untrue Statement relates to information supplied by
      the
      Company on the one hand or an Selling Stockholder or other Selling Shareholder
      on the other and the parties’ relative intent, knowledge, access to information
      and opportunity to correct or prevent such Untrue Statement. The Company and
      the
      Selling Stockholder agree that it would not be just and equitable if
      contribution pursuant to this subsection (d) were determined by pro rata
      allocation (even if the Selling Stockholder and other Selling Shareholders
      were
      treated as one entity for such purpose) or by any other method of allocation
      which does not take into account the equitable considerations referred to above
      in this subsection (d). The amount paid or payable by an indemnified person
      as a
      result of the losses, claims, damages or liabilities (or actions in respect
      thereof) referred to above in this subsection (d) shall be deemed to include
      any
      legal or other expenses reasonably incurred by such indemnified person in
      connection with investigating or defending any such action or claim.
      Notwithstanding the provisions of this subsection (d), the Selling Stockholder
      shall not be required to contribute any amount in excess of the amount by which
      the net amount received by the Selling Stockholder from the sale of the Shares
      to which such loss relates exceeds the amount of any damages which such Selling
      Stockholder has otherwise been required to pay by reason of such Untrue
      Statement. No person guilty of fraudulent misrepresentation (within the meaning
      of Section 11(f) of the Securities Act) shall be entitled to contribution
      from any person who was not guilty of such fraudulent misrepresentation. The
      Selling Stockholder’s obligations in this subsection to contribute shall be in
      proportion to its sale of Shares to which such loss relates and shall not be
      joint with any other Selling Shareholders.

    

    
      
        
        

      

      
        -19-

        
          

        

      

      
        
        

      

    

    (e) The
      parties to this Agreement hereby acknowledge that they are sophisticated
      business persons who were represented by counsel during the negotiations
      regarding the provisions hereof including, without limitation, the provisions
      of
      this Section 7.3, and are fully informed regarding said provisions. They
      further acknowledge that the provisions of this Section 7.3 fairly allocate
      the risks in light of the ability of the parties to investigate the Company
      and
      its business in order to assure that adequate disclosure is made in the
      Registration Statement as required by the Securities Act and the Exchange Act.
      The parties are advised that federal or state public policy as interpreted
      by
      the courts in certain jurisdictions may be contrary to certain of the provisions
      of this Section 7.3, and the parties hereto hereby expressly waive and
      relinquish any right or ability to assert such public policy as a defense to
      a
      claim under this Section 7.3 and further agree not to attempt to assert any
      such defense.

    

    7.4 Termination
      of Conditions and Obligations.
      The
      conditions precedent imposed by Section 5 or this Section 7 upon the
      transferability of the Shares shall cease and terminate as to any particular
      number of the Shares when such Shares shall have been effectively registered
      under the Securities Act and sold or otherwise disposed of in accordance with
      the intended method of disposition set forth in the Registration Statement
      covering such Shares or at such time as an opinion of counsel reasonably
      satisfactory to the Company shall have been rendered to the effect that such
      conditions are not necessary in order to comply with the Securities
      Act.

    

    7.5 Information
      Available.
      So long
      as the Registration Statement is effective covering the resale of Shares owned
      by the Investor, the Company will furnish to the Investor:

    

    (a) as
      soon
      as practicable after it is available, one copy of (i) its Annual Report to
      Stockholders (which Annual Report shall contain financial statements audited
      in
      accordance with generally accepted accounting principles by a national firm
      of
      certified public accountants), (ii) its Annual Report on Form 10-K and
      (iii) its Quarterly Reports on Form 10-Q (the foregoing, in each case,
      excluding exhibits);

    

    (b) upon
      the
      request of the Investor, all exhibits excluded by the parenthetical to
      subparagraph (a) of this Section 7.5 as filed with the SEC and all
      other information that is made available to shareholders; and

    

    (c) upon
      the
      reasonable request of the Investor, the President or the Chief Financial Officer
      of the Company (or an appropriate designee thereof) will meet with the Investor
      or a representative thereof at the Company’s headquarters to discuss all
      information relevant for disclosure in the Registration Statement covering
      the
      Shares and will otherwise cooperate with any Investor conducting an
      investigation for the purpose of reducing or eliminating such Investor’s
      exposure to liability under the Securities Act, including the reasonable
      production of information at the Company’s headquarters; provided, that the
      Company shall not be required to disclose any confidential information to or
      meet at its headquarters with any Investor until and unless the Investor shall
      have entered into a confidentiality agreement in form and substance reasonably
      satisfactory to the Company with the Company with respect thereto.

    

    7.6 Legend;
      Restrictions on Transfer.
      The
      certificate or certificates for the Shares (and any securities issued in respect
      of or exchange for the Shares) shall be subject to a legend or legends
      restricting transfer under the Securities Act and referring to restrictions
      on
      transfer herein, such legend to be substantially as follows:

     

    
      
        
        

      

      
        -20-

        
          

        

      

      
        
        

      

    

    

    THESE
      SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
      OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
      REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
      ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
      EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
      AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
      REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
      SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR
      TO
      SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
      COMPANY. THESE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
      ACCOUNT SECURED BY SUCH SECURITIES.

     

    The
      Company and the Investor acknowledge and agree that the Investor may, as
      permitted by law, from time to time pledge pursuant to a bona fide margin
      agreement or grant a security interest in some or all of the Shares and, if
      required under the terms of such arrangement, Investor may, as permitted by
      law,
      transfer pledged or secured Shares to the pledgees or secured parties. So long
      as Investor is not an affiliate of the Company, such a pledge or transfer would
      not be subject to approval or consent of the Company, provided that, upon the
      request of the Company, a legal opinion of legal counsel to the pledgee, secured
      party or pledgor shall be obtained. At the Investor’s expense, so long as the
      Shares are subject to the legend required by this Section 7.6, the Company
      will
      use its reasonable commercial efforts to execute and deliver such reasonable
      documentation as a pledgee or secured party of Shares may reasonably request
      in
      connection with a pledge or transfer of the Shares including such amendments
      or
      supplements to the Registration Statement and Prospectus as may be reasonably
      required. The foregoing does not affect Investor’s obligations pursuant to
      Section 7.2(a).

    

    7.7 Liquidated
      Damages.
      The
      Company and Investor agree that Investor will suffer damages if the Company
      fails to fulfill its obligations pursuant to Section 7.1 and 7.2 hereof and
      that
      it would not be possible to ascertain the extent of such damages with precision.
      Accordingly, the Company hereby agrees to pay liquidated damages (“Liquidated
      Damages”) to Investor under the following circumstances: (a) if the Registration
      Statement is not filed by the Company on or prior to 45 days after the Closing
      Date (such an event, a “Filing Default”); (b) if the Registration Statement is
      not declared effective by the SEC on or prior to the (i)
      the
      fifth trading day following the date the Company is notified by the SEC that
      the
      Registration Statement will not be reviewed or is no longer subject to review
      and (ii) 120 days after the Closing Date
      (such an
      event, an “Effectiveness Default”); and/or (c) if the Registration Statement
      (after its effectiveness date) ceases to be effective and available to Investor
      for any continuous period that exceeds 30 days or for one or more period that
      exceeds in the aggregate 60 days in any 12-month period (such an event, a
“Suspension Default” and together with a Filing Default and an Effectiveness
      Default, a “Registration Default”). In the event of a Registration Default, the
      Company shall as Liquidated Damages pay to Investor, for each 30-day period
      of a
      Registration Default, an amount in cash equal to 1% of the aggregate purchase
      price paid by Investor pursuant to this Agreement up to a maximum of 10% of
      the
      aggregate purchase price, provided that Liquidation Damages shall not be payable
      in relation to any Shares not owned by the Investor at the time of the
      Registration Default. The Company shall pay the Liquidated Damages as follows:
      (i) in connection with a Filing Default, on the 45th
      day
      after the Closing Date, and each 30th day thereafter until the Registration
      Statement is filed with the SEC; (ii) in connection with an Effectiveness
      Default, on the 6th trading day after notice of no review by the SEC or the
      121st
      day
      after the Closing Date, as the case may be, and each 30th day thereafter until
      the Registration Statement is declared effective by the SEC; or (iii) in
      connection with a Suspension Default, on either (x) the 31st
      consecutive day of any Suspension or (y) the 61st
      day (in
      the aggregate) of any Suspensions in any 12-month period, and each
      30th
      day
      thereafter until the Suspension is terminated in accordance with Section 7.2.
      Notwithstanding the foregoing, all periods shall be tolled during delays
      directly caused by the action or inaction of any Investor, and the Company
      shall
      have no liability to any Investor in respect of any such delay. The Liquidated
      Damages payable herein shall apply on a pro rata basis for any portion of a
      30-day period of a Registration Default.

    

    
      
        
        

      

      
        -21-

        
          

        

      

      
        
        

      

    

    7.8
       Legend
      Removal.
      

    

    (a) The
      legend set forth in Section 7.6 shall be removed and the Company shall issue
      a
      certificate without such legend or any other legend to the holder of the Shares
      (whose name is listed in the selling security holders section of the
      Registration Statement), if (a) such Shares are registered for resale under
      the
      Securities Act and the Registration Statement is effective, (ii) in connection
      with a sale, assignment or other transfer, such holder provides the Company
      with
      an opinion of counsel, in a form reasonably acceptable to the Company, to the
      effect that such sale, assignment or transfer of the Shares, as the case may
      be,
      may be made without registration under the applicable requirements of the
      Securities Act, or (iii) such holder provides the Company with reasonable
      assurance that such Shares, as the case may be, can be sold, assigned or
      transferred pursuant to Rule 144(k). 

    

    (b) The
      Company agrees that it shall, on the same day as the Registration Statement
      being declared effective if declared effective before 4:00 PM EST or the next
      business day after the Registration Statement is declared effective if declared
      effective after 4:00 PM EST, deliver to its transfer agent an opinion letter
      of
      Company counsel, opining that at any time the Registration Statement is
      effective, the transfer agent shall be authorized to issue, in connection with
      the sale of the Shares, certificates representing such securities without
      restrictive legend, provided the Shares are to be sold pursuant to the
      Prospectus contained in the Registration Statement and the Investor acknowledges
      its obligation to comply with applicable prospectus delivery requirements.
      Upon
      receipt of such opinion, the Company shall cause the transfer agent to confirm,
      for the benefit of the Investor, that no further opinion of counsel is required
      at the time of transfer in order to issue certificates for the Shares without
      restrictive legend. Following the effective date of the Registration Statement
      or at such earlier time as a legend is no longer required for the Shares, and
      prior to a transfer under the prospectus contained in the Registration
      Statement, the Company will use its commercially reasonable efforts following
      the delivery by the Investor to the Company or the Company’s transfer agent of a
      legended certificate representing the Shares, to deliver or cause to be
      delivered to the Investor, in Investor’s name, a certificate representing such
      Shares that is free from all restrictive and other legends. Following the
      effective date of the Registration Statement and upon the delivery to the
      Investor of any certificate representing Shares that is free from all
      restrictive and other legends, the Investor agrees that any sale or transfer
      of
      such securities shall be made pursuant to the effective Registration Statement
      and, in compliance with applicable prospectus delivery requirements, and in
      accordance with the plan of distribution described therein or pursuant to an
      available exemption from the registration requirements of the Securities Act.
      

    

    (c) The
      Company shall cause its transfer agent to issue a certificate without any
      restrictive legend to a purchaser or transferee of any Shares from the Investor,
      if (a) the sale or transfer of such securities is registered under the
      Registration Statement (including registration pursuant to Rule 415 under the
      Securities Act) and the Investor has delivered a Certificate of Subsequent
      Sale
      to the transfer agent; (b) the holder has provided the Company with an opinion
      of counsel, in form, substance and scope customary for opinions of counsel
      in
      comparable transactions, to the effect that a public sale or transfer of such
      securities may be made without registration under the Securities Act; or (c)
      such securities are sold in compliance with Rule 144 under the Securities Act.
      In addition, the Company shall, at the request of the Investor, remove the
      restrictive legend from any Shares held by the Investor following the expiration
      of the holding period required by Rule 144(k) under the Securities Act (or
      any
      successor rule), if not previously removed.

    

    (d) The
      Investor will indemnify the Company and hold the Company and its directors,
      officers, shareholders, employees and agents (each a “Company Party”) harmless
      form any and all losses, liabilities, obligations, claims, contingencies,
      damages, costs and expenses, including all judgments, amounts paid in
      settlements, court costs, administrative hearing costs, and reasonable
      attorneys’ fees and costs of investigation (collectively “Losses”) that any
      Company Party may suffer or incur as a result of or relating to any breach
      by
      the Investor of its prospectus delivery obligations under the Securities Act
      in
      respect of the sale or transfer of the Shares.

    

    8. Notices.
      All
      notices, requests, consents and other communications hereunder shall be in
      writing, shall be mailed (A) if within the United States by first-class
      registered or certified airmail, or nationally recognized overnight express
      courier, postage prepaid, or by facsimile, or (B) if delivered from outside
      the United States, by International Federal Express (or other recognized
      international express courier) or facsimile, and shall be deemed given
      (i) if delivered by first-class registered or certified mail, three
      business days after so mailed, (ii) if delivered by nationally recognized
      overnight carrier, one business day after so mailed, (iii) if delivered by
      International Federal Express (or other recognized international express
      courier), two business days after so mailed, (iv) if delivered by
      facsimile, upon electronic confirmation of receipt and shall be delivered as
      addressed as follows:

    

    
      
        
        

      

      
        -22-

        
          

        

      

      
        
        

      

       

    

    
      	
            	
              (a)

            	
              if
                to the Company, to:

            

    

    

    ParkerVision,
      Inc.

    7915
      Baymeadows Way

    Jacksonville,
      FL 32256 

    Attn:
      Jeffrey Parker and Cindy Poehlman

    

    
      	
            	(b)	
              with
                a copy to:

            

    

    

    Graubard
      Miller

    405
      Lexington Avenue, 19th
      Floor

    New
      York,
      NY 10174

    Attn:
      David Alan Miller

    

    
      	
            	(c)	
              if
                to the Investor, at its address on the signature page hereto, or
                at such
                other address or addresses as may have been furnished to the Company
                in
                writing.

            

    

    

    9. Changes.
      This
      Agreement may be modified, amended or waived only pursuant to a written
      instrument signed by the Company and (a) Investors holding a majority of the
      Shares issued and sold in the Offering, provided
      that
      such
      modification, amendment or waiver is made with respect to all Agreements and
      does not adversely affect the Investor without adversely affecting all Investors
      in a similar manner; or (b) the Investor.

    

    10. Headings.
      The
      headings of the various sections of this Agreement have been inserted for
      convenience of reference only and shall not be deemed to be part of this
      Agreement.

    

    11. Severability.
      In case
      any provision contained in this Agreement should be invalid, illegal or
      unenforceable in any respect, the validity, legality and enforceability of
      the
      remaining provisions contained herein shall not in any way be affected or
      impaired thereby.

    

    12. Governing
      Law.
      This
      Agreement shall be governed by, and construed in accordance with, the internal
      laws of the State of Florida, without giving effect to the principles of
      conflicts of law.

    

    13. Counterparts.
      This
      Agreement may be executed in two or more counterparts, each of which shall
      constitute an original, but all of which, when taken together, shall constitute
      but one instrument, and shall become effective when one or more counterparts
      have been signed by each party hereto and delivered to the other
      parties. In
      the
      event that any signature is delivered by facsimile transmission, such signature
      shall create a valid and binding obligation of the party executing (or on whose
      behalf such signature is executed) with the same force and effect as if such
      facsimile signature page were an original thereof.

    

    14. Entire
      Agreement.
      This
      Agreement constitutes the entire agreement between the parties hereto and
      supersedes any prior understandings or agreements concerning the purchase and
      sale of the Shares and the resale registration of the Shares.

    

    15. Rule
      144.
      The
      Company covenants that it will timely file the reports required to be filed
      by
      it under the Securities Act and the Exchange Act and the rules and regulations
      adopted by the SEC thereunder (or, if the Company is not required to file such
      reports, it will, upon the request of any Investor holding Shares purchased
      hereunder, make publicly available such information as necessary to permit
      sales
      pursuant to Rule 144 under the Securities Act), and it will take such further
      action as any such Investor may reasonably request, all to the extent required
      from time to time to enable such Investor to sell Shares purchased hereunder
      without registration under the Securities Act within the limitation of the
      exemptions provided by (a) Rule 144 under the Securities Act, as such Rule
      may
      be amended from time to time, or (b) any similar rule or regulation hereafter
      adopted by the SEC. Upon the request of the Investor, the Company will deliver
      to such holder a written statement as to whether it has complied with such
      information and requirements.

    

    
      
        
        

      

      
        -23-

        
          

        

      

      
        
        

      

    

    16. Confidential
      Information.
      

    

    (a) The
      Investor represents to the Company that, at all times during the Company’s
      offering of the Shares, the Investor has maintained in confidence all non-public
      information regarding the Company received by the Investor from the Company
      or
      its agents, and covenants that it will continue to maintain in confidence such
      information until such information (a) becomes generally publicly available
      other than through a violation of this provision by the Investor or its agents
      or (b) is required to be disclosed in legal proceedings (such as by
      deposition, interrogatory, request for documents, subpoena, civil investigation
      demand, filing with any governmental authority or similar process), provided,
      however, that before making any use or disclosure in reliance on this
      subparagraph (b) the Investor shall give the Company at least fifteen (15)
      days
      prior written notice (or such shorter period as required by law) specifying
      the
      circumstances giving rise thereto and will furnish only that portion of the
      non-public information which is legally required and will exercise its
      reasonable commercial efforts to obtain reliable assurance that confidential
      treatment will be accorded any non-public information so furnished.

    

    (b) The
      Company shall on the Closing Date or the morning of the next day issue a press
      release disclosing the material terms of the transactions contemplated hereby
      (including at least the number of Shares sold and proceeds therefrom) and all
      material non-public information disclosed to the Investors. The Company shall
      not publicly disclose the name of Investor, or include the name of Investor
      in
      any filing with the SEC or any state and federal regulatory agency or the Nasdaq
      (other than the filing of the Agreements with the SEC pursuant to the Exchange
      Act), without the prior written consent of Investor, except to the extent such
      disclosure is required by law, regulation or Nasdaq regulations or requested
      by
      the SEC. The Company will make such other filings and notices in the manner
      and
      time required by law, regulation or Nasdaq regulations.

    

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

    

    18. Knowledge.
      The
      term “knowledge” in this Agreement shall mean the knowledge of the directors and
      officers of the Company after due inquiry.

    

    19. Independent
      Nature of Investors’ Obligations and Rights.
      The
      obligations of each Investor under this Agreement is several and not joint
      with
      the obligations of any other Investor, and no Investor shall be responsible
      in
      any way for the performance of the obligations of any other Investor under
      this
      Agreement. The decision of each Investor to purchase Shares pursuant to this
      Agreement has been made by such Investor independently of any other Investor.
      Nothing contained herein, and no action taken by any Investor pursuant hereto,
      shall be deemed to constitute the Investors as a partnership, an association,
      a
      joint venture or any other kind of entity, or create a presumption that the
      Investors are in any way acting in concert or as a group with respect to such
      obligations or the transactions contemplated by the Agreement. Each Investor
      acknowledges that no other Investor has acted as agent for such Investor in
      connection with making its investment hereunder and that no Investor will be
      acting as agent of such Investor in connection with monitoring its investment
      in
      the Shares or enforcing its rights under the Agreement. Each Investor shall
      be
      entitled to independently protect and enforce its rights, including without
      limitation the rights arising out of this Agreement, and it shall not be
      necessary for any other Investor to be joined as an additional party in any
      proceeding for such purpose. The Company acknowledges that each of the Investors
      has been provided with the same Agreements for the purpose of closing a
      transaction with multiple Investors and not because it was required or requested
      to do so by any Investor.

    

    20.
       Limitation
      of Liability.
      Notwithstanding anything herein to the contrary, the Company acknowledges and
      agrees that the liability of an Investor arising directly or indirectly, under
      this Agreement of any and every nature whatsoever shall be satisfied solely
      out
      of the assets of such Investor, and that no trustee, officer, other investment
      vehicle or any other affiliate of such Investor or any investor, shareholder
      or
      holder of shares of beneficial interest of such Investor shall be personally
      liable for any liabilities of such Investor.

    
      
        
        

      

      
        -24-

        
          

        

      

      
        
        

      

    

    

    ParkerVision,
      Inc. 

    

    INVESTOR
      QUESTIONNAIRE

    

    (ALL
      INFORMATION WILL BE TREATED CONFIDENTIALLY)

    

    To:   
      ParkerVision,
      Inc.

             
      7915 Baymeadows Way

             
      Jacksonville, FL 32256

    

    This
      Investor Questionnaire (“Questionnaire”) must be completed by each potential
      investor in connection with the offer and sale of the shares of the common
      stock, par value $.01 per share, of ParkerVision, Inc. (the “Securities”). The
      Securities are being offered and sold by ParkerVision, Inc. (the “Corporation”)
      without registration under the Securities Act of 1933, as amended (the “Act”),
      and the securities laws of certain states, in reliance on the exemptions
      contained in Section 4(2) of the Act and on Regulation D promulgated
      thereunder and in reliance on similar exemptions under applicable state laws.
      The Corporation must determine that a potential investor meets certain
      suitability requirements before offering or selling Securities to such investor.
      The purpose of this Questionnaire is to assure the Corporation that each
      investor will meet the applicable suitability requirements. The information
      supplied by you will be used in determining whether you meet such criteria,
      and
      reliance upon the private offering exemption from registration is based in
      part
      on the information herein supplied.

    

    This
      Questionnaire does not constitute an offer to sell or a solicitation of an
      offer
      to buy any security. Your answers will be kept strictly confidential. However,
      by signing this Questionnaire you will be authorizing the Corporation to provide
      a completed copy of this Questionnaire to such parties as the Corporation deems
      appropriate in order to ensure that the offer and sale of the Securities will
      not result in a violation of the Act or the securities laws of any state and
      that you otherwise satisfy the suitability standards applicable to purchasers
      of
      the Securities. All potential investors must answer all applicable questions
      and
      complete, date and sign this Questionnaire. Please print or type your responses
      and attach additional sheets of paper if necessary to complete your answers
      to
      any item.

     

    

      

      
        	
                A.
                  BACKGROUND
                  INFORMATION

              	
              	 
	 	 	 
	
                Name:
                  _______________________________________________________________________________________________________

              
	 	 	 
	
                Business
                  Address:
                  _____________________________________________________________________________________________

              
	
                 (Number
                  and
                  Street)                                                    
                  

              
	______________________________________________________________________________________________ 
	
                (City)

              	
                (State)

              	
                (Zip
                  Code)

              
	 	 	 
	
                Telephone
                  Number:(___)
                  ________________________________________________________________________________________

              
	 	 	 
	
                Residence
                  Address:
                  ____________________________________________________________________________________________

              
	 	
                (Number
                  and Street)

              	 
	______________________________________________________________________________________________ 
	
                (City)

              	
                (State)

              	
                (Zip
                  Code)

              
	 	 	 
	
                Telephone
                  Number:(___)
                  ________________________________________________________________________________________

              
	 	 	 
	
                If
                  an individual:

              	 	 
	
                Age:
                  _______________

              	
                Citizenship:
                  ________________

              	
                Where
                  registered to vote: _______________

              

      

      

      
        
          
          

        

        
          -25-

          
            

          

        

        
          
          

        

      

    

     

    If
      a
      corporation, partnership, limited liability company, trust or other
      entity:

    Type
      of
      entity:
      ________________________________________________________________________________________

    State
      of
      formation:
      _________________________                           
Date
      of
      formation:___________________________________

    

    Social
      Security or Taxpayer Identification
      No.________________________________________________________________________

    
 

    Send
      all
      correspondence to (check one): ____ Residence Address ____
      Business Address

    

    Current
      ownership of securities of the Corporation:

    __________
      shares of common stock, par value $.01 per share (the “Common
      Stock”)

    options
      to purchase __________ shares of Common Stock.

    

    Name(s)
      of persons with voting and selling authority:
      _________________________________________________________________

    

    B. STATUS
      AS ACCREDITED INVESTOR

    

    The
      undersigned is an “accredited investor” as such term is defined in Regulation D
      under the Act, as at the time of the sale of the Securities the undersigned
      falls within one or more of the following categories (Please
      initial one or more, as applicable):1

     

    ____
      (1) a
      bank as
      defined in Section 3(a)(2) of the Act, or a savings and loan association or
      other institution as defined in Section 3(a)(5)(A) of the Act whether
      acting in its individual or fiduciary capacity; a broker or dealer registered
      pursuant to Section 15 of the Securities Exchange Act of 1934; an insurance
      company as defined in Section 2(13) of the Act; an investment company
      registered under the Investment Corporation Act of 1940 or a business
      development company as defined in Section 2(a)(48) of that Act; a Small
      Business Investment Corporation licensed by the U.S. Small Business
      Administration under Section 301(c) or (d) of the Small Business Investment
      Act of 1958; a plan established and maintained by a state, its political
      subdivisions, or any agency or instrumentality of a state or its political
      subdivisions for the benefit of its employees, if such plan has total assets
      in
      excess of $5,000,000; an employee benefit plan within the meaning of the
      Employee Retirement Income Security Act of 1974 if the investment decision
      is
      made by a plan fiduciary, as defined in Section 3(21) of such Act, which is
      either a bank, savings and loan association, insurance company, or registered
      investment adviser, or if the employee benefit plan has total assets in excess
      of $5,000,000 or, if a self-directed plan, with the investment decisions made
      solely by persons that are accredited investors;

    

    ____
      (2) a
      private
      business development company as defined in Section 202(a)(22) of the
      Investment Adviser Act of 1940;

    

    ____
      (3) an
      organization described in Section 501(c)(3) of the Internal Revenue Code of
      1986, as amended, corporation, Massachusetts or similar business trust, or
      partnership, not formed for the specific purpose of acquiring the Securities
      offered, with total assets in excess of $5,000,000;

    

    ____
      (4) a
      natural
      person whose individual net worth, or joint net worth with that person’s spouse,
      at the time of such person’s purchase of the Securities exceeds
      $1,000,000;

    ____________________________

    1
      As used in this Questionnaire, the term “net worth” means the excess of total
      assets over total liabilities. In computing net worth for the purpose of
      subsection (4), the principal residence of the investor must be valued at cost,
      including cost of improvements, or at recently appraised value by an
      institutional lender making a secured loan, net of encumbrances. In determining
      income, the investor should add to the investor’s adjusted gross income any
      amounts attributable to tax exempt income received, losses claimed as a limited
      partner in any limited partnership, deductions claimed for depiction,
      contributions to an IRA or KEOGH retirement plan, alimony payments, and any
      amount by which income from long-term capital gains has been reduced in arriving
      at adjusted gross income.

     

    
      
        
        

      

      
        -26-

        
          

        

      

      
        
        

      

    

    ____
      (5) a
      natural
      person who had an individual income in excess of $200,000 in each of the two
      most recent years or joint income with that person’s spouse in excess of
      $300,000 in each of those years and has a reasonable expectation of reaching
      the
      same income level in the current year;

    

    ____
      (6) a
      trust,
      with total assets in excess of $5,000,000, not formed for the specific purpose
      of acquiring the Securities offered, whose purchase is directed by a
      sophisticated person as described in Rule 506(b)(2)(ii) of Regulation D;
      and

    

    ____
      (7) an
      entity
      in which all of the equity owners are accredited investors (as defined
      above).

    

    C.           
      REPRESENTATIONS

    

    The
      undersigned hereby represents and warrants to the Corporation as
      follows:

    

    
      	
              1.

            	
              Any
                purchase of the Securities would be solely for the account of the
                undersigned and not for the account of any other person or with a
                view to
                any resale, fractionalization, division, or distribution
                thereof.

            

    

    

    
      	
              2.

            	
              The
                information contained herein is complete and accurate and may be
                relied
                upon by the Corporation, and the undersigned will notify the Corporation
                immediately of any material change in any of such information occurring
                prior to the closing, if any, with respect to the purchase of Securities
                by the undersigned or any
                co-purchaser.

            

    

    

    
      	
              3.

            	
              There
                are no suits, pending litigation, or claims against the undersigned
                that
                could materially affect the net worth of the undersigned as reported
                in
                this Questionnaire.

            

    

    

    
      	
              4.

            	
              The
                undersigned acknowledges that there may occasionally be times when
                the
                Corporation determines that it must suspend the use of the Prospectus
                forming a part of the Registration Statement (as such terms are defined
                in
                the Stock Purchase Agreement to which this Questionnaire is attached),
                as
                set forth in Section 7.2(c) of the Stock Purchase Agreement. The
                undersigned is aware that, in such event, the Securities will not
                be
                subject to ready liquidation, and that any Securities purchased by
                the
                undersigned would have to be held during such suspension. The overall
                commitment of the undersigned to investments which are not readily
                marketable is not excessive in view of the undersigned’s net worth and
                financial circumstances, and any purchase of the Securities will
                not cause
                such commitment to become excessive. The undersigned is able to bear
                the
                economic risk of an investment in the
                Securities.

            

    

    

    
      	
              5.

            	
              The
                undersigned has carefully considered the potential risks relating
                to the
                Corporation and a purchase of the Securities, and fully understands
                that
                the Securities are speculative investments which involve a high degree
                of
                risk of loss of the undersigned’s entire investment. Among others, the
                undersigned has carefully considered each of the risks identified
                in
                Exhibit 99.1 to the Annual Report on Form 10-K for the year ended
                December
                31, 200___ and the Quarterly Report on Form 10-Q for the quarter
                ended
                _________, 200__.

            

    

    

    IN
      WITNESS WHEREOF, the undersigned has executed this Questionnaire this ____
      day
      of ________________, 2007, and declares under oath that it is truthful and
      correct.

    

    

    

    ______________________________________________________

    Print
      Name 

    By:
      ___________________________________________________

    Signature

    

    Title:
      __________________________________________________ 

    (required
      for any purchaser that is a corporation, partnership, 

    trust
      or
      other entity)

     

    
      
        
        

      

      
        -27-

        
          

        

      

      
        
        

      

    

    [Company
      Letterhead]

    

    

    _________,
      200_

    

    

    Re:   
       ParkerVision,
      Inc.; Registration Statement on Form S-3

    

    Dear
      Selling Shareholder:

    

    Enclosed
      please find five (5) copies of a prospectus dated ______________, 200[__] (the
      “Prospectus”)
      for
      your use in reselling your shares of common stock, $.01 par value (the
“Shares”),
      of
      ParkerVision, Inc. (the “Company”),
      under
      the Company’s Registration Statement on Form S-3 (Registration No. 333- ) (the
“Registration
      Statement”),
      which
      has been declared effective by the Securities and Exchange Commission.
As
      a selling shareholder under the Registration Statement, you have an obligation
      to deliver a copy of the Prospectus to each purchaser of your Shares, either
      directly or through the broker-dealer who executes the sale of your
      Shares.

    

    The
      Company is obligated to notify you in the event that it suspends trading under
      the Registration Statement in accordance with the terms of the Stock Purchase
      Agreement between the Company and you. During the period that the Registration
      Statement remains effective and trading thereunder has not been suspended,
      you
      will be permitted to sell your Shares which are included in the Prospectus
      under
      the Registration Statement. Upon a sale of any Shares under the Registration
      Statement, you or your broker will be required to deliver to the Transfer Agent,
      [Name of Transfer Agent] (1) your restricted stock certificate(s) representing
      the Shares, (2) instructions for transfer of the Shares sold, and (3) a
      representation letter from your broker, or from you if you are selling in a
      privately negotiated transaction, or from such other appropriate party, in
      the
      form of Exhibit A
      attached
      hereto (the “Representation Letter”). The Representation Letter confirms that
      the Shares have been sold pursuant to the Registration Statement and in a manner
      described under the caption “Plan of Distribution” in the Prospectus and that
      such sale was made in accordance with all applicable securities laws, including
      the prospectus delivery requirements.

    

    Please
      note that you are under no obligation to sell your Shares during the
      registration period. However, if you do decide to sell, you must comply with
      the
      requirements described in this letter or otherwise applicable to such sale.
      Your
      failure to do so may result in liability under the Securities Act of 1933,
      as
      amended, and the Securities Exchange Act of 1934, as amended. Please remember
      that all sales of your Shares must be carried out in the manner set forth under
      the caption “Plan of Distribution” in the Prospectus if you sell under the
      Registration Statement. The Company may require an opinion of counsel reasonably
      satisfactory to the Company if you choose another method of sale. You
      should consult with your own legal advisor(s) on an ongoing basis to ensure
      your
      compliance with the relevant securities laws and
      regulations.

    

    In
      order to maintain the accuracy of the Prospectus, you must notify the
      undersigned upon the sale, gift, or other transfer of any Shares by you,
      including the number of Shares being transferred, and in the event of any other
      change in the information regarding you which is contained in the Prospectus.
      For example, you must notify the undersigned if you enter into any arrangement
      with a broker-dealer for the sale of shares through a block trade, special
      offering, exchange distribution or secondary distribution or a purchase by
      a
      broker-dealer. Depending on the circumstances, such transactions may require
      the
      filing of a supplement to the prospectus in order to update the information
      set
      forth under the caption “Plan of Distribution” in the
      Prospectus.

    

    Should
      you need any additional copies of the Prospectus, or if you have any questions
      concerning the foregoing, please write to me at ParkerVision, Inc., 7915
      Baymeadows Way, Jacksonville, FL 32256.  Thank you.

    

    Sincerely,

     

    
      
        
        

      

      
        -28-

        
          

        

      

      
        
        

      

    

    Exhibit
      A

    

    CERTIFICATE
      OF SUBSEQUENT SALE

    

    [Name
      of
      Transfer Agent]

    [Address
      of Transfer Agent]

    

    

    
      	 	
              RE:

            	
              Sale
                of Shares of Common Stock of ParkerVision, Inc. (the “Company”) pursuant
                to the

            

      	 	 	
              Company’s
                Prospectus dated _____________, 200[__] (the
                “Prospectus”)

            

    

    

    Dear
      Sir/Madam:

    

    The
      undersigned hereby certifies, in connection with the sale of shares of Common
      Stock of the Company included in the table of Selling Shareholders in the
      Prospectus, that the undersigned has sold the shares pursuant to the Prospectus
      and in a manner described under the caption “Plan of Distribution” in the
      Prospectus and that such sale complies with all securities laws applicable
      to
      the undersigned, including, without limitation, the Prospectus delivery
      requirements of the Securities Act of 1933, as amended.

    

    Selling
      Shareholder (the beneficial
      owner): __________________________________________________________________________

    

    Record
      Holder (e.g., if held in name of nominee): 
_____________________________________________________________________

    

    Restricted
      Stock Certificate No(s): 
________________________________________________________________________________

    

    Number
      of
      Shares Sold: 
________________________________________________________________________________________

    

    Date
      of
      Sale: 
________________________________________________________________________________________________

    

    In
      the
      event that you receive a stock certificate(s) representing more shares of Common
      Stock than have been sold by the undersigned, then you should return to the
      undersigned a newly issued certificate for such excess shares in the name of
      the
      Record Holder and BEARING
      A RESTRICTIVE LEGEND.
      Further, you should place a stop transfer on your records with regard to such
      certificate.

    

    

      

      
        	
              	
                Very
                  truly yours,

              
	 	 
	
                Dated:
                  _________________________________________

              	
                By:
                  ___________________________________________

              
	 	 
	
              	
                Print
                  Name: _____________________________________

              
	 	 
	
                 

              	
                Title:
                  __________________________________________

              

      

      
cc:  
        ParkerVision,
        Inc.

    

           
      7915 Baymeadows Way

           
      Jacksonville, FL 32256

           
      Attn: [_____________]

    

     

    
      
        
        

      

      
        -29-

        
          

        

      

      
        
        

      

    

     

    Exhibit
      B

     

    
 

    FORM
      OF PLAN OF DISTRIBUTION

    

    

    The
      selling stockholders, which as used herein includes donees, pledgees,
      transferees or other successors-in-interest selling shares of common stock
      or
      interests in shares of common stock received after the date of this prospectus
      from a selling stockholder as a gift, pledge, partnership distribution or other
      transfer, may, from time to time, sell, transfer or otherwise dispose of any
      or
      all of their shares of common stock or interests in shares of common stock
      on
      any stock exchange, market or trading facility on which the shares are traded
      or
      in private transactions. These dispositions may be at fixed prices, at
      prevailing market prices at the time of sale, at prices related to the
      prevailing market price, at varying prices determined at the time of sale,
      or at
      negotiated prices.

    

    The
      selling stockholders may use any one or more of the following methods when
      disposing of shares or interests therein:

    

    -
      ordinary brokerage transactions and transactions in which the broker-dealer
      solicits purchasers;

    

    -
      block
      trades in which the broker-dealer will attempt to sell the shares as agent,
      but
      may position and resell a portion of the block as principal to facilitate the
      transaction;

    

    -
      purchases by a broker-dealer as principal and resale by the broker-dealer for
      its account;

    

    -
      an
      exchange distribution in accordance with the rules of the applicable
      exchange;

    

    -
      privately negotiated transactions;

    

    -
      short
      sales effected after the date the registration statement of which this
      Prospectus is a part is declared effective by the SEC;

    

    -
      through
      the writing or settlement of options or other hedging transactions, whether
      through an options exchange or otherwise;

    

    -
      broker-dealers may agree with the selling stockholders to sell a specified
      number of such shares at a stipulated price per share;

    

    -
      a
      combination of any such methods of sale; and

    

    -
      any
      other method permitted pursuant to applicable law.

    

    The
      selling stockholders may, from time to time, pledge or grant a security interest
      in some or all of the shares of common stock owned by them and, if they default
      in the performance of their secured obligations, the pledgees or secured parties
      may offer and sell the shares of common stock, from time to time, under this
      prospectus, or under an amendment to this prospectus under Rule 424(b)(3) or
      other applicable provision of the Securities Act amending the list of selling
      stockholders to include the pledgee, transferee or other successors in interest
      as selling stockholders under this prospectus. The selling stockholders also
      may
      transfer the shares of common stock in other circumstances, in which case the
      transferees, pledgees or other successors in interest will be the selling
      beneficial owners for purposes of this prospectus.

    

    In
      connection with the sale of our common stock or interests therein, the selling
      stockholders may enter into hedging transactions with broker-dealers or other
      financial institutions, which may in turn engage in short sales of the common
      stock in the course of hedging the positions they assume. The selling
      stockholders may also sell shares of our common stock short and deliver these
      securities to close out their short positions, or loan or pledge the common
      stock to broker-dealers that in turn may sell these securities. The selling
      stockholders may also enter into option or other transactions with
      broker-dealers or other financial institutions or the creation of one or more
      derivative securities which require the delivery to such broker-dealer or other
      financial institution of shares offered by this prospectus, which shares such
      broker-dealer or other financial institution may resell pursuant to this
      prospectus (as supplemented or amended to reflect such
      transaction).

    

    
      
        
        

      

      
        -30-

        
          

        

      

      
        
        

      

    

    The
      aggregate proceeds to the selling stockholders from the sale of the common
      stock
      offered by them will be the purchase price of the common stock less discounts
      or
      commissions, if any. Each of the selling stockholders reserves the right to
      accept and, together with their agents from time to time, to reject, in whole
      or
      in part, any proposed purchase of common stock to be made directly or through
      agents. We will not receive any of the proceeds from this offering. Upon any
      exercise of the warrants by payment of cash, however, we will receive the
      exercise price of the warrants.

    

    The
      selling stockholders also may resell all or a portion of the shares in open
      market transactions in reliance upon Rule 144 under the Securities Act of 1933,
      provided that they meet the criteria and conform to the requirements of that
      rule.

    

    The
      selling stockholders and any underwriters, broker-dealers or agents that
      participate in the sale of the common stock or interests therein may be
      "underwriters" within the meaning of Section 2(11) of the Securities Act. Any
      discounts, commissions, concessions or profit they earn on any resale of the
      shares may be underwriting discounts and commissions under the Securities Act.
      Selling stockholders who are "underwriters" within the meaning of Section 2(11)
      of the Securities Act will be subject to the prospectus delivery requirements
      of
      the Securities Act.

    

    To
      the
      extent required, the shares of our common stock to be sold, the names of the
      selling stockholders, the respective purchase prices and public offering prices,
      the names of any agents, dealer or underwriter, any applicable commissions
      or
      discounts with respect to a particular offer will be set forth in an
      accompanying prospectus supplement or, if appropriate, a post-effective
      amendment to the registration statement that includes this
      prospectus.

    

    In
      order
      to comply with the securities laws of some states, if applicable, the common
      stock may be sold in these jurisdictions only through registered or licensed
      brokers or dealers. In addition, in some states the common stock may not be
      sold
      unless it has been registered or qualified for sale or an exemption from
      registration or qualification requirements is available and is complied
      with.

    

    We
      have
      advised the selling stockholders that the anti-manipulation rules of Regulation
      M under the Exchange Act may apply to sales of shares in the market and to
      the
      activities of the selling stockholders and their affiliates. In addition, we
      will make copies of this prospectus (as it may be supplemented or amended from
      time to time) available to the selling stockholders for the purpose of
      satisfying the prospectus delivery requirements of the Securities Act. The
      selling stockholders may indemnify any broker-dealer that participates in
      transactions involving the sale of the shares against certain liabilities,
      including liabilities arising under the Securities Act.

    

    We
      have
      agreed to indemnify the selling stockholders against liabilities, including
      liabilities under the Securities Act and state securities laws, relating to
      the
      registration of the shares offered by this prospectus.

    

    We
      have
      agreed with the selling stockholders to keep the registration statement of
      which
      this prospectus constitutes a part effective until the earlier of (i) two years
      after the closing of the Offering or (ii) such time as all Shares purchased
      by
      such Investor in the Offering have been sold pursuant to a registration
      statement.

     

    
      
        
        

      

      
        -31-

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