Document:

Unassociated Document

     

     

    
      		

    

     

    Subject
      to Commitment Committee Approval

     

    September
      27, 2005

     

    Ms.
      Terri
      Wonderly

    Chief
      Executive Officer

    Online
      Processing, Inc.

    750
      East
      I-30, Suite 100

    Rockwall,
      Texas 75087

    Dear
      Ms.
      Wonderly:

     

    This
      letter confirms that Online Processing, Inc. (the “Company”) has decided to
      engage Chardan Capital Markets, LLC (“Chardan”) and Maxim Group LLC (“Maxim”)
      (Chardan and Maxim collectively “Chardan and Maxim”) as exclusive placement
      agents in connection with the proposed offering (“Offering”) of securities
      (“Securities”) of the Company. The approximate gross proceeds from the Offering
      will be up to $12,000,000. The terms of the Securities and the gross proceeds
      of
      such Offering will be substantially set forth in a purchase agreement (“Purchase
      Agreement”) to be negotiated between Maxim and the Company, which Purchase
      Agreement shall contain customary representations, warrants, agreements and
      covenants.

     

    
      	 	
              1.

            	
              Appointment.

            

    

     

    
      	 	
              (a)

            	
              Subject
                to the terms and conditions of this Agreement, the Company hereby
                retains
                Chardan and Maxim, and Chardan and Maxim hereby agree to act, as
                the
                Company’s exclusive placement agents in connection with the Offering. As
                placement agents for the Offering, Chardan and Maxim will advise
                and
                assist the Company in identifying one
                or more investors (“Investors”) in the Offering. The Company acknowledges
                and agrees that Chardan and Maxim will proceed as indicated in the
                Memorandum of Understanding signed by all parties attached to this
                Agreement as Exhibit A.

            

    

     

    
      	 	
              (b)

            	
              During
                the Term of this Agreement (as such term is hereinafter defined),
                neither
                the Company nor any of its subsidiaries will, directly or indirectly,
                solicit or otherwise encourage the submission of any proposal or
                offer
                (“Investment Proposal”) from any person or entity relating to any issuance
                of the Company’s or any of its subsidiaries’ equity securities (including
                debt securities with any equity feature) or participate in any discussions
                regarding an Investment Proposal. The term “Investment Proposal” shall not
                include (i) any investment in the equity securities of any other
                entity,
                (ii) any commercial loans to the Company, and (iii) any transaction
                or
                agreement with one or more persons, firms or entities designated
                as a
                “strategic partner” of the Company, as determined in good faith by the
                Board of Directors of the Company, provided that each such person,
                firm or
                entity is, itself or through its subsidiaries, an operating company
                in a
                business synergistic with the business of the Company and in which
                the
                Company receives benefits in addition to the investment of funds,
                but
                shall not include a transaction in which the Company is issuing securities
                primarily for the purpose of raising capital or to an entity whose
                primary
                business is investing in securities. The Company will immediately
                cease
                all contacts, discussions and negotiations with third parties regarding
                any Investment Proposal.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	
              2.

            	
              Information.
                In connection with Chardan and Maxim’s activities hereunder, the Company
                will cooperate with Chardan and Maxim and furnish, upon request,
                all
                information regarding the business, operations, properties, financial
                condition, management and prospects of the Company (all such information
                so furnished being the “Information”) which Chardan and Maxim deem
                appropriate and will provide Chardan and Maxim with access to the
                Company’s officers, directors, employees, independent accountants and
                legal counsel. The Company represents and warrants to the Advisors
                that
                all Information made available to Chardan and Maxim hereunder will
                be
                complete and correct in all material respects and will not contain
                any
                untrue statement of a material fact or omit to state a material fact
                necessary in order to make the statements therein not misleading
                in light
                of the circumstances under which such statements are or will be made.
                The
                Company further represents and warrants that any projections and
                other
                forward-looking information provided by it to Chardan and Maxim will
                have
                been prepared in good faith and will be based upon assumptions which,
                in
                light of the circumstances under which they are made, are reasonable.
                The
                Company recognizes and confirms that Chardan and Maxim: (i) will
                use and
                rely primarily on the Information and on information available from
                generally recognized public sources in performing the services
                contemplated by this Agreement without having independently verified
                the
                same; (ii) do not assume responsibility for the accuracy or completeness
                of the Information and such other information; and (iii) will not
                make an
                appraisal of any assets of the Company. Any advice rendered by Chardan
                and
                Maxim pursuant to this Agreement may not be disclosed publicly without
                Chardan and Maxim’s prior written consent. Chardan and Maxim hereby
                acknowledge that certain of the Information received by Chardan and
                Maxim
                may be confidential and/or proprietary, including Information with
                respect
                to the Company’s technologies, products, business plans, marketing, and
                other Information which must be maintained by Chardan and Maxim as
                confidential. Chardan and Maxim agree that they will not disclose
                such
                confidential and/or proprietary Information to any other companies
                in the
                industry in which the Company is involved. The term "confidential
                Information” does not include information which (i) was or becomes
                generally available to the public other than as a result of a disclosure
                by the undersigned or its Representatives in violation of this Agreement,
                (ii) was or becomes available to the undersigned on a non-confidential
                basis from a source other than the Company or its Representatives
                provided
                that such source is not known to you to be bound by a confidentiality
                agreement with the Company, or otherwise prohibited from transmitting
                the
                information to the undersigned by a contractual, legal or fiduciary
                obligation or (iii) was within the undersigned's possession prior
                to its
                being furnished by or on behalf of the
                Company.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	
              3.

            	
              Representations
                and Warranties of the Company.
                The Company represents and warrants to Chardan and Maxim, as
                follows:

            

    

     

    
      	 	
              (a)

            	
              Securities
                Law Compliance.
                The offer, offer for sale, and sale of the Securities have not been
                registered with the United States Securities and Exchange Commission
                (the
                “SEC”). The Securities are to be offered, offered for sale and sold in
                reliance upon the exemptions from the registration requirements of
                Section
                5 of the Securities Act of 1933, as amended (the “1933 Act”). The Company
                will use its best efforts to conduct the Offering in compliance with
                the
                requirements of Regulation D of the General Rules and Regulations
                under
                the 1933 Act, and the Company will file all appropriate notices of
                offering with the SEC. The Company has prepared the Offering documents.
                The Offering documents will not contain any untrue statement of a
                material
                fact or omit to state any material fact necessary in order to make
                the
                statements therein, in light of the circumstances in which they were
                made,
                not misleading. If at any time prior to the completion of the Offering
                or
                other termination of this Agreement any event shall occur as a result
                of
                which it might become necessary to amend or supplement the Offering
                documents so that they do not include any untrue statement of any
                material
                fact or omit to state any material fact necessary in order to make
                the
                statements therein, in the light of the circumstances then existing,
                not
                misleading, the Company will promptly notify Chardan and Maxim and
                will
                supply Chardan and Maxim with amendments or supplements correcting
                such
                statement or omission. The Company will also provide to Chardan and
                Maxim
                for delivery to all offerees and purchasers and their representatives,
                if
                any, any information, documents and instruments which Chardan and
                Maxim
                deem reasonably necessary to comply with applicable state and federal
                law.

            

    

     

    
      	 	
              (b)

            	
              Authorization
                of Agreement, Etc.
                This Agreement has been duly and validly authorized, executed and
                delivered by the Company and the execution, delivery and performance
                by
                the Company of this Agreement, the Purchase Agreement and any other
                documents to be executed by the Company in connection with the Offering
                have been duly authorized by all requisite corporate action by the
                Company
                and when delivered, constitute or will constitute the legal, valid
                and
                binding obligations of the Company, enforceable in accordance with
                their
                respective terms, subject to applicable laws regarding insolvency
                and to
                principles of equity.

            

    

     

    
      	 	
              (c)

            	
              Right
                of First Refusal.
                Except for the right of first refusal granted to Chardan and Maxim
                herein,
                no person, firm or other business entity is a party to any agreement,
                contract or understanding, written or oral entitling such party to
                a right
                of first refusal with respect to offerings by the Company.
                

            

    

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    
      	 	
              (d)

            	
              Organization.
                The Company is a corporation duly organized, validly existing and
                in good
                standing under the laws of the Nevada and has all requisite corporate
                power and authority to own and lease its properties, to carry on
                its
                business as currently conducted and as described in the Offering
                documents, to execute and deliver this Agreement and to carry out
                the
                transactions contemplated by this Agreement, as appropriate, and
                is duly
                licensed or qualified to do business as a foreign corporation in
                each
                other jurisdiction in which the conduct of its business or ownership
                or
                leasing of its properties requires it to be so qualified, except
                where the
                failure to be so licensed or qualified would not, in the aggregate,
                have a
                material adverse effect on the business or financial condition of
                the
                Company (a “Material Adverse
                Effect”).

            

    

     

    
      	 	
              (e)

            	
              Capitalization.
                The authorized, issued and outstanding capital stock of the Company
                prior
                to the consummation of the transactions contemplated hereby is as
                set
                forth in Schedule 3(e) to this Agreement. All issued and outstanding
                shares of the Company are validly issued, fully paid and nonassessable
                and
                such shares have not been issued in violation of the preemptive rights
                of
                any stockholder of the Company. All prior sales of securities of
                the
                Company were either registered under the 1933 Act and applicable
                state
                securities laws or exempt from such registration, and no security
                holder
                has any rescission rights with respect
                thereto.

            

    

     

    
      	 	
              (f)

            	
              Warrants,
                Preemptive Rights, Etc.
                Except as set forth in or contemplated by Schedule 3(f) to this Agreement
                or the SEC Filings (as defined herein), there are not, nor will there
                be
                immediately after the consummation of the Offering any outstanding
                warrants, options, agreements, convertible securities, preemptive
                rights
                to subscribe for or other commitments pursuant to which the Company
                is, or
                may become, obligated to issue any shares of its capital stock or
                other
                securities of the Company and the Offering will not cause any anti
                dilution adjustments to such securities or commitments except as
                set forth
                in Schedule 3(d) to this Agreement.

            

    

     

    
      	 	
              (g)

            	
              Subsidiaries
                and Investments.
                Other than as set forth in Schedule3(g) to this Agreement or the
                SEC
                Filings (as defined herein), the Company has no subsidiaries and
                the
                Company does not own, directly or indirectly, any capital stock or
                other
                equity ownership or proprietary interests in any other corporation,
                association, trust, partnership, joint venture or other entity.
                

            

    

     

    
      	 	
              (h)

            	
              Financial
                Statements.
                The financial information contained in the Offering Documents will
                be
                accurate in all material respects. The financial statements attached
                to
                the Offering Documents are hereinafter referred to collectively as
                the
                “Financial Statements.” The Financial Statements have been prepared in
                conformity with generally accepted accounting principles (“GAAP”)
                consistently applied and show all material liabilities, absolute
                or
                contingent, of the Company required to be recorded thereon and present
                fairly the financial position and results of operations of the Company
                as
                of the dates and for the periods indicated; provided, however, that
                the
                Company is entitled to rely on the representations of Diguang
                International Holdings, Inc. that the financial information that
                they
                provided for inclusion in the Offering Documents are accurate in
                all
                material respects and have been prepared in conformity with GAAP
                consistently applied and shows all material liabilities, absolute
                or
                contingent of Diguang required to be recorded thereon and presents
                fairly
                the financial position and results of operations of Diguang as of
                the
                dates and for the periods indicated. 

            

    

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    
      	 	
              (i)

            	
              Absence
                of Changes.
                Other than as set forth in the Company’s filings under the Securities
                Exchange Act of 1934, as amended (“SEC Filings”), since the latest
                unaudited financial statements the Company has not incurred any
                liabilities or obligations, direct or contingent, not in the ordinary
                course of business, or entered into any transaction not in the ordinary
                course of business, which is material to the business of the Company,
                and,
                except as set forth in Schedule 3(i) to this Agreement there has
                not been
                any change in the capital stock of, or any incurrence of long term
                debt
                by, the Company, or any issuance of options, warrants or other rights
                to
                purchase the capital stock of the Company, or any adverse change
                or any
                development involving, so far as the Company can now reasonably foresee,
                a
                prospective adverse change in the condition (financial or otherwise),
                net
                worth, results of operations, business, key personnel or properties
                which
                would be material to the business or financial condition of the Company,
                dividend or distribution of any kind declared, paid, or made in respect
                of
                the common shares. and the Company has not become a party to, and
                neither
                the business nor the property of the Company has become the subject
                of,
                any material litigation whether or not in the ordinary course of
                business.

            

    

     

    
      	 	
              (j)

            	
              Title.
                Except as set forth in the SEC Filings, the Company has good and
                marketable title to all properties and assets owned by it, free and
                clear
                of all liens, charges, encumbrances or restrictions, except such
                as are
                not significant or important in relation to the Company’s business; all of
                the material leases and subleases under which the Company is the
                lessor or
                sublessor of properties or assets or under which the Company holds
                properties or assets as lessee or sublessee are in full force and
                effect,
                and the Company is not in default in any material respect with respect
                to
                any of the terms or provisions of any of such leases or subleases,
                and no
                material claim has been asserted by anyone adverse to rights of the
                Company as lessor, sublessor, lessee or sublessee under any of the
                leases
                or subleases mentioned above, or affecting or questioning the right
                of the
                Company to continued possession of the leased or subleased premises
                or
                assets under any such lease or sublease. The Company owns or leases
                all
                such properties as are necessary to its operations as described in
                the
                Offering documents. 

            

    

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    
      	 	
              (k)

            	
              Litigation.
                Except as set forth in the SEC Filings or contemplated by Schedule
                3(k) to
                this Agreement, there is no material action, suit, investigation,
                customer
                complaint, claim or proceeding at law or in equity by or before any
                arbitrator, governmental instrumentality or other agency now pending
                or,
                to the knowledge of the Company, threatened against the Company (or
                basis
                therefor known to the Company), the adverse outcome of which would
                have a
                Material Adverse Effect. The Company is not subject to any judgment,
                order, writ, injunction or decree of any Federal, state, municipal
                or
                other governmental department, commission, board, bureau, agency
                or
                instrumentality, domestic or foreign which have a Material Adverse
                Effect.

            

    

     

    
      	 	
              (l)

            	
              Non
                Defaults; Non Contravention.
                Except as set forth in the SEC Filings or contemplated by Schedule
                3(l) to
                this Agreement, the Company is not in violation of or default under,
                nor
                will the execution and delivery of this Agreement or any of the Offering
                documents, or consummation of the transactions contemplated herein
                or
                therein result in a violation of or constitute a default in the
                performance or observance of any obligation under: (i) its Certificate
                of
                Incorporation, or its By laws; or (ii) any indenture, mortgage, contract,
                material purchase order or other agreement or instrument to which
                the
                Company is a party or by which it or its property is bound, where
                such
                violation or default would have a Material Adverse Effect; or (iii)
                any
                material order, writ, injunction or decree of any court of any Federal,
                state, municipal or other governmental department, commission, board,
                bureau, agency or instrumentality, domestic or foreign, where such
                violation or default would have a Material Adverse Effect, and there
                exists no condition, event or act which constitutes, nor which after
                notice, the lapse of time or both, could constitute a default under
                any of
                the foregoing, which in either case would have a Material Adverse
                Effect.

            

    

     

    
      	 	
              (m)

            	
              Compliance
                With Laws; Licenses, Etc.
                Except as set forth in the SEC Filings or contemplated by Schedule
                3(m) to
                this Agreement, the Company has not received notice of any violation
                of or
                noncompliance with any Federal, state, local or foreign, laws, ordinances,
                regulations and orders applicable to its business which has not been
                cured, the violation of, or noncompliance with which, would have
                a
                Material Adverse Effect. The Company has all material licenses and
                permits
                and other governmental certificates, authorizations and permits and
                approvals (collectively, “Licenses”) required by every Federal, state and
                local government or regulatory body for the operation of its business
                as
                currently conducted and the use of its properties, except where the
                failure to be licensed or possess a permit would not have a Material
                Adverse Effect. The Licenses are in full force and effect and to
                the
                Company’s knowledge no violations currently exist in respect of any
                License and no proceeding is pending or threatened to revoke or limit
                any
                thereof.

            

    

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    
      	 	
              (n)

            	
              Authorization
                of Agreement, Etc.
                This Agreement has been duly and validly authorized, executed and
                delivered by the Company and the execution, delivery and performance
                by
                the Company of this Agreement, the Purchase Agreement and any other
                documents to be executed by the Company in connection with the Offering
                have been duly authorized by all requisite corporate action by the
                Company
                and when delivered, constitute or will constitute the legal, valid
                and
                binding obligations of the Company, enforceable in accordance with
                their
                respective terms, subject to applicable laws regarding insolvency
                and to
                principles of equity.

            

    

     

    
      	 	
              (o)

            	
              Authorization
                of Securities.
                The issuance, sale and delivery of Securities have been duly authorized
                by
                all requisite corporate action of the Company. When so issued, sold
                and
                delivered in accordance with the Offering documents for the consideration
                set forth therein, the Securities will be duly executed, issued and
                delivered and will constitute valid and legal obligations of the
                Company
                enforceable in accordance with their respective terms and, in each
                case,
                will not be subject to preemptive or any other similar rights of
                the
                stockholders of the Company or others which rights shall not have
                been
                waived prior to the closing of the
                Offering.

            

    

     

    
      	 	
              (p)

            	
              Exemption
                from Registration.
                Assuming (i) the accuracy of the information provided by the respective
                purchasers in the Purchase Agreement and (ii) that Chardan and Maxim
                have
                complied in all material respects with the provisions of Regulation
                D
                promulgated under the 1933 Act, the offer and sale of the Securities
                pursuant to the terms of this Agreement are exempt from the registration
                requirements of the 1933 Act and the rules and regulations promulgated
                thereunder. The Company is not disqualified from the exemption under
                Regulation D by virtue of the disqualifications contained in Rule
                505(b)(2)(iii) or Rule 507 promulgated
                thereunder.

            

    

     

    
      	 	
              (q)

            	
              Registration
                Rights.
                Except as set forth in Schedule 3(q) hereto, no person has any right
                to
                cause the Company to effect the registration under the 1933 Act of
                any
                securities of the Company. The Company shall grant registration rights
                under the 1933 Act to the purchasers in the Offering and/or their
                transferees.

            

    

     

    
      	 	
              (r)

            	
              Brokers.
                Neither the Company nor any of its officers, directors, employees
                or
                stockholders has employed any broker or finder in connection with
                the
                transactions contemplated by this Agreement other than Chardan and
                Maxim.

            

    

     

    
      	 	
              (s)

            	
              Title
                to Securities.
                When certificates representing the Securities issued in connection
                with
                the Offering have been duly delivered to the purchasers participating
                in
                the Offering, and payment shall have been made therefor, the purchasers
                shall receive from the Company good and marketable title to such
                securities free and clear of all liens, encumbrances and claims whatsoever
                (with the exception of claims arising through the acts or omissions
                of the
                purchasers and except as arising from applicable Federal and state
                securities laws), and the Company shall have paid all taxes, if any,
                in
                respect of the original issuance
                thereof.

            

    

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    
      	 	
              4.

            	
              Equity.
                As consideration for Chardan and Maxim entering into this agreement,
                the
                Company agrees to sell to Chardan and Maxim 243,000 shares of the
                Company’s common stock (assuming a 3-for-5 reverse stock split of the
                Company’s outstanding shares) at
                a cost of $0.001 per share upon the signing of this
                Agreement.

            

    

     

    
      	 	
              5.

            	
              Compensation.
                As consideration for Chardan and Maxim’s services pursuant to this
                Agreement, Chardan and Maxim shall be entitled to receive, and the
                Company
                agrees to pay Chardan and Maxim, the following
                compensation:

            

    

     

    
      	 	
              (a)

            	
              The
                Company shall pay to Chardan and Maxim a one-time fee equal to 8%
                of the
                total funds raised in the Offering (funds raised not to exceed
                $12,000,000). Additionally, the Company shall pay to Chardan and
                Maxim a
                monthly fee of $5,000 payable on the 1st day of each month commencing
                during the term of the Agreement. The fees earned by and paid to
                Chardan
                and Maxim by the Company in connection with future financings or
                transactions undertaken by the Company will be mutually agreed upon
                under
                separate advisory, placement agency and/or underwriting
                agreements.

            

    

     

    
      	 	
              (b)

            	
              The
                Company and Chardan and Maxim acknowledge and agree that, in the
                course of
                performing services hereunder, Chardan and Maxim may introduce the
                Company
                to third parties who may be interested in providing financing to
                the
                Company (a “Financing”) or in entering into a transaction with the
                Company, including, without limitation, a merger, acquisition or
                sale of
                stock or assets (in which the Company may be the acquiring or the
                acquired
                entity), joint venture, strategic alliance or other similar transaction
                (any such transaction, a
“Transaction”).

            

    

     

    The
      Company agrees that if within eighteen (18) months from the effective date
      of
      the termination of this Agreement either the Company or any party to whom the
      Company was introduced by Chardan and Maxim or who was contacted by Chardan
      and
      Maxim in connection with its services for the Company hereunder proposes a
      Financing or any Transaction involving the Company and Chardan and Maxim are
      not
      engaged as the Company’s exclusive financial advisor, agent and/or investment
      banker in connection with such Financing or Transaction pursuant to Section
      7
      hereof, then, if any such Financing or Transaction is consummated, the Company
      shall pay to Chardan and Maxim fees which will be mutually agreed upon under
      separate advisory, placement agency and/or underwriting agreements.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    Such
      fees
      shall be payable to Chardan and Maxim in cash at the closing or closings of
      the
      Financing or Transaction to which it relates.

     

    The
      amount of consideration paid in a Transaction shall include, for purposes of
      calculating such fee, all forms of consideration paid or received, directly
      or
      indirectly, by the Company and/or its stockholders in such Transaction,
      including, without limitation, cash, securities, notes or other evidences of
      indebtedness, assumption of liabilities (whether by operation of law or
      otherwise), or any combination thereof. If all or a portion of the consideration
      paid in the Transaction is other than cash or securities, then the value of
      such
      non-cash consideration shall be the fair market value thereof on the date the
      Transaction is consummated as mutually agreed upon in good faith by the Company
      and Chardan and Maxim. If such non-cash consideration consists of common stock,
      options, warrants or rights for which a public trading market existed prior
      to
      the consummation for the Transaction, then the value of such securities shall
      be
      determined based upon the closing or last sales price thereof on the date of
      the
      consummation of the Transaction. If no public market exists for the common
      stock, options, warrants or other rights issued in the Transaction, and/or
      if
      such non-cash consideration consists of newly-issued, publicly-traded common
      stock, options, warrants or rights for which no public trading market existed
      prior to the consummation of the Transaction, then the value thereof shall
      be as
      mutually agreed upon in good faith by the Company and Chardan and Maxim. If
      the
      non-cash consideration paid in the Transaction consists of preferred stock
      or
      debt securities (regardless of whether a public trading market existed for
      such
      preferred stock or debt securities prior to consummation of the Transaction
      or
      exists thereafter), the value thereof shall be the maximum liquidation value
      (without regard to accrued dividends) of the preferred stock or the principal
      amount of the debt securities, as the case may be. 

     

    Any
      amounts payable by a purchaser to the Company, any stockholder of the Company
      or
      an affiliate of either the Company or any stockholder of the Company in
      connection with a non-competition, employment, consulting, licensing, supply
      or
      other agreement (or payable by the Company if the Company is the acquiring
      entity) shall be deemed to be part of the consideration paid in the Transaction.
      If all or a portion of the consideration payable in connection with the
      Transaction includes contingent future payments, then the Company shall pay
      to
      Chardan and Maxim an additional cash fee, determined in accordance with this
      Section 5, as, when and if such contingency payments are received. However,
      in
      the event of an installment purchase at a fixed price and fixed time schedule,
      the Company agrees to pay Chardan and Maxim, upon consummation of such
      Transaction, an additional cash fee, determined in accordance with this Section
      5 based upon the present value of such installment payments using a discount
      rate of 10%. If with respect to any non-cash consideration the Company and
      Chardan and Maxim are unable to agree on the fair market value thereof, then
      such value shall be determined by submission of the question to a reputable
      appraisal firm with experience valuing property of the nature of the subject
      consideration acceptable to the Company and Chardan and Maxim (the fees and
      expenses of whom shall be borne equally by the Company and Chardan and
      Maxim).

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    
      	 	
              6.

            	
              Expenses.
                In addition to payment to Chardan and Maxim of the compensation set
                forth
                in Section 6 hereof, the Company shall promptly upon the closing
                of the
                transaction reimburse Chardan and Maxim for all reasonable expenses
                (including, without limitation, fees and disbursements of counsel
                and all
                travel and other verifiable out-of-pocket expenses) incurred by Chardan
                and Maxim in connection with its engagement hereunder. Chardan and
                Maxim
                will provide the Company invoices and copies of receipts related
                to the
                expenses and such expenses shall not exceed $98,000 without prior
                authorization of the Company.

            

    

     

    
      	 	
              7.

            	
              Indemnification.
                The Company agrees to indemnify Chardan and Maxim in accordance with
                the
                indemnification and other provisions attached to this Agreement as
                Exhibit
                B
                (the “Indemnification
                Provisions”),
                which provisions are incorporated herein by reference and shall survive
                the termination or expiration of this Agreement.
                

            

    

     

    
      	 	
              8.

            	
              Future
                Rights.
                As additional consideration for its services hereunder and as an
                inducement to cause Chardan and Maxim to enter into this Agreement,
                if at
                any time during the term of this Agreement or within twenty-four
                (24)
                months from the effective date of the termination of this Agreement,
                the
                Company proposes to effect a public offering of its securities,
                Transaction or to engage an investment banking firm to provide any
                other
                services to the Company (other than during the term of this Agreement
                the
                services to be provided by Chardan and Maxim hereunder), the Company
                shall
                offer to retain Chardan and Maxim as manager of such offering, or
                as its
                exclusive advisor, agent and/or investment banker in connection with
                such
                public offering, Transaction or other matter, upon such terms as
                the
                parties may mutually agree, such terms to be set forth in a separate
                engagement letter or other agreement between the parties. Such offer
                shall
                be made in writing in order to be effective. The Company shall not
                offer
                to retain any other investment banking firm in connection with any
                such
                public offering, Transaction or other matter on terms more favorable
                than
                those discussed with Chardan and Maxim without offering to retain
                Chardan
                and Maxim on such more favorable terms. Chardan and Maxim shall notify
                the
                Company within seven (7) days of its receipt of the written offer
                contemplated above as to whether or not it agrees to accept such
                retention. If Chardan and Maxim should decline such retention, the
                Company
                shall have no further obligations to Chardan and Maxim, except as
                specifically provided for herein. 

            

    

     

    
      	 	
              9.

            	
              Other
                Activities.
                The Company acknowledges that Chardan and Maxim have been, and may
                in the
                future be, engaged to provide services as an underwriter, placement
                agent,
                finder, advisor and investment banker to other companies in the industry
                in which the Company is involved. Subject to the confidentiality
                provisions of Chardan and Maxim contained in Section 2 hereof, the
                Company
                acknowledges and agrees that nothing contained in this Agreement
                shall
                limit or restrict the right of Chardan and Maxim or of any member,
                manager, officer, employee, agent or representative of Chardan and
                Maxim,
                to be a member, manager, partner, officer, director, employee, agent
                or
                representative of, investor in, or to engage in, any other business,
                whether or not of a similar nature to the Company’s business, nor to limit
                or restrict the right of Chardan and Maxim to render services of
                any kind
                to any other corporation, firm, individual or association provided
                Chardan
                and Maxim shall fully disclose to the Company any such engagement,
                services, role or involvement with such other companies, that Chardan
                and
                Maxim deem to constitute a conflict of interest with the Company’s
                business. In the event that the Company shall reasonably determine
                that
                such circumstances constitute a conflict of interest, the Company
                shall be
                entitled to terminate this Agreement, whereupon the provisions of
                section
                3 (b) above shall not apply in respect of any Transaction or Financing
                after termination of this Agreement. Chardan and Maxim may, but shall
                not
                be required to, present opportunities to the
                Company.

            

    

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    
      	 	
              10.

            	
              Termination;
                Survival of Provisions.
                Unless otherwise provided for in this Agreement, the term of this
                Agreement is twenty-four (24) months (“Term”). Subject to Section 4, at
                the end of the Term, the Company shall pay and deliver to Chardan
                and
                Maxim all compensation earned. Notwithstanding anything expressed
                or
                implied herein to the contrary: (i) any Agency Agreement entered
                into
                between Chardan and Maxim and the Company may only be terminated
                in
                accordance with the terms thereof, notwithstanding an actual or purported
                termination of this Agreement, and (ii) the terms and provisions
                of
                Sections 3, 4, 5, 6 (including, but not limited to, the Indemnification
                Provisions attached to this Agreement and incorporated herein by
                reference), 7, 8, 9, 10, 11 and 18 shall survive the termination
                of this
                Agreement. 

            

    

     

    
      	 	
              11.

            	
              Notices.
                All notices provided hereunder shall be given in writing and either
                delivered personally or by overnight courier service or sent by certified
                mail, return receipt requested, or by facsimile transmission, if
                to
                Chardan, to Chardan Capital Markets, LLC, 17 State Street, Suite
                2575, New
                York, NY 10004 Attention: Kerry S. Propper, Chief Executive Officer,
                Fax
                No. (212) 785-1535, if to Maxim, to Maxim Group LLC, 405 Lexington
                Avenue,
                2nd Floor, New York, NY 10174, Attention: Clifford A. Teller, Director
                of
                Investment Banking, Fax No. (212) 895-3783 and if to the Company,
                to the
                address, set forth on the first page of this Agreement. Any notice
                delivered personally or by fax shall be deemed given upon receipt
                (with
                confirmation of receipt required in the case of fax transmissions);
                any
                notice given by overnight courier shall be deemed given on the next
                business day after delivery to the overnight courier; and any notice
                given
                by certified mail shall be deemed given upon the second business
                day after
                certification thereof.

            

    

     

    
      	 	
              12.

            	
              Governing
                Law; Jurisdiction; Waiver of Jury Trial.
                This Agreement shall be governed by and construed in accordance with
                the
                laws of the State of New York applicable to agreements made and to
                be
                fully performed therein, without regard to conflicts of law principles.
                It
                is understood and agreed amongst the parties to this agreement that
                any
                and all disputes shall be mediated using the facilities of NASD Dispute
                Resolution, Inc. (“NASDR”). Both parties agree that they will submit their
                dispute to NASDR, and that the designated Director of Mediation (as
                that
                term is defined by section 10401 of the NASD Code of Arbitration)
                will
                select the mediator to mediate the dispute. The parties to this Agreement
                agree that they will equally share the costs of any mediation. It
                is
                further understood and agreed that the decision rendered by the mediator
                shall be final and binding. This agreement shall, at all times in
                all
                places, and in all proceedings, be interpreted under the laws of
                the state
                of New York, without regard to conflicts of law
                principles.

            

    

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    
      	 	
              13.

            	
              Amendments.
                This Agreement may not be modified or amended except in a writing
                duly
                executed by the parties hereto.

            

    

     

    
      	 	
              14.

            	
              Headings.
                The section headings in this Agreement have been inserted as a matter
                of
                reference and are not part of this
                Agreement.

            

    

     

    
      	 	
              15.

            	
              Successors
                and Assigns.
                The benefits of this Agreement shall inure to the parties hereto,
                their
                respective successors and assigns and to the indemnified parties
                hereunder
                and their respective successors and assigns, and the obligations
                and
                liabilities assumed in this Agreement shall be binding upon the parties
                hereto and their respective successors and assigns. Notwithstanding
                anything contained herein to the contrary, neither Chardan and Maxim
                nor
                the Company shall assign any of their obligations hereunder without
                the
                prior written consent of the other party.

            

    

     

    
      	 	
              16.

            	
              No
                Third Party Beneficiaries.
                This Agreement does not create, and shall not be construed as creating,
                any rights enforceable by any person or entity not a party hereto,
                except
                those entitled to the benefits of the Indemnification Provisions.
                Without
                limiting the foregoing, the Company acknowledges and agrees that
                Chardan
                and Maxim are not being engaged as, and shall not be deemed to be,
                an
                agent or fiduciary of the Company’s stockholders or creditors or any other
                person by virtue of this Agreement or the retention of Chardan and
                Maxim
                hereunder, all of which are hereby expressly
                waived.

            

    

     

    
      	 	
              17.

            	
              Waiver.
                Any waiver or any breach of any of the terms or conditions of this
                Agreement shall not operate as a waiver of any other breach of such
                terms
                or conditions or of any other term or condition, nor shall any failure
                to
                insist upon strict performance or to enforce any provision hereof
                on any
                one occasion operate as a waiver of such provision or of any other
                provision hereof or a waiver of the right to insist upon strict
                performance or to enforce such provision or any other provision on
                any
                subsequent occasion. Any waiver must be in
                writing.

            

    

     

    
      	 	
              18.

            	
              Counterparts.
                This Agreement may be executed in any number of counterparts and
                by
                facsimile transmission, each of which shall be deemed to be an original
                instrument, but all of which taken together shall constitute one
                and the
                same agreement. Facsimile signatures shall be deemed to be original
                signatures for all purposes.

            

    

     

    [Signature
      Page Follows]

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

     

    

     

    If
      the
      foregoing correctly sets forth our agreement, please sign the enclosed copy
      of
      this Agreement in the space provided below and return it to us.

     

    Very
      truly yours,

     

    

    
      	
              CHARDAN
                CAPITAL MARKETS, LLC

            	 	
              MAXIM
                GROUP LLC

            
	
              By:
                /s/ Kerry S. Propper

            	 	
              By:
                /s/ Clifford A. Teller

            
	
              Name:
                Kerry S. Propper

              Title:
                Chairman & Chief Executive Officer

            	 	
              Name:
                Clifford A. Teller

              Title:
                Director of Investment Banking

            
	 	 	 
	 	 	 
	 	 	
              By:
                /s/ Anthony J. Sarkis

            
	 	 	
              Name:
                Anthony J. Sarkis

              Title:
                Director of Investment Banking

            

    

     

    Agreed
      to and accepted this 27th day of September 2005

     

    ONLINE
      PROCESSING, INC.

     

    
      	By:
              /s/ Terri Wonderly	 	 
	
              Name:
                Terri Wonderly

              Title:
                Chief Executive Officer

            	 	
               

            
	 	 	
               

            

       

    

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    
       

      
        		

      

       

    

    
       

       

    

    Exhibit
      A

     

    Memorandum
      of Understanding

     

    [Under
      Separate Cover]

     

    

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    Exhibit
      B

     

    INDEMNIFICATION
      PROVISIONS

     

    Capitalized
      terms used in this Exhibit shall have the meanings ascribed to such terms in
      the
      Agreement to which this Exhibit is attached.

     

    Online
      Processing, Inc. agrees to indemnify and hold harmless Chardan and Maxim and
      each of the other Indemnified Parties (as hereinafter defined) from and against
      any and all losses, claims, damages, obligations, penalties, judgments, awards,
      liabilities, costs, expenses and disbursements, and any and all actions, suits,
      proceedings and investigations in respect thereof and any and all legal and
      other costs, expenses and disbursements in giving testimony or furnishing
      documents in response to a subpoena or otherwise (including, without limitation,
      the costs, expenses and disbursements, as and when incurred, of investigating,
      preparing, pursing or defending any such action, suit, proceeding or
      investigation (whether or not in connection with litigation in which any
      Indemnified Party is a party)) (collectively, “Losses”), directly or indirectly,
      caused by, relating to, based upon, arising out of, or in connection with,
      Chardan and Maxim’s acting for the Company, including, without limitation, any
      act or omission by Chardan and Maxim in connection with its acceptance of or
      the
      performance or non-performance of its obligations under the Agreement between
      the Company and Chardan and Maxim to which these indemnification provisions
      are
      attached and form a part (the “Agreement”), any breach by the Company of any
      representation, warranty, covenant or agreement contained in the Agreement
      (or
      in any instrument, document or agreement relating thereto, including any Agency
      Agreement), or the enforcement by Chardan and Maxim of their rights under the
      Agreement or these indemnification provisions, except to the extent that any
      such Losses are found in a final judgment by a court of competent jurisdiction
      (not subject to further appeal) to have resulted primarily and directly from
      the
      gross negligence or willful misconduct of the Indemnified Party seeking
      indemnification hereunder. The Company also agrees that no Indemnified Party
      shall have any liability (whether direct or indirect, in contract or tort or
      otherwise) to the Company for or in connection with the engagement of Chardan
      and Maxim by the Company or for any other reason, except to the extent that
      any
      such liability is found in a final judgment by a court of competent jurisdiction
      (not subject to further appeal) to have resulted primarily and directly from
      such Indemnified Party’s gross negligence or willful misconduct.

     

    These
      Indemnification Provisions shall extend to the following persons (collectively,
      the “Indemnified Parties”): Chardan and Maxim, its present and former affiliated
      entities, managers, members, officers, employees, legal counsel, agents and
      controlling persons (within the meaning of the federal securities laws), and
      the
      officers, directors, partners, stockholders, members, managers, employees,
      legal
      counsel, agents and controlling persons of any of them. These indemnification
      provisions shall be in addition to any liability which the Company may otherwise
      have to any Indemnified Party.

     

    If
      any
      action, suit, proceeding or investigation is commenced, as to which an
      Indemnified Party proposes to demand indemnification, it shall notify the
      Company with reasonable promptness; provided,
      however,
      that
      any failure by an Indemnified Party to notify the Company shall not relieve
      the
      Company from its obligations hereunder. An Indemnified Party shall have the
      right to retain counsel of its own choice to represent it, and the fees,
      expenses and disbursements of such counsel shall be borne by the Company. Any
      such counsel shall, to the extent consistent with its professional
      responsibilities, cooperate with the Company and any counsel designated by
      the
      Company. The Company shall be liable for any settlement of any claim against
      any
      Indemnified Party made with the Company’s written consent. The Company shall
      not, without the prior written consent of Chardan and Maxim, settle or
      compromise any claim, or permit a default or consent to the entry of any
      judgment in respect thereof, unless such settlement, compromise or consent
      (i)
      includes, as an unconditional term thereof, the giving by the claimant to all
      of
      the Indemnified Parties of an unconditional release from all liability in
      respect of such claim, and (ii) does not contain any factual or legal admission
      by or with respect to an Indemnified Party or an adverse statement with respect
      to the character, professionalism, expertise or reputation of any Indemnified
      Party or any action or inaction of any Indemnified Party.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    In
      order
      to provide for just and equitable contribution, if a claim for indemnification
      pursuant to these indemnification provisions is made but it is found in a final
      judgment by a court of competent jurisdiction (not subject to further appeal)
      that such indemnification may not be enforced in such case, even though the
      express provisions hereof provide for indemnification in such case, then the
      Company shall contribute to the Losses to which any Indemnified Party may be
      subject (i) in accordance with the relative benefits received by the Company
      and
      its stockholders, subsidiaries and affiliates, on the one hand, and the
      Indemnified Party, on the other hand, and (ii) if (and only if) the allocation
      provided in clause (i) of this sentence is not permitted by applicable law,
      in
      such proportion as to reflect not only the relative benefits, but also the
      relative fault of the Company, on the one hand, and the Indemnified Party,
      on
      the other hand, in connection with the statements, acts or omissions which
      resulted in such Losses as well as any relevant equitable considerations. No
      person found liable for a fraudulent misrepresentation shall be entitled to
      contribution from any person who is not also found liable for fraudulent
      misrepresentation. The relative benefits received (or anticipated to be
      received) by the Company and it stockholders, subsidiaries and affiliates shall
      be deemed to be equal to the aggregate consideration payable or receivable
      by
      such parties in connection with the transaction or transactions to which the
      Agreement relates relative to the amount of fees actually received by Chardan
      and Maxim in connection with such transaction or transactions. Notwithstanding
      the foregoing, in no event shall the amount contributed by all Indemnified
      Parties exceed the amount of fees previously received by Chardan and Maxim
      pursuant to the Agreement.

     

    Neither
      termination nor completion of the Agreement shall affect these Indemnification
      Provisions which shall remain operative and in full force and effect. The
      Indemnification Provisions shall be binding upon the Company and its successors
      and assigns and shall inure to the benefit of the Indemnified Parties and their
      respective successors, assigns, heirs and personal representatives.

     

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      C

     

    INITIAL
      FINANCING TERM SHEET

     

    The
      Company and Chardan and Maxim acknowledge that the following terms are
      preliminary in nature and are subject to further revision.

     

    Structure
      - Common Stock and Warrants

    
      	
              GENERAL

            	 
	
              Issuer:

            	
              Online
                Processing, Inc.

            
	
              Placement
                Agents:

            	
              Chardan
                Capital Markets, LLC (“Chardan”)
                and Maxim Group LLC (“Maxim”)
                

            
	
              Securities
                to be Issued:

            	
              Common
                Shares

            
	
              Amount
                of Financing:

            	
              $12,000,000

            
	
              Price:

            	
              $5.00

            
	
              Use
                of Proceeds:

            	
              Working
                Capital

            
	
              Closing:

            	
              The
                closing of the Offering (the “Closing”)
                is anticipated to occur on or before
                [Date].AMENDED
      AND RESTATED 

    FORM
      OF REGISTRATION RIGHTS AGREEMENT

    

    

    This
      Registration Rights Agreement (this "Agreement")
      is
      made and entered into as of January 16, 2006, by and among Online Processing,
      Inc., a Nevada corporation (the "Company"),
      Diguang International Holdings, Ltd. (“Diguang”) and
      the
      purchasers listed on Schedule
      I
      hereto
      (the "Purchasers").

    

    This
      Agreement is being entered into pursuant to the Private Placement Memorandum
      dated as of the date hereof and the Supplement dated February 23, 2006 among
      the
      Company and the Purchasers (the Private Placement Memorandum and the Supplement
      are collectively referred to as the "Memorandum").

    

    The
      Company and the Purchasers hereby agree as follows:

    

    1.
      Definitions.

    

    Capitalized
      terms used and not otherwise defined herein shall have the meanings given such
      terms in the Memorandum. As used in this Agreement, the following terms shall
      have the following meanings:

    

    "Advice"
      shall
      have meaning set forth in Section 3(m).

    

    "Affiliate"
      means,
      with respect to any Person, any other Person that directly or indirectly
      controls or is controlled by or under common control with such Person. For
      the
      purposes of this definition, "control,"
      when
      used with respect to any Person, means the possession, direct or indirect,
      of
      the power to direct or cause the direction of the management and policies of
      such Person, whether through the ownership of voting securities, by contract
      or
      otherwise; and the terms of "affiliated,"
      "controlling"
      and
      "controlled"
      have
      meanings correlative to the foregoing.

    

    "Board"
      shall
      have meaning set forth in Section 3(n).

    

      "Business
      Day"
      means
      any day except Saturday, Sunday and any day which shall be a legal holiday
      or a
      day on which banking institutions in the state of New York generally are
      authorized or required by law or other government actions to close.

    

    "Closing
      Date"
      means
      the date the Company receives subscriptions for all 2,400,000 shares of Common
      Stock pursuant to the Memorandum.

    

    "Commission"
      means
      the Securities and Exchange Commission.

    

    "Common
      Stock"
      means
      the Company's Common Stock, par value $.001 per share.

    

    "Effectiveness
      Date"
      means
      with respect to the Registration Statement the earlier of the one hundred and
      eightieth (180th)
      day
      following the Filing Date or the
      date
      which is within five (5) days of the date on which the Commission informs the
      Company that the Commission (i) will not review the Registration Statement
      or
      (ii) that
      the
      Company may request the acceleration of the effectiveness of the Registration
      Statement and the Company makes such request.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    "Effectiveness
      Period"
      shall
      have the meaning set forth in Section 2.

    

    "Event"
      shall
      have the meaning set forth in Section 7(e).

    

    "Event
      Date"
      shall
      have the meaning set forth in Section 7(e).

    

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

    

    "Filing
      Date"
      means
      the ninetieth (90th)
      day
      following the Closing Date. 

    

     "Holder"
      or
      "Holders"
      means
      the holder or holders, as the case may be, from time to time of Registrable
      Securities.

    

     "Indemnified
      Party"
      shall
      have the meaning set forth in Section 5(c).

    

     "Indemnifying
      Party"
      shall
      have the meaning set forth in Section 5(c).

    

    "Losses"
      shall
      have the meaning set forth in Section 5(a).

    

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

    

     "Proceeding"
      means
      an action, claim, suit, investigation or proceeding (including, without
      limitation, an investigation or partial proceeding, such as a deposition),
      whether commenced or threatened.

    

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

    

    "Registrable
      Securities”
means
      the shares of Common Stock issuable pursuant to the Memorandum. 

    

    "Registration
      Statement"
      means
      the registration statements and any additional registration statements
      contemplated by Section 2, including (in each case) the Prospectus, amendments
      and supplements to such registration statement or Prospectus, including pre-
      and
      post-effective amendments, all exhibits thereto, and all material incorporated
      by reference in such registration statement.

    

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

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    "Rule
      158"
      means
      Rule 158 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

    

    "Rule
      415"
      means
      Rule 415 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

    

    "Rule
      424"
      means
      Rule 424 promulgated by the Commission pursuant to the Securities Act, as such
      Rule may be amended from time to time, or any similar rule or regulation
      hereafter adopted by the Commission having substantially the same effect as
      such
      Rule.

    

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

    

    “Transaction
      Documents”
means
      the Memorandum and all other documents relating to the Offering. 

    
 

    2. Resale
      Registration.

    

    On
      or
      prior to the Filing Date the Company shall prepare and file with the Commission
      a "resale" Registration Statement covering all Registrable Securities for an
      offering to be made on a continuous basis pursuant to Rule 415. The Registration
      Statement shall be on Form S-1 (except if the Company is not then eligible
      to
      register for resale the Registrable Securities on Form S-1, in which case such
      registration shall be on another appropriate form in accordance herewith).
      The
      Company shall (i) not permit any securities other than the Registrable
      Securities and the securities listed on Schedule
      II
      hereto
      to be included in the Registration Statement and (ii) use its best efforts
      to
      cause the Registration Statement to be declared effective under the Securities
      Act as promptly as possible after the filing thereof, but in any event prior
      to
      the Effectiveness Date, and to keep such Registration Statement continuously
      effective under the Securities Act for twenty-four (24) months thereafter (the
      "Effectiveness
      Period").
      

    

    3. Registration
      Procedures.

    

    In
      connection with the Company's registration obligations hereunder, the Company
      shall:

     

    (a)
       Prepare
      and file with the Commission, on or prior to the Filing Date, a Registration
      Statement on Form S-1 (or if the Company is not then eligible to register for
      resale the Registrable Securities on Form S-1 such registration shall be on
      another appropriate form in accordance herewith) in accordance with the method
      or methods of distribution thereof as specified by the Holders (except if
      otherwise directed by the Holders) and in accordance with applicable law, and
      cause the Registration Statement to become effective and remain effective as
      provided herein; provided,
      however,
      that
      not less than three (3) Business Days prior to the filing of the Registration
      Statement or any related Prospectus or any amendment or supplement thereto,
      the
      Company shall (i) furnish to the Holders and any Special Counsel, copies of
      all
      such documents proposed to be filed, which documents will be subject to the
      review of such Holders and such Special Counsel, and (ii) cause its officers
      and
      directors, counsel and independent certified public accountants to respond
      to
      such inquiries as shall be necessary, in the reasonable opinion of Special
      Counsel, to conduct a reasonable review of such documents. The Company shall
      not
      file the Registration Statement or any such Prospectus or any amendments or
      supplements thereto to which the Holders of a majority of the Registrable
      Securities or any Special Counsel shall reasonably object in writing within
      three (3) Business Days of their receipt thereof.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b) (i)
      Prepare and file with the Commission such amendments, including post-effective
      amendments, to the Registration Statement as may be necessary to keep the
      Registration Statement continuously effective as to the applicable Registrable
      Securities for the Effectiveness Period and prepare and file with the Commission
      such additional Registration Statements as necessary in order to register for
      resale under the Securities Act all of the Registrable Securities; (ii) cause
      the related Prospectus to be amended or supplemented by any required Prospectus
      supplement, and as so supplemented or amended to be filed pursuant to Rule
      424
      (or any similar provisions then in force) promulgated under the Securities
      Act;
      (iii) respond as promptly as possible, but in no event later than fifteen (15)
      business days, to any comments received from the Commission with respect to
      the
      Registration Statement or any amendment thereto and as promptly as possible
      provide the Holders true and complete copies of all correspondence from and
      to
      the Commission relating to the Registration Statement; and (iv) comply in all
      material respects with the provisions of the Securities Act and the Exchange
      Act
      with respect to the disposition of all Registrable Securities covered by the
      Registration Statement during the applicable period in accordance with the
      intended methods of disposition by the Holders thereof set forth in the
      Registration Statement as so amended or in such Prospectus as so supplemented.
      

    

    (c) Notify
      the Holders of Registrable Securities and any Special Counsel as promptly as
      possible (and, in the case of (i)(A) below, not less than three (3) days prior
      to such filing) and (if requested by any such Person) confirm such notice in
      writing no later than two (2) Business Days following the day (i)(A) when a
      Prospectus or any Prospectus supplement or post-effective amendment to the
      Registration Statement is filed; (B) when the Commission notifies the Company
      whether there will be a "review" of such Registration Statement and whenever
      the
      Commission comments in writing on such Registration Statement and (C) with
      respect to the Registration Statement or any post-effective amendment, when
      the
      same has become effective; (ii) of any request by the Commission or any other
      Federal or state governmental authority for amendments or supplements to the
      Registration Statement or Prospectus or for additional information; (iii) of
      the
      issuance by the Commission of any stop order suspending the effectiveness of
      the
      Registration Statement covering any or all of the Registrable Securities or
      the
      initiation or threatening of any Proceedings for that purpose; (iv) if at any
      time any of the representations and warranties of the Company contained in
      any
      agreement contemplated hereby ceases to be true and correct in all material
      respects; (v) 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 Registrable Securities for sale in any jurisdiction, or the initiation
      of
      any Proceeding for such purpose; and (vi) of the occurrence of any event that
      makes any statement made in the Registration Statement or Prospectus or any
      document incorporated or deemed to be incorporated therein by reference untrue
      in any material respect or that requires any revisions to the Registration
      Statement, Prospectus or other documents so that, in the case of the
      Registration Statement or the Prospectus, as the case may be, it will not
      contain any untrue statement of a material fact or omit to state any 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.

     

    (d) Use
      its
      best efforts to avoid the issuance of, or, if issued, obtain the withdrawal
      of,
      as promptly as possible, (i) any order suspending the effectiveness of the
      Registration Statement or (ii) any suspension of the qualification (or exemption
      from qualification) of any of the Registrable Securities
      for sale in any jurisdiction.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (e) If
      requested by the Holders of a majority in interest of the Registrable
      Securities, (i) promptly incorporate in a Prospectus supplement or
      post-effective amendment to the Registration Statement such information as
      the
      Company reasonably agrees should be included therein and (ii) make all required
      filings of such Prospectus supplement or such post-effective amendment as soon
      as practicable after the Company has received notification of the matters to
      be
      incorporated in such Prospectus supplement or post-effective
      amendment.

    

    (f) If
      requested by any Holder, furnish to such Holder and any Special Counsel, without
      charge, at least one conformed copy of each Registration Statement and each
      amendment thereto, including financial statements and schedules, all documents
      incorporated or deemed to be incorporated therein by reference, and all exhibits
      to the extent requested by such Person (including those previously furnished
      or
      incorporated by reference) promptly after the filing of such documents with
      the
      Commission.

    

    (g) Promptly
      deliver to each Holder and any Special Counsel, without charge, as many copies
      of the Prospectus or Prospectuses (including each form of prospectus) and each
      amendment or supplement thereto as such Persons may reasonably request; and
      subject to the provisions of Section 3(n), the Company hereby consents to the
      use of such Prospectus and each amendment or supplement thereto by each of
      the
      selling Holders in connection with the offering and sale of the Registrable
      Securities covered by such Prospectus and any amendment or supplement
      thereto.

    

    (h) Prior
      to
      any public offering of Registrable Securities, use its best efforts to register
      or qualify or cooperate with the selling Holders and any Special Counsel in
      connection with the registration or qualification (or exemption from such
      registration or qualification) of such Registrable Securities for offer and
      sale
      under the securities or Blue Sky laws of such jurisdictions within the United
      States as any Holder requests in writing, to keep each such registration or
      qualification (or exemption therefrom) effective during the Effectiveness Period
      and to do any and all other acts or things necessary or advisable to enable
      the
      disposition in such jurisdictions of the Registrable Securities covered by
      a
      Registration Statement; provided,
      however,
      that
      the Company shall not be required to qualify generally to do business in any
      jurisdiction where it is not then so qualified or to take any action that would
      subject it to general service of process in any such jurisdiction where it
      is
      not then so subject or subject the Company to any material tax in any such
      jurisdiction where it is not then so subject.

    

      (i) Cooperate
      with the Holders to facilitate the timely preparation and delivery of
      certificates representing Registrable Securities to be sold pursuant to a
      Registration Statement, which certificates, to the extent permitted by the
      Memorandum and applicable federal and state securities laws, shall be free
      of
      all restrictive legends, and to enable such Registrable Securities to be in
      such
      denominations and registered in such names as any Holder may request in
      connection with any sale of Registrable Securities.

    

    (j) Upon
      the
      occurrence of any event contemplated by Section 3(c)(vi), as promptly as
      possible, prepare a supplement or amendment, including a post-effective
      amendment, to the Registration Statement or a supplement to the related
      Prospectus or any document incorporated or deemed to be incorporated therein
      by
      reference, and file any other required document so that, as thereafter
      delivered, neither the Registration Statement nor such Prospectus will 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 the light
      of the circumstances under which they were made, not misleading.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (k) Use
      its
      best efforts to cause all Registrable Securities relating to the Registration
      Statement to be listed on the NASDAQ
      National Market or
      any
      other securities exchange, quotation system or market, if any, on which similar
      securities issued by the Company are then listed as and when required pursuant
      to the Memorandum.

    

    (l) Comply
      in
      all material respects with all applicable rules and regulations of the
      Commission and make generally available to its security holders earning
      statements satisfying the provisions of Section 11(a) of the Securities Act
      and
      Rule 158 not later than 45 days after the end of any 12-month period (or 90
      days
      after the end of any 12-month period if such period is a fiscal year) commencing
      on the first day of the first fiscal quarter of the Company after the effective
      date of the Registration Statement, which statement shall conform to the
      requirements of Rule 158.

    

    (m) The
      Company may require each selling Holder to furnish to the Company information
      regarding such Holder and the distribution of such Registrable Securities as
      is
      required by law to be disclosed in the Registration Statement, Prospectus,
      or
      any amendment or supplement thereto, and the Company may exclude from such
      registration the Registrable Securities of any such Holder who unreasonably
      fails to furnish such information within a reasonable time after receiving
      such
      request.

    

    Each
      Holder covenants and agrees that (i) it will not sell any Registrable Securities
      under the Registration Statement until it has received copies of the Prospectus
      as then amended or supplemented as contemplated in Section 3(g) and notice
      from
      the Company that such Registration Statement and any post-effective amendments
      thereto have become effective as contemplated by Section 3(c) and (ii) it and
      its officers, directors or Affiliates, if any, will comply with the prospectus
      delivery requirements of the Securities Act as applicable to them in connection
      with sales of Registrable Securities pursuant to the Registration
      Statement.

    

    Each
      Holder agrees by its acquisition of such Registrable Securities that, upon
      receipt of a notice from the Company of the occurrence of any event of the
      kind
      described in Section 3(c)(ii), 3(c)(iii), 3(c)(iv), 3(c)(v), 3(c)(vi) or 3(n),
      such Holder will forthwith discontinue disposition of such Registrable
      Securities under the Registration Statement until such Holder's receipt of
      the
      copies of the supplemented Prospectus and/or amended Registration Statement
      contemplated by Section 3(j), or until it is advised in writing (the
      "Advice")
      by the
      Company that the use of the applicable Prospectus may be resumed, and, in either
      case, has received copies of any additional or supplemental filings that are
      incorporated or deemed to be incorporated by reference in such Prospectus or
      Registration Statement.

    

    (n) If
      (i)
      there is material non-public information regarding the Company which the
      Company's Board of Directors (the "Board")
      reasonably determines not to be in the Company's best interest to disclose
      and
      which the Company is not otherwise required to disclose, or (ii) there is a
      significant business opportunity (including, but not limited to, the acquisition
      or disposition of assets (other than in the ordinary course of business) or
      any
      merger, consolidation, tender offer or other similar transaction) available
      to
      the Company which the Board reasonably determines not to be in the Company's
      best interest to disclose, then the Company may postpone or suspend filing
      or
      effectiveness of a registration statement for a period not to exceed 20
      consecutive days, provided that the Company may not postpone or suspend its
      obligation under this Section 3(n) for more than 45 days in the aggregate during
      any 360 day period; provided,
      however,
      that no
      such postponement or suspension shall be permitted for consecutive 20 day
      periods, arising out of the same set of facts, circumstances or
      transactions.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    4. Registration
      Expenses.

    

    All
      fees
      and expenses incident to the performance of or compliance with this Agreement
      by
      the Company, except as and to the extent specified in Section 4, shall be borne
      by the Company whether or not the Registration Statement is filed or becomes
      effective and whether or not any Registrable Securities are sold pursuant to
      the
      Registration Statement. The fees and expenses referred to in the foregoing
      sentence shall include, without limitation, (i) all registration and filing
      fees
      (including, without limitation, fees and expenses (A) with respect to filings
      required to be made with each securities exchange or market on which Registrable
      Securities are required hereunder to be listed, (B) with respect to filing
      fees
      required to be paid to the National Association of Securities Dealers, Inc.
      and
      the NASD Regulation, Inc. and (C) in compliance with state securities or Blue
      Sky laws (including, without limitation, fees and disbursements of counsel
      for
      the Holders in connection with Blue Sky qualifications of the Registrable
      Securities and determination of the eligibility of the Registrable Securities
      for investment under the laws of such jurisdictions as the Holders of a majority
      of Registrable Securities may designate)), (ii) printing expenses (including,
      without limitation, expenses of printing certificates for Registrable Securities
      and of printing prospectuses if the printing of prospectuses is requested by
      the
      holders of a majority of the Registrable Securities included in the Registration
      Statement), (iii) messenger, telephone and delivery expenses, (iv) fees and
      disbursements of counsel for the Company and Special Counsel for the Holders,
      in
      the case of the Special Counsel, to a maximum amount of $7,500, (v) Securities
      Act liability insurance, if the Company so desires such insurance, and (vi)
      fees
      and expenses of all other Persons retained by the Company in connection with
      the
      consummation of the transactions contemplated by this Agreement, including,
      without limitation, the Company's independent public accountants (including
      the
      expenses of any comfort letters or costs associated with the delivery by
      independent public accountants of a comfort letter or comfort letters). In
      addition, the Company shall be responsible for all of its internal expenses
      incurred in connection with the consummation of the transactions contemplated
      by
      this Agreement (including, without limitation, all salaries and expenses of
      its
      officers and employees performing legal or accounting duties), the expense
      of
      any annual audit, the fees and expenses incurred in connection with the listing
      of the Registrable Securities on any securities exchange as required
      hereunder.

    

    5. Indemnification.

    

    (a) Indemnification
      by the Company.
      The
      Company shall, notwithstanding any termination of this Agreement, indemnify
      and
      hold harmless each Holder, the officers, directors, agents, brokers (including
      brokers who offer and sell Registrable Securities as principal as a result
      of a
      pledge or any failure to perform under a margin call of Common Stock),
      investment advisors and employees of each of them, each Person who controls
      any
      such Holder (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, to the fullest extent permitted by applicable
      law,
      from and against any and all losses, claims, damages, liabilities, costs
      (including, without limitation, costs of preparation and attorneys' fees) and
      expenses (collectively, "Losses"),
      as
      incurred, arising out of or based upon any untrue or alleged untrue statement
      of
      a material fact contained in the Registration Statement, any Prospectus or
      any
      form of prospectus or in any amendment or supplement thereto or in any
      preliminary prospectus, or arising out of or based upon any omission or alleged
      omission of a material fact required to be stated therein or necessary to make
      the statements therein (in the case of any Prospectus or form of prospectus
      or
      supplement thereto), in the light of the circumstances under which they were
      made, not misleading, except to the extent, but only to the extent, that such
      untrue statements or omissions arise out of or are based upon information
      regarding the Holders or such other Indemnified Party furnished in writing
      to
      the Company by a Holder expressly for use therein, which information was
      reasonably relied on by the Company for use therein or to the extent that such
      information relates to a Holder or such Holder's proposed method of distribution
      of Registrable Securities and was reviewed and expressly approved in writing
      by
      a Holder expressly for use in the Registration Statement, such Prospectus or
      such form of Prospectus or in any amendment or supplement thereto. The Company
      shall notify the Holders promptly of the institution, threat or assertion of
      any
      Proceeding of which the Company is aware in connection with the transactions
      contemplated by this Agreement.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (b) Indemnification
      by Holders.
      Each
      Holder shall, severally and not jointly, indemnify and hold harmless the
      Company, its directors, officers, agents and employees, each Person who controls
      the Company (within the meaning of Section 15 of the Securities Act and Section
      20 of the Exchange Act), and the directors, officers, agents or employees of
      such controlling Persons, to the fullest extent permitted by applicable law,
      from and against all Losses, as incurred, arising out of or based upon any
      untrue or alleged untrue statement of a material fact contained in the
      Registration Statement, any Prospectus, or any form of prospectus, or in any
      amendment or supplement thereto or in any preliminary prospectus, or arising
      out
      of or based upon any omission or alleged omission of a material fact required
      to
      be stated therein or necessary to make the statements therein (in the case
      of
      any Prospectus or form of prospectus or supplement thereto), in the light of
      the
      circumstances under which they were made, not misleading, to the extent, but
      only to the extent, that such untrue statement or omission is contained in
      any
      information so furnished in writing by such Holder or other Indemnified Party
      to
      the Company expressly for use therein and that such information was reasonably
      relied upon by the Company for use therein, or to the extent that such
      information relates to such Holder or such Holder's proposed method of
      distribution of Registrable Securities and was reviewed and expressly approved
      in writing by such Holder expressly for use in the Registration Statement,
      such
      Prospectus or such form of Prospectus or any amendment or supplement thereto.
      Notwithstanding anything to the contrary contained herein, the Holders shall
      be
      liable under this Section 5(b) for only that amount as does not exceed the
      net
      proceeds to such Holder as a result of the sale of Registrable Securities
      pursuant to such Registration Statement.

    

    (c) Conduct
      of Indemnification Proceedings.
      If any
      Proceeding shall be brought or asserted against any Person entitled to indemnity
      hereunder (an "Indemnified
      Party"),
      such
      Indemnified Party promptly shall notify the Person from whom indemnity is sought
      (the "Indemnifying
      Party)
      in
      writing, and the Indemnifying Party shall be entitled to assume the defense
      thereof, including the employment of counsel reasonably satisfactory to the
      Indemnified Party and the payment of all fees and expenses incurred in
      connection with defense thereof; provided, that the failure of any Indemnified
      Party to give such notice shall not relieve the Indemnifying Party of its
      obligations or liabilities pursuant to this Agreement, except (and only) to
      the
      extent that it shall be finally determined by a court of competent jurisdiction
      (which determination is not subject to appeal or further review) that such
      failure shall have proximately and materially adversely prejudiced the
      Indemnifying Party.

    

    An
      Indemnified Party shall have the right to employ separate counsel in any such
      Proceeding and to participate in the defense thereof, but the fees and expenses
      of such counsel shall be at the expense of such Indemnified Party or Parties
      unless: (1) the Indemnifying Party has agreed in writing to pay such fees and
      expenses; or (2) the Indemnifying Party shall have failed promptly to assume
      the
      defense of such Proceeding and to employ counsel reasonably satisfactory to
      such
      Indemnified Party in any such Proceeding; or (3) the named parties to any such
      Proceeding (including any impleaded parties) include both such Indemnified
      Party
      and the Indemnifying Party, and such parties shall have been advised by counsel
      that a conflict of interest is likely to exist if the same counsel were to
      represent such Indemnified Party and the Indemnifying Party (in which case,
      if
      such Indemnified Party notifies the Indemnifying Party in writing that it elects
      to employ separate counsel at the expense of the Indemnifying Party, the
      Indemnifying Party shall not have the right to assume the defense thereof and
      such counsel shall be at the expense of the Indemnifying Party). The
      Indemnifying Party shall not be liable for any settlement of any such Proceeding
      effected without its written consent, which consent shall not be unreasonably
      withheld or delayed. No Indemnifying Party shall, without the prior written
      consent of the Indemnified Party, effect any settlement of any pending or
      threatened Proceeding in respect of which any Indemnified Party is a party
      and
      indemnity has been sought hereunder, unless such settlement includes an
      unconditional release of such Indemnified Party from all liability on claims
      that are the subject matter of such Proceeding.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    All
      fees
      and expenses of the Indemnified Party (including reasonable fees and expenses
      to
      the extent incurred in connection with investigating or preparing to defend
      such
      Proceeding in a manner not inconsistent with this Section) shall be paid to
      the
      Indemnified Party, as incurred, within ten (10) Business Days of written notice
      thereof to the Indemnifying Party (regardless of whether it is ultimately
      determined that an Indemnified Party is not entitled to indemnification
      hereunder; provided,
      that the Indemnified Party shall reimburse all such fees and expenses to the
      extent it is finally judicially determined that such Indemnified Party is not
      entitled to indemnification hereunder).

    

    (d) Contribution.
      If a
      claim for indemnification under Section 5(a) or 5(b) is due but unavailable
      to
      an Indemnified Party because of a failure or refusal of a governmental authority
      to enforce such indemnification in accordance with its terms (by reason of
      public policy or otherwise), then each Indemnifying Party, in lieu of
      indemnifying such Indemnified Party, shall contribute to the amount paid or
      payable by such Indemnified Party as a result of such Losses, in such proportion
      as is appropriate to reflect the relative fault of the Indemnifying Party and
      Indemnified Party in connection with the actions, statements or omissions that
      resulted in such Losses as well as any other relevant equitable considerations.
      The relative fault of such Indemnifying Party and Indemnified Party shall be
      determined by reference to, among other things, whether any action in question,
      including any untrue or alleged untrue statement of a material fact or omission
      or alleged omission of a material fact, has been taken or made by, or relates
      to
      information supplied by, such Indemnifying, Party or Indemnified Party, and
      the parties'
      relative intent, knowledge, access to information and opportunity to correct
      or
      prevent such action, statement or omission. The amount paid or payable by a
      party as a result of any Losses shall be deemed to include, subject to the
      limitations set forth in Section 5(c), any reasonable attorneys' or other
      reasonable fees or expenses incurred by such party in connection with any
      Proceeding to the extent such party would have been indemnified for such fees
      or
      expenses if the indemnification provided for in this Section was available
      to
      such party in accordance with its terms.

    

    The
      parties hereto agree that it would not be just and equitable if contribution
      pursuant to this Section 5(d) were determined by pro rata allocation or by
      any
      other method of allocation that does not take into account the equitable
      considerations referred to in the immediately preceding paragraph. 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
      indemnity and contribution agreements contained in this Section are in addition
      to any liability that the Indemnifying Parties may have to the Indemnified
      Parties pursuant to the law.

     

    6. Rule
      144.

    

    As
      long
      as any Holder owns Registrable Securities, the Company covenants to timely
      file
      (or obtain extensions in respect thereof and file within the applicable grace
      period) all reports required to be filed by the Company after the date hereof
      pursuant to Section 13(a) or 15(d) of the Exchange Act. As long as any Holder
      owns Registrable Securities, if the Company is not required to file reports
      pursuant to Section 13(a) or 15(d) of the Exchange Act, it will prepare and
      furnish to the Holders and make publicly available in accordance with Rule
      144(c) promulgated under the Securities Act annual and quarterly financial
      statements, together with a discussion and analysis of such financial statements
      in form and substance substantially similar to those that would otherwise be
      required to be included in reports required by Section 13(a) or 15(d) of the
      Exchange Act, as well as any other information required thereby, in the time
      period that such filings would have been required to have been made under the
      Exchange Act. The Company further covenants that it will take such further
      action as any Holder may reasonably request, all to the extent required from
      time to time to enable such Person to sell the Shares without registration
      under
      the Securities Act within the limitation of the exemptions provided by Rule
      144
      promulgated under the Securities Act, including providing any legal opinions
      relating to such sale pursuant to Rule 144. Upon the request of any Holder,
      the
      Company shall deliver to such Holder a written certification of a duly
      authorized officer as to whether it has complied with such
      requirements.

    

    7. Miscellaneous.

    

    (a) Remedies.
      In the
      event of a breach by the Company or by a Holder, of any of their obligations
      under this Agreement, such Holder or the Company, as the case may be, in
      addition to being entitled to exercise all rights granted by law and under
      this
      Agreement, including recovery of damages, will be entitled to specific
      performance of its rights under this Agreement.
      The Company and each Holder agree that monetary damages would not
      provide adequate
      compensation for any losses incurred by reason of a breach by it of any of
      the
      provisions of this Agreement and hereby further agrees that, in the event of
      any
      action for specific performance in respect of such breach, it shall waive the
      defense that a remedy at law would be adequate.

    

    (b) No
      Inconsistent Agreements.
      Neither
      the Company nor any of its subsidiaries has, as of the date hereof entered
      into
      and currently in effect, nor shall the Company or any of its subsidiaries,
      on or
      after the date of this Agreement, enter into any agreement with respect to
      its
      securities that is inconsistent with the rights granted to the Holders in this
      Agreement or otherwise conflicts with the provisions hereof. Except as disclosed
      in Schedule
      III,
      neither
      the Company nor any of its subsidiaries has previously entered into any
      agreement currently in effect granting any registration rights with respect
      to
      any of its securities to any Person. Without limiting the generality of the
      foregoing, without the written consent of the Holders of a majority of the
      then
      outstanding Registrable Securities, the Company shall not grant to any Person
      the right to request the Company to register any securities of the Company
      under
      the Securities Act unless the rights so granted are subject in all respects
      to
      the prior rights in full of the Holders set forth herein, and are not otherwise
      in conflict with the provisions of this Agreement.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (c) No
      Piggyback on Registrations.
      Neither
      the Company nor any of its security holders (other than the Holders in such
      capacity pursuant hereto or as disclosed in Schedule
      II
      attached
      hereto) may include securities of the Company in the Registration Statement,
      and
      the Company shall not after the date hereof enter into any agreement providing
      such right to any of its securityholders, unless the right so granted is subject
      in all respects to the prior rights in full of the Holders set forth herein,
      and
      is not otherwise in conflict with the provisions of this Agreement.

    

    (d) Piggy-Back
      Registrations.
      If at
      any time when there is not an effective Registration Statement covering the
      Shares, the Company shall determine to prepare and file with the Commission
      a
      registration statement relating to an offering for its own account or the
      account of others under the Securities Act of any of its equity securities,
      other than on Form S-4 or Form S-8 (each as promulgated under the Securities
      Act) or their then equivalents relating to equity securities to be issued solely
      in connection with any acquisition of any entity or business or equity
      securities issuable in connection with stock option or other employee benefit
      plans, the Company shall send to each holder of Registrable Securities written
      notice of such determination and, if within thirty (30) days after receipt
      of
      such notice, or within such shorter period of time as may be specified by the
      Company in such written notice as may be necessary for the Company to comply
      with its obligations with respect to the timing of the filing of such
      registration statement, any such holder shall so request in writing, (which
      request shall specify the Registrable Securities intended to be disposed of
      by
      the Purchasers), the Company will cause the registration under the Securities
      Act of all Registrable Securities which the Company has been so requested to
      register by the holder, to the extent requisite to permit the disposition of
      the
      Registrable Securities so to be registered, provided that if at any time after
      giving written notice of its intention to register any securities and prior
      to
      the effective date of the registration statement filed in connection with such
      registration, the Company shall determine for any reason not to register or
      to
      delay registration of such securities, the Company may, at its election, give
      written notice of such determination to such holder and, thereupon, (i) in
      the
      case of a determination not to register, shall be relieved of its obligation
      to
      register any Registrable Securities in connection with such registration (but
      not from its obligation to pay expenses in accordance with Section 4 hereof),
      and (ii) in the case of a determination to delay registering, shall be permitted
      to delay registering any Registrable Securities being registered pursuant to
      this Section 7(d) for the same period as the delay in registering such other
      securities. The Company shall include in such registration statement all or
      any
      part of such Registrable Securities such holder requests to be registered;
      provided,
      however,
      that
      the Company shall not be required to register any Registrable Securities
      pursuant to this Section 7(d) that are eligible for sale pursuant to Rule 144(k)
      of the Securities Act. In the case of an underwritten public offering, if the
      managing underwriter(s) or underwriter(s) should reasonably object to the
      inclusion of the Registrable Securities in such registration statement, then
      if
      the Company after consultation with the managing underwriter should reasonably
      determine that the inclusion of such Registrable Securities would materially
      adversely affect the offering contemplated in such registration statement,
      and
      based on such determination recommends inclusion in such registration statement
      of fewer or none of the Registrable Securities of the Holders, then (x) the
      number of Registrable Securities of the Holders included in such registration
      statement shall be reduced pro-rata among such Holders (based
      upon the number of Registrable Securities requested to be included in the
      registration), if the Company after consultation with the underwriter(s)
      recommends the inclusion of fewer Registrable Securities, or (y) none of the
      Registrable Securities of the Holders shall be included in such registration
      statement, if the Company after consultation with the underwriter(s) recommends
      the inclusion of none of such Registrable Securities; provided,
      however,
      that if
      Securities are being offered for the account of other persons or entities as
      well as the Company, such reduction shall not represent a greater fraction
      of
      the number of Registrable securities intended to be offered by the Holders
      than
      the fraction of similar reductions imposed on such other persons or entities
      (other than the Company).

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (e) Failure
      to File Registration Statement and Other Events.
      The
      Company and the Purchasers agree that the Holders will suffer damages if the
      Registration Statement is not filed on or prior to the Filing Date and not
      declared effective by the Commission on or prior to the Effectiveness Date
      and
      maintained in the manner contemplated herein during the Effectiveness Time
      or if
      certain other events occur. The Company and the Holders further agree that
      it
      would not be feasible to ascertain the extent of such damages with precision.
      Accordingly, if, except as set forth in Section 3(n), (A) the Registration
      Statement is not filed on or prior to the Filing Date, or (B) the Registration
      Statement is not declared effective by the Commission on or prior to the
      Effectiveness Date, or (C) the Company fails to file with the Commission a
      request for acceleration in accordance with Rule 461 promulgated under the
      Securities Act within five (5) Business Days of the date that the Company is
      notified (orally or in writing, whichever is earlier) by the Commission that
      a
      Registration Statement will not be "reviewed," or is not subject to further
      review, or (D) the Registration Statement is filed with and declared effective
      by the Commission but thereafter ceases to be effective as to all Registrable
      Securities at any time prior to the expiration of the Effectiveness Period,
      without being succeeded by a subsequent Registration Statement filed with and
      declared effective by the Commission in accordance with Section 2 hereof or
      (E)
      the Company has breached Section 3(n), or (F) trading in the Common Stock shall
      be suspended or if the Common Stock is delisted from the OTC Bulletin Board
      for
      any reason for more than three Business Days in the aggregate (any such failure
      or breach being referred to as an "Event,"
      and
      for purposes of clauses (A) and (B) the date on which such Event occurs, or
      for
      purposes of clause (C) the date on which such five Business Day period is
      exceeded, or for purposes of clause (D) after more than twenty Business Days,
      or
      for purposes of clause (F) the date on which such three Business Day period
      is
      exceeded, being referred to as "Event
      Date"),
      then
      the total number of shares of Common Stock covered by the Registration Statement
      for each Holder of Registrable Securities shall be increased by two percent
      (2%)
      for each calendar month thereafter until the applicable Event is cured,
provided
      that the
      aggregate increase in such shares pursuant to this section 7(e) will in no
      event
      exceed twenty percent (20%). Notwithstanding anything to the contrary in this
      paragraph (e), if (I) any of the Events described in clauses (A), (B) or (C)
      shall have occurred, (II) on or prior to the applicable Event Date, the Company
      shall have exercised its rights under Section 3(n) hereof and (III) the
      postponement or suspension permitted pursuant to such Section 3(n) shall remain
      effective as of such applicable Event Date, then the applicable Event Date
      shall
      be deemed instead to occur on the second Business Day following the termination
      of such postponement or suspension. 

    

    (f) Amendments
      and Waivers.
      The
      provisions of this Agreement, including the provisions of this sentence, may
      not
      be amended, modified or supplemented, and waivers or consents to departures
      from
      the provisions hereof may not be given, unless the same shall be in writing
      and
      signed by the Company and the Holders of three-fourths (3/4) of the Registrable
      Securities outstanding. 

    

    (g) Notices.
      Any
      notice, demand, request, waiver or other communication required or permitted
      to
      be given hereunder shall be in writing and shall be effective (a) upon hand
      delivery by telex (with correct answer back received), telecopy or facsimile
      at
      the address or number designated below (if delivered on a business day during
      normal business hours where such notice is to be received), or the first
      business day following such delivery (if delivered other than on a business
      day
      during normal business hours where such notice is to be received) or (b) on
      the
      second business day following the date of mailing by express courier service,
      fully prepaid, addressed to such address, or upon actual receipt of such
      mailing, whichever shall first occur. The addresses for such communications
      shall be with respect to each Holder at its address set forth under its name
      on
Schedule
      I
      attached
      hereto, or with respect to the Company, addressed to:

     

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Online
      Processing, Inc.

    750
      East
      Interstate 30, Suite 100

    Rockwall,
      TX 75087 

    Attention:
      Ms. Terri Wonderly

    Tel.
      No.:
      (972) 771-3863

    

    

    With
      a
      copy, which shall not constitute notice, to: 

    

    Law
      Offices of Louis E. Taubman, P.C.

    225
      Broadway, Suite 1200

    New
      York,
      New York 10007

    Attention:
      Louis E. Taubman, Esq.

    Tel
      No.:
      (212) 732-7184

    Fax
      No.:
(212)
      202-6380

    

    or
      to
      such other address or addresses or facsimile number or numbers as any such
      party
      may most recently have designated in writing to the other parties hereto by
      such
      notice. 

    

    (h) Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their successors and permitted assigns and shall inure to the benefit of each
      Holder and its successors and assigns. The Company may not assign this Agreement
      or any of its rights or obligations hereunder without the prior written consent
      of each Holder. Each Purchaser may assign its rights hereunder in the manner
      and
      to the Persons as permitted under the Memorandum.

    

    (i) Assignment
      of Registration Rights.
      The
      rights of each Holder hereunder, including the right to have the Company
      register for resale Registrable Securities in accordance with the terms of
      this
      Agreement, shall be automatically assignable by each Holder to any Affiliate
      of
      such Holder or any other Holder or
      Affiliate of any other Holder
      of
      all or a portion of
      the
      Registrable Securities if: (i) the Holder agrees in writing with the transferee
      or assignee to assign such rights, and a copy of such agreement is furnished
      to
      the Company within a reasonable time after such assignment, (ii) the Company
      is,
      within a reasonable time after such transfer or assignment, furnished with
      written notice of (a) the name and address of such transferee or assignee,
      and
      (b) the securities with respect to which such registration rights are being
      transferred or assigned, (iii) following such transfer or assignment the further
      disposition of such securities by the transferee or assignees is restricted
      under the Securities Act and applicable state securities laws, (iv) at or before
      the time the Company receives the written notice contemplated by clause (ii)
      of
      this Section, the transferee or assignee agrees in writing with the Company
      to
      be bound by all of the provisions of this Agreement, and (v) such transfer
      shall
      have been made in accordance with the applicable requirements of the Memorandum.
      In addition, each Holder shall have the right to assign its rights hereunder
      to
      any other Person with the prior written consent of the Company, which consent
      shall not be unreasonably withheld provided that such assignment shall be in
      accordance with applicable securities laws. The rights to assignment shall
      apply
      to the Holders (and to subsequent) successors and assigns. 

    

    (j) Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which when
      so
      executed shall be deemed to be an original and, all of which taken together
      shall constitute one and the same Agreement. In the event that any signature
      is
      delivered by facsimile transmission, such signature shall create a valid binding
      obligation of the party executing (or on whose behalf such signature is
      executed) the same with the same force and effect as if such facsimile signature
      were the original thereof.

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    (k) Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the internal
      laws of the State of New York, without giving effect to any of the conflicts
      of
      law principles which would result in the application of the substantive law
      of
      another jurisdiction. This Agreement shall not interpreted or construed with
      any
      presumption against the party causing this Agreement to be drafted.

    

      (l) Cumulative
      Remedies.
      The
      remedies provided herein are cumulative and not exclusive of any remedies
      provided by law.

    

    (m) Severability.
      If any
      term, provision, covenant or restriction of this Agreement is held to be
      invalid, illegal, void or unenforceable in any respect, the remainder of the
      terms, provisions, covenants and restrictions set forth herein shall remain
      in
      full force and effect and shall in no way be affected, impaired or invalidated,
      and the parties hereto shall use their reasonable efforts to find and employ
      an
      alternative means to achieve the same or substantially the same result as that
      contemplated by such term, provision, covenant or restriction. It is hereby
      stipulated and declared to
      be the
      intention of the parties that they would have executed the remaining terms,
      provisions, covenants and restrictions without including any of such that may
      be
      hereafter declared invalid, illegal, void or unenforceable.

    

      (n) Headings.
      The
      headings herein are for convenience only, do not constitute a part of this
      Agreement and shall not be deemed to limit or affect any of the provisions
      hereof.

    

    (o) Shares
      Held by the Company and its Affiliates.
      Whenever the consent or approval of Holders of a specified percentage of
      Registrable Securities is required hereunder, Registrable Securities held by
      the
      Company or its Affiliates (other than any Holder or transferees or successors
      or
      assigns thereof if such Holder is deemed to be an Affiliate solely by reason
      of
      its holdings of such Registrable Securities) shall not be counted in determining
      whether such consent or approval was given by the Holders of such required
      percentage.

    

    (p) Independent
      Nature of Purchasers.
      The
      Company acknowledges that the obligations of each Purchaser under the
      Transaction Documents are several and not joint with the obligations of any
      other Purchaser, and no Purchaser shall be responsible in any way for the
      performance of the obligations of any other Purchaser under the Transaction
      Documents. The Company acknowledges that the decision of each Purchaser to
      purchase securities pursuant to the Memorandum has been made by such Purchaser
      independently of any other purchase and independently of any information,
      materials, statements or opinions as to the business, affairs, operations,
      assets, properties, liabilities, results of operations, condition (financial
      or
      otherwise) or prospects of the Company or of its Subsidiaries which may have
      made or given by any other Purchaser or by any agent or employee of any other
      Purchaser, and no Purchaser or any of its agents or employees shall have any
      liability to any Purchaser (or any other person) relating to or arising from
      any
      such information, materials, statements or opinions. The Company acknowledges
      that nothing contained herein, or in any Transaction Document, and no action
      taken by any Purchaser pursuant hereto or thereto (including, but not limited
      to, the (i) inclusion of a Purchaser in the Registration Statement and (ii)
      review by, and consent to, such Registration Statement by a Purchaser) shall
      be
      deemed to constitute the Purchasers as a partnership, an association, a joint
      venture or any other kind of entity, or create a presumption that the Purchasers
      are in any way acting in concert or as a group with respect to such obligations
      or the transactions contemplated by the Transaction Documents. The Company
      acknowledges that each Purchaser shall be entitled to independently protect
      and
      enforce its rights, including without limitation, the rights arising out of
      this
      Agreement or out of the other Transaction Documents, and it shall not be
      necessary for any other Purchaser to be joined as an additional party in any
      proceeding for such purpose. The Company acknowledges that for reasons of
      administrative convenience only, the Transaction Documents have been prepared
      by
      counsel for one of the Purchasers and such counsel does not represent all of
      the
      Purchasers but only such Purchaser and the other Purchasers have retained their
      own individual counsel with respect to the transactions contemplated
      hereby.  The Company acknowledges that it has elected to provide all
      Purchasers with the same terms and Transaction Documents for the convenience
      of
      the Company and not because it was required or requested to do so by the
      Purchasers. The Company acknowledges that such procedure with respect to the
      Transaction Documents in no way creates a presumption that the Purchasers are
      in
      any way acting in concert or as a group with respect to the Transaction
      Documents or the transactions contemplated hereby or thereby.

    

    

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

    
 

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Registration Rights
      Agreement to be duly executed by their respective authorized persons as of
      the
      date first indicated above.

    

    ONLINE
      PROCESSING, INC.

    

    

    By:_____________________________________            

    Name:
      

    Title:
      

    

    

    PURCHASER:

    

    

    By:_____________________________________              

    Name:
      

    Title:

    

    

    

    

     

    

    

     

    

    

     

     

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Schedule
      I

    Purchasers

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Schedule
      II

    Securities
      Permitted to be Included on the Registration Statement

    

    1. Chardan
      Capital Markets, LLC  
      133,000
      shares

    2. Maxim
      Group, LLC 
      110,000
      shares

    3. Chardan
      Capital, LLC 
      800,000
      shares

    4. Chardan
      JLF 1,000,000
      shares

    5. Craig
      Samuels 
      125,000
      shares

    6. Siar
      Capital 
      125,000
      shares

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]