Document:

ex-10_7.htm

    Exhibit
      10.7

     

    

     

    

     

    THIS
      WARRANT AND THE SHARES ISSUABLE UPON THE EXERCISE OF THIS WARRANT HAVE NOT
      BEEN
      REGIS­TERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.  EXCEPT
      AS OTHERWISE SET FORTH HEREIN OR IN A SECURITIES PURCHASE AGREEMENT DATED AS
      OF
      SEPTEMBER 13, 2007, NEITHER THIS WARRANT NOR ANY OF SUCH SHARES MAY BE SOLD,
      TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRA­TION
      STATEMENT FOR SUCH SECURITIES UNDER SAID ACT OR, AN OPINION OF COUNSEL, IN
      FORM,
      SUBSTANCE AND SCOPE, CUSTOMARY FOR OPINIONS OF COUNSEL IN COMPARABLE
      TRANSACTIONS, THAT REGISTRATION IS NOT REQUIRED UNDER SUCH ACT OR UNLESS SOLD
      PURSUANT TO RULE 144 OR REGULATION S UNDER SUCH ACT.

                        

                                Right
      to Purchase
      220,000 Shares of Common Stock, par value $.001 per share

     

    STOCK
      PURCHASE WARRANT

     

    THIS
      CERTIFIES THAT, for value received, New Millennium Capital Partners II, LLC
      or
      its registered assigns, is entitled to purchase from Juniper Group, Inc., a
      Nevada corporation (the “Company”), at any time or from time to time during the
      period specified in Paragraph 2 hereof, 220,000 fully paid and
      nonassessable shares of the Company’s Common Stock, par value $.001 per share
      (the “Common Stock”), at an exercise price per share equal to $.005 (the
“Exercise Price”).  The term “Warrant Shares,” as used herein, refers
      to the shares of Common Stock purchasable hereunder.  The Warrant
      Shares and the Exercise Price are subject to adjustment as provided in Paragraph
      4 hereof.  The term “Warrants” means this Warrant and the other
      warrants issued pursuant to that certain Securities Purchase Agreement, dated
      September 13, 2007, by and among the Company and the Buyers listed on the
      execution page thereof (the “Securities Purchase Agreement”).

     

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

     

    1.  Manner
      of Exercise; Issuance of Certificates; Payment for Shares.

     

    
      	
              Subject
                to the provisions hereof, this Warrant may be exercised by the holder
                hereof, in whole or in part, by the surrender of this Warrant, together
                with a completed exercise agreement in the form attached hereto (the
                “Exercise Agreement”), to the Company during normal business hours on any
                business day at the Company’s principal executive offices (or such other
                office or agency of the Company as it may designate by notice to
                the
                holder hereof), and upon (i) payment to the Company in cash, by certified
                or offi­cial bank check or by wire transfer for the account of the
                Company of the Exercise Price for the Warrant Shares specified in
                the
                Exercise Agreement or (ii) if the resale of the Warrant Shares by
                the
                holder is not then registered pursuant to an effective registration
                statement under the Securities Act of 1933, as amended (the “Securities
                Act”), delivery to the Company of a written notice of an election to
                effect a “Cashless Exercise” (as defined in Section 11(c) below) for the
                Warrant Shares specified in the Exercise Agreement.  The Warrant
                Shares so purchased shall be deemed to be issued to the holder hereof
                or
                such holder’s designee, as the record owner of such shares, as of the
                close of business on the date on which this Warrant shall have been
                surrendered, the completed Exercise Agreement shall have been
                deliv­ered, and payment shall have been made for such shares as set
                forth above.  Certifi­cates for the Warrant Shares so
                purchased, representing the aggregate number of shares specified
                in the
                Exercise Agreement, shall be delivered to the holder hereof within
                a
                reasonable time, not exceeding five (5) business days, after this
                Warrant
                shall have been so exercised.  The certificates so delivered
                shall be in such denominations as may be requested by the holder
                hereof
                and shall be registered in the name of such holder or such other
                name as
                shall be designated by such holder.  If this Warrant shall have
                been exercised only in part, then, unless this Warrant has expired,
                the
                Company shall, at its expense, at the time of delivery of such
                certificates, deliver to the holder a new Warrant representing the
                number
                of shares with respect to which this Warrant shall not then have
                been
                exercised.  In addition to all other available remedies at law
                or in equity, if the Company fails to deliver certificates for the
                Warrant
                Shares within five (5) business days after this Warrant is exercised,
                then
                the Company shall pay to the holder in cash a penalty (the “Penalty”)
                equal to 2% of the number of Warrant Shares that the holder is entitled
                to
                multiplied by the Market Price (as hereinafter defined) for each
                day that
                the Company fails to deliver certificates for the Warrant
                Shares.  For example, if the holder is entitled to 100,000
                Warrant Shares and the Market Price is $2.00, then the Company shall
                pay
                to the holder $4,000 for each day that the Company fails to deliver
                certificates for the Warrant Shares.  The Penalty shall be paid
                to the holder by the fifth day of the month following the month in
                which
                it has accrued.

            

    

     

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

     

    2.  Period
      of Exercise.

     

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

            

    

     

    3.  Certain
      Agreements of the Company.

     

    
      	
                The
                Company hereby covenants and agrees as
                follows:

            

    

     

    (a)  Shares
      to be Fully Paid.  Subject to Stockholder Approval (as such term
      is defined in the Securities Purchase Agreement), all Warrant Shares will,
      upon
      issuance in accordance with the terms of this Warrant, be validly issued, fully
      paid, and nonassessable and free from all taxes, liens, and charges with respect
      to the issue thereof.

     

    (b)  Reservation
      of Shares.  Subject to Stockholder Approval (as such term is
      defined in the Securities Purchase Agreement), during the Exercise Period,
      the
      Company shall at all times have authorized, and reserved for the purpose of
      issuance upon exercise of this Warrant, a suf­ficient number of shares of
      Common Stock to provide for the exercise of this Warrant.

     

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

     

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

     

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

     

    4.  Antidilution
      Provisions.

     

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

     

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

     

    (a)  Adjustment
      of Exercise Price and Number of Shares upon Issuance of Common
      Stock.  Except as otherwise provided in Paragraphs 4(c) and 4(e)
      hereof, if and whenever on or after the date of issuance of this Warrant, the
      Company issues or sells, or in accordance with Paragraph 4(b) hereof is deemed
      to have issued or sold, any shares of Common Stock for no consideration or
      for a
      consideration per share (before deduction of reasonable expenses or commissions
      or underwriting discounts or allowances in connection therewith) less than
      the
      Market Price on the date of issuance (a “Dilutive Issuance”), then immediately
      upon the Dilutive Issuance, the Exercise Price will be reduced to a price
      determined by multiplying the Exercise Price in effect immediately prior to
      the
      Dilutive Issuance by a fraction, (i) the numerator of which is an amount equal
      to the sum of (x) the number of shares of Common Stock actually outstanding
      immediately prior to the Dilutive Issuance, plus (y) the quotient of the
      aggregate consideration, calculated as set forth in Paragraph 4(b) hereof,
      received by the Company upon such Dilutive Issuance divided by the Market Price
      in effect immediately prior to the Dilutive Issuance, and (ii) the denominator
      of which is the total number of shares of Common Stock Deemed Outstanding (as
      defined below) immediately after the Dilutive
      Issuance.  Notwithstanding anything contained in this Section 4 to the
      contrary, the holder hereof hereby acknowledges that the issuance of any shares
      of Common Stock in connection with any of the transactions set forth on
Schedule A, attached hereto, shall not be deemed a Dilutive Issuance and
      accordingly there will be no reduction to  the Exercise
      Price.

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    (h)  Minimum
      Adjustment of Exercise Price.  No adjustment of the Exercise Price
      shall be made in an amount of less than 1% of the Exercise Price in effect
      at
      the time such adjustment is otherwise required to be made, but any such lesser
      adjustment shall be carried forward and shall be made at the time and together
      with the next subsequent adjustment which, together with any adjustments so
      carried forward, shall amount to not less than 1% of such Exercise
      Price.

     

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

     

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

     

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

     

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

     

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

     

    (iv)  there
      shall be a voluntary or involun­tary dissolution, liquidation or winding up
      of the Company;

     

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

     

    (k)  Certain
      Events.  If any event occurs of the type contemplated by the
      adjustment provisions of this Paragraph 4 but not expressly provided for by
      such
      provisions, the Company will give notice of such event as provided in Paragraph
      4(g) hereof, and the Company’s Board of Directors will make an appropriate
      adjustment in the Exercise Price and the number of shares of Common Stock
      acquirable upon exercise of this Warrant so that the rights of the holder shall
      be neither enhanced nor diminished by such event.

     

    (l)  Certain
      Definitions.

     

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

     

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

     

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

     

    5.  Issue
      Tax.

     

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

            

    

     

    6.  No
      Rights or Liabilities as a Shareholder.

     

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

            

    

     

    7.  Transfer,
      Exchange, and Replacement of Warrant.

     

    (a)  Restriction
      on Transfer.  This Warrant and the rights granted to the holder
      hereof are transferable, in whole or in part, upon surrender of this Warrant,
      together with a properly executed assignment in the form attached hereto, at
      the
      office or agency of the Company referred to in Paragraph 7(e) below,
      pro­vided, however, that any transfer or assignment shall be subject to the
      conditions set forth in Paragraph 7(f) hereof and to the applicable provisions
      of the Securities Purchase Agreement.  Until due presentment for
      registration of transfer on the books of the Company, the Company may treat
      the
      registered holder hereof as the owner and holder hereof for all purposes, and
      the Company shall not be affected by any notice to the
      con­trary.  Notwithstanding anything to the contrary contained
      herein, the registration rights described in Paragraph 8 are assignable only
      in
      accordance with the provisions of that certain Registration Rights Agreement,
      dated September 13, 2007, by and among the Company and the other signatories
      thereto (the “Registration Rights Agreement”).

     

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

     

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

     

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

     

    (e)  Register.  The
      Company shall maintain, at its principal executive offices (or such other office
      or agency of the Company as it may designate by notice to the holder hereof),
      a
      register for this Warrant, in which the Company shall record the name and
      address of the person in whose name this Warrant has been issued, as well as
      the
      name and address of each transferee and each prior owner of this
      Warrant.

     

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

     

    8.  Registration
      Rights.

     

    
      	
              The
                initial holder of this Warrant (and certain assignees thereof) is
                entitled
                to the benefit of such registration rights in respect of the Warrant
                Shares as are set forth in Section 2 of the Registration Rights
                Agreement.

            

    

     

    9.  Notices.

     

    
      	
                All
                notices, requests, and other communications required or permitted
                to be
                given or delivered hereunder to the holder of this Warrant shall
                be in
                writing, and shall be personally delivered, or shall be sent by certified
                or registered mail or by recognized overnight mail courier, postage
                prepaid and addressed, to such holder at the address shown for such
                holder
                on the books of the Company, or at such other address as shall have
                been
                furnished to the Company by notice from such holder.  All
                notices, requests, and other communications required or permitted
                to be
                given or delivered hereunder to the Company shall be in writing,
                and shall
                be personally delivered, or shall be sent by certified or registered
                mail
                or by recognized overnight mail courier, postage prepaid and addressed,
                to
                the office of the Company at 111 Great Neck Road, Great Neck, NY
                11021,
                Attention: Chief Executive Officer, or at such other address as shall
                have
                been furnished to the holder of this Warrant by notice from the
                Company.  Any such notice, request, or other communication may
                be sent by facsimile, but shall in such case be subsequently confirmed
                by
                a writing personally delivered or sent by certified or registered
                mail or
                by recognized overnight mail courier as provided above.  All
                notices, requests, and other communications shall be deemed to have
                been
                given either at the time of the receipt thereof by the person entitled
                to
                re­ceive such notice at the address of such person for purposes of
                this Paragraph 9, or, if mailed by registered or certified mail or
                with a
                recognized overnight mail courier upon deposit with the United States
                Post
                Office or such overnight mail courier, if postage is prepaid and
                the
                mailing is properly addressed, as the case may
                be.

            

    

     

    10.  Governing
      Law.

     

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

            

    

     

    11.  Miscellaneous.

     

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

     

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

     

    (c)  Cashless
      Exercise.  Notwithstanding anything to
      the contrary contained in this Warrant, if the resale of the Warrant Shares
      by
      the holder is not then registered pursuant to an effective registration
      statement under the Securities Act, this Warrant may be exercised by
      presentation and surrender of this Warrant to the Company at its principal
      executive offices with a written notice of the holder’s intention to effect a
      cashless exercise, including a calculation of the number of shares of Common
      Stock to be issued upon such exercise in accordance with the terms hereof (a
      “Cashless Exercise”).  In the event of a Cashless Exercise, in lieu of
      paying the Exercise Price in cash, the holder shall surrender this Warrant
      for
      that number of shares of Common Stock determined by multiplying the number
      of
      Warrant Shares to which it would otherwise be entitled by a fraction, the
      numerator of which shall be the difference between the then current Market
      Price
      per share of the Common Stock and the Exercise Price,  and the
      denominator of which shall be the then current Market Price per share of Common
      Stock.  For example, if the holder is exercising 100,000 Warrants with
      a per Warrant exercise price of $0.75 per share through a cashless exercise
      when
      the Common Stock’s current Market Price per share is $2.00 per share, then upon
      such Cashless Exercise the holder will receive 62,500 shares of Common
      Stock.

     

    (d)  Remedies.  The
      Company acknowledges that a breach by it of its obligations hereunder will
      cause
      irreparable harm to the holder, by vitiating the intent and purpose of the
      transaction contemplated hereby.  Accordingly, the Company
      acknowledges that the remedy at law for a breach of its obligations under this
      Warrant will be inadequate and agrees, in the event of a breach or threatened
      breach by the Company of the provisions of this Warrant, that the holder shall
      be entitled, in addition to all other available remedies at law or in equity,
      and in addition to the penalties assessable herein, to an injunction or
      injunctions restraining, preventing or curing any breach of this Warrant and
      to
      enforce specifically the terms and provisions thereof, without the necessity
      of
      showing economic loss and without any bond or other security being
      required.

     

    

     

    

     

    

     

    

     

    

     

    

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

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

     

    JUNIPER
      GROUP, INC.

    

    

    

    By:  /s/Vlado
      Hreljanovic

     Chief
      Executive Officer

    

     

    Dated
      as of September 13, 2007

     

     

     

    FORM
      OF EXERCISE AGREEMENT

     

    

     

    Dated:  ________
      __,
      200_

     

    

     

    To:           ______________________

     

    

     

    

     

    The
      undersigned, pursuant to the provisions set forth in the within Warrant, hereby
      agrees to purchase ________ shares of Common Stock covered by such Warrant,
      and
      makes pay­ment herewith in full therefor at the price per share provided by
      such Warrant in cash or by certified or official bank check in the amount of,
      or, if the resale of such Common Stock by the undersigned is not currently
      registered pursuant to an effective registration statement under the Securities
      Act of 1933, as amended, by surrender of securities issued by the Company
      (including a portion of the Warrant) having a market value (in the case of
      a
      portion of this Warrant, determined in accordance with Section 11(c) of the
      Warrant) equal to $_________.  Please issue a certificate or
      certifi­cates for such shares of Common Stock in the name of and pay any
      cash for any fractional share to:

     

    

     

    Name:                      ______________________________

    

    

    Signature:

    Address:____________________________

    _____________________________

    

    

    
      	
               

            	
              Note:

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

            

    

    

     

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

     

    FORM
      OF ASSIGNMENT

     

    

     

    

     

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

    

     

    Name
      of
      Assignee                                                                           AddressNo
      of Shares

     

    

     

    

     

    

     

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

     

    

     

    Dated:                      ________
      __, 200_

     

    

     

    In
      the presence
      of:                                                                                              ______________________________

     

    Name:______________________________

    

     

    Signature:_________________________

    Title
      of Signing Officer or Agent (if any):

    ______________________________

    Address:                                ______________________________

    ______________________________

    

    

    
      	
               

            	
              Note:

            	
              The
                above signature should correspond exactly with the name on the face
                of the
                within Warrant, if
                applicable.ex-10_8.htm

    Exhibit
      10.8

     

    

     

    REGISTRATION
      RIGHTS AGREEMENT

     

    REGISTRATION
      RIGHTS AGREEMENT (this “Agreement”), dated as of September 13, 2007, by and
      among Juniper Group, Inc., a Nevada corporation, with headquarters located
      at
      20283 State Road, Boca Raton, FL 33498 (the “Company”), and each of the
      undersigned (together with their respective affiliates and any assignee or
      transferee of all of their respective rights hereunder, the “Initial
      Investors”).

     

    WHEREAS:

     

    A.  In
      connection with the Securities Purchase Agreement by and among the parties
      hereto of even date herewith (the “Securities Purchase Agreement”), the Company
      has agreed, upon the terms and subject to the conditions contained therein,
      to
      issue and sell to the Initial Investors (i) secured convertible notes in
      the aggregate principal amount of up to Six Hundred Thousand Dollars ($600,000)
      (the “Notes”) that are convertible into shares of the Company’s common stock
      (the “Common Stock”), upon the terms and subject to the limitations and
      conditions set forth in such Notes and (ii) warrants (the “Warrants”) to
      acquire an aggregate of 20,000,000 shares of Common Stock, upon the terms and
      conditions and subject to the limitations and conditions set forth in the
      Warrants; and

     

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

     

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

     

    1.  DEFINITIONS.

     

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

     

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

     

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

     

    (iii)  “Registrable
      Securities” means the Conversion Shares issued or issuable upon conversion or
      otherwise pursuant to the Notes and Additional Notes (as defined in the
      Securities Purchase Agreement) including, without limitation, Damages Shares
      (as
      defined in the Notes) issued or issuable pursuant to the Notes, shares of Common
      Stock issued or issuable in payment of the Standard Liquidated Damages Amount
      (as defined in the Securities Purchase Agreement), shares issued or issuable
      in
      respect of interest or in redemption of the Notes in accordance with the terms
      thereof) and Warrant Shares issuable, upon exercise or otherwise pursuant to
      the
      Warrants and Additional Warrants (as defined in the Securities Purchase
      Agreement), and any shares of capital stock issued or issuable as a dividend
      on
      or in exchange for or otherwise with respect to any of the
      foregoing.

     

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

     

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

     

    2.  REGISTRATION.

     

    a.  Mandatory
      Registration.  The Company shall prepare, and, on or prior to
      fifteen (15) days from the date of receipt of written demand of the Investors
      (the “Filing Date”), file with the SEC a Registration Statement on Form S-3 (or,
      if Form S-3 is not then available, on such form of Registration Statement as
      is
      then available to effect a registration of the Registrable Securities, subject
      to the consent of the Initial Investors, which consent will not be unreasonably
      withheld) covering the resale of the Registrable Securities underlying the
      Notes
      and Warrants issued or issuable pursuant to the Securities Purchase Agreement,
      which Registration Statement, to the extent allowable under the 1933 Act and
      the
      rules and regulations promulgated thereunder (including Rule 416), shall state
      that such Registration Statement also covers such indeterminate number of
      additional shares of Common Stock as may become issuable upon conversion of
      or
      otherwise pursuant to the Notes and exercise of the Warrants to prevent dilution
      resulting from stock splits, stock dividends or similar
      transactions.  The number of shares of Common Stock initially included
      in such Registration Statement shall be no less than an amount equal to two
      (2)
      times the sum of the number of Conversion Shares that are then issuable upon
      conversion of the Notes and Additional Notes (based on the Variable Conversion
      Price as would then be in effect and assuming the Variable Conversion Price
      is
      the Conversion Price at such time), and the number of Warrant Shares that are
      then issuable upon exercise of the Warrants, without regard to any limitation
      on
      the Investor’s ability to convert the Notes or exercise the
      Warrants.  The Company acknowledges that the number of shares
      initially included in the Registration Statement represents a good faith
      estimate of the maximum number of shares issuable upon conversion of the Notes
      and upon exercise of the Warrants.

     

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

     

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

     

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

     

    e.  Eligibility
      for Form S-3, SB-2 or S-1; Conversion to Form S-3.  The Company
      represents and warrants that it meets the requirements for the use of Form
      SB-3,
      SB-2 or S-1 for registration of the sale by the Initial Investors and any other
      Investors of the Registrable Securities.   The Company agrees to
      file all reports required to be filed by the Company with the SEC in a timely
      manner so as to remain eligible or become eligible, as the case may be, and
      thereafter to maintain its eligibility, for the use of Form S-B2.  If
      the Company is not currently eligible to use Form S-3, not later than five
      (5)
      business days after the Company first meets the registration eligibility and
      transaction requirements for the use of Form S-3 (or any successor form) for
      registration of the offer and sale by the Initial Investors and any other
      Investors of Registrable Securities, the Company shall file a Registration
      Statement on Form S-3 (or such successor form) with respect to the Registrable
      Securities covered by the Registration Statement on Form SB-2 or Form S-1,
      whichever is applicable, filed pursuant to Section 2(a) (and include in such
      Registration Statement on Form S-3 the information required by Rule 429 under
      the 1933 Act) or convert the Registration Statement on Form SB-2 or Form S-1,
      whichever is applicable, filed pursuant to Section 2(a) to a Form S-3 pursuant
      to Rule 429 under the 1933 Act and cause such Registration Statement (or such
      amendment) to be declared effective no later than forty five (45) days after
      filing.  In the event of a breach by the Company of the provisions of
      this Section 2(e), the Company will be required to make payments pursuant to
      Section 2(c) hereof.

     

    3.  OBLIGATIONS
      OF THE COMPANY.

     

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

     

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

     

    b.  The
      Company shall prepare and file with the SEC such amendments (including
      post-effective amendments) and supplements to the Registration Statements and
      the prospectus used in connection with the Registration Statements as may be
      necessary to keep the Registration Statements effective at all times during
      the
      Registration Period, and, during such period, comply with the provisions of
      the
      1933 Act with respect to the disposition of all Registrable Securities of the
      Company covered by the Registration Statements until such time as all of such
      Registrable Securities have been disposed of in accordance with the intended
      methods of disposition by the seller or sellers thereof as set forth in the
      Registration Statements.  In the event the number of shares available
      under a Registration Statement filed pursuant to this Agreement is insufficient
      to cover all of the Registrable Securities issued or issuable upon conversion
      of
      the Notes and exercise of the Warrants, the Company shall amend the Registration
      Statement, or file a new Registration Statement (on the short form available
      therefor, if applicable), or both, so as to cover all of the Registrable
      Securities, in each case, as soon as practicable, but in any event within
      fifteen (15) days after the necessity therefor arises (based on the market
      price
      of the Common Stock and other relevant factors on which the Company reasonably
      elects to rely).  The Company shall use its best efforts to cause such
      amendment and/or new Registration Statement to become effective as soon as
      practicable following the filing thereof, but in any event within thirty (30)
      days after the date on which the Company reasonably first determines (or
      reasonably should have determined) the need therefor.  The provisions
      of Section 2(c) above shall be applicable with respect to such obligation,
      with
      the one hundred and twenty (120) days running from the day the Company
      reasonably first determines (or reasonably should have determined) the need
      therefor.

     

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

     

    d.  The
      Company shall use reasonable efforts to (i) register and qualify the
      Registrable Securities covered by the Registration Statements under such other
      securities or “blue sky” laws of such jurisdictions in the United States as the
      Investors who hold a majority in interest of the Registrable Securities being
      offered reasonably request, (ii) prepare and file in those jurisdictions
      such amendments (including post-effective amendments) and supplements to such
      registrations and qualifications as may be necessary to maintain the
      effectiveness thereof during the Registration Period, (iii) take such other
      actions as may be necessary to maintain such registrations and qualifications
      in
      effect at all times during the Registration Period, and (iv) take all other
      actions reasonably necessary or advisable to qualify the Registrable Securities
      for sale in such jurisdictions; provided, however, that the
      Company shall not be required in connection therewith or as a condition thereto
      to (a) qualify to do business in any jurisdiction where it would not
      otherwise be required to qualify but for this Section 3(d), (b) subject
      itself to general taxation in any such jurisdiction, (c) file a general
      consent to service of process in any such jurisdiction, (d) provide any
      undertakings that cause the Company undue expense or burden, or (e) make
      any change in its charter or bylaws, which in each case the Board of Directors
      of the Company determines to be contrary to the best interests of the Company
      and its shareholders.

     

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

     

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

     

    g.  The
      Company shall use its best efforts to prevent the issuance of any stop order
      or
      other suspension of effectiveness of any Registration Statement, and, if such
      an
      order is issued, to obtain the withdrawal of such order at the earliest possible
      moment and to notify each Investor who holds Registrable Securities being sold
      (or, in the event of an underwritten offering, the managing underwriters) of
      the
      issuance of such order and the resolution thereof.

     

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

     

    i.  The
      Company shall make generally available to its security holders as soon as
      practicable, but not later than one hundred and twenty (120) days after the
      close of the period covered thereby, an earnings statement (in form complying
      with the provisions of Rule 158 under the 1933 Act) covering a twelve-month
      period beginning not later than the first day of the Company’s fiscal quarter
      next following the effective date of the Registration Statement.

     

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

     

    k.  The
      Company shall make available for inspection by (i) any Investor,
      (ii) any underwriter participating in any disposition pursuant to a
      Registration Statement, (iii) one firm of attorneys and one firm of
      accountants or other agents retained by the Initial Investors, (iv) one
      firm of attorneys and one firm of accountants or other agents retained by all
      other Investors, and (v) one firm of attorneys retained by all such
      underwriters (collectively, the “Inspectors”) all pertinent financial and other
      records, and pertinent corporate documents and properties of the Company,
      including without limitation, records of conversions by other holders of
      convertible securities issued by the Company and the issuance of stock to such
      holders pursuant to the conversions (collectively, the “Records”), as shall be
      reasonably deemed necessary by each Inspector to enable each Inspector to
      exercise its due diligence responsibility, and cause the Company’s officers,
      directors and employees to supply all information which any Inspector may
      reasonably request for purposes of such due diligence; provided,
however, that each Inspector shall hold in confidence and shall not
      make
      any disclosure (except to an Investor) of any Record or other information which
      the Company determines in good faith to be confidential, and of which
      determination the Inspectors are so notified, unless (a) the disclosure of
      such Records is necessary to avoid or correct a misstatement or omission in
      any
      Registration Statement, (b) the release of such Records is ordered pursuant
      to a subpoena or other order from a court or government body of competent
      jurisdiction, or (c) the information in such Records has been made
      generally available to the public other than by disclosure in violation of
      this
      or any other agreement.  The Company shall not be required to disclose
      any confidential information in such Records to any Inspector until and unless
      such Inspector shall have entered into confidentiality agreements (in form
      and
      substance satisfactory to the Company) with the Company with respect thereto,
      substantially in the form of this Section 3(k).  Each Investor agrees
      that it shall, upon learning that disclosure of such Records is sought in or
      by
      a court or governmental body of competent jurisdiction or through other means,
      give prompt notice to the Company and allow the Company, at its expense, to
      undertake appropriate action to prevent disclosure of, or to obtain a protective
      order for, the Records deemed confidential.  Nothing herein (or in any
      other confidentiality agreement between the Company and any Investor) shall
      be
      deemed to limit the Investor’s ability to sell Registrable Securities in a
      manner which is otherwise consistent with applicable laws and
      regulations.

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

    4.  OBLIGATIONS
      OF THE INVESTORS.

     

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

     

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

     

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

     

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

     

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

     

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

     

    5.  EXPENSES
      OF REGISTRATION.

     

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

     

    6.  INDEMNIFICATION.

     

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

     

    a.  To
      the extent permitted by law, the Company will indemnify, hold harmless and
      defend (i) each Investor who holds such Registrable Securities,
      (ii) the directors, officers, partners, employees, agents and each person
      who controls any Investor within the meaning of the 1933 Act or the Securities
      Exchange Act of 1934, as amended (the “1934 Act”), if any, (iii) any
      underwriter (as defined in the 1933 Act) for the Investors, and (iv) the
      directors, officers, partners, employees and each person who controls any such
      underwriter within the meaning of the 1933 Act or the 1934 Act, if any (each,
      an
“Indemnified Person”), against any joint or several losses, claims, damages,
      liabilities or expenses (collectively, together with actions, proceedings or
      inquiries by any regulatory or self-regulatory organization, whether commenced
      or threatened, in respect thereof, “Claims”) to which any of them may become
      subject insofar as such Claims arise out of or are based upon: (i) any untrue
      statement or alleged untrue statement of a material fact in a Registration
      Statement or the omission or alleged omission to state therein a material fact
      required to be stated or necessary to make the statements therein not
      misleading; (ii) any untrue statement or alleged untrue statement of a material
      fact contained in any preliminary prospectus if used prior to the effective
      date
      of such Registration Statement, or contained in the final prospectus (as amended
      or supplemented, if the Company files any amendment thereof or supplement
      thereto with the SEC) or the omission or alleged omission to state therein
      any
      material fact necessary to make the statements made therein, in light of the
      circumstances under which the statements therein were made, not misleading;
      or
      (iii) any violation or alleged violation by the Company of the 1933 Act, the
      1934 Act, any other law, including, without limitation, any state securities
      law, or any rule or regulation thereunder relating to the offer or sale of
      the
      Registrable Securities (the matters in the foregoing clauses (i) through (iii)
      being, collectively, “Violations”).  Subject to the restrictions set
      forth in Section 6(c) with respect to the number of legal counsel, the Company
      shall reimburse the Indemnified Person, promptly as such expenses are incurred
      and are due and payable, for any reasonable legal fees or other reasonable
      expenses incurred by them in connection with investigating or defending any
      such
      Claim.  Notwithstanding anything to the contrary contained herein, the
      indemnification agreement contained in this Section 6(a): (i) shall not apply
      to
      a Claim arising out of or based upon a Violation which occurs in reliance upon
      and in conformity with information furnished in writing to the Company by any
      Indemnified Person or underwriter for such Indemnified Person expressly for
      use
      in connection with the preparation of such Registration Statement or any such
      amendment thereof or supplement thereto, if such prospectus was timely made
      available by the Company pursuant to Section 3(c) hereof; (ii) shall not apply
      to amounts paid in settlement of any Claim if such settlement is effected
      without the prior written consent of the Company, which consent shall not be
      unreasonably withheld; and (iii) with respect to any preliminary prospectus,
      shall not inure to the benefit of any Indemnified Person if the untrue statement
      or omission of material fact contained in the preliminary prospectus was
      corrected on a timely basis in the prospectus, as then amended or supplemented,
      such corrected prospectus was timely made available by the Company pursuant
      to
      Section 3(c) hereof, and the Indemnified Person was promptly advised in writing
      not to use the incorrect prospectus prior to the use giving rise to a Violation
      and such Indemnified Person, notwithstanding such advice, used
      it.  Such indemnity shall remain in full force and effect regardless
      of any investigation made by or on behalf of the Indemnified Person and shall
      survive the transfer of the Registrable Securities by the Investors pursuant
      to
      Section 9.

     

    b.  In
      connection with any Registration Statement in which an Investor is
      participating, each such Investor agrees severally and not jointly to indemnify,
      hold harmless and defend, to the same extent and in the same manner set forth
      in
      Section 6(a), the Company, each of its directors, each of its officers who
      signs
      the Registration Statement, each person, if any, who controls the Company within
      the meaning of the 1933 Act or the 1934 Act, any underwriter and any other
      shareholder selling securities pursuant to the Registration Statement or any
      of
      its directors or officers or any person who controls such shareholder or
      underwriter within the meaning of the 1933 Act or the 1934 Act (collectively
      and
      together with an Indemnified Person, an “Indemnified Party”), against any Claim
      to which any of them may become subject, under the 1933 Act, the 1934 Act or
      otherwise, insofar as such Claim arises out of or is based upon any Violation
      by
      such Investor, in each case to the extent (and only to the extent) that such
      Violation occurs in reliance upon and in conformity with written information
      furnished to the Company by such Investor expressly for use in connection with
      such Registration Statement; and subject to Section 6(c) such Investor will
      reimburse any legal or other expenses (promptly as such expenses are incurred
      and are due and payable) reasonably incurred by them in connection with
      investigating or defending any such Claim; provided, however, that
      the indemnity agreement contained in this Section 6(b) shall not apply to
      amounts paid in settlement of any Claim if such settlement is effected without
      the prior written consent of such Investor, which consent shall not be
      unreasonably withheld; provided, further, however, that the
      Investor shall be liable under this Agreement (including this Section 6(b)
      and
      Section 7) for only that amount as does not exceed the net proceeds to such
      Investor as a result of the sale of Registrable Securities pursuant to such
      Registration Statement.  Such indemnity shall remain in full force and
      effect regardless of any investigation made by or on behalf of such Indemnified
      Party and shall survive the transfer of the Registrable Securities by the
      Investors pursuant to Section 9. Notwithstanding anything to the contrary
      contained herein, the indemnification agreement contained in this Section 6(b)
      with respect to any preliminary prospectus shall not inure to the benefit of
      any
      Indemnified Party if the untrue statement or omission of material fact contained
      in the preliminary prospectus was corrected on a timely basis in the prospectus,
      as then amended or supplemented.

     

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

     

    7.  CONTRIBUTION.

     

    To
      the extent any indemnification by an indemnifying party is prohibited or limited
      by law, the indemnifying party agrees to make the maximum contribution with
      respect to any amounts for which it would otherwise be liable under Section
      6 to
      the fullest extent permitted by law; provided, however, that
      (i) no contribution shall be made under circumstances where the maker would
      not have been liable for indemnification under the fault standards set forth
      in
      Section 6, (ii) no seller of Registrable Securities guilty of fraudulent
      misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall
      be
      entitled to contribution from any seller of Registrable Securities who was
      not
      guilty of such fraudulent misrepresentation, and (iii)contribution (together
      with any indemnification or other obligations under this Agreement) by any
      seller of Registrable Securities shall be limited in amount to the net amount
      of
      proceeds received by such seller from the sale of such Registrable
      Securities.

     

    8.  REPORTS
      UNDER THE 1934 ACT.

     

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

     

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

     

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

     

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

     

    9.  ASSIGNMENT
      OF REGISTRATION RIGHTS.

     

    The
      rights under this Agreement shall be automatically assignable by the Investors
      to any transferee of all or any portion of Registrable Securities if:
      (i) the Investor agrees in writing with the transferee or assignee to
      assign such rights, and a copy of such agreement is furnished to the Company
      within a reasonable time after such assignment, (ii) the Company is, within
      a reasonable time after such transfer or assignment, furnished with written
      notice of (a) the name and address of such transferee or assignee, and
      (b) the securities with respect to which such registration rights are being
      transferred or assigned, (iii) following such transfer or assignment, the
      further disposition of such securities by the transferee or assignee is
      restricted under the 1933 Act and applicable state securities laws, (iv) at
      or
      before the time the Company receives the written notice contemplated by clause
      (ii) of this sentence, the transferee or assignee agrees in writing with the
      Company to be bound by all of the provisions contained herein, (v) such transfer
      shall have been made in accordance with the applicable requirements of the
      Securities Purchase Agreement, and (vi) such transferee shall be an “accredited
      investor” as that term defined in Rule 501 of Regulation D promulgated under the
      1933 Act.

     

    10.  AMENDMENT
      OF REGISTRATION RIGHTS.

     

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

     

    11.  MISCELLANEOUS.

     

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

     

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

     

    If
      to the Company:

     

    Juniper
      Group, Inc.

     

    20283
      State Road, Suite 400

     

    Boca
      Raton, Florida  33498

     

    Attention:  Chief
      Executive Officer

     

    Telephone:  (561)
      482-9327

     

    Facsimile:
      (561) 482-9328With a copy to:

     

    Sichenzia
      Ross Friedman Ference LLP

    1065
      Avenue of the Americas

    New
      York, NY  10018

    Attention:   Gregory
      Sichenzia, Esq.

    Telephone:  (212)
      930-9700

    Facsimile:   (212)
      930-9725

     

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

     

    With
      a copy to:

     

    Ballard
      Spahr Andrews & Ingersoll, LLP

     

    1735
      Market Street

     

    51st
      Floor

     

    Philadelphia,
      Pennsylvania  19103

     

    Attention:  Gerald
      J. Guarcini, Esq.

     

    Telephone:  215-865-8625

     

    Facsimile:  215-864-8999

     

    

     

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

     

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

     

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

     

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

     

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

     

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

     

    i.  This
      Agreement may be executed in two or more counterparts, each of which shall
      be
      deemed an original but all of which shall constitute one and the same agreement
      and shall become effective when counterparts have been signed by each party
      and
      delivered to the other party.  This Agreement, once executed by a
      party, may be delivered to the other party hereto by facsimile transmission
      of a
      copy of this Agreement bearing the signature of the party so delivering this
      Agreement.

     

    j.  Each
      party shall do and perform, or cause to be done and performed, all such further
      acts and things, and shall execute and deliver all such other agreements,
      certificates, instruments and documents, as the other party may reasonably

      request in order to carry out the intent and accomplish the purposes of this
      Agreement and the consummation of the transactions contemplated
      hereby.

     

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

     

    l.  The
      Company acknowledges that a breach by it of its obligations hereunder will
      cause
      irreparable harm to each Investor by vitiating the intent and purpose of the
      transactions contemplated hereby.  Accordingly, the Company
      acknowledges that the remedy at law for breach of its obligations under this
      Agreement will be inadequate and agrees, in the event of a breach or threatened
      breach by the Company of any of the provisions under this Agreement, that each
      Investor shall be entitled, in addition to all other available remedies in
      law
      or in equity, and in addition to the penalties assessable herein,  to
      an injunction or injunctions restraining, preventing or curing any breach of
      this Agreement and to enforce specifically the terms and provisions hereof,
      without the necessity of showing economic loss and without any bond or other
      security being required.

     

    m.  The
      language used in this Agreement will be deemed to be the language chosen by
      the
      parties to express their mutual intent, and no rules of strict construction
      will
      be applied against any party.

     

    

     

    

     

    

     

    

     

    

     

    

     

    

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

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

     

    JUNIPER
      GROUP, INC.

     

    By: 
      /s/Vlado P. Hreljanovic

     

    Chief
      Executive Officer

     

    AJW
      PARTNERS, LLC

     

     SMS
      Group, LLC

     

    By: 
      /s/ Corey S. Ribotsky

     

    Manager

     

    AJW
      MASTER FUND, LTD.

     First
      Street Manager II, LLC

    

    By: 
      /s/Corey S. Ribotsky

    Manager

    

    

    

    NEW
      MILLENNIUM CAPITAL PARTNERS, II, LLC

     First
      Street Manager II, LLC

     

    By: 
      /s/Corey S. Ribotsky

    Manager

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